Still Drinks Market to Be Blooming Market under Beverage Industries in Asia: Ken Research
Posted on 09 August 2016 by KenResearch Food and Beverage,
- The non-carbonated markets are growing at a double-digit growth rate. This segment is led by fruit juice. There has been a strong shift in the consumer beverage demand towards non-carbonated alternatives, creating new opportunities for drinks manufacturers in the country.
- Growing health consciousness, increasing disposable income, value addition, product innovation and growth in emerging markets are currently driving the market.
Ken Research announced its latest publication on,’ Still Drinks Consumption (Volume and Growth) Forecast to 2021 - Asia’, which provides detailed information on the market trends in the Still drinks market. In addition, report is a comprehensive report, covering still drinks consumption in Asian market. The quantitative data in the report provides Factors influencing its growth and forecast still drinks consumption data by country in Volume and the leading players in the market.
Still drinks refers to drinks that include ready-to-drink fruit or non-fruit that typically contains juice content of lower than 25 percent, and water is also included in this sweetened flavor. Sugar, artificial flavoring and coloring may be added and which are sweetened non-carbonated water-based flavored beverages. Generally, the consumers don’t tend to distinguish between juices, nectars, and the still drinks. It’s mostly the price that determines the consumer buying rather than the juice content. Of all the categories under the soft drinks, the still drinks market has shown continual growth. The non-carbonated markets are growing at a double-digit growth rate. This segment is led by fruit juice. There has been a strong shift in the consumer beverage demand towards non-carbonated alternatives, creating new opportunities for drinks manufacturers in the country.
The range of flavors available in the market is very extensive with flavors like orange being the most prominent. Lemon, apple, mango, and peach are the other important flavors. The market for still markets is growing faster than carbonates, but this category used to be portrayed as having a cheap image, but quality premium brands and firm players have been established in the marketplace. The success of the brands in still drink markets means that it has much to gain from the slow growth of carbonated drinks.
The juice category is the fastest growing segment at present, at 30-35 per cent per annum growth. The fruit drinks category has also been witnessing growth of around 10-15 per cent annually. Metropolitan cities are the largest consumers of non- carbonated drinks and are going to be the biggest consumers.
A fruit juice is a liquid that is naturally contained and extracted from fruits. It is commonly consumed as a beverage or used as an ingredient or flavouring agent in foods. Owing to its refreshing nature, nutritional benefits and a good source of instant energy, the fruit juice market will undoubtedly grow at an increasing rate. Where, the Indian juice market is dominated by Dabur’s Real fruit juices, while PepsiCo’s Tropicana has a 45 per cent market share. Real is the market leader in the packaged fruit juices category with over 50 per cent market share.
Factors seen responsible for the growth in this market are, greater disposable incomes, particularly in urban areas, and an increasing preference for traditional and healthier beverages even if they are relatively more expensive. Raising awareness levels with regard to obesity and other weight-related health issues, especially amongst teenagers and young adults, has helped push sales of non-carbonates. Additionally, favorable demographics make Asia an attractive marketplace for beverages. Driven by favorable demographics and broad social forces including urbanization and increasing affluence, consumers in Asia’s developing economies are purchasing these beverages at an increasing rate.
However, the challenge usually faced by these industries includes issues about, supply chain not being proactively managed in Asia. From a resource utilization perspective, the supply chain is a source of material risk to beverage companies in Asia. The other challenge before them is, price of important ingredients in beverages, particularly sugar, can be uncertain or volatile. Although companies can hedge some risks, there are real probabilities of unforeseen price rises and disrupted supply due to falls in crop yields.
The manufacturers however, have always been trying to carry out Research and Development to serve the consumers better with all the innovation in the product and with sustainable packaging, which further is driven by consumer demand.
Manufacturers must adopt some product differentiation strategy with holistic approach, focusing on minimizing the environmental impact through recycling, reuse and biodegradable or reduced materials.
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Ankur Gupta, Head Marketing & Communications