Insights from BCC Research

Industry Trends in Food and Beverage Market

Food and beverageIn 2018, a lot happened in the food and beverages market. For example, the advent and adoption of various technologies enabled simpler packaging and processing solutions, such as resealable packages and single-portion packages, which generate less waste and have increased recyclability.

Simpler packaging and processing solutions is just one of the trends BCC Research analysts have seen in the food and beverages market. In our report, “2018 Food and Beverage Research Review,” we explain in depth what’s happening in several industries within the market—food processing, probiotics, food enzymes, fermentation ingredients and more.

If you’re looking for a short introduction of food and beverage market trends, then today’s blog will be helpful. Gain quick insight into each industry featured in our full report with our summaries below.

The Probiotics Market
Short Overview: Probiotics are friendly bacteria that are consumed to balance gut flora in the body. Demand for probiotics has increased over the years due to growing awareness of the health of both humans and animals, and increasing demand for food and beverages, dietary supplements and animal feed.

Market Trends:

  • The global probiotics market was worth $36.6 billion in 2016 and is expected to reach nearly $57.2 billion in 2022, growing 7.8% annually.
  • The market is led by probiotics applications in the food and beverage industry, which is expected to maintain its leading position through 2022.
  • Asia-Pacific is the largest regional market for probiotics, accounting for 37.9% of the market with a projected compound annual growth rate (CAGR) of 8.1%.
  • The most commonly used probiotic ingredient is Lactobacillus, which holds a 63.1% share of the global market, followed by Bifidobacterium and Streptococcus, with shares of approximately 27.6% and 4.2%, respectively.

Food Processing Industry and Packaging Equipment Market
Short Overview: The food industry is emerging as a high-growth, high-profit industry with huge potential, especially in the food processing segment. Food processing and packaging technology is now focusing on retaining maximum nutrients and sensory properties, and increasing the shelf life of food without causing any adverse effects on the quality of food.

Market Trends:

  • By 2023, food processing equipment will make up 46.2% of the market, compared to 44.6% in 2018.
  • By 2023, food packaging equipment will make up 53.8% of the market, compared to 55.4% in 2018.
  • In the food processing equipment industry, meat, fish and poultry equipment will be the primary drivers of market size and growth.
  • The food packaging equipment industry will be driven by fruit and vegetable equipment in terms of market size, and milk equipment in terms of growth rate.

Fermentation Ingredients Market
Short Overview: The number of products developed by a fermentation process has increased beyond that which was anticipated by many industry developers more than two decades ago. The market has experienced significant fluctuations in pricing, undergone wide variations in consolidation and product development and become highly susceptible to factors such as, the agricultural industry; food preferences and resulting consumption; bio-ethanol development; disposable incomes, gross domestic product (GDP) and socioeconomic trends.

Market Trends:

  • The global fermentation-derived fine chemical market was worth $24 billion in 2017, and is expected to increase at a CAGR of 3.4% through 2022.
  • By application of fermentation-derived fine chemicals, animal feed is the fastest growing segment, increasing by 4.7% annually and reaching an estimated 9.5 billion by 2022.
  • Citric acid traditionally dominates the category of organic acids, which are products manufactured by fermentation. The product grew strongly due to its robust popularity as an acidifier in foods, as a pH regulator in many technical applications and as a building block in detergents.

Food Enzymes Market
Short Overview: Enzymes are an integral part of the food and beverage industry. They are widely used in food and beverage production in most countries. Without the use of enzymes, the production of many types of foods and beverages would be less efficient and of low quality. Key factors responsible for the growth of the market include new enzyme technologies and surging demand from the food and beverage industry.

Market Trends:

  • The global food and beverage enzyme market grew between 3%-5% per year in the past few years, and is estimated to grow 4.6% through 2022.
  • The Chinese market will be one of the fastest-growing global markets, at a CAGR of 6.5% through 2022.
  • Overall, the European food enzyme market is expected to undergo relatively slow growth in the next five years, however it is expected to see strong growth in sugar, syrups and sweetener applications because the European Union has removed its limits on sugar production, spurring significant expansion among several major producers.

Carotenoids Market
Short Overview: Over the past decades, a better understanding of carotenoids’ functions in living organisms developed, leading to their use as a nutritional additive with strong health claims. Currently, carotenoids are used as coloring components in foods and feeds, occasionally in cosmetic products, and as physiologically active ingredients in nutritional supplements.

Market Trends:

  • The carotenoid market is expected to grow from approximately $1.5 billion in 2017 to $2 billion by 2022, increasing by 5.7% annually.
  • The carotenoid market in food has not grown at high rates over the past few years and has reached saturation in traditional regions such as Europe and North America. Growth rates in Asia have not been strong enough to boost the market as hoped and expected by some players.
  • The market value for beta-carotene, which was $259.4 million in 2017 is estimated to reach $335.5 million in 2022, making it the third-largest segment of the carotenoid market in terms of value.

Bottled Water Products Market
Short Overview: The global market for bottled water products has grown exponentially in the last few years, and growth is expected to continue through 2022. The market is being driven by changing lifestyles, preference for vitamin- and mineral-rich drinking water and ease of handling and portability of bottled water.

Market Trends

  • The global market for bottled water products was worth $190 billion in 2016 and is expected to reach $342 billion in 2022, growing 10.8% annually.
  • North America, together with Europe and Asia-Pacific, led the bottled water market and accounted for a combined 85% of the market in 2016.
  • The global market for glass bottled water was worth $26.5 billion in 2016 and is expected to reach $46.2 billion in 2022, growing 10% through 2022.

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Written by Sarah Greenberg on Jun 12, 2019 10:00:00 AM

Sarah Greenberg is the Senior Content Strategist at BCC Research. She creates our blog, social media and email content.

Topics: Food and Beverage