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Beverage

Key industry growth drivers

gfmThe beverage industry continues to experience great demand both in cold and hot categories.

The total beverage market reached US$644.5 in 2017. Overall future growth is expected to feature major shifts in consumption as consumers are enticed by new products and flavours.

Bottled water, in particular, is set to
expand strongly due to a growing population and as a healthy, and convenient alternative to carbonates.

Product trends

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.

Processing methods

Manufacturers are relying on innovations in carbonates to stimulate sales. Lower sugar, low and zero calorie, new flavours, raised caffeine levels, increased soy and juice and water-based drinks are on offer as governments ramp up health awareness campaigns.

Information on sourcing and ingredient levels through new digital packaging printing methods are on the rise to help consumers decide if a product fits into their drive for a healthier lifestyle.

Digital printing and health sensors are poised to allow personalisation and diet tracking. Digital hybrid and variable printing and health sensors will support greater product tailoring, tracking and freshness guarantees.

The ability to address individual, personalised dietary needs through labelling and tailoring of food and beverage packaging is forecast to be the next emerging trend. It will allow popular tracking systems to adapt by incorporating dietary evaluation and targeting for a more positive nutritional lifestyle.

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