The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
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.
Dynamic Development is Reflected at drink technology India
• India cements its position as a driving force for the industry
• Rapid rise in demand for alcoholic beverages and edible oils
Whether it is soft drinks, alcoholic beverages, dairy products or edible oils: the demand for beverages and liquid food products in India has been on the rise for years. Significant growth is also expected in the future. With more than 300 exhibitors and an extensive supporting program, drink technology India (dti) showcases the trends of the industry and provides impetus for the industry in India. dti will take place from October 24 to 26 at the Bombay Exhibition Centre in Mumbai.
The Indian beverage market is continuing to grow. The reasons for this include the rising population, a growing and consumption-oriented middle class and the continuing urbanization. The continuing spread of modern trade structures, such as supermarkets, also favors the growth in the beverage and liquid food sector.
In the process, demand from Indian consumers is increasing in all beverage and liquid food segments. According to the VDMA Food Processing and Packaging Machinery Association, the total demand for beverages is expected to increase by around 89 percent by 2022: from more than 27 billion liters in 2017 to over 50 billion liters. Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, explains: “Local beverage production grew by 63 percent over the period from 2012 to 2017 and reached a value of approximately 13.8 billion euros in 2017. Further growth of nine percent per year is expected over the next few years.” In order to meet demand and continue to grow, Indian companies need appropriate machinery for the production, processing and packaging of beverages and liquid food. According to the VDMA, India is one of the most important sales markets in Asia for companies manufacturing such equipment. For Clemens, dti plays a key role for the Indian beverage and liquid food industry: “dti will provide numerous stimuli for investments into the growth industries.”
Alcoholic beverages are becoming increasingly popular
India currently ranks ninth among the ten largest buying countries for alcoholic beverages. Here, beer and spirits rank first and second. Beer is becoming increasingly popular, especially among the younger Indian population. According to the VDMA, sales are expected to increase by 22 percent by 2022. India is already the world's second largest market for spirits behind China. Here, the VDMA is expecting growth of just under 14 percent over the same period.
The supporting program of dti provides important stimuli with regard to the subject of alcoholic beverages. The place2beer, which takes place at dti for the first time, provides a comprehensive overview of the latest developments. It is an indispensable program item for microbreweries, medium-sized and industrial breweries as well as suppliers to catch up on the trends relating to beer brewing.
The second day of the Round Table Talks will be dedicated to trends and developments with regard to alcoholic beverages. Numerous speakers have already announced their presentations on the subject of “Trends and Developments in Alcoholic Beverages in India”. Representatives of companies and experts from research institutions will be among the participants. One of them will be Yogesh R. Bhandane, CEO of Boroton Research Centre Pvt. Ltd., with a presentation on the trends and needs of the Indian wine industry. A comprehensive overview of the Indian wine market will be presented by Gorakh Gaikwad, Associate Vice President at Sula Vineyards Pvt. Ltd. K. N. Gopalakrishnan, Head of Brewery & Processing at Carlsberg India Pvt. Ltd., will present the current trends in the Indian beer industry.
Continuing demand for edible oils
In India, the topic of fats and oils is on the rise. The demand for edible oils in India is currently growing rapidly. According to the VDMA, demand is growing faster than the country’s own production. Sales more than doubled between 2012 and 2017. The VDMA anticipates further growth in demand over the next five years: from just under 13 million tonnes (2017) to more than 19 million tonnes (2022). This corresponds to an increase of 58 percent.
dti is responding to this trend with the oiltech Forum. It will take place for the first time during the trade fair as part of the Oiltech Pavilions, powered by oils+fats. The Oil Technologists' Association of India (OTAI) is supporting the organization and design of the program. A half-day seminar will take place on the first day of the trade fair. Under its central theme ‘Challenges in Packaging of Edible Oils and Other Related Products‘, the seminar is subdivided into the topics ‘Regulatory Requirements, Current and Tomorrow’, ‘Latest Technology and Advancements’ and ‘Consumer and Brand Owner’s Perspective’. Leading experts from industry and research will provide insights into the world of oils and fats.
Growth in all segments of the beverage and liquid food industry
In addition to alcoholic beverages and edible oils, there are also indications of increased demand for other product categories. According to the VDMA the total sales of soft drinks, for example, are expected to more than double to 43 billion liters by 2022. For bottled water, the VDMA even forecasts an increase in sales by 156 percent. India is the third largest market for dairy products behind the USA and China—and at the same time the world's largest milk producer. According to the VDMA, an average annual increase in the demand for dairy products of 4.4 percent is expected for the period from 2017 to 2022.
The dynamic growth of the Indian beverage and liquid food market is reflected at the trade fair. The most important topics and trends of the industry will be highlighted in the supporting program. Visitors can find solutions and innovations to meet the developments of the Indian market from the approximately 300 exhibitors representing the entire process chain of the beverage and liquid food industry.
28 Sep. 2018