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APAC set to be the largest Beverage consumer market

10:27 SGT June 12, 2017
APAC
Soft drinks are seeing particularly strong growth in Asian markets, says Antonella Reda of market research firm Canadean.

When it comes to beverage consumption, whether coffee, tea, juices or alcoholic drinks, expect the Asia-Pacific region to contribute to the huge global demand. In this issue, FoodBiz Asia is focusing on updates and trends affecting certain category of beverages that are currently satisfying Asian cravings and thirsts.

In the newly released Global Beverage Forecasts by Canadean, the research firm said that by 2021 Asia is predicted to contribute two-thirds of global incremental beverage consumption, with China alone responsible for one-third of the additional volume.

And in terms of the top 10 incremental volume providers by 2021, China and India will dominate, followed by Brazil. With the exceptions of the US, Saudi Arabia and Mexico in sixth, eighth and ninth positions respectively, all other markets in this group (Indonesia, Pakistan, Thailand and Vietnam) are Asian.

Soft drinks, particularly packaged water and bulk/home and office delivery (HOD) water, will be the primary driver of incremental volume growth across all these markets, underscoring not only the growing global health trend, but also the opportunities offered by the lack of good quality tap water in many emerging markets.

Said Antonella Reda, product development manager at Canadean: “While many major producers are already focusing on harnessing the volume potential in emerging markets, as developed markets slow, expansion is not without its challenges. Producers will need to continue to invest in infrastructure and distribution efficiencies in order to retain profitability, particularly in poorer and slowing economies, and markets beset by political upheaval and/or legislative challenges.

Continued investment in development of innovative drinks and value-added propositions that respond to changing consumer lifestyles and demographic changes, at global and local levels, remain vital to drive both volume and value growth.

Of the top 10 highest volume markets in 2021, Canadean anticipates that only three developed markets (the US, Japan and Germany) will feature in the ranking. In 2000, the US and West Europe together accounted for nearly one-third of global commercial beverage consumption, but by 2021 their combined share will have shrunk to 18%.

The second big beverage consumer is Latin America — expecting to achieve the second highest incremental volume growth behind Asia, with Brazil the key contributor to the regional increase. The growing importance of the emerging Middle East and North Africa (MENA) markets is strongly highlighted by a forecast incremental volume increase, which is anticipated to be three times that of North America, propelled by burgeoning population growth and demand for soft drinks.

Asia’s share of the global beverage consumption market will rise at an unprecedented pace over the next five years to 47.2%.

In terms of the top 10 incremental volume providers by 2021, China and India will dominate, followed by Brazil. With the exceptions of the US, Saudi Arabia and Mexico in sixth, eighth and ninth positions respectively, all other markets in this group (Indonesia, Pakistan, Thailand and Vietnam) are Asian.

The increasing contribution of Africa to the global commercial beverage market can also be evidenced in a predicted volume increment by 2021 that is expected to be double that of East Europe’s.