M&a Trends In The Food And Drinks Market: In-Depth Deal Analysis And Its Impact On The Fmcg Landscape

Sales of nutraceutical soft drinks are both substantialproduct and distribution ideas from around the world.
and fast-growing. The largest market in the world is• Allocate budgets between nutraceuticals and
that of Japan – it is expected to be worth $10bn byother potential investment areas across different
2012. The market for functional food and drink is moregeographies.
than three times larger in the US (at over US$27bn inKey Market Issues
2007) than it is in Europe (where it was worth almost• A significant trend is towards ‘hybrid' products
US$8.5bn). Over the period 2002-07 spending inthat blur category boundaries. This can be helpful in
Europe has grown at around 6% each year whilst thatgetting marketers to focus on the functional needs of
in the US has grown at around 9% each year. Globallyconsumers rather than thinking in terms of traditional
the market for nutraceutical soft drinks is growing atproduct groups.
just below 10% each year and this is expected to• Multiple attributes will increasingly become the
continue for the next five years at least.norm. Competition and demand for convenience will
The market is also extremely complex. There is amean that products will increasingly have multiple
large number of (often smaller, start-up) companiesingredients, multiple flavors and multiple benefits.
plus some powerful regional players as well as the• There will be a greater diversity of serving sizes
increasing presence of multinationals. There is a greatas consumers demand shots on the one hand and
deal of innovation. As the boundaries betweenlarger packs with multiple servings for take-home use
different product categories become blurred, we areon the other.
seeing the rapid emergence of hybrid products suchKey findings from this report
as dairy sports drinks, energy juices and enhanced• In terms of consumption per person the population
waters. A related trend is towards multifunctionalof the US achieved an astonishing $90 in 2007 –
products such as combined energy-sports drinks,much higher than the $35 of the UK, which is probably
anti-tiredness and anti-stress energy drinks andthe leading country in Europe.
energy-brain drinks.• The Americas are consolidated markets where
Key features of this reportthe top three companies account for almost 75% of
• Market value data for nutraceutical soft drinks innutraceutical soft drink sales. Elsewhere the markets
western Europe, the US and Japan.are much less consolidated and contain stronger
• Analysis of more than 4,100 new nutraceuticalregional players.
soft drinks that have been launched around the world• PepsiCo is the world's leading functional soft drink
between 2006 and 2009. The report looks at how thiscompany. It dominates the market in the Americas
total breaks down by region, flavor, health positioningwith a share of 58% in North America and 56% in
and functional benefit.Latin America; it also holds the number one position in
Scope of this reportEurope and the number two position in Asia-Pacific.
• Understand how the myriad of products launchedKey questions answered
in this market actually fit together and relate to each• Where has growth in Europe been particularly
other. Don't miss any opportunities!high?
• Compare your portfolio and NPD pipeline against• What are some of the health issues being
the flavor and functional benchmarks set out in thecatered for by niche products?
report.• What are the most popular flavors of
• Prompt your marketing and NPD teams withnutraceutical soft drink?