Food and Beverage Industry: “A spot where people mellow”

Food and beverage industry is an emerging industry globally. It is increasingly gaining precipitating opportunity in markets of Asia Pacific and North America. In food and beverage industry, fast food joints are anticipated to have a largest market share of more than 45% with Y-O-Y of 17.2% in five to six years. Market size of food and beverage industry was USD 3.9 trillion in 2016 in which stand alone restaurants, the most fastest growing restaurants comprises of 25% market share where cafe segment has 13% market share at a CAGR of 10.9% in four to five years. However, fine dine restaurants contributed only 5.2% market share till 2016.

On the basis of segmentation, Food and beverage industry is divided into products, ingredients and additives, feed and agribusiness, end users and regions. Geographically, North America has dominated food and beverage industry by 37% market share till 2016 followed by Asia Pacific which dominated food and beverage industry by 31% and Europe who had 28% share in food and beverage industry.

Vigorous merger and acquisition in food and beverage industry had taken place in 2016 owing to strong economic growth and increasing demand for better snacks and beverages. Alcoholic and non alcoholic beverages saw robust merger and acquisition volume of around 81 transactions completed in 2016 which comprises of companies such as Jusu Bars, a North American company had acquired Cru Juice Company in September 2016 in order to strengthen its position globally. Similarly, United Natural Foods acquired organic food distributor “Gourmet guru” in August 2016.

Low margin of profits and stringent regulatory environment and acts by government such as federal clean water act, solid waste disposal act and food safety modernization act are the major restraints in food and beverage industry. However, increasing consumer inclination towards foods and beverages, rising demand for online grocery and delivery, innovative technologies in food and beverages industry such as ultra-high pressure homogenization technology which is used to extract high quality liquid from foods, ultrasonification of food processing and sustainability of foods are likely to create opportunity for key players in food and beverages industry. Our latest report on food and beverage industry help our clients make powerful future decisions to keep them well ahead of the game which is the market, and leave a mark across businesses and communities through our well-defined ideas and clear cut forecasts.