Dictated by the continued poor economic climate in many markets, 2012 was the year for rebranding, for relaunching and for making minor (if essential) improvements to innovations from previous years.
We’ve seen many ‘me too’ products in the flavoured and functional space, with an increased blurring of the boundaries between waters and soft drinks, and little to astound from industry suppliers. Challenge me if you think that’s not the case.
So, what can we expect in 2013? Well, I predict a quickening of the innovation pace, returning in Q3 and Q4 to the rate we saw in 2008-09. Why? There are three reasons:
We may still be in recession in many, many markets, and in some it might seem impossible that more money can be spent, but wait and see if I’m right. Consumers are hungry for new ideas (at the right price) and I know that the bottled water industry will deliver.
Watch the effect that social media will bring as consumers start making increasingly specific demands on brand owners.
Despite the recession, look out for a steady flow of new entrepreneurs entering the category, and from the established businesses, watch continued consolidation enabling innovation through portfolio rationalisation.
It is rare for consumers to appreciate being told what to do, how to behave and have their choices limited by governments. Sales will continue to recover and grow. The healthy hydration message will stick and that will help to fuel innovation.
Well done to the companies and particularly the trade associations that have kept the record straight through a tough year, and set the industry up for success in 2013.
The ingredients shows Vitafoods and Food Ingredients Europe, among others, will offer the chance for the trend to natural and the move towards genuine functional benefits to take centre stage, with plenty of innovation from the ingredients industry in the pipeline.
Yet, it is the packaging and technology shows that will make the biggest difference. There’s Packtech, Total Processing and Packaging and Pack Expo, but the biggest of them all is Drinktec in Munich in September.
Held only every four years, I predict that the ‘Drinktec effect’ will entice innovation and help accelerate the pace of change across all aspects of the beverage industry in the second half of 2013.
I have spoken to two major suppliers who have admitted that they are holding back innovations to take to the Munich show as ‘that is where we will do business’.
And all that talk about success in 2013 leads me to an important announcement; a little sad but for the most part very exciting.
From January 2013, Water Innovation magazine – which started life in 2000 as bottledwaterworld – will be rolled into our established Beverage Innovation magazine, which just celebrated its 100th issue.
For those with a particular interest in packaged water, there will be 10 rather than six issues a year, and alongside stories about water-specific innovations and technologies (plus a special feature on a packaged water industry-specific subject in every issue), the packaged water industry’s role as an important and dynamic category in the broader non-alcoholic drinks industry can be celebrated.
And what of the Water Innovation Awards? Well, for 2013 they take a rain-check and become part of the Beverage Innovation Awards at Drinktec.
The Water Innovation Awards themselves will return in 2014, and if I’m right about the pace of innovation returning towards the end of 2013, we can be sure of an exciting competition.
So a year of ‘unnovation’ and 12 years of the packaged water industry’s best magazine come to an end, but with an exciting programme for 2013 just around the corner.
Talk to me about your thoughts on where the packaged water industry is headed. I can be emailed here.
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