The Global Beverage Market_2013

• 1 •

Food Processing and Packaging Machinery

The Global Beverage Market

Facts & Figures Machinery Demand & Trends

Vera Fritsche, VDMA

Asia Drink Conference 2013, Bangkok

• 2 •


The beverage and food industry – a growth market with increasing global expenditure

� Global expenditure for beverages (alcoholic and soft drinks, drink milk products )

� 2012: € 1,046 bn. (USD 1,185 bn.)

� 2007 – 2012: 42 %

� 2012 – 2017: 33 %

� Global expenditure for food

� 2012: € 1,543 bn. (USD 2,027 bn.)

� 2007 - 2012: 33 %

� 2012 - 2017: 29 %

Source: Euromonitor International, VDMA

• 3 •


Economic growth

Disposable income

Consumer behavior

• 4 •


Global Market:

Megatrends and Challenges

Global Market:

Megatrends and Challenges

• 5 •


Sustainability

� Conservation of energy and resources through intelligent and innovative processes

� Use of recycling systems

� Use of consumption-optimized components

� Savings through innovative plant control

� Use of reduced-weight packaging

• 6 •


Quality and safety go hand in hand

� Product safety is a paramount

� Hygiene is the basis for quality

� Safety through technology

� Hygienically designed plant and equipment

� Quality control through

� Process monitoring and control

� Full documentation on raw materials

• 7 •


Variety and flexibility

� Changing consumer behavior

� Large variety of product types

� Shortening product life cycles

� Responsive, adapatable technology

• 8 •


Global sales of beverages by region

0 50,000 100,000 150,000 200,000 250,000 300,000

Australasia

Middle East and Africa

Eastern Europe

North America

Western Europe

Latin America

Asia Pacific

2017 2012

Global sales 2012: 657,910 million litres

Growth rate 2012-2017

Asia Pacific + 35.4 %

Latin America + 19.7 %

Western Europe + 4.1 %

North America + 3.4 %

Eastern Europe + 9.1 %

Middle East and Africa + 29.8 %

Australasia + 1.0 %

mn litres


• 9 •


Beverage packaging demand by region

0 100,000 200,000 300,000 400,000 500,000 600,000

Australasia

Middle East and Africa

Eastern Europe

Latin America

Western Europe

North America

Asia Pacific

2017 2012

Global sales 2012: 1,004,890 million units


Asia Pacific + 29.6 %

North America + 4.2 %

Western Europe + 5.1 %

Latin America + 20.8 %

Eastern Europe + 8.0 %

Middle East and Africa + 22.2 %

Australasia + 4.0 %

mn units


• 10 •


Beverage packaging Demand by material 2012

Rigid Plastic 37%

Glass 25%

Metal 23%

Flexible Packaging 7%

Liquid Cartons 5%

Paper-based Containers 3%

Global sales 2012: 1,004,890 million units


• 11 •


Global off-trade of beer segmented by region

in million litres

2007

2012

2017

Growth 2012-2017 in %

World 113,064 122.681 136,771 11.5

Asia Pacific 30,332 237,203 45,707 22.9

Eastern Europe 21,760 20,499 20,761 1.3

North America 20,054 19,730 20,053 1.6

Latin America 16,628 19,300 22,714 17.7

Western Europe 16,255 16,051 15,788 -1.6

Middle East/Africa 6,340 8,410 10,371 23.3

Australasia 1,695 1,488 1,388 -6.7

“Off-trade” means sales to food retailers such as supermarkets. “On-trade“ refers to business with hotels, bars and restaurants. On-trade sales are not included.


• 12 •


Beer: TOP 10 off-trade markets in Asia

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Uzbekistan

Taiwan

Kazakhstan

Vietnam

South Korea

Philippines

Thailand

India

Japan

China

2017

2012

Beer sales in Asia 2012: 37,203 million litres


• 13 •


Beer – challenges and trends

� Market environment

� Saturated markets demand creative concepts

� Highly relevant local demand

� Energy

� Energy optimization

� Independent solutions to energy requirements

� Water

� Reduction in water consumption

� Water recirculation

• 14 •


Global sales of soft drinks segmented by region

in million litres

2007

2012

2017

Growth 2012-2017 in %

World 412,881 494,184 595,445 20.5

Asia Pacific 98,140 145,616 202,386 39,0

Latin Amerika 79,258 95,311 114,582 20.2

North America 87,069 87,918 90,533 3.0

Western Europe 80,394 86,499 91,373 5.6


Eastern Europe 32,508 33,873 38,757 14.4

Australasia 3,700 3,818 3,849 0.8


• 15 •


Global sales of soft drinks by categories

0

50,000

100,000

150,000

200,000

250,000

300,000

Bottled Water Carbonates Fruit/VegetableJuice

RTD Tea Asian SpecialityDrinks

Others

2012 2017

million litres


Bottled Water + 28.0 %

Carbonates + 9.4 %

Fruit/Vegetable Juice + 15.9 %

RTD Tea + 37.1 %

Asia Speciality Drinks + 46.7 %

Others + 21.6 %


• 16 •


Softdrinks: TOP 10 sales markets in Asia

0 20,000 40,000 60,000 80,000 100,000 120,000

Vietnam

Pakistan

Taiwan

South Korea

Thailand

Philippines

India

Indonesia

Japan

China

2017

2012

million litres

Soft drink sales in Asia 2012: 145,616 million litres


• 17 •


Trends in soft drinks

� Health

� Addition of fruit and vegetable ingredients

� Replacement or reduction of sugar

� Functional additives

� New product combinations

� e.g. energy drinks combined with sports drinks

� Maximum variety of packaging sizes

• 18 •


Drinking milk produkts TOP 10 sales markets in Asia

0 5,000 10,000 15,000 20,000 25,000 30,000

Malaysia

Indonesia

Kazakhstan

Vietnam

Thailand

Pakistan

South Korea

Japan

India

China

2017

2012

Sales of drinking milk products in Asia 2012: 41.6 million tonnes

in 1,000 tonnes


• 19 •


Global sales of drinking milk products Expected period growth

in 1,000 tonnes

2007

2012

2017

Growth 2012-2017 in %

World 112,290 127,481 146,769 15.1

Asia Pacific 30,355 41,617 55,593 33.6

Western Europe 24,944 25,667 26,067 1.6

Latin Amerikca 18,619 19,964 22,216 11.3

North America 19,726 18,892 18,270 -3.3


Eastern Europe 8,484 9,074 10,060 10.9

Australasia 2,148 2,346 2,412 2.8


• 20 •


Drinking milk products Challenges and trends

� Product safety

� Variety plus health

� Mixed dairy drinks

� … with addition of probiotic fibres

� … with reduced sugar content

� New packaging concepts

• 21 •


World exports of food processing and packaging machinery High demand, steady growth

19.7 19.4

21.2 22.1

24.6

27.0

28.3

23.3

26.8

30.6

33.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

in bn. Euros

Source: VDMA, Export statistics of 47 countries

• 22 •


World exports of food processing and packaging machinery Market shares supplying countries in 2012

Germany 22%

Italy 22%

USA 7%

The Netherlands 5%

China 5%

Others 38%

Global exports in 2012: 33 bn. Euros


• 23 •


World exports of food processing and packaging machinery Supplier shares by region in 2012

Europe 42.7%

Asia 21.7%

North America 11.7%

Latin America 10.0%

Africa 7.5%

Near/Middle East 4.2%

Australia 2.1%

Global export in 2012: 33 bn. Euros


• 24 •


World exports of food processing and packaging machinery to Asia: TOP 10 sales markets in 2012

208

214

300

310

470

549

662

666

1,014

1,985

Singapore

Hong Kong

Vietnam

Malaysia

South Korea

Japan

India

Thailand

Indonesia

China

Global export to Asia 2012: 7,484 bn. Euros


• 25 •


Thailand Import of food processing and packaging machinery

238 220

258

323

265 247

264 283

361

444

666

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

in mn. Euros


• 26 •


Thailand: Market shares of main supplier of food professing and packaging machinery in 2012

Japan 24.7%

Germany 19.3%

China 12.8%

Italy 12.2%

USA 5.5%

Others 25.5%

Import 2012: 666 mn. Euros


• 27 •


• 28 •


Welcome to drinktec 16-20 September 2013!

Education

The Global Beverage Market_2013