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.
India: Food processing and packaging now have a dedicated platform
To keep up with developments on the Indian food and beverage market, the range of products and services at International PackTech India and drink technology India will be joined by a third event – the newly developed FoodPex India. It will focus on the processing and packaging of solid foods of all kinds. In the future the newly created trade fair trio will map the thematic areas of packaging and related processes, beverage technology and liquid food as well as food processing and packaging under one roof. The constellation of this unique range will enhance the attractiveness of the event even further and will set a clear signal on the Indian food and beverage market. PackTech India and drink technology India have already come to be seen as the most important platforms for these industries in India.
“The Indian market shows a clear interest in food processing and food packaging. This is why, in 2014, we and also Messe München were already presenting suitable products and solutions at the two trade fairs. It’s a logical step to enhance this range by adding a dedicated platform under the name of FoodPex, a brand which we previously launched in China,” says Bernd Jablonowski, Global Portfolio Director for Packaging and Processing at Messe Düsseldorf, the organisers of International PackTech India and of the new FoodPex India.
“Visitors to the trade fair trio will benefit from a new and even clearer structure with an unparalleled product and service line-up which is now
India as a growth market
India is a dynamic market with major potential in packaging and related processes, particularly in packaged food and beverages. Although per-capita consumption is still relatively low, figures from the market research institute Euromonitor have shown that the demand for processed and packaged food is set to rise by about 31 per cent by 2019. During the same period soft drinks sales are even expected to rise to more than twice their current level. India is already the world’s number one in milk consumption, and its market for liquid milk products is developing very dynamically. This development is driven by social change and clear economic growth. Moreover, the resulting growth of the middle class has led to a greater demand for hygienically processed and packaged food and beverages. This is putting greater pressure on local manufacturers to invest in high-quality processing, packaging and bottling equipment, so that they can compete with imported products.
High level of visitor satisfaction
The organisers are expecting the trade fair trio to attract around 250 exhibitors (2015: 230). The available exhibition space will be approx. 14,000 square metres. Last year’s event already saw a 37-per-cent increase in visitors, reaching an all-time high with over 10,000 visitors in all. More than 90 per cent of the relevant professionals – of whom far more than two thirds were entrepreneurs or senior management – awarded top marks to International PackTech India and drink technology India in 2014. The response was particularly positive to the broad spectrum that was on offer and also to the presence of numerous market leaders. The third edition of the two trade fairs confirmed their reputation as a business platform with specially tailored solutions for the Indian market. A similar increase in visitors’ numbers is expected for 2016.
About PackTech India, drink technology India and FoodPex India The trade fair trio on the Indian subcontinent comprises PackTech India, drink technology India and FoodPex India. It brings together the expertise of Messe Düsseldorf and Messe München as the organisers of their respective leading trade fairs in the packaging sector and the related processing industry – interpack (Messe Düsseldorf) and drinktec for the beverage and liquid food industry (Messe München). Like their parent trade fairs in Germany, the three events map the entire process chains in their industries, yet with the focus on the Indian market. From 2016 FoodPex India will be added to the existing trade fairs, PackTech India (packaging, packaging materials/packaging means/packaging production, packaging technology and packaging printing) and drink technology India (processing and bottling of beverages and the entire liquid food chain, including all milk products, oils and fats). FoodPex India features solutions for the processing and packaging of food of all kind. The trade fair trio will be held at the Bombay Convention & Exhibition Centre in Mumbai from 15 to 17 December 2016. The conceptual sponsor of the three trade fairs is the German Machinery & Plant Manufacturers' Association (VDMA). Other partners of PackTech India and FoodPex India are the Institute of Packaging Machinery Manufacturers of India (IPMMI) in Mumbai and the Indian Flexible Packaging & Folding Carton Manufacturers’ Association (IFCA).
25 Nov. 2015