Food and Beverages Global Industry Outlook
The food and beverage industry in North America is colossal and comprises and number of players in largely fragmented and multi-tiered supply chains. The industry is stringently regulated and players often have to adapt to a landscape that changes quite frequently. The primary demand drivers in North America are witnessing fast-paced evolution, as dietary habits receive emphasis, especially among consumers who scour every label to read the ingredients. Although mergers and acquisitions have been a staple in the food and beverage industry, uncertainties in political climate in Europe and America lead to a slowdown in 2016. As there is more clarity on the U.S. Presidential election and Brexit, the pace of mergers and acquisitions is likely to pick up.
The evolving tastes and preferences of consumers are not lost on manufacturers, as offerings have been broadened to accommodate organic and natural food products. Many established players are focusing in acquiring smaller companies which have the expertise and reputation of being pros in specific organic and natural domains. These smaller companies have deep brad loyalty, and owing to the small scale of production, it is much easier for them to come up with innovative products. These factors, combined with increasing emphasis on organic and natural, are likely to make smaller companies attractive targets for mergers and acquisitions.
In Europe, notable developments that the food and beverage industry needs to lookout for are stricter monitoring of unfair trade practices (UTPs) by the European Commission (EC). Many food and beverage manufacturers are currently assessing the risk to business once Brexit comes into effect. As the timing and full impact of Brexit is still uncertain, food and beverage companies are focusing on taking preventive action to secure their business interests.
List of factors tracked in the Food Ingredients Market Report
In the food ingredients sub-domain, the following factors have been tracked.
- Food ingredients consumption by different markets
- Food ingredients produced by key manufactures
- Allied market growth
- Utilization of ingredient by volume in food products
- Key use area (eg. Bakery, beverages, dairy, baby food etc.)
- Parent market growth and share for allied industry
- Level of usage
- Key manufacturers
- Forms available (Form of ingredients)
- FOB and CIF pricing Final product- Consumption pattern and preferences
- Demand for organic, natural and conventional
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
- Executive Summary
- Market Definition
- Macro-economic analysis
- Parent Market Analysis
- Market Overview
- Forecast Factors
- Segmental Analysis and Forecast
- Regional Analysis
- Competition Analysis
Key Questions Answered
- How the market has performed over the past few years?
- What have been the challenges for market participants and how did they overcome them?
- How has the technology landscape evolved over the past years?
- How the competitors have performed and what have been their growth strategies?
- What is the market potential expected to look like in near future across the globe?
- How to sustain and grow market share?
- What should be the future course of action?
- Where do I currently stand?
- Which are the segments, factors, regions offering promising growth potential?
- What are the trends in the market and am I ready for them?
The global beverage emulsion market has been segmented into:
- North America
- Latin America
- Asia Pacific (APAC)
- Middle East and Africa (MEA)
- Acacia Gum
- Modified Starch
- Non-alcoholic Beverages
- Alcoholic Beverages
- Color Emulsion
- Flavor Emulsion
- Cloud Emulsion
- Vitamin Carrier
Oil or water flavored emulsion is the most common form of flavor delivery system followed in the beverage industry. Among the various beverage segments, still or carbonated beverages consume most of the oil or water flavor emulsions. The emulsions are produced by emulsification of the flavor oil or triglycerides with protein-anionic polysaccharide complex polymers to produce stable liquid concentrates and beverages. With the rise in demand for innovative and novel beverage products, formulators are looking for stabilization of colors, flavors, texture and micronutrients in beverages as these ingredients are not soluble in water. There has been a steady rise in demand for multifunctional beverage emulsions given their inherent features such as protection, controlled release, targeted delivery and taste masking. This demand can be witnessed across the globe and more specifically in North America as the region tries to gear up to meet competition in the global market.
Europe to lead owing to high demand for organic beverage ingredients
The growing awareness among consumers regarding organic certified health products has increased the consumption of natural ingredients. This in turn is driving demand for organic ingredients. Most of the demand for organic ingredients comes from food supplements manufacturers for probiotic beverages. Rise in demand for chemical free ingredients is boosting demand for organic beverage ingredients in Europe including beverage emulsions. According to Leatherhead Food International, Europe accounts for the largest segment of the natural colors market, ~36% of the total global market. Beverage manufacturers are looking for natural alternatives that are just as effective in producing crystal clear, stable drinks with no oil residue, which calls for natural color beverage emulsions. As a result, a higher demand for natural color emulsions will augment growth of beverage emulsions in Europe.
In Europe, emulsions are employed in beverages mainly in dairy based drinks such as chocolate milk, flavored milk, and recombined milk. Emulsions are known to bring stability, particle suspension and mouth feel. In addition to this, emulsions further provide stability for long life milk (UHT treated) by preventing separation. Greater benefits of emulsions in dairy beverages in Europe lays a strong growth potential over the forecast period. Moreover, the increase in obesity and increased consumer awareness is driving higher demand for low fat foods. Availability of low-fat beverages produced with the help of emulsions is boosting market demand for beverage emulsions.
Asia Pacific to emerge as a lucrative market in the near future
Revenue potential from the Asia Pacific food emulsions market is most lucrative and governments in countries in the region are approving the use of emulsions as a flavor enhancer. Asia Pacific is projected to hold a major share in beverages consumption by 2028. Key growing markets including China, India, Thailand, Australia, Singapore, Malaysia, and Vietnam will add up to the region’s growth in the beverages industry. Economic conditions in the Asia Pacific will further boost consumption of innovative beverages resulting in demand for innovative beverage ingredients including beverage emulsions.
Moreover, the wide availability of agricultural raw material supplies such as palm oil and other oilseeds and corn and other grains in Indonesia, Malaysia, India and Thailand are expected to lead to a strong growth potential to explore various feedstock for beverage emulsions production. Palm oil esters and corn starch are predominantly used for emulsions production. Adoption of other grains and oilseeds as feedstock will further enhance the supply of beverage emulsions in the APAC region.