Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Beverage News

New report analyzes global beverage industry growth

BRIC markets will continue to present opportunities in 2014

Beverage News graphic
January 29, 2014

Rabobank Group, a global financial services leader based in New York, has published a new report on the global beverage industry, predicting growth that is lower than historical standards but can be mitigated by strategic initiatives focusing on direct selling, co-manufacturing and distribution efficiency, it says.

In the report, the firm’s Food & Agribusiness Research team says that demand from markets in Brazil, Russia, India and China (BRIC), which have long driven global beverage growth, is moderating, leaving global beverage companies with the need to find new market opportunities and growth strategies for the future. Beverage companies will need to adapt to this new landscape by pushing strategies for mature markets where consumer demand is slowly recovering, it states.

“Brazil, Russia, India and China have led the largest economic transformation in modern history, changed global commodity markets, and created an entirely new ‘middle class,’” said Rabobank analyst Ross Colbert in a statement. “Growth in the BRIC markets is now slowing, and beverages companies must seek sustainable growth ‘beyond the BRIC road.’ The global beverages industry remains highly competitive, and success can be achieved in markets smaller than those of BRICs. Strategic initiatives such as direct-to-consumer selling, co-manufacturing, and developing more efficient distribution platforms can help mitigate the impact of softer volumes in BRIC markets.”

Despite anticipated slower growth among BRIC beverage markets, there still is a positive growth outlook in some subsector markets. In China, although fine wine consumption is on the decline, consumers have sought out lower-priced wines to maintain an overall positive outlook. This year also will be impacted by the upcoming World Cup, which likely will manifest itself in growth volumes of carbonated soft drinks (CSDs) and beer in host country Brazil. The Coca-Cola Co., Atlanta, for example, has made a large investment in the immediate consumption channel that will help sustain growth in 2014 and beyond, the report states.
 
An overview across global beverage markets is outlined in the following subsector summaries.

Alcohol beverages
•    BRIC countries have accounted for 85 percent of absolute beer volume growth in liters in the last five years. For 2014, expectations for BRICs are more subdued with expected growth of 3.8 percent in 2014 compared with 3 percent globally. India offers the greatest potential for long-term volume increases among BRICs.
•    In wine, BRIC economies have presented a welcome boost to consumer demand in a period when developed markets faced severe headwinds.
•    For Western spirits companies, BRIC markets will continue to present important opportunities in 2014, albeit in the context of government policies. Excessive spirits consumption controls will continue to disrupt the general spirits category in Russia, and the campaign against corruption in China, launched in the fourth quarter of 2013, has been having a negative impact on high-end spirits consumption.

Soft drinks
•    Growth of soft drinks will continue to move to lower priced, emerging markets, meaning volume growth will continue to exceed value growth.
•    Facing significant headwinds in developed markets, Brazil will continue to be the leading driver for global growth of CSDs during the next three years.
•    Fruit juice volume is expected to grow by 3 percent in 2014. This growth is dominated by BRICs, which together account for almost 60 percent of the total increase in liters.
•    Bottled water will continue to lead soft drinks volume growth globally, delivering more than 55 percent of what is projected.

Coffee and tea
•    The oversupply of global coffee that characterized 2013 is forecast to last well into 2014 because of the expected bumper crop of 60 million bags from Brazil. With the outlook for lower prices, demand for coffee is expected to remain strong in the year ahead.
•    Instant coffee also is expected to drive value and volume growth in 2014 in developed markets such as Russia, which already is seeing an overall premiumization trend across beverages.
•    The global tea marketplace remains highly fragmented and, therefore, provides ample room for large tea companies to expand across international markets in 2014. This is especially relevant for China, which is forecast to account for half of global tea growth through 2017.

“There can be no doubt that BRIC markets have delivered tremendous growth opportunities for beverage companies over the past decade,” Colbert said in a statement. “However, beverage companies must now adapt to slower growth in BRIC markets by implementing new strategies to reach consumers more efficiently.”

For more information, visit www.rabobank.com.

KEYWORDS: fruit juice global beverage trends instant coffee

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Sting Energy

PepsiCo, Sting Energy unveil global partnership with Formula 1

PepsiCo + poppi

PepsiCo completes acquisition of poppi

people drinking Wynk

Mindful drinking prompts growth for THC beverages

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Mixed group of friends talking and drinking

    Diageo identifies socializing trends in new global report

    See More
  • man holding a phone in a wine aisle

    Global online alcohol market enters new era of growth, research shows

    See More
  • Beverage News

    IWSR reports mixed results for global beverage alcohol industry in 2024

    See More

Related Products

See More Products
  • bigfood.jpg

    Big Food: Critical perspectives on the global growth of the food and beverage industry

See More Products
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing