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Here's what’s trending in the beverage industry:

Gulfood Manufacturing beverage

Cold beverages 

  • 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.
gulfood manufacturing hot beverages

Hot beverages 

  • 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:

  • Functional, reduced sugar and ‘superfruit’ juices.
  • Cold pressed juices
  • Those with low or zero artificial sweeteners
  • Beverages that provide for the luxury experience and tells a story
  • Plant based varieties
  • ‘Craft’ beverages that are brewed and carbonated in small batches using natural, local ingredients such as honey and agave
Source: Euromonitor International

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