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 Sustainable Packaging
Secure supply of consumers in a globalized world be impossible without packaging. There are repeatedly many new and untapped opportunities to reduce packaging, use it more sensibly or consume fewer resources in its manufacture. Manufacturers will exhibit solutions to these topics at drinktec, which will take place in Munich on September 11 to 15, 2017.
This is because drinktec 2017 is not only focusing on the topic of water and energy management, but also packaging design. Almost half of all exhibitors will present specific packaging solutions for the beverage and liquid food industry. In addition to filling and packaging technology with aseptic systems, this also includes cleaning, filling and sealing technology, inspection and sorting machines, labeling and equipment technology and—as of recently—digital direct printing, unpacking and packing machines, multiple packing machines, palletizers and depalletizers as well as conveyor systems. Containers, packaging materials, packaging accessories and closures, multipacks and multi-unit packages represent a second focal point. Consequently, the leading trade fair also provides an incredible variety especially when it comes to packaging. Visitors also concur with this viewpoint, 97 percent of whom awarded top grades for the areas containers, packaging materials and closures as well as filling and packaging technology at the last drinktec.
One thing is certain: packaging should always be part of the solution. For the World Packaging Organisation, "better quality of life through better packaging for more people" is the goal. "Sustainability is evolving from a secondary concern into a necessary component in the design of new product innovations,” the market research institute Mintel wrote in its study "Global Food and Drink Trends 2016". Volker Kronseder, Chairperson of the Advisory Board of drinktec and Deputy Chairperson of the professional association Food Processing and Packaging Machinery in the German Engineering Federation (VDMA), concurs with this viewpoint. According to him, environmental protection as well as saving energy and resources are the most important tasks for the industry in the future. Mr. Kronseder believes that the greatest potential for innovation is in the topics Industry 4.0, digital direct printing, intralogistics and sustainability. Visitor magnets at drinktec on these topics will be the "PETpoint" and the "World of Labels” as well companies’ own exhibition areas dealing with the topics of PET, labeling technology and labels, among other things.
The Convenience Factor
In addition to the environmental impact, food safety and health awareness, lifestyle-appropriate presentation of food and drink will especially play a major role in the purchase decisions of consumers. In terms of safety, criteria such as hygiene, durability and traceability are decisive. An unbroken chain of information about transport stations and active packaging, which is equipped with RFID antennas and transponders, for example, are becoming more important with increasing internationalization.
Concerning presentation, the convenience factor of beverage packaging is in the foreground. On-the-go consumption has increased steadily in recent years, according to GfK Roper. The convenience factor is becoming increasingly important for consumers, and they are willing to pay more money for such products if they make life on-the-go easier.
Packaging also serves as an important tool for marketing and sales purposes. Attractive package design is required. Is the design of the packaging or a designed label on beverage containers more important than the contents? No, but it is also clear that appealing, interesting and clever packaging and labels are significantly involved in the sale of a product. According to a survey conducted by the auditing company PricewaterhouseCoopers AG, there are four key areas within innovation management that must be pursued most intensively by packaging material manufacturers: design, functionality, process and workflow improvements as well as material innovation. Two currently significant trends in consumer behavior are the increasing demand for smaller and recyclable packaging. With innovative materials, for example, this concerns the use of renewable resources such as bio-plastics based on corn starch. Whoever wants to know more about this would do well to note that the top issues of the future in the field of packaging will be discussed in the " Innovation Flow Lounge” at drinktec 2017. Following its great success at its premiere at drinktec 2013, this new networking platform is going into its second round at drinktec 2017.
Glass, Cans and PET: everything will be easier and more environmentally friendly
High tech is also behind modern packaging in two respects: both in terms of packaging technology as well as with regard to the packaging and the materials themselves. Glass, the classic among the beverage containers, has always protected products perfectly, because it is inert and diffusion-tight. One of the continual challenges for the glass packaging industry is the production of lightweight glass containers. This is also been achieved successfully. Beverage can sales in Germany increased by an impressive 30.4 percent in 2014 with 1.86 billion sold containers over the previous year according to BCME (Beverage Can Makers Europe). Beverage cans have also been much in demand in Europe in recent years. Sixty-three billion cans were sold on the whole continent alone in 2014. Cans are also a very popular product and marketing vehicle among young craft beer breweries in the US. For Johanna Mercier from can manufacturer Ball Packaging, drinktec is the perfect advertising platform with its international orientation; approx. two thirds of the 70,000 trade visitors come from abroad. “drinktec is a very international trade fair. We can demonstrate our position there as an innovative partner ideally and present our company and services differently than would be possible in customary customer pitches.
And what is the situation with PET? A lot is happening there too in the terms of light weight as well as the use of recycled PET or plant raw materials. In addition, mechanical engineers are developing interior coatings with a glass skin that promises especially sensitive beverages a longer life even in small containers. All innovations and developments in the PET area will be presented at drinktec 2017 on 11,000 square meters in the PETpoint exhibition area.
Blocking in dry areas
With respect to packaging machines, it is also clear there that there is a trend toward blocking several machines or a compression of various units into a single packaging line as in the filling area. Modern robot technology makes this possible. In addition to reducing the space required up to one-fifth, this increases the flexibility of the processing facility. Conversions to other types of packaging are fully automatically at the touch of a button. Conventional packaging machines for PET, cans or glass bottles can be combined with a grouping station and a palletizer into a dry part block, which increases the efficiency of packaging substantially. In the drinktec forum, leading experts from research and practice will present many groundbreaking ideas and practical solutions about questions of the future in this field of packaging technology.
Positive outlook for the future
Packaging manufacturers and packaging machinery manufacturers as well as all involved in peripheral equipment have a bright future. "In particular, the increasing mechanization of food production in developing countries has significantly boosted demand in recent years," Richard Clemens, Managing Director of VDMA Food Processing and Packaging Machinery, commented on the positive outlook for the future. drinktec 2017 will promote this in the long term with its focus on packaging and packaging technology.
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.
24 Feb. 2016