EXBERRY® colouring foods supplier GNT has published a major new report that sets out its plans to become the leader in its field on sustainability.
Each year, GNT produces more than 11,500 metric tons of EXBERRY® concentrates from edible fruit, vegetables, and plants – enough to colour over 40 billion servings of food and drink.
To ensure the company is fit for the future, it has unveiled a sustainability roadmap for 2030 to optimize its environmental and social impacts across its global operations. The full plans feature in GNT’s new ‘Sustainability Report 2021,’ which also includes detailed information on its performance last year.
Frederik Hoeck, Managing Director at GNT Group B.V., said: “Since GNT was founded in 1978, we’ve been revolutionising the food colouring industry with our plant-based EXBERRY® solutions. Today, we’re known for offering the most natural solutions on the market. We now want to take this to the next level and lead the industry in sustainability too. As a family business, sustainability and caring for future generations have always been part of our DNA.”
GNT’s sustainability strategy is built around four key pillars: better products, better operations, better agriculture, and better for people. It features a total of 17 targets for 2030, including cutting the Product Environmental Footprint for EXBERRY® product ranges by 25 % and reducing the intensity of factories’ CO2-equivalent emissions by at least 50 %.
Furthermore, due to GNT’s strong vertical integration, the company will soon be in a position to report on greenhouse gas emissions for 80 % of EXBERRY® products. Covering scopes 1, 2 and 3, this data will provide important advantages for food and beverage brands as it will enable them to calculate final products’ total environmental footprint.
Rutger de Kort, Sustainability Manager at GNT Group B.V., said: “We’re positioning our EXBERRY® brand as the most sustainable food colouring solution on the market. GNT is committed to driving industry standards higher than ever before by providing colours that deliver on cost-in-use, performance, naturalness, and sustainability. Achieving our goals won’t be easy, but we’re already making excellent progress across multiple areas.”
In times of instability, crisis and major global events, how do we make sense of trends which are likely to influence the beverage market?
While it is too early to predict the full impact of the conflict in Ukraine, when considering the trends within the beverage industry, it is important to take the macro drivers influencing the global economy into consideration.
Even before the latest current events, the global economy continues to be in a state of flux with recovery moving at varying speeds across regions and nations because of the pandemic.
In a report published in 2021, PwC reported that by the end of 2021, early 2022, they expect the global economy to revert to its pre-pandemic level of output. Noting however, that the recovery will be uneven across sectors, countries, and income levels.
As 2022 gets well underway, and the world pivots from pandemic to recovery, consumer behaviour and purchasing power remain highly dependent on economic realities, and perhaps now more than ever, understanding some of the key factors impacting the economic landscape is crucial for business strategy.
In its report „5 economic factors influencing the global beverage market“ Treatt takes a closer look at:
Economic recovery post Covid-19
Public debt levels
Globalisation
Higher value-add activities
Generation Z
Please download the full report as pdf-file under: www.treatt.com
Orange prices increased in the Brazilian in natura market in the first fortnight of February. According to Cepea collaborators, frequent rains in the citrus belt (São Paulo State) favoured the quality (majorly the size) of oranges, making them suitable for sale in the in natura segment and allowing farmers to raise asking prices. Besides, rainfall also hampered the harvesting, limiting supply. In that scenario, values remained firm.
Usually, orange availability is not high in February – a month that may even be considered offseason –, however, as the 2021/22 season is late, supply is currently higher. Still, there is not an orange surplus in the domestic market, since processing at industries has been faster than usual this month.
So far, the number of early varieties to be harvested is not high – activities are expected to step up only from March onwards. However, supply may be constrained by the low flower set in the first blooming. Thus, the oranges currently available in the in natura market are mostly late varieties and pear oranges out of the ideal period.
TAHITI LIME – The production of tahiti lime is also being favoured by rains, however, farmers reported difficulties to harvest the fruits, which underpinned prices in the first fortnight of February, although it is currently the peak of harvest for tahiti lime in Brazil.
Despite the recent valuations for oranges and tahiti lime, Cepea collaborators have reported that the current economic scenario in Brazil is still constraining higher price rises. With high unemployment and inflation rates and lower income, the purchase power of many consumers is weak.
ESTIMATES – Although rains have favoured the quality of part of the fruits in orchards, they have not been enough to reverse all the damages caused by the drought to the oranges from the 2021/22 season.
According to data from Fundecitrus released on Feb. 10, the orange output (São Paulo + Triângulo Mineiro) in the 2021/22 season is still estimated at 264.14 million boxes of 40.8 kilograms, the same as that estimated in December, but 10 % below that forecast at the beginning of the season.
According to Somar/Climatempo (weather forecast agency), rainfall in SP between May/21 and Jan/22 was 25 % below the average for the period. In the Triângulo Mineiro, rains were 5 % higher than the average. Thus, orange growth was hampered, and the average fruit weight decreased. However, it is important to consider that the oranges harvested in February and in March 2022 are expected to be slightly larger, since they have been favoured by recent rains.
The volume harvested is still enough to replenish ending stocks at the processing plants in SP. According to CitrusBR, by the end of the 2021/22 season (in June 2022), the volume of Frozen Concentrate Orange Juice (Equivalent) stocked is expected to total 170 – 190 thousand tons, lower than the strategic level (250 thousand tons). It is important to consider that new estimates are supposed to be released until the end of February.
In this scenario, the harvest in 2022/23 needs to be large enough to raise stocks at least to the strategic level and thus prevent a world shortage of orange juice. Cepea calculations show that the orange output next season needs to total, at least, 330 million boxes in order to raise juice stocks to 250 thousand tons.
PROGRESS OF THE 2021/22 HARVESTING – According to Fundecitrus’ report, 82 % of the orange orchards had been harvested by mid-January/22, similar to that in the same period last season (81 %).
A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, released its report titled “Vegetable Juices – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
Global vegetable juices market to reach $47.2 billion by 2026
Amid the COVID-19 crisis, the global market for Vegetable Juices estimated at US$34.7 Billion in the year 2020, is projected to reach a revised size of US$47.2 Billion by 2026, growing at a CAGR of 5.2 % over the analysis period. Pure Vegetable Juice, one of the segments analyzed in the report, is projected to record a 5.5 % CAGR and reach US$28.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Vegetable Blend Juice segment is readjusted to a revised 4.9 % CAGR for the next 7-year period.
The U.S. market is estimated at $9.7 billion in 2021, while China is forecast to reach $9.8 Billion by 2026
The Vegetable Juices market in the U.S. is estimated at US$9.7 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.8 Billion by the year 2026 trailing a CAGR of 8.5 % over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.9 % and 4.2 % respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.7 % CAGR …
“Shared Planet” leads Innova Market Insights’ Top Ten Trends, focusing on how everyone can play their part in shaping a sustainable and prosperous future. Consumers tell us they want to be ethically and environmentally conscious, so brands need to work alongside consumers to breed confidence in the claims attached to products. Trust and transparency are must-haves for any brand wishing to find common ground with an increasingly educated, forward-thinking and interconnected consumer base.
A sense of joint responsibility for our shared planet is guiding the choices consumers make and the lifestyles they wish to lead. Innova’s study, conducted across eleven countries, revealed that when it comes to food choices, the top two environmental actions people are taking are reducing waste (43 % of respondents) and eating in moderation (32 %).
“One of the biggest shifts we are seeing is that the health of the planet is now the top concern of consumers,” says Innova’s Global Insights Director Lu Ann Williams. “Personal health has been the big concern for the past few years, but consumers now tell us that this has been surpassed by global issues. Sustainability is no longer just a Wall Street issue. It might not be the top purchase driver for all consumers, but for many it clinches the deal when it comes to choosing between products.”
Elsewhere, concerns over health that have been amplified by a pandemic which has massively changed social habits, the continued advancements in technology, and more confident, vocal consumers, all offer clear signs of the direction innovators must take to successfully meet society’s needs and desires in 2022.
Innova’s Top Ten Trends, based on extensive, top-quality consumer and industry knowledge, provides the best insights for those needing to stay on top of the changing food and beverage landscape. Innova’s continually updated consumer research delves into the ‘what’ and the ‘why’ behind trends in the food and beverage industry, allowing innovators to forward plan with accurate and detailed insight into the main drivers behind consumer behavior. Looking to the future, Innova presents the top trends that will drive innovation and success in 2022:
1. Shared Planet
With planetary concerns now the number one global issue for consumers, brands are moving on from simply proclaiming their credentials to meeting a clear, agreed and understandable measurement of their environmental and social impact. There is a pressing need for companies to work together and with consumers to build trust in claims of zero or negative impact. It is vital to ensure universal acceptance of certifications and greater public faith in the transparency of brand actions. This requires quick, clear, tangible and trusted information combined with a product life story that truly stands up to scrutiny.
2. Plant-Based: The Canvas for Innovation
With personal health and global sustainability proving to be strong drivers of consumer choice, plant-based R&D has refocused from mimicking meat, fish and dairy to optimizing options that stand on their own merits. When asked what reasons consumers have for considering plant-based alternatives, they tell us they consider it healthier and better for the planet. A third reason, the desire for diet variation, is further boosting interest in plant-based beyond the traditional vegan and vegetarian sectors, leading to a 59 % increase in launches of new plant-based products in the year to August 2021. From convenience foods to gastronomy, people are looking for the quality alternatives plant-based products can offer.
3. Tech to Table
Technological advances have created major innovation opportunities for the entire food and beverage industry, offering greater possibilities to change every aspect of a product’s lifecycle from conception to consumption. While innovators embrace new production methods, consumers turn to apps and AI for guidance on personalized nutrition and a greater understanding of how to successfully fulfil their needs. Myths and misunderstandings are crumbling, so it has never been more important to engage in honest and open communication with consumers to ensure their continued trust in the advances of food technology. Respondents to Innova’s Consumer Survey say they are more willing to embrace changes such as new food technologies or sharing data if they can be shown to be beneficial to personal and global health.
4. Shifting Occasions
Lockdowns and the pandemic have reshaped existing eating occasions while at the same time helping to create new ones. Consumers have a greater awareness of the comforts and possibilities of home, so now seek more from going out. Industry leaders will be pushed to better serve evolving consumption occasions, creating products geared to the new expectations of a public whose social habits have been challenged.
5. Voice of the Consumer
Consumers are calling the shots and expecting more engagement from brands through digital and real-world channels. People are looking for food and beverages that align with their political, social and ethical values. If they can’t find them, entrepreneurial consumers are taking action to fill the gap themselves, satisfying specific market niches and co-creating products that meet their needs. Health, authenticity, responsibility and the simple craving for pleasure all combine in Innova Market Insights’ Top Ten Trends for 2022.
In addition to the top five, Innova has identified the following themes that will drive consumer actions in the coming 12 months:
6. Gut Glory
7. Back to the Roots
8. Amplified Experiences
9. Upcycling Redefined
German consumers have been turning away from juices in the last five years* as these drinks are considered to have a high sugar content. Therefore, juice makers are turning towards innovations in wellness drinks that are clear about their ingredient and nutritional benefits. Leading data and analytics company GlobalData says prebiotic juices with ingredients such as banana, garlic, apple and cocoa have the potential to be the next big thing in Germany.
Holly Inglis, Beverages Analyst at GlobalData comments: “The German juice market has seen a compound annual growth rate (CAGR) wane of 1.6 % in terms of volume over the last five years, spelling bad news for manufacturers. However, there is light at the end of the tunnel in the introduction of prebiotic juices.
“While we haven’t (yet!) seen garlic-flavoured drinks on the shelves, German producers have already started to focus their efforts on juices that promote immunity such as private label brand Dirk Rossmann, whose new launch combines prebiotic apple, mango, vegetable extract, shiitake mushroom and coconut juice. There is long-term potential for German juice manufactures to limit the declines witnessed in the category over the last few years, with the potential to capitalise on novel, innovative and trendy flavours – that in all, promote health and wellness.”
As we have seen before, reformulating products to remove sugar doesn’t always cut it. Experimenting with prebiotic ingredients such as ginger and turmeric emphasise unique ‘added benefits’, as well as being new to the market and appealing to experimental consumers.
Inglis continues: “GlobalData’s latest survey tells us that 55 %* of German consumers find ingredients that claim to improve digestive health somewhat or very appealing. That’s a large proportion of the market engaged in improving their digestive health. It is also noteworthy that, since the onset of COVID-19, a number of consumers have increased their focus on how these ingredients can improve their mental and physical wellbeing.”
In 2020, the German juice market witnessed a number of innovations from producers such as Hitchcock turmeric juice shot and Innocent ginger power shot; both of which have an ‘on-the-go’ pack size, which appeals to time-short consumers who are seeking to boost their immune system.
Inglis adds: “In the same survey, 49 %* of consumers highlighted that immunity-boosting ingredients are somewhat or very appealing. Producers could benefit from innovating beverages that boast these claims and sell at premium prices.”
Although energy drinks have witnessed steady year-on-year (YOY) growth in the US recently, Coca-Cola has decided to discontinue its Coca-Cola Energy brand after 17 months in the market, in a bid to sharpen its product portfolio – a move that highlights the gap in the market for hybrid innovations, writes GlobalData, a leading data and analytics company.
Holly Inglis, Beverages Analyst at GlobalData comments: “Coca-Cola Energy’s launch in the US was long awaited; despite the US market size, it was one of the latter markets to begin sales after many regions in Europe. At a time where the energy drinks market is flourishing, it is interesting that Coca-Cola has chosen to pause sales of a potential future cash cow.”
According to GlobalData, the US energy drinks market grew by 10 % in 2020* and was buoyed by a flurry of innovations such as Monster Mule ginger flavoured drink or Moonlight Wingman Smart Energy. Despite COVID-19 lockdown restrictions throughout the year, the category remained a key purchase choice for many consumers across the country.
In GlobalData’s latest survey, 73 %** of US consumers stated that energy boosting ingredients are nice to have, or essential to purchasing decisions. Interestingly, this comes at a time where health and wellness trends are prevailing and where energy drinks have, in the past, come under scrutiny for high sugar and unfavourable additive content. Manufacturers have worked to offset this by adding functional claims or unique flavour innovations to their beverages.
Inglis continues: “GlobalData’s survey found that 82 % of US consumers stated that immunity boosting ingredients have a positive influence on their purchasing decisions***, reinforcing that there is opportunity for beverage manufacturers to innovate energy drinks products that combine health and wellness claims with energy-boosting ingredients. The US energy drink market is highly competitive, so it is important that producers stay ahead of the curve in terms of beverage trends. It is plausible that Coca-Cola’s energy drink line risked falling behind in the long-term, due to a lack of flavour dynamics and health-halo claims.”
Despite COVID-19 restrictions across much of 2020, the US energy drinks market grew by a sizeable share and is expected to maintain a similar fate in 2021. Consumption from home is the new norm, and producers will continue to innovate retail offerings that promote this trend. Continued drive towards digestive health will persist, reflecting high potential for hybrid innovations that combine natural energy boosting ingredients with added vitamins and gut health claims.
*Data taken from GlobalData’s Annual Soft Market Analyser – US **GlobalData’s Q1-21 Consumer Survey Results – North America ***GlobalData’s Q1-21 Consumer Survey Results – North America – Combined responses: “Essential / Key driver of purchase” and “It is nice to have”
The global pectin market is estimated to reach USD 1.87 billion by 2026 and is anticipated to grow at a CAGR of 6.4 % from 2018 to 2026. Pectin market is projected to witness significant growth over the forecast period. Increasing health consciousness among consumers and various health benefits of pectin products is expected to drive the global market over the forecast period.
Pectin are plant-derived compounds, a structural heteropoly saccharide that is contained in primary cell walls of the terrestrial plants. It is mainly extracted from citrus fruits, apples, apricots, cherries, oranges, and carrots. Commercially, it is available in the form of white to light brown powder. The industry is characterized by companies characterized by medium level of integration in the value chain. Packaging and shipping play an important role in integrating the value chain. This helps the companies to incorporate their businesses in a cost-effective way.
Suppliers include companies which are involved in the production & distribution of processes raw materials such as apple, citrus, and others. The rising shortage of raw materials and increased import for Brazil and European countries is resulting in high bargaining power to the suppliers. In addition, low threat of backward integration from manufacturers, except some of the major and giant market players is also resulting in high bargaining power of suppliers.
The pectin market witnesses an external threat of substitution from natural gum and Citri-fi. Citri-fi is natural functional fibers, which are derived from citrus fruits. They offer hydrocolloidal properties, which is significant for high water holding capabilities. There are also some synthetic alternatives such as polyurethane, but these are usually not considered suitable for skin contact applications. However, the various advantages of pectin over these products are expected to lower the threat.
Pectin extracted from this raw material are used for high cholesterol high blood pressure, & blood sugar, joint pain, weight loss, prevent colon & prostate cancer, high triglycerides, gastroesophageal reflux disease (GERD) and diabetes. In addition, some people also use pectin to prevent poisoning caused by strontium, and other heavy metals.
Despite the shortage in the supply of raw material, some of the major players are also trying to increase their production capacity to meet the demand. For instance, Cargill acquired FMC’s plant to boost their pectin production capacity. The market is highly fragmented and competitive. In addition, it also experiences the presence of small-scale as well as giant players. The key and major companies are investing in R&D activities and frequently involved in merger and acquisition to increase their market share and product portfolio. Some of the companies that have a significant influence in the industry include DuPont Nutrition & Health, FMC Corporation, CPKelco, Herbstreith & Fox, Devson Impex Private Limited, Cargill Incorporated, B&V srl. and Yantai Andre Pectin Co. Ltd.
Growth in food & beverage industries, in emerging economies, is expected to drive the Asia Pacific market. The market is projected to grow rapidly in the Asia Pacific region, owing to the changing lifestyle of consumers in emerging economies including, China and India. The rising health consciousness among consumers and the presence of major players in North America is projected to positively drive the growth of the market over the forecast period.
Oranges
Global orange production for 2020/21 is forecast to rise 3.6 million metric tons (tons) from the previous year to 49.4 million as favorable weather leads to larger crops in Brazil and Mexico, offsetting declines in Turkey and the United States. Consequently, consumption, fruit for processing, and fresh exports are also forecast higher. …
Smurfit Kappa has launched a new range of eBottle packaging solutions for the rapidly growing online beverage and liquids market. The new portfolio includes a variety of sustainable solutions for single and multi-pack products, including the Rollor bottle pack, BiPack, and Pop-up insert.
The surge in e-commerce due to the Covid-19 pandemic is evident across all sectors and the beverage market has also seen a significant impact. In particular, online sales for alcoholic beverages has increased by 34 % in Europe driving a demand for sustainable, durable and consumer friendly packaging that protects the product during shipment.
Key challenges for the beverage e-commerce channel are product damage, sustainability, consumer experience and the ability to accelerate growth using the right packing processes. Consumer research carried out by Smurfit Kappa also shows consumers are continuing to push for higher standards.
The research found :
Over two thirds (69 %) of consumers prefer paper-based packaging
Over half (59 %) of consumers want the parcel to be easy to open
1 in 10 consumers will reconsider re-ordering in the case of damage
Commenting on the announcement, Arco Berkenbosch, VP Innovation and Development at Smurfit Kappa Europe said: “Our new eBottle product range offers beverage businesses a suite of fit-for-purpose and bespoke packaging solutions which address the key challenges for their e-commerce channel. The innovative range, combined with our focus on e-commerce processes, supply chain and consumer experience, have all contributed to increased sales and greater efficiencies for our customers.”
Smurfit Kappa also offers a host of automated solutions to optimise packaging processes in addition to the eBottle range. The launch of this new product portfolio is the latest addition to its range of Better Planet Packaging, designed to be more sustainable and coming from a renewable and recyclable raw material. Businesses are already benefitting in the alcoholic beverage segment.
InterDrinks is an eMerchant selling more than 2,500 different types of beers and beer products. Smurfit Kappa introduced a flexible and unique packaging solution that accommodates all the various sized products sold by InterDrinks. It also includes automated assembly that mounts the packs as required.
Herwin Wichers, Market Development Director at Smurfit Kappa said: “The online European alcohol beverage market is worth EUR 5.6 billion and we want to help companies take advantage of the real growth and opportunity in this segment. As a result of the implemented packaging and automation solution by InterDrinks, it has increased its packing and filling capacity by 66 %, allowing it to fulfill more orders, faster.”
Symrise very successfully continued its profitable growth course in the first half of 2020 also during the global coronavirus pandemic. The Group increased its sales by 7.6 % to € 1,821 million in an economically challenging market environment. In organic terms – i.e. excluding the portfolio effect of the ADF/IDF acquisition and exchange rate effects – sales were up by 3.4 %. All segments contributed to this positive development. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 11.9 % to € 393 million as compared to the previous year’s level normalized for acquisition and integration costs for ADF/IDF (H1 2019: € 351 million). Profitability developed particularly well: The EBITDA margin rose to 21.6 % and lies thus significantly higher than the profitability target for 2020. The net income for the reporting period increased to € 169 million. Against the backdrop of the strong business performance and profitability trend in the first half of the year, Symrise is raising its full-year EBITDA margin guidance from 20 % to a range of 21 to 22 %.
Dr Heinz-Jürgen Bertram (Photo: Symrise)
“In the second quarter the coronavirus pandemic began to significantly impact the global economy and above all many people’s everyday lives. Even in this historically exceptional situation, Symrise has done an excellent job of staying on course. Thanks to our global presence, diversified portfolio and broad customer base, our feet rest very firmly on the ground. We remained fully operational in the second quarter and were able to supply our customers in the usual reliable manner,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “Of course, it is hard to predict the course of the coronavirus pandemic. However, after our performance in the first half of the year, we are looking ahead to the second half with confidence. For the full fiscal year 2020 we again want to grow faster than the market and expect that we will achieve increased profitability overall. We are therefore raising our guidance for the EBITDA margin to a range of 21 to 22 %.”
With coronavirus pandemic ongoing, continued growth in all segments
The Symrise Group achieved sales growth of 7.6 % in the first half of 2020 to € 1,821 million (H1 2019: € 1,692 million). The acquisition of ADF/IDF had a positive impact of € 106 million on sales performance. In organic terms, sales increased by 3.4 %. Amid the coronavirus pandemic, changes in consumer behavior were seen for the first time in the Scent & Care and Flavor segments in the second quarter. This resulted in both positive and negative effects on demand in individual business units. With its broad range of product solutions for foods, personal care and hygiene, Symrise serves the needs of everyday life, especially in these difficult times.
The Flavor segment
Flavor achieved organic growth of 0.6 % in the period under review. Taking currency translation effects into account, segment sales in the reporting currency amounted to € 636 million (H1 2019: € 637 million). Against the backdrop of the coronavirus pandemic, the trend toward cooking and eating at home led to a strong demand for products from the Savory business unit and product solutions for baked goods and cereals. At the same time, reduced out-of-home eating and drinking led to a lower demand for beverage products and sweets.
In the EAME region, the Flavor segment suffered from significantly reduced demand for beverage products and sweets, while the Savory business unit recorded a high single-digit growth rate. Germany and the Gulf region achieved the strongest gains. Overall, sales in the EAME region remained slightly below the figure for the first half of 2019.
Organic sales in North America were roughly on par with the same period of the previous year. While Savory product solutions enjoyed great demand, beverage products and sweets sold less.
The Asia/Pacific region reported organic growth in the single-digit percentage range, driven primarily by very strong demand for products from the Savory business unit, which showed organic growth in the double-digit percentage range. The largest increases came from the national markets of Indonesia, Thailand, Vietnam and Singapore.
The Latin America region achieved the strongest growth in the segment in the first half of 2020 and was largely unaffected by the coronavirus pandemic. All business units realized high organic growth in the single or double-digit percentage range. Strong gains were posted especially in the national markets of Brazil, Uruguay and Mexico.
The EBITDA of the Flavor segment was up 2.2 % to € 147 million (H1 2019: € 144 million). The EBITDA margin improved from 22.6 % in the first half of 2019 to a very strong 23.2 %, mainly due to tight control on costs and proportionally lower raw materials costs.
The Nutrition segment
Nutrition achieved strong organic growth of 10.5 %. Accounting for portfolio and currency translation effects, sales in the reporting currency amounted to € 474 million and were 38.1 % above the previous year’s level (H1 2019: € 343 million). ADF/IDF contributed sales of € 106 million.
The Pet Food business unit proved to be the growth driver of the segment, achieving high organic growth in the double-digit percentage range in all regions. Sales developed particularly dynamically in the USA, Mexico, Brazil and Russia.
In the Food business unit, the Asia/Pacific region stood out with double-digit growth, especially in China, India and Taiwan. In the EAME region, sales matched the previous year’s level, while North and Latin America dropped slightly below the last year.
Strong impetus came from the Aqua business unit, which achieved good growth especially in the EAME and Asia/Pacific regions.
Probi reported growth in the single-digit percentage range during the reporting period, primarily driven by the North America and Asia/Pacific regions.
The Nutrition segment generated an EBITDA of € 100 million in the reporting period (H1 2019 EBITDA(N): € 67 million). The EBITDA margin in the segment increased by 1.5 percentage points to 21.0 % (EBITDA(N) margin H1 2019: 19.5 %). The improved profitability is mainly due to the good performance of Pet Food and the inclusion of ADF/IDF.
Operating result
Also within the challenging environment dominated by the coronavirus pandemic, Symrise was highly profitable in the first half of 2020. The Group recorded EBITDA of € 393 million. This represents an increase of 11.9 % over the same period a year earlier. This trend relates primarily to profitable sales growth and the inclusion of ADF/IDF. The EBITDA margin improved by 0.8 percentage points to 21.6 % (EBITDA(N) H1 2019: 20.8 %).
Net income for the period and earnings per share
Net income for the reporting period amounted to € 169 million, which was € 16 million above the normalized figure from the previous year of € 153 million. Basic earnings per share increased 10 % to € 1.25 after € 1.14 (normalized) in the first half of the previous year.
Cash flow from operating activities
The cash flow from operating activities for the first half of 2020 of € 219 million was € 78 million higher than the previous year’s level of € 141 million. The increase is mainly due to the improved operating result and the inclusion of ADF/IDF.
Financial position
Net debt increased by € 28 million to € 1,645 million compared to the reporting date of 31 December 2019. The ratio of net debt including lease liabilities to EBITDA(N) thus amounted to 2.2. Including pension obligations and lease liabilities, net debt equaled € 2,261 million, which corresponds to a ratio of net debt to EBITDA(N) of 3.0.
Symrise remains confident about the current fiscal year and raises EBITDA margin target
With its global presence, a steadily growing and diversified portfolio and broad customer base, Symrise considers itself to be robust and securely positioned even in the current challenging market environment. The Group is fully operational worldwide and is able to supply customers sustainably.
Even though the effects of the pandemic can only be estimated to a limited extent, the Group remains confident that it will again grow faster than the relevant market over the remainder of the year. The market growth is estimated to be around 3 to 4 %. Symrise considers itself to be well positioned to achieve the sales targets confirmed at the beginning of 2020.
Based on the strong business performance and profitability trend in the first half of the year, the Group is raising its original target of over 20 % for the EBITDA margin. For the 2020 fiscal year, Symrise now expects an EBITDA margin in the range of 21 to 22 %.
The mediumterm targets also remain in effect. The company aims to increase its annual sales to € 5.5 to € 6.0 billion by the end of the 2025 fiscal year. Symrise wants to achieve this with an annual organic growth of 5 to 7 % (CAGR) as well as additional targeted acquisitions. In the medium term, profitability should remain within a target corridor of 20 to 23 %.
As might be expected, there are high levels of concern among Asian consumers about the impact COVID-19 is having, both directly on their own lives and also on a global scale. According to Innova’s COVID-19 Consumer Survey (conducted in March 2020), in China, India and Indonesia, personal concerns center on health, personal income and the availability of healthcare and products to buy.
Personal health, and the health of family and friends, tops the list of concerns across all three countries, with impact on personal income/finances ranked as second. Indian consumers were the most concerned. 73 % of Indian consumers say that they were very concerned about their own and that of their family’s/friends’ health. This is compared with 58 % in China and 52 % in Indonesia.
Concerns over more global issues are led by healthcare and financial/economic uncertainty. Healthcare ranks the highest in India, with 79 % of respondents very concerned. Financial/economic uncertainty came out first in China and Indonesia, with 55 % and 68 % of respondents, respectively, saying that they were very concerned. Consumers in all three countries were also concerned about the impact on food and job security.
Changes in behavior driven by the pandemic include more working from home, more social media and online entertainment and even exercising inside the home, with lower levels of leaving the house, visiting cafes/bars and restaurants, travelling for business and pleasure and using public transportation.
Health considerations have become more influential on purchasing decisions, with consumers trying to eat more healthily and consuming products in a bid to boost immunity. These include ingredients such as turmeric in India, chrysanthemum and cordyceps flower in China and royal jelly, ginger and mint in Indonesia. Familiarity, comfort and improving mood are also seen as increasingly important factors for food and beverage choices during the crisis. Health, shelf-life and cost are taking on a greater significance with regard to purchasing decisions, while factors such as flavor and indulgence appear to be declining in importance. Innova Market Insight’s research indicated that the main changes in attitude/behavior in India and China included more cooking/preparing of homemade food, more healthy eating and more eating/drinking products to boost immune health.
Fresh fruit and vegetables and juices and nectars are some of the top categories benefiting from this trend, as consumers look to them as a means of boosting health. At the same time, consumers claimed to be purchasing lower levels of less healthy, indulgent and highly processed options, such as ice cream, pizza and cakes and pastries.
There has also been an acceleration in the growth of online grocery shopping as movements are restricted and physical stores cannot easily be accessed. The rise in grocery apps in China, for example, encompasses developments in supermarkets, dedicated grocery apps and food delivery platforms. Restaurants have been quick to offer home delivery, but many consumers are also willing to order online and go out and pick up takeout. In China, 37 % of consumers claimed to be ordering more restaurant/café food online, while 34 % were picking up takeout food and meals more often.
Despite the initial scare for the beer and cider market, expectation is that new 2022 forecasts, which falls short of the original baseline expectations, could have been much worse, says GlobalData, a leading data and analytics company.
According to the company’s recent (June 5) COVID-19 adjusted forecasts, the global beer and cider market will recover to 2019 value by 2022, reaching US$630.4bn in 2022; this represents a difference of -US$55.4bn against the previous baseline value of that same year*.
Aaron Bryson, Consumer Analyst at GlobalData, comments: “The substantial shrinkage is a reflection of the damage caused by a nonexistent foodservice channel throughout much of the year. In contrast, consumer confidence, which was initially decimated but rebounded relatively quickly, saw consumers retreating to the comfort of their own home with their favorite brands of beer and cider, as opposed to at the local pub.”
According to GlobalData’s Week 10 COVID-19 tracker consumer survey, published on June 3, 43 % of global respondents still expect the situation to get worse over the next month in their respective countries*2. Despite this, consumers purchasing habits in relation to beer and cider have largely been maintained. The same survey found that 45 %*3 of respondents have been purchasing the same amount or more beer, since the outbreak of COVID-19. In contrast, only 28 %*4 of respondents stated that they had reduced or stopped buying beer since the outbreak.
A similar story is seen with cider. The survey found that 33 %*3 of respondents had maintained or increased the volume of cider they purchase, and 28 %*4 had also reduced or stopped purchasing cider, since the outbreak.
Bryson continues: “The original concern displayed at the beginning of the outbreak had limited longer impacts upon beer and cider sales. A key reason being that, at home drinking is part of a routine for certain consumer cohorts in which they derive both pleasure and comfort. Something which most people have been looking for since the outbreak.”
Whilst the outlook for the beer industry is expected to lag behind pre-COVID-19 expectations, the immediate fallout, which posed a challenging landscape for big and small players alike, has largely leveled out. Consumers have shown a preference to fall back on familiar brands which they derive enjoyment from, with a willingness to pay a premium price, instead of switching to cheaper alternatives.
*GlobalData’s COVID-19: COVID-19 Impact Market Model – Consumer Goods – June 5 update – value US$ *2GlobalData’s Coronavirus (COVID-19) Tracker Consumer Survey – Week 10 (June 3) – global – a bit/lot worse responses combined GlobalData’s Coronavirus (COVID-19) Tracker Consumer Survey – Week 10 (June 3) – global – *3started buying/same/more/significantly more/stockpiling responses combined, *4 buying slightly lower/significantly lower/stopped altogether responses combined Data is adjusted weekly following COVID-19 developments, therefore subject to change
Many of today’s busy consumers are juggling their careers, families and social lives while striving to maintain healthy lifestyles, both physically and mentally. Food and diet plays an essential role in this, with innovation increasingly looking to support consumer choices as many endeavor to balance the benefits and costs of these hectic lifestyles. This, in turn, raises the demand for nutritious foods that are easy to prepare, convenient and portable, while indulgent treats also play a role in relaxation and enjoyment.
The Right Bite was one of Innova Market Insights Top Trends for 2020 , reflecting how food and drinks supporting lifestyle choices can fall into a number of areas. These all aim to help those wishing to embrace healthy lifestyles, balance busy schedules and/or reject their current lifestyles and search for change.
Consumers embracing a healthy lifestyle tend to love having many things do and are dedicated (working long hours, exercising, etc.), but need to plan their time efficiently to get the best benefits. Healthy snacks, energy-boosting food/drinks and on-the-go food and beverages are all of interest, with high protein and energy claims of particular significance. According to Innova Market Insights data, global snacking launches featuring high protein claims had a CAGR of 16.8 % between 2015 and 2019, while the use of energy/alertness claims rose 13.7 % over the same period.
Those seeking healthier lifestyles also looked to find a balance between health and indulgence, while also looking for individual needs and preferences to be met, including the development of more balanced and complete concepts in terms of their nutritional needs.
Balancing busy lifestyles is necessary as consumers live life to the full (holidays, dining out etc.) and benefit from this, but feel that it also takes a toll on them, with ‘fast’ lifestyles also necessitating compromise and rebalancing. Convenience is key in this area, prompting a demand for meals that are easy to prepare and cook, which in turn provides opportunities for ready meals and meal kits. The demand for home cooked food has boosted interest in meal kits, with 28 % growth in the number of launches tracked globally by Innova Market Insights (CAGR 2015-2019).
On the other hand, consumers looking for a change in lifestyle are likely to increasingly distract and distance themselves from their busy lives and try to wind down. Emotional comfort is key here, with interest in comforting, relaxing and sleep-inducing food and drinks, particularly carrying mood, energy and sleep improving claims.
Stress and anxiety are key concerns in modern life as awareness of their negative impact on mental and physical health grows. In a 2019 Innova Consumer Survey 32 % of UK consumers and 39 % of US consumers claimed to experience stress at least once a day, rising to over half in India. The industry response has included more products targeted at improving low mood, tiredness and fatigue and sleep.
A tough market, according to GEA experts Martin Zickler and Dave Medlar, where it is better to start planning from the back in order to make everything right from the beginning. That’s why they first built up the service network and a local assembly and then made a promise: GEA pumps will bring a new level of quality, efficiency and hygiene to the US dairy, pharmaceutical, food and beverage markets.
GEA acquired Hilge, a leading German pump manufacturer, in June 2015. Since then the company has been integrated into GEA and has benefitted from its engineering experience and global network of customers, suppliers and agents. Now that the pumps have received 3-A certification, the time is right to meet the US market head on.
Martin Zickler is the product manager for hygienic pumps, based in Germany. He worked with Hilge before the GEA acquisition. “The old company had no footprint in the USA,” he said. “But now that we have the backing of GEA and a comprehensive service and distribution network in the country, we are ready to take on the challenge.”
Michael Brandt is the business development manager charged with the job of making the US launch a success. He said that he had never had any doubts about the quality of the pumps and the opportunities for them in the US, but he had to make sure that the service and support structure was up to American standards before introducing them to the market.
Get ahead by looking back
“GEA pumps are strong, reliable workhorses but, for the American market, service is critical,” he explained. “We need to be able to respond quickly to our customers and provide a fast spares service. We also needed a reliable distribution network as customers need to know that if they require assistance, they can get the relevant expertise quickly.”
Dave Medlar, head of sales valves & pumps USA and his team have been working hard to get the support network in place before the product launch. “Of course, providing excellent service is always work in progress but I am now confident that we are ready,” he said. “We have a global reputation to maintain; when people buy a GEA product, they know it’s going to be supported well, also during the entire service life of a pump.”
Hygienic approach becomes a must-have
The GEA centrifugal pumps have a unique impeller design that sets them apart from normal centrifugal pumps. “We have pushed the impeller towards the front making it more efficient and the mechanical seal easier to cool. It mimics a closed impeller but can still be used in the pharmaceutical industry and wherever sanitary conditions are required,” said Martin. “This means the pump is easier to clean and can handle a much wider range of liquids.”
In addition, GEA pump housings are manufactured by deep drawing, not casting. This provides a much higher quality surface finish without blow holes in which bacteria can collect. Although this has been a feature demanded largely by the pharmaceutical industry in the past, the food and beverage market is increasingly requiring a more hygienic approach throughout all aspects of its production.
Engineering excellence that allows customization
Although the product’s unique features are impressive, and it has a great reputation for reliability, Michael sees an even stronger sales proposition in the engineering experience of the GEA group. “It’s like an engineer’s toolbox,” he said. “We know that all applications are different and it’s flexibility that our customers need. Because we are engineers, not just suppliers of components, we can adapt the pumps to fit virtually any application. This might include, for example, different fittings or mountings, a more robust design or even providing the pump on a trolley. We look at the application, then work out what the customer needs are.”
The estimated revenue generated from the global ready-to-drink shakes market is US$ 9 Bn in 2019, and is projected to reach US$ 16 Bn by 2028. The market is therefore projected to rise at a CAGR of ~6 % between 2020 and 2028.
Globally, functional drinks are sought after for their high protein content and their demand is likely to rise steadily over the forecast period. A key factor resulting in increasing consumption of functional drinks is the increase in the consumer spending power, especially in developing nations. Ready-to-drink shakes which constitute a category of functional drinks are available in various flavours for retail sales in the global market. Some of these flavours are chocolate, banana, strawberry, among others. The global market of ready-to-drink shakes is analyzed on the basis of various flavours. These products are available for sale in different packaging forms, like bottles, tetra packs/cartons, and cans, which offers heightened convenience. Ready-to-drink shakes are meeting the current health and wellness demand in such a way that the drinks offer high protein amount with added specialty health ingredients.
Key takeaways from the ready-to-drink shake market study
Obesity is one of the strong issues faced by countries such as the U.S., Canada, Australia, U.K., etc. Ready-to-drink shakes are consumed as a meal replacement to achieve the weight management by restricting the calorie intake.
Due to the increased prevalence of the diseases and subsequently rising trend of health and wellness, ready-to-drink shakes market is expected to witness positive growth over the forecast period.
Ready-to-drink shakes are being increasingly opted by fitness enthusiasts and athletes, since it allows avoiding the hassle of the mixing of protein powder in the liquid of choice and also the wait.
Although, ready-to-drink shakes promise excellent results for gym goers and fitness enthusiasts, the product is still in the introductory phase in developing economies and economies are in transition stage. Therefore, because of the premium nature of the product and its expensive price, the market penetration may get hindered in emerging countries.
“Ready-to-drink shakes market is expected to channel upwards due to the excellent marketing strategies of the key players in the global market, resulting in the positive growth in the emerging markets,” says the report analyst.
Easy availability and increasing penetration of manufacturers and sellers of ready-to-drink shakes to positively Impact growth
Due to the increase in the preference for e-commerce platforms for transaction and shopping, the market reach out of the ready-to-drink shakes is anticipated to increase in the developed and developing economies. The boom in the IT sector has led to the development of the various new and easy ways of the transactions and shopping across various domains. The food and beverage industry is also driven by the increased use of the e-commerce platforms, since consumers have top priority for convenience and ease of doing business. Likewise, e-commerce platforms have enthralled the potential buyers of ready-to-drink shakes due to the easy and increased availability of the products, even in remote areas. Ready-to-drink shakes sales across e-commerce platforms are anticipated to rise over the forecast period and likely to be one of the drivers of the market growth.
Who is winning?
Some of the key players operating in the Ready to Drink Shake market are Nestlé S.A, Starbucks Corporation, PepsiCo Inc., Monster beverage Co., Lotte Chilsung Beverage Co., The Coca-Cola Company, The J.M Smucker Company, Bolthouse Farms, Inc., Arla Foods amba, Atkin Nutritionals Inc. and others.
These insights are based on a report on Ready to Drink Shake Market by Future Market Insights.
Over the past 10 to 20 years, the ripples of change in the global soft drinks market have threatened to become tidal waves, with new categories emerging constantly and genuine novelty flooding the shelves.
According to a new report from Innova Market Insights, which highlights that in the global shift in soft drinks, juices and carbonates may still be the two most active sub-categories worldwide but growth is clearly much faster in alternative areas. For example, Ready-to-drink (RTD) sports drinks saw launch numbers increase at a CAGR of 26 % over 2014-2018, compared with 12 % CAGR for iced tea and coffee and 10 % CAGR for ‘other’ soft drinks, including novelties such as herbal drinks, jelly drinks and vinegar drinks.
Flavor trends also demonstrate the changing face of the market. The fastest growing flavors in recent years include matcha tea (+49 % CAGR 2013-2018), apple cider vinegar (+21 % CAGR) and kombucha (+21 % CAGR), all of which are thriving concepts from Asia that are now distinguishing themselves on a global platform.
As well as the emergence of new categories, overlap between existing varieties is continuing. ‘Hello Hybrids’, one of Innova’s Top 10 Trends for 2020, is perhaps nowhere as important as in the soft drinks arena. ‘Category definitions are blurring all the time,’ says Lu Ann Williams, Director of Innovation at Innova Market Insights. “For example, in the US, Odwalla has recently developed the Smoobucha, which is a blend of fruit smoothie with fermented kombucha.”
At the same time, as suppliers seek new platforms for success, segmentation is also changing the face of the soft drinks shelves. For example, Water+ is an established concept but is continuing to evolve beyond vitaminization and added energy, with fiber, probiotics, collagen and mood ingredients all finding their way into modern waters.
Pectin market value is expected to surpass USD $1.8 billion by 2026, owing to a growing necessity for organic and herbal cosmetic products among the young population.
Global pectin market research studies the types of application (food & beverages: jams, dairy, non-dairy beverages, confectionery), their type (high methylated ester pectin, low methylated ester pectin, and amidated pectin), their function (gelling agents, thickener, stabilizer, fat replacer and others), regional outlook, price trends, growth potential, competitive market share and provides forecasts for 2019–2025. Global Market Insights, Inc., forecasts more than a 7.6 % CAGR for the worldwide pectin industry up to 2025.
Driven by the growing need for plant-based ingredients, the global pectin market is projected to observe significant gains over the forthcoming years. Plant-based ingredients are witnessing this upsurge since they offer immense health benefits.
Pectin products help to control blood sugar levels. These products also help to maintain proper bowel health. Owing to these multiple benefits, pectin products are best suited for nutritional needs, which is likely to foster their market share in the coming years.
Along with health concerns, rising applications of the product in confectionery fillings and sweets would possibly augment the market outlook. Additionally, the increasing usage of pectin in fruit juices and milk drinks as a stabilizer would add up to the industry’s expansion. Pectin helps decrease syneresis in marmalades and jams.
With respect to the raw material segment, apples have dominated the market outlook in recent years. The product is anticipated to witness similar growth in the forthcoming timeframe. This development is attributed to the use of apple pomace in production. Apple peel is one of the major wastes in preserve manufacturing. This peel contains about 1.3 percent of pectin. Apple peel yields more pectin in comparison to sugar beet and citrus peels. In addition, it has better gelling characteristics which further makes it a major raw material in the beverage and food market.
With reference to the geographical landscape, the Asia-Pacific pectin market is predicted to observe significant growth throughout the forthcoming years. Rapidly transforming customer lifestyles is the key factor augmenting the market outlook in the region.
In addition, the increasing demand for consumables that are organic in nature is likely to add up to the growth of the overall market trends. China would possibly lead the market expansion in the region. The country is among the largest producers of pectin. It is also observing mounting demand for health and wellness products due to the increasingly growing middle-class population. Furthermore, rising applications of citrus-based products in the cosmetics sector would further outline the market growth in the region.
Some of the key players in the pectin market includes Cargill, Dupont, Krishna Pectins Pvt Ltd, AEP Colloids, Silvateam S.p.a, CP Kelco U.S., Inc., TIC Gums, Inc. (Ingredion), Compania Espanola de Algas Marinas, S.A., Merck KGaA, Lucid Colloids Ltd., Herbstreith & Fox, Nikunj Chemicals, Pure Ingredients, Cifal Herbal Private Ltd, California Ingredients Inc, Calleva Ingredients Limited etc.
The global apple concentrate market witnessed substantial growth in the past few years, and this growth is expected to continue throughout the forecast period of 2019 – 2029. Towards the end of forecast period, the sales of apple concentrate will translate into revenues exceeding US$ 5 Bn, as per the projections of a new study.
The shelf life of apple concentrate ranges from months to several years, depending on the strength and type of concentrate, as compared to the significantly shorter shelf life of fresh juices. Thus, finished products such as apple juice, sparkling drinks, and soft drinks made from apple concentrate have a longer shelf life than those made from fresh fruit juices.
Longer shelf life of products made from apple concentrate reduces transportation costs and enables manufacturers to export their products and expand their geographical reach. It also allows manufacturers to offer specialized products for the military and astronauts. These products have a longer shelf life than the products made from apple concentrates for civilians.
Key takeaways – Apple concentrate market study
Liquid concentrates hold the largest share in the global apple concentrate market by form. Powdered concentrates are expected to witness a slower adoption, owing to its high cost of production.
China accounts for the largest share in the global apple concentrate market as it is the largest producer and exporter of apples and apple concentrate offerings in the global market.
The beverage industry accounts for the largest share among all segments by application in the apple concentrate market and is expected to grow at the fastest rate during the forecast period.
Manufacturers can gain significant profits from focusing on the B2C channel, which has a limited number of market players.
Apple concentrate market: Competitive landscape
Key players in the global apple concentrate market strive to increase their production capacity by focusing on acquisitions, mergers, and expansion of their own production units. Such investments are also helping manufacturers to expand their geographical reach and penetrate more markets across the globe. Manufacturers are also investing in product innovation and developments for cost-effective processing methods for production of apple concentrate.
For instance, In July 2015, Britvic PLC acquired Empresa Brasileira de Bebidas e Alimentos SA (“ebba”) with an investment of US$ 174.9 Mn.
These insights are based on a report on Apple Concentrate Market by Persistence Market Research.
On 13 November 2019 in Brussels the European Commission launched the new Market Observatory for Citrus fruit. On this occasion the European Commission requested Jose Antonio Garcia Fernandez, Director of Ailimpo and one of the initiators of the World Citrus Organization (WCO), to present the structure, the role and the objectives of this newly created platform for the global citrus category.
The European Commission welcomed this global initiative taken under the lead of Ailimpo, underlying the relevance of such a platform for the citrus sector to exchange information and debate on matters of common concern to enhance the citrus category.
Such a platform is fully aligned with the objectives of the European Market Observatory, which aim to provide market transparency and trends. Therefore, the work of the World Citrus Organization will be beneficial for the deliberation of the European Market Observatory for Citrus. Following their on-going collaboration with other similar international fruit platforms, the European Commission looks forward to having a fruitful cooperation with the new citrus structure once it is fully operational.
Freshfel Europe with its experts and the support of its Brussels based secretariat is eager to contribute to the success of the Market Observatories and the various sub sections such as citrus, peaches and nectarines, apples and pears, and tomatoes.
Experts will discuss both current and future opportunities for the food industry
Fi Europe & Ni is not only the most important trade show for food and beverage ingredients, it’s also the largest industry platform for information and education. These two events offer the chance to network with the best minds in the industry, explore new market potentials and catch up with the most current industry innovations: The Future of Nutrition Summit will offer the opportunity to network, engage in debate and be inspired by pioneers from within and beyond the F&B industry on 2 December. During the exhibition on 3 and 4 December, the Fi Conference agenda provides a top-class programme exploring cutting-edge innovations and the most current industry solutions.
More than 300 thought leaders and experts from industry, market research and academia will share their knowledge and discuss current topics at the Fi Conferences.
The Future of Nutrition Summit will take place at the Novotel Roissy, the day before the show opens, and is aimed at decision makers from R&D, marketing, brand management, retail and public healthcare. The main focus will be on developments that will shape the industry during the next five years and beyond. After “Open Innovation: Reshaping the Food Systems of Tomorrow,” the afternoon will offer attendees the choice between a stream on sustainable food systems and one providing insights into new food technologies. The speakers will include
Albert Meige, CEO of the open innovation platform Presans: “Get Ready to Sail The Winds of Disruption”
Prof. Dr Alexandre Mathys, Sustainable Food Processing, ETH Zurich: “In Search of a Circular Economy: Novel Protein Sources to Tackle Food System Challenges”
Udi Lazimy, Global Sourcing and Sustainability Director, JUST: “Food Innovation Begins with Breakfast”
The Fi Conference takes place during the first two days of the show and is dedicated to tackling current challenges and identifying immediate opportunities for the F&B industry. In the Discovery Theatre on the exhibition floor, keynote presentations, lectures and discussions on clean label, plant-based ingredients, healthy and functional ingredients, as well as reduction and reformulation, are on the agenda. At the same time, four master classes will concentrate on dairy, beverages, bread & bakery, and confectionery & snacks. Speakers include
Dr. Emilia Nordlund, Research Leader VTT: Hybrid Ingredients with High Functionality for Plant-based Foods
Eran Blachinsky, CEO, Better Juice: Better Juice: Naturally Reducing Sugar from 100 % Fruit Juices
Christian Kalk, Founder of Life Science-Based Innovations: Is it Safe? Regulatory Clearance of Innovative Foods and Ingredients”
Ardagh Group’s Nitro Can has been adopted by the UK’s number one cocktail mixer company Funkin Cocktails in a collaboration that sees the first-ever range of ready-to-drink nitro canned cocktails hit the shelves. With premium cocktails increasing in popularity, but traditionally demanding time and skill to serve to customers, Funkin have opted for Ardagh’s Nitro Can to deliver their ground-breaking range of canned cocktails. The slim aluminium can features a fixed nitrogen-infused widget that mixes the cocktail instantly, ensuring maximum product quality and consistency and producing an unrivalled multisensory experience for the consumer.
The Nitro Can technology was devised by Ardagh in 2016 to capitalise on the trend for nitro coffee, and with Funkin’s new range it now enters the fast-growing RTD alcoholic beverage market. Nitro Can’s innovative design makes the indulgent pleasure of a hand-mixed cocktail readily accessible in a convenient format. Upon opening the tab, the widget is activated, triggering an attention-grabbing ‘whoosh’ sound as micro-bubbles of nitrogen are released through the product. All the scents, flavours and colours of a bar-made cocktail are retained during the cascading pour, resulting in the instant delivery of an attractive beverage with a long-lasting foam head and the smooth, velvety sensation that is normally only achieved in a traditional cocktail shaker.
Not only does the Nitro Can offer an engaging consumer experience, its stable in-can environment is the perfect packaging solution to protect Funkin Cocktails’ quality ingredients. The 200 ml range contains real fruit, which makes retaining the integrity of product flavour and safety essential, and the can guarantees shelf stability both in refrigerated and ambient temperatures.
Consumers can enjoy Funkin’s four great flavours – Espresso Martini, Passion fruit Martini, Amaretto Sour and the on-trend Pink Gin Fizz – at home, out-and-about or in busy commercial environments previously unable to meet demand for quality mixology, such as restaurants and festival bars. The eye-catching cans feature Funkin’s brand new livery, a silver theme with bold graphics depicting the flavour varietals.
Funkin’s range is now available in the UK market.
One of the large-sized processing plants from São Paulo State started purchasing oranges in the spot market in the first fortnight of May – early varieties from the 2019/20 crop as well as fruits out of the ideal period from the 2018/19 season. Two plants of this large-sized processing plant were crushing oranges in that period, one in Araraquara and the other in Colina.
Bidding prices were around 18 BRL per box, harvested and delivered at the processing plant, lower than that observed until December/18 for mid and long-term contracts, which ranged from 20 to 22 BRL per box – with the possibility of a participation additional in the international juice market. At smaller-sized processing plants, in turn, quotes ranged from 14 to 20 BRL per box in the spot market – depending on both the processing plant and the quality desired.
For mid and long-term contracts, the purchases of oranges from the new crop have been occasional this year, with no fixed prices and deals closed between some of the large-sized processors only.
The citrus farmers consulted by Cepea are concerned about the effects of the higher production expected for the citrus belt (São Paulo and Triângulo Mineiro) in 2019/20 on orange prices.
Higher supply estimates are based on the good development of orange orchards in all Brazilian regions, favorable weather in the second semester of 2018 (with mild heat and well-distributed rains) and the resume of investments. Still, greening should constrain yield at many orchards in SP.
Although higher productivity in 2019/20 may lower the unit cost of production, the new bidding prices are considered low compared to expenses, which may constrain the revenue paid to the growers who will depend on sales in the spot market. Concerning fruit volume, most oranges have already been traded, through contracts – either previously closed or closed in late 2018. However, a high number of farmers, probably smaller-sized ones, may have been waiting for prices to be fixed this year in order to sell their fruits.
THE MARKET IN MAY – Oranges quotes dropped in the first fortnight of May, pressed down by both higher supply and low purchases from processing plants. Between May 2 and 15, pear orange quotes averaged 23.03 BRL per 40.8-kilo box, on tree, 34.5 % down compared to that in the first fortnight of April.
TAHITI LIME – The demand for tahiti lime was low in the first half of May, while supply continued high in the field of São Paulo State – due to the delay in fruit maturation in the first months of 2019. Between May 2 and 15, tahiti lime was traded for 17.20 BRL per 27-kilo box, harvested, 26.8 % down compared to that in the first fortnight of April.
EXPORTS – In the international market, the demand for tahiti lime was firm, due to the higher quality of the fruits available. However, this year, the Brazilian exports of tahiti lime have been lower than in 2018. In April/19, shipments totaled 10.6 thousand tons, according to Secex, 9 % down compared to that in April/18. Between January and April 2019, exports were 20 % lower than in the same period last year.
Following the recent news that The Coca-Cola Company plans to relaunch its sports drink Powerade in India within the next two months as part of its strategy to compete with PepsiCo’s Gatorade, Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view:
“The news comes as no surprise as the demand for functional sports drinks is growing exponentially in India and resonates well with millennials. Coca-Cola, being one of the country’s leading beverage companies, is now looking to tap into this category and increase its non-aerated drinks portfolio.
“Coca-Cola has collaborated with ICC World Cup as official sponsor with an aim to compete with Gatorade-owner PepsiCo in India. The calculative strategy is a part of company’s larger focus to evolve into a total beverage company by investing around $5bn by 2020 and make India as its third largest market. This is the second time Coca-Cola is trying to launch Powerade in the country.
“Powerade, which registered billion dollar plus sales globally, is currently available in India through imports. GlobalData forecasts the Indian sports drink market to grow from US$2.81bn in 2017 to US$5.87bn by 2023, propped up by healthy and better-for-you functional beverage options.
“Coca-Cola has collaborated with ICC World Cup as an official sponsor with an aim to compete with Gatorade-owner PepsiCo in India. The calculative strategy is a part of the company’s larger focus to evolve into a total beverage company by investing around $5bn by 2020 and making India its third largest market. This is the second time Coca-Cola is trying to launch Powerade in the country.
US sales of cannabis-based drinks jumped to EUR 86 million in 2018, according to the new 2019 US CBD Drinks Report from food and drink experts Zenith Global and US industry newsletter Beverage Digest. The market is expected to rapidly achieve mass market appeal, surging to over USD 1.4 billion in 2023, even with some regulatory restrictions remaining.
“Key growth drivers for CBD drinks include loosening regulatory implementation, investment by major brewers and innovation by numerous start-ups,” commented Zenith Global Chairman Richard Hall. “This has led to far greater awareness and availability.”
“A cultural shift in consumption also contributes. Consumers increasingly look for natural products with health benefits and are reducing their alcohol intake,” added Beverage Digest Executive Editor Duane Stanford. “CBD drinks are positioned as a potential aid for conditions from anxiety to muscle pain.”
The United States, in particular, has been a hot spot for CBD drink innovation. The category received a potential boost in December with passage of the Agriculture Improvement Act of 2018, which removed hemp from Schedule 1 of the Controlled Substances Act.
Cannabis has two main active constituents – CBD and THC. THC is the element that gives an emotional high and has not been licensed for consumer products. CBD, which is an abbreviation of cannabidiol, has some reported benefits and is in the process of gaining the necessary approvals for consumer products.
The quantity of CBD in beverages varies from 2 mg to 100 mg per litre. The 2019 US CBD Drinks Report profiles more than 20 brands which span numerous segments such as soda, tea, cold brew coffee, shots, energy drinks, water (still, sparkling and flavored) and beer.
This report also assesses opportunities for other CBD products, international prospects and developments in US legislation.
Global Cold Pressed Juice Market is estimated to grow at a substantial CAGR in the forecast period as the scope, product types, and its applications are increasing across the globe. Cold-pressed juice implies usage of a hydraulic press to extract juice from vegetables and fruit, different from further procedures such as single auger or centrifugal.
The factors that propel the growth of the Cold Pressed Juice Market include growing number of diabetic patients, fatness problems, growing dietary and health concerns among clinicians, Changing lifestyle, and beauty and detoxifying benefits offered by juice. On the other hand, the factors that may hamper the growth of the market include high price of cold pressed juice.
Cold Pressed Juice Market may be explored by nature, type, distribution channel, and geography. Cold Pressed Juice Market may be explored by nature as Conventional, and Organic. The “Organic” segment led the Cold Pressed Juice Market in 2018 and is anticipated to maintain its dominance by 2024. Cold Pressed Juice Market could be explored based on type as Mixed Fruits and Vegetables, Fruits, and Vegetables. The “Mixed fruits and vegetables” segment led the Cold Pressed Juice Market in 2018 and is anticipated to maintain its dominance by 2024 owing to high demand and rising concerns concerning numerous health issues.
Cold Pressed Juice Market could be explored based on distribution channel as Hyper/Super Market, Convenience Stores, Internet Selling, and Retail/Grocery Stores. The “Hyper/Super Market” segment led the Cold Pressed Juice Market in 2018 and is anticipated to maintain its dominance by 2024.
Cold Pressed Juice Market is categorized based on geography into North America, Latin America, Japan, Middle East and Africa, Western Europe, Asia Pacific, and Eastern Europe. Europe and North America accounted for the major share of the Cold Pressed Juice Market Size in 2018 and will continue to lead in the forecast period.
The key players contributing in the robust growth of the Cold Pressed Juice Market comprise Pressed Juicery, Evergreen Juices Inc., Suja Life, Liquiteria, PepsiCo Inc., Evolution Fresh, LLC, JustPressed, Hain BluePrint, Inc., Organic Avenue, Organic Press Juices, and Juice Generation. The leading companies are taking up partnerships, mergers and acquisitions, and joint ventures in order to boost the inorganic growth of the industry.
US markets are poised to achieve continuing growth as Cold Pressed Juice Markets support better nutrition.
An increasing number of diabetic patients, terrible obesity issues, and increasing nutritional and health concerns among clinicians are having an impact on the Cold Pressed Juice markets as people turn to good nutrition as a supplement to medications. Changing lifestyle impacts the market. The cold pressed juice market can be primarily divided into two broad categories: raw juices and HPP. The HPP is packaged in plastic.
Independent brands comprise a higher percentage than is usual for other markets. The cold pressed juice market is comprised in part of smaller stores and from sources that operate as small entities. In other markets it is usually the case that the known brands dominate a market. What is different here with cold pressed juices is that cold pressed juice is better when it is really fresh. This requirement mitigates against large company usual methodical, slow ways of working. It is even more difficult than the milk market when the juice is not pasteurized.
A USD 4.3 billion market in the US in 2017 is expected to reach USD 8.1 billion by 2024, growing in response to demand for food that has more nutrition in it and is tasty.
The full report “Cold Pressed Juice Market” is available with Radiant Insights, Inc. at www.radiantinsights.com.
Jonathan Davison, Beverage Analyst at GlobalData, a leading data and analytics company, identifies the defining beverage market trends in 2018:
1. Company diversification:
Responding to a game-changing shift in consumer attitudes towards health and wellness, carbonated soft drinks giants looked to protect their volume and value sales through category diversification. Delivering on its promise to become a “total beverage company”, Coca-Cola led this trend through a wave of acquisitions across multiple industry sectors, as well as revamping the marketing of Diet Coke and Zero Sugar.
The company also expanded into other categories such as dairy alternatives, increased its energy and juice drinks portfolios and made its presence felt in Foodservice with the £3.9bn acquisition of Costa Coffee.
2. Combatting packaging waste:
The strength of consumer demand for sustainable packaging solutions is driven by industry collaboration and company innovation.
Over 106 brands signed up to the UK’s ‘Plastic Pact’, while PepsiCo joined Nestle, Danone and Origin Materials in the NaturALL Bottle Alliance. When asked about the effect of a tax on plastic products, *79 % of global consumers indicated their shopping behaviour would change. In the UK, Government and industry have reflected this sentiment in a number of actions this year.
The Gov’t continues its consultation on a UK wide deposit return scheme (DSR) for drinks containers. Starbucks introduced a ‘latte levy’ of 5p on single-use paper cups, Carlsberg launched its pioneering ‘snap packs’ solution to bond packs of multiple cans together without using plastic rings and a number of resealable and recyclable can innovations have been launched.
3. Cannabis-infused drinks:
Functional beverages continue to play an important role in the beverages market with the perceived health benefits of cannabidiol (CBD) driving a surge of interest amongst young consumers in 2018.
This emerging sub-category has caught the attention of the biggest players in the market. Constellation Brands and Molson Coors made significant investments in August and both Coca-Cola and PepsiCo are keeping a watching brief on developments.
4. Blossoming plant-based sub-category:
Vegans and vegetarians make up just *7% of the world’s population so it is significant that attitudes to plant-based drinks from non-vegetarians shifted markedly in 2018, as the multi-layered benefits of these drinks became more apparent. The growing consumer interest in this sub-category has taken it mainstream, with market volumes set to increase by **5% in 2018.
Key developments in 2018 included Coca-Cola’s relaunch of its dairy-free smoothie brand AdeZ and the introduction of a range of plant-based milks under its Innocent brand, together with new launches from Starbucks and PepsiCo.
5. Individualism and self-tailoring:
GlobalData’s latest report, ‘‘TrendSights Overview: Individualism & Expression – Exploring the impact the Individualism & Expression mega-trend has on innovation across the FMCG space, 2018”, reveals that consumers are looking for more bespoke, individual experiences, with 61 % of global consumers expressing an interest in creating their own products.
In the crisps market, Walkers’ ‘Salt ‘n’ Shake’ provides a good example of how well this concept can work and some soft drinks brands are now including similar options for customization. Kolibri Drinks launched of a range of botanical products this year which allow consumers to tailor the flavour and sugar content themselves, by using a syrup-based sweetener stored in the cap. This concept could be widely adopted by ready-to-drink (RTD) formats, providing consumers with more choice by offering customisation with convenience.
*Source: GlobalData 2018 Q3 global consumer survey **Source: GlobalData
Mintel, the world’s leading market intelligence agency, has announced the launch of Indian Consumer, a new consumer intelligence platform featuring in-depth research reports and analyst expertise on India’s consumer markets. Designed specifically for companies, brands, and manufacturers serving the Indian market, Mintel Indian Consumer intuitively combines new consumer research with the latest market data and analyst insight, and is delivered in a highly engaging and interactive platform.
Thoroughly researched, analysed and interpreted by Mintel’s team of local expert analysts, each interactive report is easy to comprehend and, more importantly, act upon. With overarching themes across the food and drink, beauty and personal care, and lifestyles categories, Mintel Indian Consumer presents solutions to gaps identified in the marketplace, with the consumer insight needed to facilitate the product development, brand and marketing, as well as business decision-making processes.
Matthew Nelson, General Manager of Mintel Asia Pacific, says: “From first setting up shop in India nearly a decade ago to doubling our revenue and tripling our headcount in just the last three years, the launch of Mintel Indian Consumer marks an expanded footprint for Mintel in India—a challenging, dynamic and highly innovative marketplace. Mintel’s continued investment in the region builds upon our already established analyst expertise into one of the world’s fastest-growing economies. This is a key milestone for the company’s long-term growth strategy and further expansion across the Asia Pacific region and the world, giving our clients research and analysis of the highest quality to help them grow their business.
“As consumer markets become more competitive, Mintel has proven to be an unparalleled asset to our clients as they develop their business strategies amidst evolving social, economic and political landscapes. Mintel Indian Consumer represents a first-of-its-kind, truly unique approach to helping companies and brands understand and validate local consumer trends and assess the market applicability of global trends locally.”
Nidhi Sinha, Head of Content, India Consumer, at Mintel, adds: “Mintel research identifies the major trends impacting the marketplace, covering consumers in metros and tier one-to-three cities across India’s four main regions. Companies and brands can drill into our consumer data to discover the regional and socioeconomic differences. In fact, the data can be viewed by household composition, demographic, gender and age, to name a few. Mintel’s expert analysts provide their unique perspective and expertise on India’s key consumer markets by examining the trending shifts in consumer behaviour and product innovation on the global and local scale.”
“Mintel Indian Consumer is augmented with interactive data books for an immersive, hands-on research experience, offering the opportunity for deeper data manipulation. Each report addresses category white space, backed by consumer data, and is presented and interpreted in a way that makes sense to our clients. Mintel’s primary research, consumer data and expert analysis give our clients actionable and unique consumer insights and opportunities to help them make informed business decisions for a successful future.”
Cargill has the intention to invest $150 million to construct an HM pectin production facility in South America. HM pectin is a versatile, citrus fruit-based texturizer used for jams, beverages/juices, acid dairy drinks and confectionery.
Bruce McGoogan, strategy and innovation leader for Cargill starches, sweeteners and texturizers business said, “The pectin market has seen a strong growth for several years, primarily driven by the acid dairy drink market, as well as the growing global consumer demand for label-friendly ingredients. HM pectin plays a significant role in delivering on both trends—as it is a plant-based texturizer designed for acid dairy drinks as well as for jams, beverages and confectionery products. The intention to invest in a plant in Brazil, which has an abundant citrus fruit supply, allows Cargill to deliver the pectin our customers need and consumers demand.”
The intended project is part of a comprehensive plan to strengthen Cargill’s full pectin footprint, including improvements to its existing three plants in Europe (Germany, France and Italy) and adding a new plant in Brazil to take advantage of local resources.
“Adding an industry-leading pectin asset in Brazil will complement Cargill’s existing European network and create the capacity to serve our customers around the globe with premium pectin ingredients,” said Laerte Moraes, managing director of Cargill’s starches, sweeteners and texturizers business in South America. “The intended investments also illustrate Cargill’s commitment to its employees and the economies in both Europe and Brazil through job growth and financial contributions. The intention is to start construction early 2019.”
Research into buying habits enables innovation with new options aimed at increasing consumer loyalty
For another year, the watermelon and melon teams of Nunhems®’ have shown the benefits of working with a customer-centred approach. Since 27 June and until 4 July, the experimental station at La Palma, Cartagena, has been holding the fourth edition of the Melon & Watermelon Business Event for Experts, the best world showcase to display the enormous capacity for innovation Nunhems® applies, showing producers and distributors in the field a selection of new developments in which the main argument is flavour.
“We are privileged to have a lot of market information, we know each country’s consumer habits perfectly and we constantly listen to the demands of all the links in the food chain, so we did not put a foot wrong some years ago when we began a process of varietal improvement based on flavour. The market has proven us right and we are achieving our goal: consumers who try one of our varieties want to repeat the experience,” explains Juan Sastre, Crop Sales Manager for watermelon in Nunhems®.
