The global emulsion for beverages market has been projected to reach about $1.5 billion by the end of 2029, up from an estimated value of about $1.2 billion in 2019. These were the findings of Persistence Market Research’s recent report titled Emulsion for Beverages Market, which added that the increasing adoption of new innovative flavour emulsifiers was likely to contribute to the growth of the emulsion for beverages market until 2029.
The demand for emulsion for beverages is increasing continuously and introduction of stabiliser-free drink increases the turnaround time for emulsion for beverages. The adoption of new technology will provide a thrust to the production process of emulsion for beverages, and help fulfill the increasing demand in 2019 and beyond.
Thriving consumer’s preference for ready-to-drink products to benefit the market
Growing preference for RTD products among consumers has been propelling the demand for emulsion for beverages. The rapid lifestyle and busy schedules are forcing consumers to consume time saving ready-to-drinks products.
The beverage manufacturers are also following the trend and are producing RTD products to further influence consumers.
Emulsion for beverages is among the vital ingredients for RTD products, as it increases the shelf life of products and provides better texture and stability, enabling consumer to experience better mouthfeel after drinking.
RTD products, such as RTD tea/coffee, are easy to consume as they are time-saving and portion-packed, and further holds convenient packaging, which is thaw- or freeze-stable.
Beverage emulsifiers are largely used in RTD as well as plant-based beverages and hence demand for emulsions for beverages is likely to increase. The RTD is among the growing trend in food and beverage industry, which is also contributing the growth of emulsion for beverages market.
Acquisition strategy playing vital role in market
As the demand for emulsion for beverages is soaring, the entry of new players in the market is gradually increasing. This is directly impacting the position of well-established players in the market, and are facing tough competition from new entrants. The study showed that more than 50 per cent of the share is held by top 10 producers in the emulsion for beverage market.
In October 2018, Döhler acquired a majority stake in Italian firm Nutrafood, which produces a wide range of plant-based food and beverages, and hypoallergenic products. This acquisition will enhance Döhler’s portfolio of plant-based beverages.
Another strategic move by top manufacturers is targeting emerging economies and expanding their presence in these countries. Asia-Pacific and Latin American countries are experiencing strong economic growth, which is benefiting food ingredient manufacturers as the economic growth is also promoting the growth of the food and beverage industry in these countries.
In February 2019, Givaudan opened new state-of-the-art flavour manufacturing facility in Pune, India. The company invested $60 million for its new facility, this is the largest investment of the company in India. The new facility will complement the existing plant of the company in Daman, strengthening its capabilities in emulsions, spray drying, and powder blending.
As the innovation is key factor for the food and beverage industry, market vendors are focussing on adapting to innovative and technological change, to gain the potential success in the emulsion for beverages market.
Large manufacturers are investing more in research and development to increase their share in emulsion for beverages market. Utilising the one ingredient solution, instead of multiple emulsifier and stabiliser, is among the major innovative approach adopted by the manufacturers in the emulsion for beverages market.
The research study also underlines groundbreaking insights into the competitive scenario of the global emulsion for beverages market along with the highlights of the differential strategies implemented by manufacturers.
Key players in the global emulsions for beverages market continue to invest in growth strategies, which are likely to help them retain or increase their market share in the global emulsion for beverages market.
According to the report, manufacturers are also focussing on acquisition strategies, which will help them increase their regional presence across the globe.
This study underlines key opportunities in the global emulsions for beverages market and finds that the market would exhibit growth at a value CAGR (compound annual growth rate) of about five per cent during the forecasted period.
