Beverages - State of the Industry

Beverages - State of the Industry

A recent issue of Beverage World (May 15, 2012) summed up the state of the beverage industry by taking a look at the performance of several segments in the year 2011.  Some of the information was unexpected, while some areas brought surprising growth.  In general, it appears that almost every segment is seeing new innovations and new brands, showing that our thirst for new products is not easily quenched.


Energy drinks showed huge growth in 2011 after little to moderate growth the past two years.  One theory for the increased popularity has energy drinks growing up with those who started this segments popularity while in college.  As energy drinks gain popularity with an older crowd, they continue to be a favorite of teens and college students, allowing for the volume increase in 2011.  If this is the case, expect energy drinks to continue to show growth in the coming years.


Ready to drink teas also saw growth in 2011, though the growth slowed from previous years.  This segment of the beverage industry saw growth through 2009 and 2010 when many other segments did not.  The growth, though slowed, is still impressive for a mature beverage category and may result from an increase in the desire for a healthy diet coupled with some creative marketing that has tied this category to social media, the Super Bowl and blockbuster movies.


Bottled water and Functional Drinks (PowerAde, GatorAde) both continued to grow in 2011.  Bottled water grows despite being the focus of environmental and ecosystem issues, specifically, the PET bottles used for water.  As we noted last week, one town in the United States is set to ban the sale of individual bottles of water starting in 2013.  Functional drinks such as gatorade continued to see growth as well, in part due to a revamping of the popular Gatorade brand.  Both sports beverages and ready to drink coffee were near a 10% growth in volume.


Globally, beer, wine and spirits all saw growth in 2011, but beer did not fare as well in the United States market.  For the third consecutive year, beer saw a drop in volume in the United States.  A drop first attributed to the recession of the past few years.  As other beverages, and other alocholic beverage sections, begin seeing growth again, the economic excuse seems to lose some credence and brewers of beer may have reason for concern.


Carbonated soft drinks (CSD's) continue to lose market share, for the seventh straight year, though they still control more than a fair share of the beverage market.  The bright spot for CSD's are zero calorie or low calorie drinks and flavored drinks.  The main reason for the decline are both emerging and new drinks in almost every other category of beverage.  With more choices available and a continued focus toward healthier lifestyles, don't expect this category to show growth in the near future.

Each year brings new beverages and, on occasion, entirely new segments to the industry.  Liquid Packaging Solutions manufactures a wide range of packaging equipment for the beverage industry.  We have worked with bottled water companies, filled bottles of ready to drink tea, capped energy drinks and labeled wines and spirits.  Browse our website to see the power conveyors, container cleaning equipment, liquid fillers, capping machines and other packaging equipment offered by LPS.  Or call us directly, toll free, with questions of for more information, at 1-888-393-3693.

More on the state of the Beverage Industry can be found online at Beverage World -