Beverage production will feature major shifts in consumption as consumers are enticed by new products and flavours.
Beverages is the largest category, with soft drink dominating overall sales. Forecast growth to 2021 is strong at a 2.5% CAGR with stronger growth in hot drinks as many consumers switch to the health benefits of tea, different varieties of coffee and other hot drinks. Sugar-laden carbonates are suffering in many markets as consumers search for healthier, reduced/no sugar alternatives such as hybrid juice drinks, low-fat flavoured milks and bottled water.
Sub-Saharan Africa is the fastest growing region for beverages mainly driven by high demand for tea. This in turn has boosted sales of categories such as RTD tea across emerging retail channels such as convenience and forecourt retailers.
Growing urbanisation in countries influences demand for beverage categories differently. Demand for higher-priced convenience categories such as RTD tea and coffee and higher-grade olive oils is greater in the Middle East and North Africa due to higher disposable income levels while more mass market products, such as beverages (bottled water, packaged tea) and dairy products are in greater demand in Sub-Saharan Africa.