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.
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
The Internet, e-Commerce, and online stores, along with review sites are making it easy for consumers to compare specialty crops and price levels, along with the origin of the crop and details of the manufacturer or supplier. This accessibility to information and relevant details is resulting in a more transparent specialty crops market. As a result, a growing number of consumers are opting to make purchases of specialty crops through this channel, once they are satisfied with the available information. Online retailers are offering a wide variety of products to consumers through comprehensive product information, which also covers international brands.
Furthermore, online stores offer specialty crops based products at competitive pricing, along with other lucrative offers or coupons. All these benefits together are expected to act as positive aspects boosting the growth of the specialty crops market over the forecast period. In addition, the convenience associated with easy access and payment options for free home delivery, online purchases, and return or exchange policy, are some other dynamics playing a pivotal role in influencing the overall outlook of the global specialty crops market.
Retail to lead among all end users
With the emergence of contemporary retail formats, a new type of operation in the form of food courts and specialty stores in large format malls has emerged. These food courts and specialty stores offer consumers easy access to food and beverages at the time of shopping and entertainment activities, and also offer a choice of selecting different products by comparing them then and there. Moreover, the retail format nowadays offers a wide variety of products to consumers through detailed catalogues, which cover international brands as well. This amended retail format also offers tree nuts and dried spices at a very competitive pricing, along with other lucrative offers. These improved retail formats have enabled companies to offer their specialty crops to consumers in a better and more efficient manner. Consumers can now easily select their desired crop from a vast variety of specialty crops, which are made available in stores in such malls. All these benefits together are expected to act as positive factors driving the growth of the global specialty crops market.
Food to be the second leading end user owing to growing demand for premium food options
The trend of consuming natural healthy food is expected to continue steadily, as the preference for healthier and premium alternatives such as smoothies, breakfast cereals, seeded bread, and other bakery products with natural ingredients is increasing, thereby supporting the growth and demand for specialty crops as well. According to a survey held by the World Health and Wellness Council, Latin America witnessed a 16% increase in the healthy category, with healthy fruit drinks and plant source as the highest growing categories between 2012 and 2014.
Moreover, the demand for organic vegetables and fruits is growing among consumers in the Latin American region. Organic food products are stated as healthier and beneficial in comparison to conventional foods. This awareness is increasing owing to the rising penetration of the Internet and smartphones in the region.