The Future of the Beverage Industry
/In 2018, before the rise of COVID-19, the global beverage market was projected to grow at a CAGR of 3.1% and to reach the market size of $1,855 billion by the year 2024. But how has the global beverage market shifted in the wake of the pandemic? What future trends are set to lead the way? And what exciting developments are in store for the beverage market in 2021 and beyond?
Demand is Strong
In the brand new report from July 2020 entitled "U.S. Beverage Market Outlook 2020: Grocery Shopping & Personal Consumption in the Coronavirus Era", market research firm Packaged Facts have forecasted that sales of major beverage categories will increase from $150 billion in 2019 to more than $160 billion by the end of 2020 and will eventually, in 2024, exceed $170 billion in sales. Jennifer Mapes-Christ, food industry publisher for Packaged Fact explains “we predict sales will spike in 2020 due to the impact of the coronavirus but will likely decline in 2021 as demand reverts back to more normal levels before returning to typical growth patterns from 2022 to 2024”.
The Trends
What hot trends in the beverage market are fuelling this demand?
1. Plant-Based Drinks
Concerns around climate change, sustainability, health and ethics have increased the demand for plant-based drinks. Vegetables, cereals, legumes and even fruits have replaced animal products and have become an increasingly popular choice. Looking ahead to 2021, plant-based beverages will continue to be a hot trend, as consumers increasingly integrate plant-based foods and drinks into their diets, as they move towards flexitarianism and veganism.
2. No Sugar
The diet soft drink market is also experiencing dramatic growth. The global diet soft drink market size is projected to reach USD 5.2 billion by 2025, according to a new report by Million Insights. It’s also projected to grow at a CAGR of 3.2% from 2019 to 2025. Sugar’s increasingly negative image has been the impetus behind this trend. Consumer preferences continue to shift from beverages with high sugar content to beverage with no or low sugar.
3. Wellness
Another prominent beverage trend is wellness and health. The COVID-19 pandemic has placed a prominent emphasis on immunity-boosting ingredients and further elevated the demand for healthy food and drinks. Turmeric drinks have proven popular — since the ingredient is often celebrated as a strong way to boost long-term immunity. Beverages which contain vitamins, probiotics, antioxidants and echinacea have also experienced an increase in demand. The global wellness economy is worth over $4.5 trillion worldwide, and those beverage manufacturers who can develop a successful wellness brand can be sure to take a piece of that alluring pie.
Even though the impact of the coronavirus has been keenly felt in the food and beverage industry, large segments of the market are likely to thrive if they can stay ahead of the trends in wellness, low-calorie drinks and plant-based products.
If your food and beverage company is looking to scale and grow via ERP solutions, traceability and demand planing software, get in touch with Cashmere today.
