Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Brau Beviale 2012: “sector full of optimism”
New opening days increase number of visitors to 32,810*
A good 100 participants at first European MicroBrew Symposium
32,810 trade visitors (2011: 31,693) were apparently very satisfied with the new opening days of Brau Beviale – now Tuesday to Thursday – and the extensive range of products from the 1,284 exhibitors (2011: 1,384). The beverage industry’s most important capital goods exhibition in the world this year invited internationally renowned regulars and start-ups to the exhibition centre from 13–15 November and served the popular cocktail of high-quality beverage raw materials, innovative technologies, efficient logistics and sparkling marketing ideas.
“The sector is full of optimism – was the headline of an article on Brau Beviale in the daily press. I couldn’t sum up the exhibition any better. Forecasts promise a growing worldwide demand; reason enough for a good mood in the beverage industry – on the exhibition stands, at the European MicroBrew Symposium and, of course, at the Winners’ Night of the European Beer Star Award,” says Rolf Keller, Member of the Management Board of N?rnbergMesse, summing up his impressions.
The typical visitor: male, “habitual offender” and decision-maker38 % of the 32,810 visitors (2011: 36 %) travelled from abroad, mainly from the Czech Republic, Switzerland, Belgium, the Netherlands, Italy, Austria, and Russia. An unbelievable 97 % of the experts were satisfied with the products at the exhibition again this time, as shown by the result of a survey by an independent institute.
The typical Brau Beviale visitor is male (85 %) and a “habitual offender” (almost two-thirds). He therefore visits the exhibition regularly to update on new products and also wants to use these in his own company (more than 64 %). Especially important aspects for the visitors are exchanging views, cultivating existing business contacts and making new ones, training, market orientation, and preparing for investment decisions. A good 4 % of the exhibition visitors also want to sign contracts in N?rnberg, from which the Brau Beviale visitors benefit from another of their typical characteristics: They are highly qualified and 88 % of them are involved in investment decisions. Henning Schlabach, Key Account Sales Director, Sch?fer Container Systems (GER): “Brau Beviale is a contact exhibition for us; the audience was very international again this time. Despite this, we have written many orders.”
The Brau Beviale visitor is also a realist (or optimist?), at least in terms of the platitude “people will always eat and drink”: Only 3 % expect a distinct weakening of business in the sector. He is traditionally mainly interested in the largest product segment of technology (68 %, multiple answers), followed by raw materials (36 %), almost level-pegging with operating and laboratory equipment, energy management, working materials and packaging materials, services, marketing, catering equipment and beverage logistics.
The typical exhibitor: exhausted, but very satisfied96 % of the suppliers of beverage raw materials, technologies, marketing products and logistics, 45 % of them international, rate their success at the exhibition favourably. The exhibitors came from 50 nations, headed by companies from Germany (a good 700), Italy, Great Britain, the Czech Republic, Austria, the Netherlands, Switzerland and Belgium. 93 % made new business connections at the exhibition. 88 % expect good follow-up business from the many contacts made at the exhibition. Renate Scheibner, President of Private Brauereien Deutschland, who was honoured with the Bavarian Beer Medal in 2012: “Nothing is possible without Brau Beviale. Here in N?rnberg I always take a little time off from my duties as president to walk round the exhibition as managing director of the Gl?ckauf brewery in Gersdorf. This time I particularly want to look for information in the raw materials segment.”
A success right from the start: the European MicroBrew SymposiumMore than 100 managing directors, technical managers and master brewers from European microbreweries and pub breweries and supply industry representatives from 17 nations met the day before Brau Beviale. On 12/13 November N?rnbergMesse and Versuchs- und Lehranstalt f?r Brauerei (VLB – Brewery Research and Training Institute) of Berlin organized the first “European MicroBrew Symposium – Market, Trends and Technology”. The one-and-a-half-day symposium dealt with the trend to craft-brewed beers with presentations on the international market, special raw materials, taste, sustainability and the brewing process, plus an excursion. Due to its great success, the symposium will take place annually in N?rnberg in future.
European Beer Star Award 2012 – Consumers’ FavouriteMore than 100 experts judged the 1,366 beers from all continents entered for Europe’s biggest beer competition. The judging took place in 50 categories before the exhibition. The 50 best beers in the world – the gold medal winners – were tasted by several thousand visitors on the first day of the exhibition to choose their Consumers’ Favourite 2012: Gold for “Double Jack” (Imperial India Pale Ale), Firestone Walker Brewery Paso Robles (USA), Silver for “Schimpf Hefe Hell” (Light Wheat Beer), Kronenbrauerei Alfred Schimpf Neustetten (GER), and Bronze for “Weiherer Rauch” (Smoked Beer), Brauerei-Gasthof Kundm?ller Viereth-Trunstadt (GER).
Great international demand for German beverage machineryGerman food processing and packaging machinery – including beverage machinery – leads the world. About a quarter of the globally traded food processing and packaging machinery comes from German production. This leading position gives the manufacturers an average export rate of 85 %. Asia is meanwhile the second most important sales region after Europe. The Verband Deutscher Maschinen- und Anlagenbau (German Engineering Federation) expects another year of growth in 2012 that will at least reach the previous year’s growth rates again. In the beverage machinery segment, which covers beverage production and beverage packaging machinery, the some 100 firms with their 14,000 employees in the core segment increased their production value last year by 8.2 % to 2.04 billion euros. In the first half of 2012 the production value grew by 11.7 % over the comparable value of the previous year to reach 1.14 billion euros. As, for example, components or machinery for PET bottles are statistically reflected elsewhere, total sales in the industry are estimated to be approximately twice as much. The whole food processing and packaging machinery segment with some 600 manufacturers achieved 7.3 % growth in 2011 to reach 10.55 billion euros. The positive trend in the first half of 2012 increased to 11.2 % growth and 5.25 billion euros production volume.
The world is getting thirstier all the timeSome 812 billion litres of packed drinks were consumed worldwide in 2011, more than one-third of them in North, Central and South America and a good quarter in Europe. The global market is shared between non-alcoholic and alcoholic drinks at a ratio of about 70 to 30 %. Experts estimate that the world’s thirst will increase by 3.8 % a year and top 976 billion litres by 2016. Growth drivers are the Asia/Pacific region incl. China and Japan and the Middle East/Africa region with forecast annual growth rates of a good 7 and almost 6 % respectively. Consumption will grow by only 0.7 % in the already excellently supplied industrial nations of Western Europe, compared with 2.3 % a year in Eastern Europe (Euromonitor October 2012).
The event takes a scheduled break next year and Brau Beviale 2014 takes place with a number of changes from 11–13 November.
About the N?rnbergMesse GroupN?rnbergMesse is one of the 20 largest exhibition companies in the world and among the Top Ten in Europe. The portfolio covers some 120 national and international exhibitions and congresses and approx. 40 sponsored pavilions at the N?rnberg location and worldwide. Every year, around 30,000 exhibitors (international share: 37 %) and up to 1.4 million visitors (international share of trade visitors: 21 %) participate in the own, partner and guest events of the N?rnbergMesse Group, which is present with subsidiaries in China, North America, Brazil and Italy. The group also has a network of 46 representatives operating in 97 countries.
All exhibitors and their current product information can be found at:
* The figures for exhibitors and visitors are determined and certified according to the standard definitions of FKM, the Society for Voluntary Control of Fair and Exhibition Statistics.
17 Nov. 2012