Food & Beverage Market Research
The Food and Beverage Industry accounts for a major segment of the value chain for the agriculture sector. The overall competitive mapping for this market is reliant on the food consumption patterns of the demography. The vertical accounts for the processing and manufacturing of food-based substances from raw materials. The growth in the number of start-ups based out of this market is one of the key drivers for this sector. Other factors like a rise in disposable income and an increased GDP contribution for the agricultural value chain also support the positive market outlook. Based on food market analysis it is seen that the industry encapsulates the packaging, preparation, transportation as well as serving of food and beverages.
Market survey for food products states that the rise in population density is one of the key factors that promote the growth of this vertical. The transformation of raw agricultural products in consumer food groups is the aim of this market. Moreover, the food and drink market research reports state that the industry is accounted for as a basic necessity. Therefore, the market has time-sensitive supply chain dynamics. According to food and drink market research reports, this is primarily due to the low shelf life associated with the product. Thus specialized logistics costs and the inclusion of a cold-chain becomes a key criterion for this market.
The industry has high safety standards associated with the manufacturing of the products. Regulatory standards like the FDA, USDA, NSF, and 3-A Sanitary Standards have set high barriers to entry for new players of this market. Since the industry is a key segment of the FMCG market, it is essential to abide by these sanitary norms since the product would be consumed by the population. Additionally, the top management for the key players of this market has been trying to devise strategic decisions which balance out the two key factors, i.e. cost and the quality of the product.
According to food industry market research reports statistics and analysis, it is seen that the cost parameters account for factors like logistics, transportation as well as distribution. The distribution network for this market includes companies that ship food to retail outlets, restaurants, or directly to the customer through wholesale outlets. Thus supply chain optimization is one of the key factors that govern the growth trends for this market. Manufacturer’s within this market are also trying to develop solutions that cater to the production of high volume- low-cost products. The market survey for food products indicates that the expanding value chain of this industry has been penetrating rapidly into the Tier-3 and Tier 4 cities as well. The global user penetration for this market is recorded to be 16.5% for the year 2021 as per the food industry market research reports statistics and analysis. The average revenue generated per user is expected to reach a value of USD 227 approximately.
Market research firms have been trying to understand the market data and cumulatively analyse the trend for this sector. The information helps clients with identifying prominent business segments from across the globe. In the following section, a regional competitive mapping for this vertical has been provided based on which the food service trends have been analysed. Processed food, canned food, and organic food as well as beverage market research reports have been utilized to perform the secondary research. The rise in consumers and associated growth in the demand margins for the food and beverages industry have been analysed on a regional basis.
North America Food & Beverage Market
The Canadian Food and Beverage Industry is the second largest manufacturing sector within the country. In the year 2019, the industry generated a sale of manufactured goods worth USD 129 Billion approximately. The industry accounts for 17% of manufacturing sales and 2% of the GDP.
Beverage market research reports states that the North American Organic beverages vertical accounted for a revenue of USD 29 Billion roughly as 2020. The change in consumption patterns due to the rising health consciousness amongst the population is the key driver for this market.
Europe Food & Beverage Market
Food and beverage research states that industry accounts for the employment of 4.82 Million people amongst the demographics. The industry generated a turnover of USD 1.41 Trillion as of 2020 and USD 312.68 Billion in terms of value add. The EU is also accounted for as the largest exporter of food and beverages globally. Extra-EU exports are valued at USD 141.06 Billion as of 2020. Food industry market research reports statistics and analysis state that the vertical generated a trade surplus of USD 51.72 Billion in the same year. Roughly 2/3rd of the export value generated is destined for EU single markets. Additionally, the industry’s exports have doubled in the last decade. Increased digitalization, automation, and growth in the bio economy are anticipated to boost the industrial trends associated with this market. The EU is attempting to further expand trade into third countries in order to increase its trade-based dynamics.
In terms of the EU’s market, the user penetration is expected to reach a value of 18.5% in the year 2021. Market survey for food products indicates that the overall sector is expected to reach a penetration value of roughly 25% regionally by the year 2021. The year-on-year growth rate for the EU’s food and beverage market is estimated to be roughly 5.5%. Additionally, the average revenue per user for this market is accounted to reach a value of USD 142.28 in the year 2021.
Middle East Food & Beverage Market
Additionally, it is seen that the demand for packaged and processed foods is rising marginally within the region owing to the change in consumption patterns. The fast-paced life of the population is one of the key contributing factors to the same. Consecutively food market research states that the industry is expected to register rapid growth in the organic foods segment as well. This is due to the rise in the adoption of different cuisines due to Dubai’s sizeable expatriate population. Moreover, factors like growth in awareness associated with the consumption of organic food substances and their health benefits are expected to drive this segment’s market growth.
The inclusion of technologies like IoT has helped optimize the existing production and supply chain dynamics of the market. The growth in adoption of integrated technology and equipment has been boosting the trends for the Middle Eastern food and beverages market. It caters to quality production at reduced labor costs which are expected to support the positive market outlook. Additionally, market segments like food processing (for instance meat and plant based protein substances), confectionaries, and dairy are attracting attention from foreign investors.
Rest of the World Food & Beverage Market
Livestock based food products is also one of the key market segments. Regions like China are anticipated to increase their protein food consumption pattern by 3-4%. Pork and other livestock based food businesses account for a marginal share within this vertical.
In terms of RoW, it is seen that the use of Single-use food packaging has increased across the value chain for the food and beverage industry. This is due to the change in market outlook associated with the advent of COVID-19. In regions like LAMEA, it is seen that the consumption of natural food substances has increased in the past decade. Food and beverage market research indicates that the manufacturers are focused on bridging the gap between the supply and the demand associated with this sector. The agricultural sector and its associated markets account for the second-largest manufacturing and processing market within Latin America. The region accounts for a major investment hub in terms of the food and beverage industry.
The household spending on food-based items is expected to increase by 25% on making a year-on-year comparison for Latin America. The non-alcoholic drinks spending is anticipated to increase by 1.5% in the year 2021. Sub-regions like Brazil, Peru, and Africa are two of the major contributors to the increased production within the food and beverage industry within LAMEA. Africa is estimated to attain a revenue of USD 8.3 Billion within this market owing to the rise in disposable income and growth in market demand.