Food and Beverages Industry Overview

The organic food market consists of sales of organic food and beverages and related services. The production of organic food involves practices that promote ecological balance and aim to conserve biodiversity. These food products do not use any food additive or industrial solvent. The global organic food market was valued at about $166.28 billion in 2018 and is expected to grow to $305.56 billion at a CAGR of 16.4% through 2022. North America was the largest region in the organic food market in 2018. The organic food market in Asia Pacific is forecasted to register the highest CAGR during 2018-2023. Increasing health concerns due to growing number of chemical poisoning cases globally is acting as a driver in the organic food market. Consumers are becoming more health conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption and birth defects. According to an UN report published in the year 2017, around 200,000 people die every year due to toxic effects of pesticides in food products. This is causing consumers to shift their focus towards organic food products. Low shelf life of organic food and beverages compared to conventional foods and beverage products is restraining the organic food market. For instance, in a research conducted by MSNBC in 2018, it was reported that the shelf life of organic food product tends to be shorter than conventional produce. Similarly, some researchers found that many organic foods had higher levels of bacteria than conventional products that cause food to spoil. As organic food is not exposed to the similar amount of preservatives that of conventional food, organic food tends to be prone to bacteria attacks and has a shorter shelf life. For example, organic food products like turnip greens, mustard greens, and endive have a very short shelf life with shrinkage percentage of 50%. Thus, high packaging, logistics and distribution costs to increase shelf life is limiting the growth of the organic food market. Companies in the organic food market are focusing on introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs and organic juices. For example, Lidl, an organic grocery chain is coming up with 28 new and innovative organic food products to choose from. Similarly, Nestle plans to launch new and innovative organic milk products in India. The organic food market is regulated by authorities such as the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) to ensure high quality standard of food product is maintained. For instance, EFSA oversees whether labelling is used to mislead consumer on the nutritive proportions of a product in the EU. EFSA performs occasional checks on the nutritional value to check whether correct labelling has been used or not. In order to maintain transparency and effectiveness, regulatory authorities have come up with strict food labelling regulations for the organic food market. Major players in the market are General Mills Inc., Cargill, Inc., Danone, United Natural Foods Inc. and Amy’s Kitchen.

The milk substitutes (non-dairy milk) market consists of sales of milk substitutes. This industry includes establishments that produce milk substitutes such as soy milk, almond milk and rice milk. The global milk substitutes (non dairy milk) market was valued at about $17.7 billion in 2018 and is expected to grow to $27.17 billion at a CAGR of 11.3% through 2022. Asia Pacific was the largest region in the milk substitutes (non-dairy milk) market in 2018. This region is expected to remain the largest during the next five years and is forecasted to register the highest CAGR during 2018-2023. The increasing consumers’ preference for vegan food is driving the milk substitutes market. Consumers are increasingly becoming aware about animal abuse at dairy farms and are avoiding animal based products. Vegan milk is cholesterol-free, rich in vitamin D and proteins and provides more calcium than animal milk. According to a report by Mintel in 2017, sales of non-dairy milk in the USA grew 61% over the last five years. The rising shift towards veganism and health consciousness is driving the milk substitutes market. Presence of highly toxic arsenic compounds in rice milk is acting as a restraint on the milk substitutes market. Rice milk is made from rice that carries huge levels of arsenic, a highly toxic chemical which is dangerous for human health and may cause cancer. According to a journal on food additives & contaminants published in 2018, arsenic proportion in rice milk has a mean value of 63%, which is dangerous for human health. Non-dairy milk producing companies are increasingly focusing on improving the shelf life of their products. Companies are trying to decrease the rate of bacterial formation in non-dairy milk through bacterial clarification using separators intended to remove bacterial spores. Ultra-pasteurization involves heating milk to a temperature of more than 280°F for at least 2 seconds that will kill harmful bacteria and increases shelf life to up to 120 days. For instance, soymilk produced by SunOpta is processed using ultra-pasteurization and has an extended shelf life of 12 months. Also, ultra-pasteurized almond milk by Pacific Foods has a shelf life of about a year. Non-dairy milk producers are governed by various regulations related to product quality, labelling and others. For instance, in the EU, the Regulation (EU) No 1169/2011 was introduced to provide nutritional information about food products to consumers. According to the regulation, non-dairy milk producing companies have to adhere to different protocols pertaining to nutritional labelling, presentation, advertising of foodstuffs and the printed information must be of a minimum font size. The allergens (e.g. soy, nuts, gluten, and lactose) for prepacked foods should be clearly mentioned. For non-dairy products like milk substitutes, an indication of substitute ingredient should be clearly mentioned. Major players in the market are Hain Celestial Group, WhiteWave Foods, ADM, Nutriops S.L and Blue Diamond Growers.

Bottled Water Market Definition

The bottled water market consists of sales of bottled water services and related goods by entities (organizations, sole traders and partnerships) that provide bottled water. The bottled water industry includes establishments that purify and bottle water.

Food And Beverages Market Characteristics

The food and beverages market consists of sales of beverages, food, pet food and tobacco products by entities (organizations, sole traders and partnerships) that produce beverages, food, pet food and tobacco products. The companies in the food and beverages industry process raw materials into food, pet food and tobacco products, package and distribute them through various distribution channels to both individual customers and commercial establishments.

Alcoholic Beverages Market Characteristics

The alcoholic beverages manufacturing market consists of sales of beverages that do not contain any alcohol by entities (organizations, sole traders and partnerships) that produce beverages that do not contain any alcohol. The companies in the alcoholic beverages industry process raw materials into alcoholic beverages, package and distribute them through various distribution channels to both individual customers and commercial establishments.

Non-Alcoholic Beverages Market Characteristics

The non-alcoholic beverages manufacturing market consists of sales of beverages that do not contain any alcohol by entities (organizations, sole traders and partnerships) that produce beverages that do not contain any alcohol. The companies in the non-alcoholic beverages industry process raw materials into non-alcoholic beverages, package and distribute them through various distribution channels to both individual customers and commercial establishments.

Grain Products Market Characteristics

The grain products manufacturing market consists of sales of grain products by entities (organizations, sole traders and partnerships) that mill flour meal from grains or vegetables, prepare flour mixes or doughs from flour, mill, clean and polish rice and produce malt from barley, rice and other grains. The companies in the grain products industry process raw materials into grain products, package and distribute them through various distribution channels to both individual customers and commercial establishments.

Bakery And Confectionery Market Characteristics

The bakery and confectionery manufacturing market consists of sales of bakery and confectionery by entities (organizations, sole traders and partnerships) that produce bakery and confectionery products. The companies in the bakery and confectionery industry process raw materials into bakery and confectionery, package and distribute them through various distribution channels to both individual customers and commercial establishments. Some of the examples of bakery and confectionery products include breakfast cereals, breads, cookies, chocolates, gums, sugar confectionery and others.