22 January 2018

The global instant beverage premix market is characterized by the presence of a large number of players making the landscape highly competitive, notes Transparency Market Research (TMR). Some of the leading companies are Dunkin Brands Group Inc., Starbucks Corporation, Suntory Beverage & Food Limited., The Coca-Cola Company, Monster Beverage Corporation, PepsiCo, Inc., and Ajinomoto General Foods Inc.

Currently, several players in the market are launching new premixes with natural and enhanced flavors to gain a competitive edge over others. In addition, these companies are disruptive pricing strategies and crafting innovative models to capture a wider customer base in various regions. Leading players are keen on consolidating their manufacturing and distribution channels by making strategic acquisitions, which help them to strengthen their market presence across various geographies, notes TMR.

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Geographically, the instant beverage premix market is segmented into Europe, North America, Asia Pacific and the Rest of the World (RoW). Of these, Asia Pacific held a major revenue share in 2015 and is expected to maintain its dominance throughout the forecast period. The opportunities in this regional market is expected to reach US$27.7 bn by the end of the forecast period.

Based on product type, the market is segmented into instant tea, instant milk, instant health drinks, instant coffee, and soup. Of these, the segment of instant coffee is expected to witness robust growth through the forecast period. Owing to coffee being one the most preferred beverages, instant coffee premixes are gaining vast popularity world over.

In recent years, substantial changes in lifestyle have significantly altered the food habits, leading to a burgeoning demand for instant beverage premixes. This is a key factor driving the market. The demand for instant beverage premix is increasing propelled by the consumption of these by a growing number of people in the workforce in various developing and developed economies. The marked convenience of ready-to-eat foods, including beverages, is a key factor bolstering the consumption of instant beverage premixes market. Furthermore, the growing popularity of intake of instant caffeinated concoctions in developed nations such as the U.S. and parts of Europe is expected to accentuate the market in the coming years.

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The growing disposable incomes of consumers in emerging nations in Asia Pacific and Latin America is expected to boost the demand for instant beverages premixes. However, several players have adopted marginal pricing strategy for products, which is likely to hamper the profit margins of these companies in the long run. The limited availability of awareness about instant beverages is another crucial factor likely to impede the market growth to an extent.

Nevertheless, innovations in marketing strategy of vendors are expected to popularize instant beverage premixes in the coming years. This is expected to open up exciting opportunities for market players. In addition, better access to products through retail websites and substantial efforts by market players in consolidating retail chains in emerging markets are expected to augur well for the market over the forecast period.

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