Thursday, 2 March 2017

Shift In Consumer Preference To Craft Beer From Mainstream Beer Is Expected To Drive Market

The demand for craft beer is expected to witness substantial growth on account of the growing consumer preference for craft beer over the mainstream beer. A wide range of flavors coupled with low ABV is expected to be the key factors for the aforementioned shift in the consumer tastes & preferences.
The global market is growing significantly on account of the growing preference for the product among the consumers in the developed economies including the U.S., Germany, Japan, Australia, Belgium and New Zealand. In addition, the several flavors and styles of spirits are expected to attract consumers in the developing economies. Furthermore, the demand for low ABV (Alcohol by Volume) and malt brews particularly in Pacific countries is expected to complement industry growth over the next nine years.
The consumption of craft beer is high in European countries including Germany, UK, Belgium and the Czech Republic. This can be attributed to the premium quality spirits manufactured in Belgium and Germany with the wide range of flavors of the product. In addition, the increasing penetration in countries such as Ireland and Scotland owing to the rising consumer awareness with respect to the different styles of the beer is expected to have a positive impact on the European market.
Global craft beer market, by region, 2015 (%)

Read In-Dept Industry Analysis & Forecast here: Craft Beer Industry Analysis

The different varieties of the product include Pale Ale, Indian Pale Ale (IPA), dark lager, chocolate beer, amber ale, amber lager; barrel aged lager, and herb & spice brew. IPA, amber lager, and amber ale are the most preferred beer among the aforementioned styles. These styles are mostly consumed through different hospitality distribution channels in developed countries.
The market is segmented on the basis of distribution into on-trade and off-trade. The on-trade distribution includes craft brews sold in restaurants, bars, brewpubs, clubs and other channels in the hospitality industry. The demand for the on-trade beer is high in the developed economies such as countries in Europe and North America. This trend can be associated with the increased price of the product in pubs coupled with high consumer ability to pay in developed economies.
Europe is expected to account for the largest revenue share owing to the high consumption of the product in Germany, Belgium, and the UK. The market is growing steadily in these countries with decreasing consumption of mainstream beer owing to the variety of flavors and styles. Furthermore, Middle East & Africa is expected to witness the fastest growth on account of the high penetration of the product in South Africa. This growth is attributed to the increasing consumer preference for low-calorie and low ABV spirits.
The competitive market is characterized by the presence of few global players coupled with a large number of local brewers. The Belgian and U.S. market players such as Chimay Beers and Cheeses and The Boston Beer Company respectively are the major market players. The other major brewers include Vagabund, Feral Brewing Co., The Gambrinus Company, and D.G. Yuengling and Son. Furthermore, the major players compete over the acquiring new and potential markets. On the other hand, local players compete on the basis of the variety of flavors and pricing of the product. 

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Wednesday, 15 February 2017

Opportunities Galore for Animal Feed Additives Industry!

As our society progresses, we pay more attention to what we eat, how our food is made, and how our activities affect the environment. Growing worldwide population and limited cultivable land hugely pressurize existing resources.

Consumption of meat, the main protein source, is on the rise. Genetically-modified organisms are also gaining acceptance. This is precisely where opportunities lie for feed additive businesses.

Feeding Billions:
Feed additives are catalysts that improve the quality of meat consumed by humans. They are used to protect livestock (sea food, pork, cattle, & poultry) from diseases, boost their weight, and ensure the digestion of essential nutrients. Moreover, feed additives lower vitamin deficiencies.

Additives are classified on the basis of antibiotics, vitamins, amino acids, acidifiers, feed enzymes, and antioxidants. Amino acids, being building blocks for proteins, are abundantly used. Acidifiers promote a healthy gut by regulating intestinal flora, optimizing feed utilization.

Cheers or Jeers?
Despite the obvious benefits of feed additives, all’s not well for manufacturers. The market spends hugely on next-gen products. The fact that various pharmaceutical companies have withdrawn their research does not bode well for the market. Some wonder if the era of blockbuster innovations is gone!

However, experts beg to differ. Scott Hine; Chief Innovations Officer, Novus, opines that biotechnology will remain crucial for innovation ecosystem. He notes that patents have gone up by about 5% over the last two decades. Higher efficiencies should  fuel market prospects. This can be possible through increased technology adoption at all farming levels.

What The Future Holds?
Given the current market drivers and restraints, following trends are expected to prevail in the feed additives business.

         - High reliance on big data analytics for monitoring farm animals
         - Huge role of technology in the manufacture of low-cost feed products
         - Large investments in research & developments for nurturing innovations
         - Collaborations among market players for deriving synergistic benefits.

Analysts at Grand View Research, Inc. foresee lucrative growth for this business. Process standardization through regulations, due to disease outbreaks (like Swine Flu, SARS, etc.) in animals, would be a key propeller.

A large part of the animal feed industry is methionine, an amino acid, essential for protein synthesis. It has been a constituent of chicken feed for years. The worldwide demand for methionine is estimated to increase by 60, 000 tons/year. Poultry may generate over 38% of the global revenues by 2020.

A product innovation such as Novus’ Cibenza EP 150 enzyme feed additive, will be crucial to this growth. Its unique composition helps it manage ‘bird performance’ variability and optimize feed formulation. Modern production has promoted the health & well-being of animals, while minimizing eco- impact. Thus, animal feed additives play a powerful role in creating a sustainable future. 

Content Source: Global Animal Feed Additives Market Analysis By Product, By Livestock Expected to Reach USD 19.54 Billion by 2020

Tuesday, 14 February 2017

Enhanced Consumer Awareness Will Propel Natural & Organic Personal Care Market Globally

Global Natural & Organic Personal Care Market is expected to witness significant growth over the next seven years. Natural and organic products are derived from the ingredients made in nature. Majority of these products are composed of the plant-derived ingredients such as roots, essential oils, herbs and flowers. Few of them are also composed of the animal-derived ingredients such as minerals and beeswax. After the extraction, they are combined with several naturally occurring carrier agents, preservatives, humectants, emulsifiers and surfactants. These natural and organic products specifically do not use synthetic chemicals for manufacturing so as to preserve the natural content of the products.
Most widely, these ingredients are used in the manufacturing of the personal care products which are believed to enhance one’s beauty and skin texture. The other form of personal care products are the synthetically manufactured ones. Nearly 70% of the personal care products are naturally or organically made.
Personal care products include hair care, cosmetics, skin care and oral care. The industry is being dominated by the skin care products over the past seven years. It is followed by hair care and oral care. There are numerous benefits of using these naturally made products. They work efficiently with the body’s system, repairs, rejuvenates and enhances it. These products are also eco-friendly and promotes a healthier planet.
Natural and organic personal care products are projected to see a rapid growth over the forecast period. Consumers across the globe have become increasingly aware about the harmful effects of the synthetic products. Hence, a considerable shift in consumer preference has been observed from synthetic to organic personal care products. There has been a growing concern for healthy living and a greener environment. Thus, the growing demand for natural and organic personal care products has fueled its growth in the market.
Growing consumption of the environmentally sustainable products and changing customer insight towards the naturally made products has considerably contributed to the growth of the industry. Adding to it, the manufacturer of these products has been a major contributor in reducing the environmental pollution and the dependence on petroleum based products.
Human health & safety regulatory bodies, for instance, the U.S. Department of Agriculture (USDA) and FDA’s approval for using naturally derived products has been projected to augment the demand for these products. Consumer’s rising disposable income has also been a major factor in increasing the industry growth across various emerging nations. Technological advancements like improvement of the product lines by firms such as Estee Lauder, Aveda Corporation, The Body Shop and Amway are anticipated to augment the growth over the forecast period. Chemical-free hair and skin care products is expected to witness significant growth over the next seven years.
North America ruled the global market and is estimated to follow the same trend over the forecast period. In the domestic market, various small-scale regional producers possess a strong hold. Over 35% of the global revenue generated in 2014 was accounted by the North America personal care market. Canada and the U.S. adopted Kyoto protocol and Montreal protocol which restricted the greenhouse gas emissions. This enforced the personal care manufacturers to utilize natural ingredients in their products. The increased cosmetic consumption and new product launches by the FMCG manufacturers in Mexico provided lucrative prospects for the growth of the industry.
On account of the rise in disposable income and improved living standards, there has been an increase in the use of cosmetic products in the emerging regions of Asia Pacific such as China, South East Asian countries and India. Europe has a robust cosmetic manufacturing base in UK, France and Germany.
However, there has been several hindrances in the progress of the overall natural and organic personal care market. Some of them include restricted raw material supply, limited life of the natural ingredients and stringent regulatory guidelines against animal based raw materials usage.
Various companies strived to gain the market share in the industry. Some of them include The Body Shop, L’Occitaneen Provence, Kiehl’s, Aveda Corp., The Hain Celestial Group, Burt’s Bee, Amway, Arbonne International, Yves Rocher, Natura Cosmeticos S.A. and Estee Lauder. L’Oreal and The Body Shop shows complete integration across the value chain. These companies process the raw materials and then use them for producing several varieties of lotions, shampoos, conditioners and creams.
Several strategic initiatives have been undertaken by several companies to increase their market share in the industry. For example, L’Oreal acquired The Body Shop in 2013 and Kiehl’s in 2000 so as to expand its market share. Clorox acquired Burt’s Bees in 2007 to increase its natural and organic products portfolio.
Innovative product launches also characterized the industry. In May 2014, two new hair care products, namely ColorLast Hair Serum and ColorLast Hair Spray were launched by Arbonne International, Inc. to its already existing Pure Vibrance hair care line.