In North America, the beverage processing industry is big business. The non-alcoholic beverage industry directly contributes greater than $169 billion annually. It sells its products to both domestic and overseas markets. For those who continue to produce beverages, the target markets are experiencing a change. Newer and innovative products are now challenging beverages once considered staples. They are taking the beverage industry off in a different direction.
Beverages: Industry Stalwarts
Since the establishment of the American industry a couple of hundred years ago, American beverage processors have produced drinks that continue to remain popular. The most popular dinks on the market are carbonated soft drinks (CSDs). In both regular and diet forms, CSDs hold the lion’s share of the market and have for an extended time. Since their introduction to the American market, they have consistently remained the best seller.
Their bubbly or fizzy nature has resulted in their popularity continuing to be high. However, in recent years, the American public has been questioning the nature of soft drinks. While they are not at odds with the carbonation, they do question the amount f sugar and additives. Companies are addressing this with the production of newer products that go beyond diet and trend towards producing beverages that consist of natural ingredients.
Besides CSDs, juice has been America’s favorite drink. In the mornings, they turn to a glass of fruit juice. However, juice sales are slipping as more people question the sugar content. They also are concerned about the process. While they understand the difference between fruit juice and fruit drinks, they are having to come to grips with the concept that all natural orange juice may not be what it claims to be.
The Challengers
Beverage processing companies are beginning to recognize certain “growth drinks.” These include:
* Water – carbonated and flavored
* Energy drinks
* Sports Drinks
* Tea – Continues to be popular – Increasingly canned and bottled versions are being sold as healthy alternatives
Although bottled water has been around in some form for centuries, recently it has become increasingly popular. In fact, the markets for this “healthy” beverage are growing slowly at approximately 10% annually. Beverage companies are including flavored and carbonated water in their drink line-ups in order to get a share of this market.
Sports and energy drinks are also increasing in popularity. While having been around for several decades, the version of sports drinks we know only dates from the 1990s. These are usually touted as healthy, nutrient packed, hydrating options. Energy drinks, on the other hand, have a different appeal. They are not for rehydration or sold as a healthy alternative. The total appeal of energy drinks is to a crowd who needs a quick pick-me-up, a rush, a caffeine fix.
Beverage Processing Companies and the Changing Market
Today’s market is increasingly a volatile one. Americans are increasingly expressing their desire for change. They are looking for different tasting drinks. They want healthy alternatives together with improved and/or updated older standards. It People are questioning the beverage processing industry like never before and those companies that want to survive, better come to grips with this new reality.
