FDBusiness.com

Volatility Creates Opportunity in Global Drinks Market

 Breaking News
  • Coca-Cola HBC to Acquire Italian Water and Sparkling Beverages Company in €88 Million Deal Coca‑Cola HBC has agreed to acquire Acque Minerali, a privately-held natural mineral water and adult sparkling beverages business based in Italy. The acquisition is being made in conjunction with The Coca-Cola Company, in-line with previous similar acquisitions. The total enterprise value payable by Coca‑Cola HBC and The Coca‑Cola Company, subject to customary closing adjustments, amounts [...]...
  • Britvic Signs Up to Science Based Targets Initiative Britvic has pledged to pursue bolder greenhouse gas (GHG) emission reduction targets by signing up to the Science Based Targets initiative. Britvic joins around 600 leading companies from around the world in formally committing to independently verified science-based GHG emission reduction targets. Britvic’s A Healthier Everyday sustainability strategy recognises climate change as one of the biggest threats facing [...]...
  • Marks & Spencer Partners Infarm to Bring Urban Farming to London Stores M&S Food is partnering with infarm – one of the world’s most advanced urban farming platforms – to deliver a range of fresh produce grown and harvested in a selection of the retailer’s London stores. Customers will now find a range of fresh herbs – including Italian, Greek and Bordeaux Basils, Mint, Curly Parsley and Mountain [...]...
  • Coca-Cola European Partners to Remove 4,000 Tonnes of Single-use Plastic by Swapping Shrink Wrap For Cardboard in Western Europe Coca-Cola European Partners, will be replacing plastic shrink wrap with cardboard for its can multipacks across Western Europe, removing approximately 4,000 tonnes of single-use plastic per year across the region. This is the latest move in Coca-Cola’s commitment to tackle packaging waste and remove all unnecessary single-use plastic from its secondary packaging. Plastic shrink wrapping is used [...]...
  • EU Leading in Global Agri-food Trade The EU has been confirmed for yet another year in its position as the largest global exporter of agri-food products, with sales reaching €138 billion in 2018. Agriculture products represent a solid share of 7% of the value of EU total goods exported in 2018, ranking fourth after machinery, other manufactured goods and chemicals. Agriculture and [...]...

Volatility Creates Opportunity in Global Drinks Market

Volatility Creates Opportunity in Global Drinks Market
October 31
11:49 2017

The global drinks market is changing at an unprecedented rate with consumption swings and market preferences both unpredictable and surprising. The recently-released IWSR Global Trends Report 2017 highlights some of the key trends that are creating both opportunities and challenges for industry executives. These include ever-changing consumer tastes, the role of digitization in driving both preference and purchase, up-trading and down-trading in key markets, an increase in healthy lifestyles, and a rise in at-home consumption affecting the on-premise.

These underlying consumption drivers are affecting the overall global drinks landscape. A few key insights include:

Category Convergence: In a continuation of the trend already seen in recent years, the lines between categories are being increasingly blurred. Many consumers no longer think in terms of distinct drink types or occasions, making choices based on personal inclination at the time, rather than loyalty to a certain category. As a result, alcoholic drinks companies are increasingly finding themselves competing for share of stomach across the entire beverage space.

Health and Wellness: With growing awareness of the health implications of excessive drinking, many people are opting to reduce their alcohol intake. For some this involves choosing products that are lower in alcohol. Consequently, low-ABV and non-alcoholic drinks are growing rapidly and producers are introducing ever-more varieties in order to tap into the trend. For others it means drinking less but of better quality, helping to fuel the premiumisation trends seen across a growing number of categories in regions such as North America, Key Europe* and Australasia. Other health trends filtering down from the food industry, including an increased demand for gluten free, dairy free, organic or vegan products, are leading to innovation and new launches.

Trading Up and Down: The premium-and-above segment generally continues to grow well. While in some cases this is simply due to consumers having more money and therefore the means to trade up, it is also related to increasing knowledge. The rise of professional bartenders and popularity of drinks apps, among other factors, is helping to educate people about alcohol and leading them to make more discerning drinks choices. Simultaneously however, the mainstream segment is growing in many parts of the world. In major developing regions such as Asia and Africa this is due to the ongoing growth of the middle classes, which is encouraging consumers to trade up from lower-priced traditional and local products.

Digitalization: Technology is becoming increasingly involved in the sales cycle from building awareness to point-of-sale. Increased access to the internet, social media and digital technology is exposing consumers to more brands and categories, adding pressure on marketers to get their brand to stand out. Websites and apps are becoming increasingly influential in consumer choice by providing drinkers with information, recommendations and even price comparisons. Perhaps even more significant is the rise of the e-commerce channel, which is growing fast and quickly spreading to new markets. Online giants like Amazon are competing with more established grocery retailers, changing not only the way in which consumers purchase alcohol, but also which products and brands they buy.

Authenticity: Consumers are using price less as a definer of quality, instead focusing on the quality of the liquid itself as well as brands’ back stories and values. They are also increasingly seeking out unique and interesting products that reflect their values, focusing on attributes such as quality, authenticity and provenance. As a result, the craft trend continues to grow and spread geographically, making its influence felt across most alcoholic drinks categories although volumes remain small, with the exception of beer in the US.

While some are continuations or evolutions of previous trends, others are still developing and their full impact has yet to be seen. The IWSR Global Trends Report 2017 pulls together both long-term and emerging trends from the global alcoholic drinks industry, which have been collated from in-depth insight gained from local operators.

*Key Europe includes: Belgium, Czech Republic, Denmark, France, Germany, Ireland, Italy, Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, UK.

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements