Beverages Market Analysis
Key themes affecting the global beverages market
The use of plastic packaging has emerged very suddenly and is growing with astonishing speed.
Sustainability and recycling have always been an issue and the beverages industry has made considerable progress in improving its sustainability. However, the new backlash against plastics caught it be surprise. All the major beverage companies are looking at returnable bottles, completely recyclable packs and plant-based bio-degradable packing.
Negativity about sugar is another important issue shaping the beverages market. This is impacting the industry all over the world. Many countries have introduced taxes or levies on sugar-sweetened soft drinks, and manufacturers have responded very quickly with low- or reduced-sugar versions. However, this does not help the juice industry: pure juices contain fruit sugars, and demand for traditionally sweet juices such as peach/apricot, mango, pineapple and other tropical fruit juices is weaker.
Politics also shapes the market. Free trade agreements have proliferated in the last couple of decades to the benefit of all, but now we are seeing trade disputes resulting in suddenly imposed tariffs. In Europe, there is still uncertainty over what will happen with Brexit. Will the UK be forced to adopt WTO rules, and thus see tariffs imposed?
However, probably the greatest issue for this market is climate change. This is forcing the industry to relocate its key plantations to cooler regions and severe weather fluctuations are damaging raw material sources, meaning interrupted supply and considerable price volatility.
Average juice prices, production and consumption figures |
| 2016 | 2017 | 2018 | 2019 |
Polish apple juice concentrate price (EUR per kilo ex works) | 0.9 | 1.9 | 0.9 | 1.3 |
Thai pineapple juice concentrate exports (USD per tonne fob) | 1550 | 1400 | 1100 | 1500 |
Chinese apple production (million tonnes) | 43.4 | 41.4 | 33.0 | 41.0 |
Global orange juice supply (million tonnes) | 2.0 | 1.8 | 1.6 | 1.5 |
EU fruit juice & nectars consumption (million litres) | 5921 | 5956 | 5900 | n/a |
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