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: Also a hotspot for the milk industry
The development of the global market for dairy products is closely linked to the economic growth in countries where milk consumption is rising enormously at times. At present, these countries are primarily located in Asia and the Middle East. Vietnam, for example, had practically no milk industry twenty years ago. However, the country has been experiencing annual growth rates of around 20 percent for two decades. According to figures from Vietnam's Socio-Economic Development, the Vietnamese currently consume 30 times more milk products than in 1990. A large proportion of the milk is also supplied from traditional milk producing countries in Europe, the USA and New Zealand in the form of milk powder. Due to far-reaching demographic changes, China is another important driving force for the baby food industry. A development from which German milk producers can also gain above-average advantages.
1 in 2 exhibitors will present solutions for the milk industry
More than half of all exhibitors at drinktec 2017, i.e. exactly 55 percent, announced during the run-up to the trade fair that they would present solutions for the milk industry.
drinktec 2013 was attended by more than 12,000 visitors from the areas of milk and liquid milk products. This represented an increase of 58 percent compared with the previous event. During drinktec 2017 exhibitors will present the entire range of treatment of milk, whey and liquid food. This will extend from cooling and storage by means of thermal preservation, and separators and equipment for skimming, standardization and homogenization through to complete systems for milk and liquid milk products. However, suppliers of raw materials and additives such as fruit and vegetable juice concentrates, soya products and other milk alternatives will also exhibit their products in the exhibition halls.
New milk-based ideas
The soft drinks segment is also providing milk producers with new possibilities. Carbonized refreshments have become a topic for discussion, keyword “obesity/adiposis”, on account of their frequently high sugar content. Large dairies regard this as an opportunity and are now attempting to supply more milk drinks as a healthy alternative to soft drinks in future. A fizzy drink containing milk and fruit juice, a drink comprising milk and tea or a high-protein energy drink are some examples of new milk drink ideas with which the European dairy cooperative Aria Foods is aiming to triple turnover from the current figure of EUR 230 million in this segment of the beverage market by 2020—outside the standard range of milk products.
Other dairies also see highly promising prospects in this area and are combining, e.g. like Ennstal Milch, top-quality Alpine milk with Japanese organic matcha green tea. Drinks should not only look good nowadays, but also be healthy and innovative. In the area of drinking whey and mixed whey products the market is also characterized by new products, e.g. the Austrian company NÖM AG with a fasting vital drink in attractively designed plastic bottles with a full body sleeve. All these new milk drinks can compete for the Beverage Innovation [email protected] which will be presented again during drinktec 2017. The coveted prizes in numerous categories for creative and innovative ideas and solutions are awarded, for example, for the “Best dairy drink”.
Pasture grazing, hay flowers—or textile fibers
In the standard milk range dairies increasingly want to score points with consumers by offering organic products: fresh milk from pasture grazing, milk from cows eating domestic and regional feedstuffs without genetic engineering or hay flower milk as a natural alternative, which stands out due to extremely high animal husbandry standards, can be found to an increasing extent on shop shelves.
Milk, or to put it a better way, the components of milk can also naturally be used in entirely different ways. The company Qmilch IP has developed, for example, a biopolymer made of casein (milk protein). The casein is produced from raw milk which can no longer be marketed. In Germany alone, two million liters of raw milk are disposed of every year. The fibers thus obtained are used for clothing, home textiles, in the automobile industry and in medical technology. Another way in which to market milk.
Supporting program for milk producers
During drinktec 2017 Hall B1 alone will have 11,000 square meters of exhibition space for the areas of raw materials, ingredients, additives and treatment agents. In this ideal environment, the special area “New Beverage Concepts” will also be an excellent place for visitors from the dairy industry to obtain suggestions for their future innovations. An ideal place for product developers, brand and innovation managers, and marketing managers and buyers to test new beverage concepts and look for new ideas. At the last drinktec in 2013 12,000 visitors alone came from the sales and marketing segments. The Innovation Flow Lounge was also established for these visitors at drinktec 2013 and will now be continued during drinktec 2017 with a new concept as a source of inspiration for marketing, packaging and product innovation. The last day in the drinktec Forum will be devoted solely to the topic of milk. The themes will range from microwave processes in pasteurization and preservation methods through to fractionation of milk protein by means of microfiltration (see also the Press Release “Highlights from the supporting program”, dated June 1, 2017).
In the afternoon, the Central Association of German Dairy Farming (ZDM) will hold its festive event with the presentation of awards to the Best of the Year in training in the dairy industry.
Torsten Sach, Managing Director of ZDM, said: “Milk is at home all over the world just like milk processors. What could be more natural than to visit drinktec in Munich where the beverage bottling industry meets.”
4 Jul. 2017