How to get ready for market changes in the beverage industry

 
Today, beverage companies are faced with crucial choices that will determine their future growth potential. Choices are made to determine not only what position they will occupy in the market but also how to strategically occupy the position. Innovation, in this context, plays a decisive role as the driving force of development which enables companies to stand out from the crowd.

Macro-trends within the field of beverage consumption seem to indicate that consumers are more inclined towards innovative products with high added value and with a high degree of service. At the same time however, the entire distribution chain is selecting industrial partners both as standard suppliers as well as co-packers for private brand (or private label) products. These two types of orientation lead to different results; the reactivity and the capability of inventing vs. the capability of becoming cost leader. The point of arrival is different, but the means used to reach the end is the same: technological innovation.

The beverage market (as well as the food market), is constantly exposed to critical issues in terms of product safety and on this point consumers are adamant: safety is a primary value that cannot be compromised. As such, the technology of the future in the beverage sector must deliver flexibility and innovation without ANY compromise regarding safety. Emerging product categories such as sport-drinks and functional foods have specific process requirements which may mark an important opportunity for the beverage firms to differentiate. Sport-drinks (as well as much of the existing beverage sector) are now part of the consumer’s habit and many distributors are ready to offer products of this kind with private label brand at lower cost to the consumer. Functional foods, however, are more specialized and in this case still supplied primarily by major branded companies.