Beverage Ingredients Market Report

Beverage Ingredients Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, And Segment Forecasts, 2015 To 2022

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  • Report ID: GVR2501
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Global beverage ingredients market is anticipated to witness significant growth over the next seven years owing to increasing beverages popularity among younger consumers. The global beverage usage exceeded 40 million tons in 2011 and is anticipated to grow at an estimated CAGR of over 3% from 2015 to 2022. They are widely used in end-use applications such as soft drinks, energy drinks, functional & flavored waters, juices, and carbonated soft drinks.

Increasing popularity among consumers in emerging economies of Asia Pacific and Latin America such as India, China, Vietnam, Thailand, Brazil, and Argentina is expected to fuel the demand over the forecast period. Increasing ready-to-drink (RTD) coffee and tea consumption in offices and outlets coupled with busy schedule is further expected to fuel the demand over the next seven years.

Shift in preference towards energy drinks due to rising health concerns is expected to complement industry growth. Energy drinks are anticipated to exhibit the highest growth rate over the forecast period owing to several health benefits. Advent of new and improved variety of ingredients is anticipated to provide lucrative opportunities for industry participants.

Increasing carbonated soft drinks consumption in regions such a China, India, UAE, and Brazil owing to changing lifestyle coupled with rising per capita disposable income is expected to drive market growth. Rising health and wellness trends are expected to drive innovation in powdered beverages.

Major ingredient types include acidulants, botanicals, cocoa ingredients, colors, fats & oils, flavors, flours, emulsifiers, oligosaccharides, proteins, sweeteners, vitamins, and minerals. Attraction of urban youth towards successful café culture, which serves RTD tea and coffee, is anticipated to drive the demand. Consumers are showing inclination towards healthy food & drinks in their daily diet owing to global increase in diseases such as obesity and diabetes.

Increasing demand for sugar-free and light-drink beverages is expected to drive industry growth significantly over the next seven years. Technological advancement in food & beverage packaging has resulted in longer shelf life of beverages and is anticipated to positively influence the demand.

Health issues such as fatigue and insomnia owing to caffeinated drinks consumption is expected to hinder market growth and pose challenges to industry participants. Zero-calorie beverages affecting the way body responds to sugar is another issue faced by the manufacturers. Smart advertising and strong positioning are expected to create lucrative opportunities for industry players.

North America is expected to emerge as the leading regional market owing to increasing sports and energy drink consumption countries such as the U.S. and Canada. Rising functional and flavored water consumption is further expected to drive market growth in this region. Europe is anticipated to witness high growth rate over the forecast period due to increasing alcoholic beverages and powdered drinks demand in this region.

Asia Pacific is expected to exhibit the highest growth rate over the forecast period owing to the increasing demand in China, India, Thailand, and Vietnam. Changing lifestyle coupled with increasing consumer awareness regarding energy and sports drink is anticipated to fuel the demand. Middle East & Africa region is expected to grow at moderate growth rate over the next seven years owing to consumer preference towards traditional drinks.

 Major players operating in the global market include Cargill Inc., Kerry Group, CSM, and Archer Daniels Midland. Other major players operating in the market include Ajinomoto Group, AkzoNobel, Arla Group, BASF, Kraft Foods Inc., Monsanto Company Inc., International Flavor & Fragrances, Tate & Lyle, Corn Products International, DSM, DuPont, Danisco, AarhusKarlshamn, Associated British Foods, and Givaduan.

Companies are focusing on developing diverse choices and mixtures for offering varied ingredients with optimal functional performance, flavor stability, reduced calorie content, and consistent taste. Effective logistics and supply chain system reaching different far off geographies are expected to yield opportunities to industry participants and benefit manufacturers in terms of enhanced and increased product visibility over the forecast period. 


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