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.
BrauBeviale 2014: change through tradition and innovation
• Trend theme “culture of craft brewing”
Current beverage trends are based on consumer demands like healthy nutrition, wellness, naturalness and quality. The respective package is also part of a successful beverage concept. BrauBeviale is this year’s most important capital goods exhibition for the beverage industry, but it is also ultimately influenced by the end product. The exhibition takes place in N?rnberg from 11–13 November and is presented in a new outfit: The some 1,300 exhibitors and approx. 33,000 trade visitors can look forward to a completely revised exhibition concept and supporting programme. Small and medium enterprises and global players profit from the extensive spectrum of raw materials, technologies, logistics and marketing ideas, but the event also focuses on international beverage trends.
“Nothing is as constant as change.” This classical quote successfully describes the present developments in worldwide beverage trends. Many globally operating beverage manufacturers face a growing group of small and innovative companies implementing and marketing independent ideas. This is successful, as demonstrated by the growing trend towards the culture of craft brewing in the USA and worldwide. The “culture of craft brewing” is also the trend topic at this year’s BrauBeviale, which brings this global movement to Franconia – to the home of beer – with many events and campaigns.
Global beverage consumption rising continuously
Whereas almost 240 litres of beverages per capita were consumed in 2008, this figure was already about 265 litres in 2013. The biggest growth drivers are the non-alcoholic drinks like bottled water (2008: 23; 2013: 29), hot tea (2008: 54; 2013: 58) and milk and milk drinks (2008: 37; 2013: 40). Hot tea is the most popular non-alcoholic drink in the world, followed by milk and milk drinks, carbonated soft drinks, water, beer, coffee and spirits.(Source:Canadean/GB)
Germany’s number one thirst quencher: mineral water
Mineral water with a per capita consumption of 140 litres was also the Germans’ most popular thirst quencher in 2013. The clear favourite with 85 per cent was carbonated mineral water, but still waters are preferred at international level (80 per cent of bottled water). Almost three-quarters of the world’s packaged water is drunk in Asia, Western Europe and North America – with Asia showing the biggest growth of some 12 per cent in 2013. However, soft drinks are also very popular in Germany, i.e. cola drinks, lemonades, spritzers, water with aromas, dietary soft drinks, energy drinks, fizzy drinks, coffee and tea drinks with fruit juice content and carbonated and non-carbonated fruit juice drinks. The per capita consumption of these in 2013 was 125.5 litres. Especially popular: calorie-free cola drinks (+ 7.5 per cent compared with previous year) and fruit juice drinks (+ 4.5 per cent). (Sources: Canadean/GB; Wirtschaftsvereinigung Alkoholfreie Getr?nke – Trade Association for Non-Alcoholic Beverages, GER)
Non-alcoholic drinks – prospects for new creations
Whereas packaged water is becoming more and more popular almost worldwide, the global consumption of carbonated soft drinks has already reached a very high level. Since 2007 sales of these have risen only in South and Central America and the Middle East. According to Rabobank, Brazil will remain the growth driver in the next three years with an estimated rise of three per cent per year. World champions in the consumption of carbonated soft drinks are the Mexicans with 165 litres per capita, followed by the USA (145) and Argentina (144). The most important worldwide markets for non-alcoholic drinks are the USA with 352 litres per capita, Germany (342) and Argentina (326). Within Europe, Germany is followed by Belgium (281) and Switzerland (264), with Lithuania (96), Russia (93) and the Ukraine (64) bringing up the rear. New creations keep the markets moving: Whether innovative non-alcoholic malt drinks, fruit juice drinks enriched with beta-glucan, which are supposed to have a positive health effect on the heart, new ginger drink creations or drinks coloured pink with the help of the purple sweet potato, there are hardly any limits to the imagination and the consumer soon determines the success or failure of the products. (Source: Canadean/GB)
Slight drop in German beer sales in 2013
Beer sales in Germany dropped to 94.6 million hectolitres in 2013 (- 2 per cent compared with the previous year), of which some 84 per cent were for domestic consumption. Slightly more than ten million hectolitres went to the EU countries (- 8.6 per cent compared with the previous year) and 4.7 million hectolitres to third countries (+ 8.7 per cent). Beer mix drinks with 4.2 million hectolitres accounted for 4.5 per cent of total beer sales in 2013, which also represents a slight drop of just under two per cent. An interesting development is the growing interest shown in German beer by China – the world’s biggest beer market with a quarter of global beer consumption. (Source: Federal Statistics Office/GER)
Triumphant march of craft brewers worldwide
The craft brewers, as they are called, started reviving the art of craft brewing in the USA in the 1980s. There are meanwhile almost 2,800 craft brewers with more than 110,000 employees in the US market. German brewers are also increasingly discovering this trend: spicy Pilsner refined with the extract of hay from mountain meadows or beers distinguished by the scent of mild herbs, spring flowers and a light citrus and fruit touch as well as the strong aroma of roasted malt are just some examples of this craft brewing culture. Germany with 103 litres per capita occupied third place for worldwide beer consumption in 2013. The most beer is still drunk in the Czech Republic (145) and Austria (106). Also in the top ten: Estonia, Poland, Ireland, Finland, Romania, Bulgaria and Lithuania – all European countries. (Source: Canadean/GB)
The culture of craft brewing – trend theme at BrauBeviale 2014
The trend theme is being pushed by the honorary sponsor of the exhibition, the Private Brauereien Bayern (Bavarian Association of Private Breweries), and the European Beer Star Award, which has had its exhibition home at BrauBeviale since 2004. The highlights include the presentation of the awards for 2014, free tastings accompanied by sommeliers, the Craft Beer Lounge, the Tour of Exhibitors with solutions specifically for craft brewers or the European MicroBrew Symposium now organized for the third time together with the Versuchs- und Lehranstalt f?r Brauerei (Brewery Research and Training Institute) the day before the exhibition. Jim Koch, founder and Managing Director of the Boston Beer Company, which brews the famous Samuel Adams, willopen the exhibition in BrauBeviale’s stylish new forum at the heart of exhibition activity. Many other VIPs from the international brewing scene will speak here, including Charlie Papazian, President of the US Brewers Association and initiator of the World Beer Cup, and Dr. Marc Rauschmann, Managing Director of the Frankfurt firm, BraufactuM.
Successful new packaging ideas – at BrauBeviale too
The rule for all beverage segments: the product and package should always form one unit to ensure the right communication with the consumer at the Point of Sale. Particularly beverage packages are highly innovative. For example, the package of an African beer brand is intended to convey quality, innovation and creativity at the same time. The beer is now coming onto the market in a 100 per cent recyclable can, which is the first container of this kind in Africa. A schnapps, for example, also plays on tradition and innovation and is offered in bottling jars as a reminder of the Prohibition period.
The exhibition is also geared to innovative packaging. At the BrauBeviale Forum – supported by well-known partners from the sector – presentations, panel discussions or talks on beverage packaging design, packaging innovations and PET recycling invite visitors to stay, listen or join in the discussions. A welcome guest again in 2014 is the international competition for the German Packaging Award. The most innovative solutions from the over 200 entries expected for labels, closures and other packaging ancillaries, displays, sales packaging, promotion packaging, transport packaging, logistics packaging and packaging machinery will receive awards at BrauBeviale. For the first time the exhibition presents the PETnology concept “connecting comPETence” with the PETarena and Packaging Wall of Excellence, where companies present their diverse spectrum of PET products and services. The PETarena is also the place to go for packaging developers. The event starts with the two-day international PETnology Congress, which takes place immediately before the exhibition.
BrauBeviale 2014: Good conversations. Good business.
BrauBeviale is the world’s most important capital goods exhibition for the beverage industry in 2014. Some 1,300 exhibitors (2012: 45 % international) present a comprehensive spectrum of high-quality beverage raw materials, innovative technologies, efficient logistics and sparkling marketing ideas in the Exhibition Centre Nuremberg from 11–13 November. The expected 33,000 visitors (2012: 38 % international) come from technical and commercial management in the European beverage industry. The experts from breweries, malting houses, wine producers, distilleries, dairies, producers of non-alcoholic drinks, the hotel and catering trade, the specialist retail and wholesale beverage trade, and engineering and planning consultants are highly qualified and 88 % of them are involved in investment decisions (results of a survey by an independent institute in 2012). The exhibition’s popular mix of professional presentation and personal contact in a friendly atmosphere is convincing with features such as manageable cost of exhibiting, highly efficient, information-packed and concentrated three days of exhibiting, comprehensive range of products, intensive personal dialogue with decision-makers and ideal date:
BrauBeviale 2015: 10–12 November
BrauBeviale 2016: 8–10 November
5 Jun. 2014