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 2016: Developments and trends on the beverage market – Focal point: beer
- Creativity, naturalness and convenience the focal point
- Beer the heart of BrauBeviale
- Spoilt for choice in beverage packaging
The beverage market remains exciting, there are now clearly not enough classic beverage variations for the consumer. So-called craft drinks are now already part of every segment. As a result, in addition to major groups, numerous medium-sized, small and the smallest companies are establishing themselves on the market, their declared objective is to offer quality instead of quantity – less is simply often more. But not for long, because then the European beverage trade world will once again be the guest in Nuremberg and enter into an exchange on trends, new products and innovations. From 8 to 10 November, the experts will come together at this year's most important equipment show for the beverage industry.
The following still applies: worldwide drinks consumption is continuing to rise. According to Canadean, in 2015 global beverage consumption reached approx. 280 litres per capita, that is around 13 litres more than the previous year. For 2016 the market research institute is predicting a further slight increase to 284 litres. The most drinks are consumed in Latin America (587 litres per capita) and North America (579), followed by Western Europe (542). Bottom of the international rankings is Africa with around 70 litres per capita. Regardless of which beverage we are dealing with – at BrauBeviale, producers, sales and marketing people, the retail and catering trade find everything connected with all aspects of the entire process chain: extending from the suitable raw materials through to efficient technologies and perfectly coordinated logistics right up to coherent marketing ideas and neutral tasting zones.
Beer sales in Germany constant
In 2015, soft drinks were the worldwide leaders in the beverage categories at around 97 litres per person. Among the alcoholic drinks the most successful were beer and cider. Around 28 litres per capita were drunk. (Canadean).
In Germany, according to the Deutscher Brauerbund (DBB, German Brewers Association), beer sales in 2015 were as good as constant. Total beer sales reached around 96 million hectolitres, almost 106 litres per capita were drunk. In the shandy drinks category the trend continues to be in decline. At four million hectolitres they accounted for about four percent of total beer sales. Germany is ahead of Russia, Great Britain, Poland and Spain as the largest European beer producer (Statistisches Bundesamt / Federal Statistical Office). Number one in the world is China ahead of the USA and Brazil. Generally, Asia alongside Africa represents the most interesting beer market for the future – at least as far as annual average growth is concerned: by 2020 this is set to reach three percent in the Asian region, in Africa even five percent. In North America, Eastern and Western Europe in contrast, Canadean assumes a maximum increase of one percent.
It must be high quality and diverse
In the past few years creativity has become a familiar expression for the brewing industry – this is practically the case worldwide. In this connection, the consumers are not only looking for beer, which is brewed using natural ingredients, but at the same time, increasingly diverse flavour experiences and new creations all the time – with a preference for regional producers. According to an Alltec study, there are today already more than 10,000 craft breweries worldwide. 86 percent of them are approximately equally divided between North America and Europe. The top ten nations for craft breweries are the USA, Great Britain, France, Italy, Russia, Canada, Switzerland, Germany, Brazil and Japan. A survey conducted by Mintel shows that the German population is increasingly embracing craft beer. Whereas in 2012 only one percent of beers newly introduced to the market came from the craft beer sector, in 2014 it was already 12 percent and in 2015 almost 20 percent. In addition, in October 2015, Mintel established: in the six months previously almost one quarter of German beer drinkers had bought a craft beer for private consumption and no less than 16 percent had ordered such a beer in pubs and restaurants. Regionality and flavour diversity are the key aspects appreciated here.
Creative Beverage Culture the trend theme
Inventiveness and exceptional flavour are also central elements at BrauBeviale, for example in the Craft Beer Corner. There, at five bars, each on a different theme, sommeliers are offering guided tasting sessions: hops, malt, yeast, specialties and different glass designs for different types of drinking enjoyment. Trade visitors from the catering sector and retail trade in particular will have the opportunity here to discover exceptional beers with professional guidance and assistance on an impartial basis. A further tasting bar is offering premium spirits. There is also a highlight on the theme of international beer diversity: the award and presentation of the European Beer Star initiated by the honorary sponsor of the fair, the Private Brauereien Bayern (Association of Private Bavarian Breweries). A tried-and-tested, popular feature is the tasting of the Consumers’ Favourites on the first day of the fair. And for anyone who has still not had enough by then, they can enjoy even more freshly pulled craft beers at the Schanzenbräu & Friends after-show party in an informal atmosphere. They can combine this with some finger food from the participating food trucks – and the evening is then complete. The trucks are heralding the SFC Street Food Convention, which will open on the last fair day of BrauBeviale. At the European MicroBrew Symposium, which is being organized in collaboration with the Versuchs- und Lehranstalt für Brauerei (VLB, Research and Teaching Institute for Brewing), on the day before the fair, the fans of Creative Beer Culture will already be in an exchange with each other on current issues from practical applications: trends, markets and technologies. For the first time, the VLB is also organizing a European MicroDistilling Symposium for interested parties from the world of spirits. Thanks to the designated exhibitor track on the Creative Beverage Culture theme, the trade fair visitors will be able to quickly find their way around the eight halls.
Beverage packaging – it is all about the container
A question, which is repeatedly raised across all the beverage sectors, is that of the container used. Traditionally it is: cans, glass or PET? But recently there have also been increasingly frequent discussions in the beverage sector on the theme of pouch packaging. It is light, easy to transport and promises convenient enjoyment. For water, the bottle – especially PET – continues to be the container of choice. Juices and nectars are most frequently available in carton packaging, followed by the PET bottle. Particularly as far as craft products are concerned, drinks cans and glass bottles are currently experiencing a comeback.
BrauBeviale is presenting a diverse range covering all aspects of the beverage packaging theme: extending from packaging materials and supplies through to packaging ancillaries up to sealing and closing systems. In addition, [email protected] is offering attractive solutions covering the entire PET value-added chain. Anyone who would like to be purposefully directed to specific exhibitors and ranges on the PET theme, can follow the designated exhibitor track.
International expertise in the beverage sector
In addition to BrauBeviale in Nuremberg, NürnbergMesse is also demonstrating its expertise in the beverage industry on an international level. In this connection, following a successful premiere last year, the second edition of Beviale Moscow, an equipment show mainly for the Russian and Eastern European market, will be held from 28 February to 2 March 2017. In addition, we also have to welcome the newest project in the portfolio: the China Craft Beer Conference & Exhibition (CBCE) on 26 and 27 May 2016 in Shanghai. Other projects are in the pipeline.
20 Jun. 2016