Beverages dominate global sales of food and beverage
Beverages is the largest category, with soft drink dominating overall sales. Forecast growth to 2021 is strong at a 2.5% CAGR with stronger growth in hot drinks as many consumers switch to the health benefits of tea, different varieties of coffee and other hot drinks. Sugar-laden carbonates are suffering in many markets as consumers search for healthier, reduced/no sugar alternatives such as hybrid juice drinks, low-fat flavoured milks and bottled water.
Dairy is forecast to grow at a 2.3% CAGR to 2021. Improved cold chain infrastructure in major markets such as Latin America, Asia Pacific and Middle East & North Africa is supporting growth in fresh, chilled milk, yoghurts and cheese products with nutritious dairy products fitting well within the global interest in healthier foods. Lactose-free milks are also growing as consumers look for more easily digestible alternatives, in many markets.
Pulses, grains and cereals are becoming more popular elements in a healthy diet with CAGR of 2.3% forecast to 2021. Wider availability and niche products, such as buckwheat or quinoa, specialist aromatic rices, ancient grains such as spelt, farro or kamut and seeds like chia, pumpkin and sesame, are increasingly used as ingredients in foodservice.
Home cooks are now embracing these ingredients as healthy sources of nutrition, vitamins and essential oils.
Growth is strongest in Sub-Saharan Africa where many of these products are staple elements of a traditional diet, but there is also strong demand in Latin America and Middle East & North Africa.Meat and poultry is the slowest growing category at CAGR 1.3%, directly influenced in mature markets by increasing numbers of flexitarians, vegetarians and vegans. Lower annual consumption of meat and poultry is also occurring in these markets as part of the development of healthier lifestyles. Major manufacturers are working to broaden their product portfolios as the trend towards plant-based protein and meat substitutes gathers pace.
In emerging markets, beef and poultry sales are growing as chilled and frozen products gain wider accessibility as cold chain infrastructure expands. Edible oils, although a small category, is the fastest growing product category as demand, volume sales and price increases. CAGR growth to 2021 sits at 3.7% globally. Olive oil is the most dynamic category responding to growing health concerns worldwide as the demand for natural, low processed, pure oils increases in all markets. Blended oils, palm and soya oils are also seeing growth driven by population expansion but, in many markets, are suffering from poor perceptions in terms of healthiness and heavy processing methods.
