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.
N?rnbergMesse India founded in New Delhi
- Ceremonial attended by 200 guests
- The Indian Managing Director and her colleagues will share their country-specific know-how about trade fairs
- Successful cooperation with the Indo-German Chamber of Commerce
N?rnbergMesse has founded a subsidiary in India, N?rnbergMesse India Pvt. Ltd. More than 200 guests, including the German ambassador in India, Michael Steiner, celebrated its official inauguration in New Delhi. N?rnbergMesse India is the fifth international subsidiary of the N?rnbergMesse Group.
Ceremonial opening with 200 guests in New Delhi: The CEOs of the N?rnbergMesse Group, Dr. Roland Fleck (l) and Peter Ottmann (r), and Sonia Prashar, CEO of N?rnbergMesse India, are very pleased about setting up the fifth international subsidiary of N?rnbergMesse.
Namaste! For N?rnbergMesse, 2013 will be all about the Indian subcontinent, since this is the place where the latest international subsidiary was set up at the beginning of April. In the future, N?rnbergMesse India Pvt. Ltd. will strengthen the bonds between Nuremberg and New Delhi. The CEOs of the N?rnbergMesse Group, Dr. Roland Fleck and Peter Ottmann, define the enterprise's central goal: "Our own portfolio of Indian specialist events and pavilion contracts which we already had at the start shall be extended, paving the way for exhibitors and visitors from India to Europe, the Americas and Asia and vice versa."
N?rnbergMesse has made enormous progress. Its high-profile international trade fairs have catapulted it into the league of the world's top fifteen exhibition organizers. "Our next goal is the top ten", say Fleck and Ottmann with confidence. According to the two CEOs, India is an important step on the way to achieving this goal. Today, India is the world's fourth-largest economy in terms of purchasing power; in 2020, the subcontinent is predicted to generate a higher Gross National Product than Germany, showing a diversified economic structure. Growth sectors such as the automotive, chemical and pharmaceutical industries, information technology, mechanical engineering, medical technology, biotechnology, electrical engineering or food processing, generate their demand mainly from the Indian tendency towards consumption and investment.
Exhibition market with growth potentialWhen an economy is growing, its trade fair market grows, too. A decade ago, 40 trade fairs took place in India; nowadays, these number 140. In addition, numerous events of regional importance are held. A consumption-oriented, fast-growing middle class, the industry's need for modernization, large-scale investment activities in the private sector and India's increasing integration into the global economy continue to boost this development. Trade flows towards Europe and Germany have increased considerably – that is not only reflected in the increasing importance of the Indian exhibition sector, but also in the presence of Indian companies as exhibitors and visitors at international trade fairs in Germany. After all, Germany is India's most important trading partner within the European Union. According to data published by the Association of the German Trade Fair Industry (AUMA), with its 2,832 exhibitors in 2011, India still ranked well behind China with 9,482 exhibitors. "However, in comparison with the other BRIC states - Brazil with 622 and Russia with 880 exhibitors - this is a promising basis for the future”, sums up Dr. Roland Fleck.
Successful cooperation with the IGCC to be reinforcedN?rnbergMesse has been active in India since 2006, back then with a joint stand of German companies at the Agrotech Fair in Chandigarh, in cooperation with the Indo-German Chamber of Commerce (IGCC) as its foreign representative. In 2009, its first own fair followed, the BioFach India.
The Indian exhibition expert Sonia Prashar, who to date has run the Indian projects of N?rnbergMesse as "Marketing & Trade Fairs" Director at IGCC will take over as CEO of N?rnbergMesse India Pvt. Ltd. She and her team share an insight into the local market requirements which is as profound as her subject-matter expertise on a growing number of topics. "Thus, one of the internationally most widely recognized German exhibition companies and the largest German Chamber of Foreign Commerce will join forces in the growth market of India, in order to make joint use of the exceptional opportunities offered in this market. N?rnbergMesse's exhibition expertise and the Chamber's local network and know-how – a classic win-win situation”, says Bernhard Steinr?cke, Director General of the Indo-German Chamber of Commerce.
"N?rnbergMesse is meanwhile present in India with a number of its own events, BioFach India has been joined by fensterbau/frontale india and Powder & Bulk Solids India over the past few years", says the new CEO Sonia Prashar. And the portfolio is still growing: a very promising Indo-German joint venture is the cooperation between the Indian exhibition organizer Colour Publications and Vincentz Network, Hanover, and N?rnbergMesse. In January, the business partners set the seal on the purchase of shares by both German companies in one of India's most important coatings exhibitions. In this context, the CEO of Colour Publication, Dilip Raghavan, warmly welcomes the foundation of N?rnbergMesse India. Just in time for the official opening of N?rnbergMesse India, the management is pleased to have landed an event organization contract: India's largest air conditioning exhibition, Acrex India, will be organized by N?rnbergMesse India during the next three years. "Being awarded the contract for three years in succession is really new; we are very grateful for the trust shown by ISHRAE* – the association that owns the exhibition", says Prashar. Indian Society of Heating, Refrigerating and Air Conditioning Engineers
Organic food, facade technology, processing technology, the coatings and paint industry, refrigeration and air conditioning industry:decisive for the needs and special features of each of the markets is a great deal of sector expertise – and that is precisely the area in which the experts from N?rnbergMesse have made a name for themselves at international level. The Nuremberg company's portfolio still contains various topics for setting up and developing the relevant exhibition networks in India. The aim is to establish a broad event portfolio in the Indian market by purchasing events and developing their own events that correspond to the worldwide exhibition families of the N?rnbergMesse Group and the international subsidiaries in China, Brazil and North America. "This means that our decisions and approach do not rely on rapid, superficial success, but on sound expansion," the Group CEOs Ottmann and Fleck declare in unison.
This idea is backed by an ambitious growth programme, as N?rnbergMesse wants to generate an annual revenue of 400 million US dollars (300 million euros) by 2020, with a contribution of 70 to 80 million US dollars (50 million euros) from international revenue. The group is aiming for a position near the world's top ten – so, the Indian exhibition subsidiary in New Delhi should not remain the youngest for long.
Turkish Airlines is “preferred carrier“ for the openingLast year, N?rnbergMesse signed a Letter of Intent with Turkish Airlines aimed at establishing the airline as "preferred carrier" for N?rnbergMesse. A first tangible result is the cooperation for the ceremonial opening of N?rnbergMesse India: Turkish Airlines is flying the German delegation directly to and from the Indian capital New Delhi via the international hub Istanbul.
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 approximately 40 sponsored joint pavilions at the Nuremberg location and worldwide.Every year, around 30,000 exhibitors (international share: 39 %) and up to 1.4 visitors (international share of the trade visitors: 22 %) participate in the own, partner and guest events of the N?rnbergMesse Group, which is present with subsidiaries in China, North America, Brazil, Italy and now also India.In addition, the N?rnbergMesse Group has a network of 50 representatives operating in approx. 100 countries.
* Indian Society of Heating, Refrigerating and Air Conditioning Engineers
23 Apr. 2013