Demand for convenience food and beverages and increasing concerns from consumers about what they’re ingesting are reportedly driving growth in the specialty food and beverage market.
Data Bridge Market Research shows the specialty food and beverage segment is expected to grow 11.5% from 2020 to 2027.
According to Mintel Analysts, outpacing conventional grocery sales, specialty food and beverages grew 10% between 2016 and 2018 to $148.7 billion in sales.
Even hotter is specialty beverage, outpacing the growth of specialty food sales.
“There’s a lot of excitement and surprise in the specialty beverage market. It’s a good place to be right now,” Mintel Senior Analyst David Browne said. “We’re fast approaching the point where specialty is 20% of all food and beverage sales. That’s a major milestone.”
Mintel’s research showed that beverage sales are growing faster than food sales, up 13% and 10%, respectively, over the two years. The reason, according to Browne, is that consumers are looking for functional beverages promoting energy, mental focus, relaxation and digestive health.
Top players in the specialty food and beverage market include Archer-Daniels-Midland Co. ADM, DuPont de Nemours Inc. DD, Chr Hansen Holding A/S
CHR, Advanced Food Systems, AmTech Systems Inc. ASYS, Hansen Holding and Tate & Lyle PLC TATE.
But smaller companies seem to also be taking a growing piece of the pie. Fort Lauderdale-based Splash Beverage Group Inc. SBEV, which owns and markets a growing portfolio of alcoholic and nonalcoholic beverages through organic development, offers four beverage brands. Those brands are TapouT Performance, SALT Naturally Flavored Tequila, Copa di Vino single-serve wines and Pulpoloco Spanish sangria.
Splash reports that it plans to continue expanding its portfolio, primarily through acquisitions and joint ventures. The company wants to work with brands that already have preexisting awareness where Splash can leverage its marketing and distribution expertise to expand the product’s regional presence.
According to Allied Market Research, the global alcoholic beverage market was valued at $1.4 billion in 2017 and is expected to grow to almost $1.7 billion by 2025 with a compound annual growth rate (CAGR) of 2% from 2018 to 2025.
Allied believes the growth of the global alcoholic beverages market is driven by an increase in the global young–adult demographic, surge in disposable income and a rise in consumer demand for premium/super-premium products.
The timing of Splash’s launch of its TapouT Performance drink may coincide with the global demand for sports drinks. The category now has a market size of $26 billion, representing a growth of nearly 8% in 2020. Allied research projects the market will grow to more than $36 billion by 2028 with a CAGR of 4.2% in the 2021-2028 period.
For more information on Splash Beverage, visit www.splashbeveragegroup.com.
Photo provided by Splash Beverage
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