Here's what’s trending in the beverage industry:
- The global soft drinks category within the beverage industry expects to grow by 2.4% over the next 5 years.
- The soft drinks market in the MENA region specifically is steadily growing at 4.3% and will make up 5% of the total global retails value by 2021.
- To respond to health-driven demand factors, beverage manufacturers are expected to produce healthier products such as low sugar, and free from artificial colours and preservatives.
- Changing customer preferences demonstrate a switch from artificial, sugary soft drinks to more iced teas, specialty coffees, minimally preserved fresh juices, functional drinks, still and sparkling water variants and fortified beverages.
- In recent times Health and Wellness is the overarching singular trend dictating soft drink sales worldwide.
- Iced teas, sports drinks, functional juices and flavored waters are growing at a faster pace.
- Companies are accelerating their diversification not only in terms of categories but geography, and the MENA region is high up on the agenda.
- Functional, reduced sugar and ‘superfruit’ juices are high value categories getting more attention in the region due to an increasing youth population and a growing middle class with an affinity to buy modern exciting soft drinks.
- Cola carbonates are also currently seeing a better performance in the MENA region when juxtaposed with global performance.
- Demand in the MENA region will be shaped by variety of brands on offer, increasing distribution efficiencies, convenience and competitive prices in the coming years.
- Globally, the hot drinks category is forecasted to grow at 2.9% over the next five years in constant retail value terms.
- The hot beverage market in the MENA region specifically is impressively growing at 5.2% and will make up 7% of the total global retails value by 2021.
- The MENA region will account for 7% of the total global retail value by 2021, growing at an impressive 5.2% over the same time period.
- Premiumisation and the expansion of specialist coffee and tea shops drove value growth.
- Specialist coffee shops is a fast growing category in nearly every market targeting high income consumers in urban areas.
- This is effectively influencing how hot beverages are sold in other foodservice and retail outlets.
- The foodservice channel has a growing influence on retail coffee and tea trends with increasing consumption occasions being driven by the channel.
- The MENA region is growing ahead of global averages due to its strong out of home eating culture. The strength of foodservice sales is having a positive impact on retail with consumers willing to pay extra to recreate the experience at home.
- Hot drinks in the MENA region much akin to global indicators is driven by a focus on a quality luxury experience while emphasizing flavor, health and functionality. In the coming years value concentration will center around premium portioned coffee, fruit/herbal tea, green tea and loose black specialty tea
Key trends and sales drivers include:
Source: Euromonitor International