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Beverage Ingredients: Trends and Influences

Global beverage ingredients market: Natural ingredients becoming important issue

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2014-02-26 04:21:04 - Beverage Ingredients: Trends and Influences - a new market research report on

The availability of low-cost beverage ingredient supply from the developing world has become a key issue in many commodified categories, and this has prompted some Western firms to exit the affected categories and concentrate on value-added ingredients and complete solutions, using their expertise in a wider range of ingredients to build application-specific solutions for their customers. However, others have simply established their own production

Ingredient blends are becoming more and more popular, offering complete ingredient solutions for specific beverage needs. As well as the added convenience this offers to beverage formulators, cutting their R&D investment, such blends are also promoted as more cost-effective than purchasing a series of single ingredients.

Sustainability has become one of the most important issues throughout industry. For



many years, economic growth was tied to environmental degradation, but industry is now trying to decouple these two ideas and has accepted that the health of the environment is crucial for global economic survival. Such is the importance of this issue that virtually all major ingredients suppliers have sustainability strategies in place. In general, the ingredient industry has taken a two-handed approach to sustainability: Sustainability within their own businesses & Helping customers with sustainable products

Key Findings

Continuing economic strife in many parts of the world is a major challenge to beverage ingredients firms, which need to maintain financial growth while also funding investment in sustainability and R&D projects for longer term growth.

There is growing pressure on ingredients firms to deliver complete and tailored ingredient solutions and blends for their beverage customers, both for the added convenience and the cost-cutting potential.

The provision of more natural ingredients is perhaps becoming the single most important issue in the development of beverages, particularly in the Western world, but also increasingly in emerging markets.

Beverages are no longer viewed simply as a quick refreshment but have become more of a consumption experience, with consumers demanding much more from their drinks. Ingredients innovation is key to the creation of value-added options.

For the 13 ingredients categories covered by this report, beverage usage totalled 46.4 million tonnes in 2011, of which sweeteners alone accounted for 85%. The total market is forecast a respectable CAGR of 3% over 2011-2016.

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