INNOVATION IN THE BEVERAGE INDUSTRY
GLOBAL WATER & BEVERAGE TECHNOLOGY
CONGRESS - DUBAI
MARIAM JARRAR
CONSULTANT, MIDDLE EAST, NORTH AFRICA AND TURKEY
2011 NOVEMBER
INNOVATION IN THE BEVERAGE INDUSTRY
OBJECTIVES
WHO IS EUROMONITOR INTERNATIONAL
THE GLOBAL BEVERAGE INDUSTRY
GLOBAL DRIVERS FOR INNOVATION
KEY LEARNINGS
Q&A
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INNOVATION IN THE BEVERAGE INDUSTRY
WHO IS EUROMONITOR INTERNATIONAL
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INNOVATION IN THE BEVERAGE INDUSTRY
WHO IS EUROMONITOR INTERNATIONAL
THE GLOBAL BEVERAGE INDUSTRY
GLOBAL DRIVERS FOR INNOVATION
KEY LEARNINGS
Q&A
© Euromonitor International
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INNOVATION IN THE BEVERAGE INDUSTRY
GLOBAL SALES BY REGION AND BEVERAGE TYPE
445 bn litres
2010 Off-trade volume mn litres
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445 bn litres
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INNOVATION IN THE BEVERAGE INDUSTRY
HOW MUCH DID WE DRINK IN 2010?
Middle East and Africa
Asia Pacific
Eastern Europe
Latin America
Australasia
Western Europe
North America
0
50
100
150
200
250
300
Off trade volume 2010 litres per capita
In 2010, 445 billion litres of soft drinks were sold globally
which equates to 65 litres per head!
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INNOVATION IN THE BEVERAGE INDUSTRY
WHAT DO WE DRINK MOST, WHERE IN THE WORLD?
World Asia Pacific Australasia E Europe L America MENA N America W Europe
Bottled Water
26.0
12.8
19.9
39.1
56.5
9.3
77.8
92.3
Carbonates
23.0
5.9
74.2
32.9
72.7
13.0
114.7
49.3
Concentrates
0.4
0.1
5.2
0.5
1.1
0.4
Fruit/Vegetable Juice
8.5
5.0
30.3
18.8
9.6
3.3
33.2
22.8
RTD Coffee
0.6
1.0
5.6
-
-
-
0.6
0.2
RTD Tea
4.1
5.6
1.2
2.7
0.7
0.1
7.7
4.8
Sports and Energy Drinks
2.0
1.1
7.5
0.9
1.6
0.2
17.4
3.5
Asian Speciality Drinks
3.0
5.3
Off trade volume 2010 litres per capita
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INNOVATION IN THE BEVERAGE INDUSTRY
WHO IS EUROMONITOR INTERNATIONAL
THE GLOBAL BEVERAGE INDUSTRY
GLOBAL DRIVERS FOR INNOVATION
KEY LEARNINGS
Q&A
© Euromonitor International
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INNOVATION IN THE BEVERAGE INDUSTRY
WHAT DRIVES INNOVATION GLOBALLY?
Economising
Packaging
Drivers for
Innovation
Sustainability
Health and Wellness
Premiumisation
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INNOVATION IN THE BEVERAGE INDUSTRY
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HEALTH-POSITIONED BEVERAGE TREND A DOUBLE-EDGED SWORD
Consumer interest in health and well-being is creating strong
volume growth opportunities
Al Ain: vitamin enhanced water (Wow)
The Berry Company, UK imported
Masafi: focusing on 100% juice
Powerhorse: energy Cola drink
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INNOVATION IN THE BEVERAGE INDUSTRY
FUNCTIONAL DRINKS OUTPACE GLOBAL SOFT DRINKS
Percentage Growth
35
30
25
20
15
10
5
0
Middle East Asia Pacific
Latin
and Africa
America
World
Eastern
Europe
Sports and Energy Drinks
© Euromonitor International
Western Australasia
North
Europe
America
Soft Drinks
Off trade volume growth 2010-2015
INNOVATION IN THE BEVERAGE INDUSTRY
ECONOMISING, VALUE FOR MONEY
Global private label share is on the rise
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INNOVATION IN THE BEVERAGE INDUSTRY
ECONOMISING, VALUE FOR MONEY
Bulk size beverage launches appeal to cost-conscious
Argentina
3-litre HDPE bottle in juice drinks
February 2009
Citric Chey’s launch follows a successful 3-litre launch in 100% juice
and serves to take share from the liquid carton’s monopoly position.
Canada
3.8-litre PET bottle launched in juices
August 2010
Fruitopia is a well-known brand from The Coca-Cola Co and
considered to do well following a trend in Canada towards
juices retailed in economically-priced, larger bottle sizes.
© Euromonitor International
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INNOVATION IN THE BEVERAGE INDUSTRY
INNOVATION – FINDING A NICHE IN THE MARKET
Identifying the emerging demographic in the UAE
1,200
1,000
Population Aged 0-14 and 65+
1980-2030
By 2030 there will be 3
people aged 0-14 to
every person aged 65+
'000
800
600
400
Date milk
smoothie Barakat
200
0
1980
1990
2000
Population aged 65+
© Euromonitor International
2010
2020
2030
Population aged 0-14
Bottled water Al
Ain
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INNOVATION IN THE BEVERAGE INDUSTRY
INNOVATION – VISUAL DIFFERENTIATION
Standout
designs & use
of colour
Ingredient
enhancement
© Euromonitor International
Hungary
be! BEAUTIFUL
Innovative
Beverages Kft
Building
strong
Functional
bottled water
brand
identity
2010
Poland
Gorska Natura
Pepsi-Cola General Bottlers
Functional bottled water
2010
INNOVATION IN THE BEVERAGE INDUSTRY
WHO IS EUROMONITOR INTERNATIONAL
THE GLOBAL BEVERAGE INDUSTRY
GLOBAL DRIVERS FOR INNOVATION
KEY LEARNINGS
Q&A
© Euromonitor International
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INNOVATION IN THE BEVERAGE INDUSTRY
Percentage Growth
FUTURE GROWTH PROSPECTS
2010-2015 Off-trade volume growth
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INNOVATION IN THE BEVERAGE INDUSTRY
KEY LEARNINGS
 Shift towards health and wellness
 Emphasise unique ingredients
 Look for a niche in the market: find new usage occasions
© Euromonitor International
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THANK YOU FOR LISTENING
ANY QUESTIONS?
Mariam Jarrar
Consultant, Middle East, North Africa and Turkey
mariam.jarrar@euromonitor.com
Euromonitor International - Dubai
F- Wing Office 606-607
Dubai Silicon Oasis (HQ)