Intense Competition within Market Triggers Marginal Pricing, Affects Profits of Manufacturers, Finds TMR

InstantBeveragePremixThe presence of a large pool of participants characterizes the global instant beverage premix market’s competitive landscape. Among the leading players in the global instant beverage premix market are Ajinomoto General Foods Inc., PepsiCo Inc., Monster Beverage Co., The Coca-Cola Co., Suntory Beverage & Food Ltd., Starbucks Corp., and Dunkin Brands Group Inc.

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Currently, players are focusing on expanding their product portfolios by introducing new and enhanced premixes. They are also adopting disruptive pricing strategies to remain in the competition. Going forward, they will need to develop their marketing as well as distribution channels to stay afloat in a competitive market and expand their geographical reach.

Rising Number of People Entering Workforce Fuels Demand for Instant Beverage Premixes

The hyperactive lifestyle of individuals has left little room for a proper meal in their day-to-day routine. People are increasingly inclining towards readymade foods and premixes, with instant beverage premixes being one of the most popular products among them.

The rising number of working consumers is fueling the demand for these premixes significantly,” says an analyst at TMR. Continual advancements in products such as the addition of nutrients and introduction of new flavors are likely to keep the demand for these premixes high in the years to come.

Apart from this, the growing influence of developed nations and the rising disposable income of consumers in emerging economies in Asia Pacific and Latin America is also expected to boost the sales of instant beverage premixes over the next few years.

Marginal Pricing of Instant Beverage Mixes to Affect Market Profits in Long Run

On the other hand, the intense competition within the market has triggered marginal pricing of products, which is likely to affect the profits in the long run. As the concept of instant beverage premix is very new to consumers, vendors do not have efficient marketing strategies, with which they can generate awareness regarding these premixes among consumers in order to gain credibility.

However, with the help of distributors and adequate investments at every stage of product development, producers can improve their marketing strategies and initiate programs for increasing the awareness among people pertaining to the health benefits offered by instant beverages. This, in turn, can help them gain significant momentum in the market.

Asia Pacific to Remain Key Consumer of Instant Beverage Premixes

Instant beverage premixes witness the most prominent consumption in Asia Pacific,” states TMR. In 2014, these premixes generated a revenue of US$20.4 bn in this region. Currently, instant coffee, among all instant beverage premixes, is the leading product across the world. Analysts expect the segment to remain in its leading position over the next few years.

On the whole, the opportunity in the instant beverage premixes market globally is estimated to increase at a CAGR of 5.70% between 2015 and 2021, rising from US$59.3 bn in 2014 to US$85.8 bn by the end of the forecast period.

The analysis presented here is based on a report by Transparency Market Research (TMR) titled “Instant Beverage Premix Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2021.”

Key Takeaways

Asia Pacific led the global instant beverage Premix market in 2014 with US$20.4 bn

Instant Coffee will remain most preferred instant beverage in the coming years

The global opportunity in the instant beverage premixes market is likely to reach US$85.8 bn by 2021

The segments covered in the Instant Beverage Premix market are as follows:

By Product Type

  • Instant Tea

  • Instant Milk

  • Instant Health Drinks

  • Instant Coffee

  • Soup

  • Others