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.
Drinktec 2017: Focus on water and energy management
Water demand and water consumption is therefore correspondingly high. For this reason in the production of beverages and liquid food the emphasis is more and more on a holistic consideration of the way resources are consumed. Economic factors, but also image concerns, in relation to sustainable production, play an important role. Next year, drinktec, the “World´s Leading Trade Fair for the Beverage and Liquid Food Industry” will be highlighting the whole theme of water and energy management. The approximately 1600 exhibitors from all over the world will be presenting sustainable solutions in this field.
For the manufacturers of bottling and packaging machinery, too, economical use of energy and resources is becoming an ever more powerful commercial argument, important not only as regards a company´s own internal processes, but also in terms of its external image, i.e. towards its customers. Themes such as reduced water consumption, the use of process heat, closed-loop production processes, water quality and the use of efficient components are all exercising minds in the industry. Continuing to increase output while reducing consumption of resources—that is a goal for the future.
Solutions for efficient water and energy management will be presented by the exhibitors at drinktec 2017 right across all sections of the exhibition. In the drinktec Forum, too, this theme will play an important role. In the opinion of Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen), efficient resource and energy management has not yet penetrated all corners of the beverages and food industry, neither in Germany, nor in the markets worldwide. “We would therefore like to turn the spotlight on the themes of water processing, recycling and disposal, and on the contribution of hygienic design towards reducing water consumption—and we will be doing this not least at our own booth at drinktec 2017. We are going to put on a program specifically for the target group of energy managers in the beverage and food industry, in which they can gather information, learn about best-practice examples and engage in discussion with experts and colleagues from across the sector. Both for the exhibitors from this segment, and also for the trade-fair visitors, we are therefore delivering real added value.”
Just why the resource of water is attracting so much attention is explained by Dr. Karl Glas, of the Working Group on Water Technology at the Technical University of Munich. He identifies four reasons: “Firstly, every liter of water and every liter of wastewater costs—and those costs are rising. Secondly, the multinationals want to standardize production worldwide. And as part of that the water used has to meet very rigorous standards in terms of quality and technology. The key word here is ‘water design’. Thirdly, how carefully a company uses resources has for some time been influencing consumer decisions on whether to buy or not, and it is very much a factor in authorization procedures for new and follow-on investment. And not least fourthly, because of water shortages or to protect deep water, brand new approaches have to be tried.” At the same time, there are increasing calls for ever cleaner, i.e. residue-free, water for use in table water, for brewing, mixing or diluting. And residue-free means: no undesirable substances detected with modern analytical methods, regardless of the source of the water. This is an immense challenge in a time when even groundwater can contain traces of statins, painkillers, anti-inflammatory drugs, various analgesics, X-ray contrast media and hormones.
In terms of technology the demand for “residue-free” water is met today largely through the use of membrane processes such as ultra- or nano-filtration, and through reverse osmosis. In other applications, too, membrane processes are increasingly being used. Apart from wastewater processing and deaeration of water, this also includes ensuring the biological quality of water, as Dirk Scheu from Krones AG observes: “This is prompted by the problem of secondary products that can arise during chlorination and that during ozonization bromide changes to bromate. The WHO has now reduced the limit value here to 0.01 mg/l, but many international companies are adopting much more rigorous standards. Ultrafiltration, with its log rate of 6, can gain ground here. The producers then either don´t have to sterilize any more or they only need to treat the headspace of the bottle with ozone. As a result the danger of bromate formation is correspondingly reduced, and that´s more sustainable. Because of the international orientation of drinktec, in the area of water hygiene in particular we are expecting very strong interest from the trade visitors.”
Resource recycling calls for optimization across all areas
When it comes to water recycling, there are basically two ways: In the first the water is collected and sorted according to its pH content or degree of pollution, and then re-used in similar applications. The second way is what´s known as the “end-of-pipe” solution. All the wastewater is collected in a central point and treated anaerobically. The biogas this generates can be used to cover around 20 to 30 percent of the energy consumption of a brewery. Also possible would be a downstream zero-liquid discharge stage which would enable around 95 percent of the volume of wastewater to be reused in production. Theoretically even the water in the zero-liquid discharge stage could be treated to reach process water quality. However, there is an overriding problem here: The more frequently the water is recycled, the more energy is needed. So one resource is saved while perhaps another is being consumed. In order to really get to grips with the issue of resource recycling, the approach has to encompass all areas; many cogs from the many different disciplines all have to fit smoothly together.
And that brings us neatly back to the core strength of drinktec: All the relevant areas in the production of beer, beverages and liquid food are covered at this single event, in a compact, professional and comprehensive way. Systems for water treatment can be found alongside concepts for the use of renewable energy in breweries. And visitors can find out about a hot-filling process in which cooling energy is recycled for use in production. Also on show are highly efficient systems for generating biogas, including membrane separation of the CO2 contained within the gas to produce bio natural gas, for use in standard burners and motors, or for feeding into the gas grid. In 2017 drinktec will again be highlighting the technology that makes sense today and tomorrow, and the many ways in which this technology keeps coming up with answers as to how to balance economics, the environment and entrepreneurial initiative.
Drinktec has been held in Munich since its premiere in 1951. A four-year event cycle was introduced in 1985. drinktec is the most important trade fair for the sector. Manufacturers and suppliers from all over the world meet up here with producers and distributors of beverages and liquid foods. All sizes of company are represented at drinktec: global operators and SMEs alike.
The future is mapped out at drinktec. This event is regarded as the number one platform for launching new products on the world market. Here manufacturers present the latest technology for processing, filling and packaging all kinds of beverages and liquid food—raw materials and logistics solutions included. The themes of beverages marketing and packaging design round off the portfolio.
drinktec 2017, which takes place at the Messe München exhibition center in Munich from September 11 to 25, 2017 expects to attract around 1,600 exhibitors and 70,000 visitors. Around two-thirds of the visitors come from outside Germany. drinktec 2017 will take up 14 exhibition halls, covering a total of 150,000 square meters of space.
About Messe München
Messe München is one of the world’s leading trade-show companies. It organizes about 40 trade shows for capital and consumer goods and key high-tech industries in Munich alone. 14 of those events are number 1 in the world in their respective industries. Each year more than 30,000 exhibitors and about two million visitors take part in events held at the Messe München trade-fair center, the ICM – Internationales Congress Center München and the MOC Veranstaltungscenter München. In addition, Messe München International organizes trade shows in China, India, Turkey and South Africa. Messe München has a global business presence with affiliates in Europe, Asia and Africa and more than 60 foreign representatives serving more than 100 countries.
1 Feb. 2016