Market insights company Canadean has forecast that beverage consumption in Western Europe will increase by 0.2% this year.
The prediction follows a decline in the region’s beverage industry of 0.3% during 2014, and is prompted by the expectation that lower inflation in key markets will lead consumers to spend more on drinks.
The company claimed that there would be high growth for packaged water, iced and ready-to-drink coffee products, energy drinks and some alcoholic beverages. But it warned that the year ahead looked bleak for a number of other sectors.
“The outlook for carbonates is less optimistic,” Canadean said, “as the category is adapting to a ‘new normal’ of contraction, while juice is now also falling victim to the sugar debate, with 2015 sales expected to drop by around 165m litres. Similarly, dairy drinks are likely to forfeit around 150m litres despite falling prices.”
But Canadean analyst Antonella Reda claimed that the wider pattern of growth – the highest since 2011 – was “an indication that low inflation is encouraging consumers to spend more on non-essential purchases”.
Reda added: “While the uncertain political situation in Russia could have an impact on Western European consumption, and we cannot rule out the risk of deflation, the 2015 outlook for the beverage industry appears to be more optimistic.”
“Value rather than volume growth is increasingly how producers and retailers measure the market dynamic. Investment in niche categories which are in tune with lifestyle trends and offer attractive profit margins, such as functional waters and premium pressed juices, will play an important role in the development of the beverage industry in the coming years.”
Iced and ready-to-drink coffee (+5.4%) Energy drinks (5.25%) Packaged waters (+1.25%) Iced and ready-to-drink tea (+1%) Cider (+0.65%)
Dilutables (-0.4%) Dairy drinks (-0.5%) Carbonates (-0.5%) Other alcoholic (-0.5%) Juice, nectars and still drinks (-1.6%)
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