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Natural Beverage Ingredients to Reshape Dynamics of Beverage Ingredients Market.

The key drivers for beverage ingredients market include increase in young population worldwide, increased popularity of sports, and increase in fast food chains where beverages are given as complementary. Also low temperatures in western countries lead to increased consumption of beverages.
Published 27 October 2015

Perhaps the most defining trend in the beverages industry is that consumers no longer consume beverages merely for hydration, but as a means to supplement their health and fitness goals. The demand for natural ingredients is increasingly influencing the trajectory of the global food and beverages industry – a trend that will also change the products beverage ingredients makers bring to the market. Sweeteners, emulsifiers, high fructose corn syrup, botanicals, and cultures are some of the key ingredients that go into the manufacture of beverages. Growing consumption of dairy beverages and drinks targeted at health-conscious consumers will also influence the future of the global beverage ingredients market.


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The formulation of natural ingredients for beverages is the most important aspect that companies on the supply side will have to pay attention to. According to Transparency Market Research, the global beverage ingredients market will most likely have to align their product portfolio in keeping with the ‘green ingredients’ trend as synthetically formulated ingredients are being perceived as unhealthy by well-informed consumers. Likewise, female consumers are drawn toward sugar-free and low-calorie beverages, which necessitate the use of sugar-alternative beverage ingredients.


Demand for Textural Ingredients Projected to Escalate


From baby beverages and smoothies to energy drinks, the mouthfeel of a beverage is a key determinant in its palatability as perceived by a consumer. Manufacturers now know this all too well and are hence looking for solutions that will help them achieve different types of textures in their beverage products to cater to consumer demand. Although the demand for all-natural ingredients remains strong in Western markets, growing affluence in growth markets is resulting in a higher demand for natural and organic ingredients for beverages here.


Companies competing in these space include: Monsanto Company Inc., Kraft Foods Inc., PepsiCo, Coca-Cola, and Anheuser-Busch InBev.


North America Leads Consumption of Beverage Ingredients, Europe Stands Second


North America accounts for the largest share of the beverages market, with the consumption of various types of non-alcoholic beverages being high in the region. In the U.S., the demand for healthy juices, smoothies, and other types of functional beverages is rising rapidly. In fact, the beverages market is the most dynamic space within the global food and beverages industry. As consumers gulp down millions of tons of beverages across the world, it is but natural that there will be a proportionate demand for beverages ingredients as well.


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Following North America in the global beverage ingredients market is Europe. Consumers in the latter region have a massive appetite for both alcoholic and non-alcoholic beverages. In both the leading regions, there is an intensifying focus on natural, fair trade, and organic ingredients. However, this isn’t yet the case in Asia Pacific, which occupies the third spot in the global market for beverage ingredients. In several countries in Asia Pacific, the regulatory environment continues to remain lax about imposing food-related regulations, especially those pertaining to the use of synthetically formulated beverage additives and ingredients. However, with China and India generating massive demand for beverages of various kinds, the beverage ingredients market here will be well-spread over the next few years.


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