Top five expenditures in Emerging economies

Growth in urbanization has been the driving factor for rise of emerging economies internationally. The quickly spreading urbanization has also bought a spree of diverse buying trends among its consumers over the years. According to a Market research, the customers’ spending in the emerging markets such as China, India and others is expected to increase three times by the year 2020. Consumers of this new era are increasingly demanding new things and seeking services/products that are customized as per their requirements and needs.

Here are the top five goods and services which the emerging economies are spending on –

Consumer goods

Customers are increasingly spending on consumer goods, for example personal care goods, and especially on big capital goods, particularly the air conditioners. As per a market research the greatest increase in beauty and personal market will come from India and Turkey. However, this earlier growth is often disturbed by the demand for cell phone. Some experts opine that the much of the emerging market consumers will give up nutrition for connection. Research studying the Chinese smart phone market explains that the number of users in the market had reached up to USD 700 million by the end of 2013.

Food and Beverage

As the per capita income rises, the most obvious change is the rise in disposable income, which in turn has increased the consumption of more expensive prepared food stuffs, for example, snack food stuffs in Mexico, cooking sauces in china and breakfast cereals in India etc. Comparatively, even the UK, which is a mature market, the rise in snack is visible and is further encouraged by the launch of new products. Consumers are now splurging on calories. As per a Food and Beverage research report   around USD 1,500 of the customer’s annual per capita income is spend to acquire more of these calories.

The food service market is profiting to a great extent as well. Growth is speedier in most emerging economies, especially in India and China, where the expansion of coffee shop chains, and restaurants and business spending has encouraged the demand.

A study on Malaysia illustrates the consumers have started to spend approximately 23% of their income of food and beverages. The only exception this trend is the Mexico, where people prefer to eat at home.

A noticeable never-ending trend in such economies is that as the market matures, there is a strong demand for premium level of alcohols- like Lambanog in Philippines, Ruou in Veitnam, and Baijiu in China. Market research has shown that when people have more disposable income in their hands, they tend to splurge quite a lot on beverages, both on non-alcoholic and alcoholic drinks.

Healthcare

The healthcare segment is another sector in which there has been an outstanding amount investment from the emerging market consumers. Research shows that the newly wealthy people are increasingly spending on better health care options.

Emerging markets like China, Brazil, India and Russia are among the top sixteen emerging markets that will make up almost a one third of the global spending on drug within four years.

Recent trends show that the OTC drug market where consumers can get drugs or any medicines without prescription is increasing in value and volume in the emerging economies.

The emerging markets are estimated to continue the growth of healthcare consumer goods as a direct result of expansion in the middle class.

Transportation

Other than consumer goods, health and food & Beverage, consumers look to spend on better and more comfortable transportation, however progress in this aspect is not as one would expect. For example, in India it isn’t unusual to see a family of four ride a motorbike, even though the general expectation for them would be to get a car, which they might purchase- unless there are too many buying cars, in which case people would opt for a two-wheel vehicle in order to get around in traffic, where a car is most likely to get stuck.

Luxury goods

As the budget on expenditure increases, a growth in demand for the luxury products is being witnessed in the emerging markets. Until recent years, the world of luxury goods was only exclusive to the wealthiest of customer market like Western Europe, Japan and America. However, consumers from Asia, Latin America, Middle East and Russia are increasingly participating in the international luxury goods market, as they continue to purchase luxury goods like iconic watches, cars, jewelry, wines, fragrances and leather goods.

The Three Biggest Trends Transforming the Food and Beverage Industry

food-and-beverage-industryThe food and beverage industry is going through a pivotal change as the American market shifts to a more natural and whole food diets. Customers are increasingly scrutinizing nutrition ingredient labels of products. Therefore, they are now opting for grocery products that contain fewer and simple ingredients. Even if gluten – free food stuffs are still popular, consumers have become increasingly aware that gluten free doesn’t necessarily equate to guilt free.

On the other hand, Market Research indicate that popularity of meal kits continues to soar as more and more businesses are ready to dole out subscription offerings for consumers seeking convenient home –cooked meals. Similarly, the top three food and drinks trends that are modifying the market are as follows –

Aiming for short and simple ingredient and nutrition label

As per a report, 67% of consumers prefer to shop groceries that include less complicated and short number of ingredients. Groceries that contain labeling of chemical sounding, unpronounceable and complex ingredients are being increasingly avoided by shoppers.

According to a Food and Beverage Industry Report, shoppers now seek products with real food that can be found in a common kitchen. Therefore, this has led key market players like Haagen-Daz, General Mills, ConAgra, and Hershey to rework the ingredients list of their products including chips, chocolate syrups, frozen meals, ice cream and snack bars etc. This trend is also spreading out towards baking goods. Showcasing short and simple list of ingredients has become a marketing strategy.

Gluten free foods are at their all time high

While demands for healthy food products are on the rise, gluten free products growth rate is estimated to fall single digitally. The American sales reached $1.57 billion in 2015, which was an 11% increase compared to 2014 as per market research. In contrast to estimation, however the gluten free products sales have skyrocketed 81% over years in 2013.

The reason for estimated slow growth rate is because; a gluten free label on its own just doesn’t cut out for customers anymore. Therefore gluten free products need additional health value for customers to come back.

Meal Kit popularity                     

Meal kits have become a go to solution for urban millennial who want to avoid hassle of meal planning but still want nutritious home cooked meal. More than 150 meal kits have now been sprung up by various well known businesses and brands. Meal kit provision services have developed into a giant USD 1.5 billion market and expected to grow into a multi-billion market in the coming years.

Is Food Retailing a Leading Business in Europe and the RoW?

 

Be it picking food items out of shelves at a shopping mall or buying the same from online platforms, the food retailers in Europe and main countries worldwide are seeing a growth due to consumer preference for high-end lifestyle. Given busy schedules that everyone is tied on to these days, ease of access to edibles and other services is what people expect. The total European food retailers accounted for about € 3.0 trillion turnover in the year of 2012 encompassing 240,000 outlets.

Significant European Food Retailers

Germany, Poland, France, and the United Kingdom are among the countries having high turnover in this industry, with positive leads in Asia-Pacific regions and rest of the world as well. Some of the biggest retail chains are Rewe Group (Germany) with banners Rewe and discounter Penny, Schwarz Group (Germany), German Metro; French Carrefour, Tesco (UK), and others. There has been entry of new market players, while industry giants do exist past more than a decade.

Global Food Retailing Scenario

E-food channels are significantly increasing past many years, and may show humongous prospects till 2020. The distribution channels span supermarkets, hypermarkets, convenience stores, specialist and independent retailers among the business services. The global food retailing market is expected to deal out increase at 6.1% CAGR from the period of 2014 to 2020, with inputs from Europe, Asia-Pacific, North America, and other parts of the world, including African regions.

Competitors on the Watch

Some of the major new retailers in food that left a mark in the industry are Lidl in France and Germany, Jumbo in the Netherlands, and Morrisons in UK, as per a market research. Competition is high related to price, adequate service, smart logistics, presence of chain outlets online, newer technologies used for accounting, end-user oriented care, hygiene, and a lot more. Tesco from UK approximates at 5% of the total turnover over the internet in the relevant nation.

Russian Beer Market Crumbles, Yet Bright Future for Craft and Local Brewers

 


Beer in Ukraine has coming one of the most popular spirit alternative in these recent years. Not being a traditional alcoholic beverage, it is still being preferred due to lower cost than other spirits. The
Russia Beer Market holds positive prospects for craft and premium beer sectors. The nation is the third largest beer producer in the world, with 85 hectolitres share in manufacturing. However, the production of beet has fallen presently because of increased restrictions and deteriorating economic conditions.

Strengths and Challenges

In 2012, Russian beer was re-categorized as alcoholic beverage from earlier status of a ‘foodstuff’. In 2013, there was a ban imposed on sales of beer in the night hours, as per the online market research. Baltika of St. Petersburg however still leads the market at 38% of the whole volume share, statistics as seen in the year of 2013. But, the demand of this beet dwindled along with contemporaries due to increase in unit price.

Alcohol Distribution in Russia

The prices of Baltika and few others were hiked by 12% in 2013 than compared to the prices in 2012. According to the alcoholic drinks market research, the industry though moving at a snails pace has enough room for growth regarding craft beers. The Russian Association of Brewers reported that there are around 250 breweries and 263 micro-breweries in the nation currently, which may increase later.

Type of Beer Segments

The total beer sales of stout, dark beer, low alcohol beer, and flavored lager have only 5% share. But, these are not price sensitive when related to standard beers. The Russia beer market for stout volume sales is going at 16% CAGR now. The volume sales of dark beer in 2013 were 9% higher than the figures in 2008. The sanctions on alcohol may deter consumption, but these may not hamper the industry much in 2015.

Meat Market in France: Restrains, Opportunities and Developments in 2015

After the ban imposed by Russia on French pork, the meat market in France relating livestock export faced a loss of € 150 million to € 200 million. The consequences resulted because the business could not meet the mark of supply and prices, which was deemed past many years, as measured in industry research reports. The French Government has reformed few measures to promote regional meat in restaurants for domestic consumers by opening up supermarket chains, to reclaim procurement contracts and amplify the exports.

Controversies on France Livestock Industry

The livestock farmers demand better payment for their products as the prices are continually falling. The consumption of sausages and ham fell by 1.9% in the 2015, initial three months, as compounded by the Food and Beverages Market Research. Some of the French poultry industries were fined worth € 15.2 million for faulty market shares and prices.

The fine went up to 10% for every organization involved. The French pig industry is moving towards better future with euro dollar funds being opened to help farmers. The price of pork from Brittany has still shows positive raise from € 1.24/kg in June to € 1.38/kg by the 20th July. However, targets for beef prices are still not achieved for the meat market in France.

The 2015 Scenario of French Meat Market

The beef market in France has seen a decline in purchases made for household purposes, excluding mince in the year of 2015.  According to the food and beverages market research, the sales dwindled to -4% in May 2015, January. Similarly, the last four years too saw decline in beef sales. The consumer expenditure saw a low of 5% and 1% drop in average price.

The budget of buyers has been also facing restrictions. However, rise was seen on consumption of steak hachee, frozen beef by 1% and more in purchase volume in May, which was alike the increase record for last year. The market is gradually recovering the 2013, horsemeat scandal, as understood in industry research reports. The total beef purchase for January to May 2015 has accelerated by 4%.

Global Confectionery Market Keying Growth at 3.0% CAGR in 2013-2018

The Confectionery market is divided between the bakers and sugar items. The former includes doughnuts, pastries, cookies and cakes and the later consists of chocolates, chewing gum, sweets and candies. The nutrition value may be less. However, their popularity has increased globally. The revenue for the industry worldwide by 2018 is said to climb at $176 billion at 3.0% CAGR in 2013-2018. Europe has the largest consumer ratio followed by Asia-Pacific and North American regions. The U.S., India and China are growing their consumption’s for these edibles.

The Popularity of Key Segments

The main ingredients for these food items are sugar, cocoa, latex, dough making raw materials etc. According to the Industry Analysis reports, among children the share for consumerism is seen more in cereal bars, gums and chocolates while adults prefer baked items and sugary concoctions. The sales reaches a high during celebrations, events and special occasions, as found by the Food and Beverages Market Research. The corresponding industry of advertising, public relations and digital promotion is backing the confectionery market in actualizing expansion across several regions.

Industry Analysis Reports the Major Challenges

The love for urbanization, gifting baked and sugary items, population growth, greater disposable income, busy lifestyle, retail markets, multiplied workforce are the key factors in booming confectionery market. People are opting confections as these consume lesser preparation time than other cuisines and are delicious. These edibles are making their presence in urban regions than rural areas, as per the Food and Beverages Market Research. Families prefer to dine out or replace meals with confections. The fallbacks on people are for health concerns related to diabetes and obesity.

Key Competitors Providing Confections

Working population boom in China, India and developing nations with that in U.S. has left scope for consumerism and services in this sector. The largest operating brands in confections, worldwide are Mars, Nestlé, The Hershey Company, Parle Products Pvt. Ltd, the Ferrero Group, Kraft Foods, MondelÄ“z International, HARIBO Dunhills (Pontefract) PLC, Yildiz Holding, Perfetti Van Melle, Cadbury, United Confectionery Manufacturers, Petra Foods, Brookside Foods, Kegg’s Candies, and Crown Confectionery.

Sports Nutrition to raise bar of health in Europe

Sports Nutrition Market in Europe showcases that most of the regular officer goers in the Europe have begun to show keen interest in keeping themselves fit and healthy. They consider it as vital part of their routine life style but don’t want to invest half of their time in shaping them up. So many people want instant result. Therefore they are inclined to rely on supplementary nutrition products.  Statistics provided by Food and Beverages market research suggest that almost 4.24 million people are employed have been employed in this industry that is more than sixty four percent rural areas are connected to it.

Sport Nutrition is just about providing you diet and nutritious value in appropriate proportion. So that you will not need to spend some extra on heavy diet. Because it contains similarly identical properties. It enables you to sweat more and achieve your set goal. Today, because of sedentary life style world has come close but too much technological advancement also has some serious demerits which usually remain unnoticed.  When it become too late many people wake up from sound sleep and start to do work out on regular basis by assuming that it will help them to lead normal life with same freshness. Apart from sport personnel who dedicate their life for sole purpose and take extraordinary efforts, regular people cannot afford to walk on the same path therefore sport nutritional food is introduced in the market. It is free from steroids and other life threatening hazardous ingredients. Day by day this trend is growing and receiving acceptance among youth and young adults.

Trends of best food services in the Market!

Food trends are similar to fashion and other trends, they appear and disappear. Some of them seems to be dated if not followed as per the wave, mouth watering cuisines and delicacies are something that turn into desire for every foodie. Latest foodservice trends include some specific food services for example

  • Serving in small plates: It became famous in yester years. Snacks are part and parcel in today’s on the go lifestyle. Small plates are receiving heavy response. They are highly practical.
  • Food decoration: Chefs are trying their best to deliver top of the line gastronomical experience to the foodies. They see to it that cessation for scrumptious cuisines will never die. Decorative food plate lures customers.
  • Nutritious menu for kids: Parents will stop complaining about their children not inclined to taste nutritious food. A platter in front of children will be full of hygienic and healthy substance and certainly not like patty, burgers, pizza etc.
  • Barbecue in action: nowadays, smoked food has crossed boundaries of barbecue and trying to attain new levels by being little versatile in its orientation.
  • Ferment/Pickle: Apart from offering typical flavors such as salty, spicy etc. new trend has been set where pickling a particular ingredient and presenting into the platter scores more.
  • Proteins with economy: As we all know that there are constant fluctuations in the price rates of chicken/mutton so in such circumstances it is better to switch from chicken to less protein contained diet that is eggs, tofu, legumes and beans etc. This trend is becoming more popular among people.

Today hospitality industry is growing at unprecedented speed hence food service market is booming day by day. It includes restaurants, cafeterias available in the schools and colleges, canteens in the offices, snack centers etc. Span of this food service industry is much wider than our assumptions. Food service market research is done on the grounds of location, type of most popular fast food in the locality, consumer of full service restaurants and bar, average transaction cost etc. So in order to have top of the line gastronomical experience always be updated about latest food service trends.

Dairy market in India will require more of push for multinationals unlike general

India has an integral level of thinking and business when it comes to dairy products and market. The dairy market in India has been getting a high rating of being one of the largest producers of products related to dairy market across the globe with the same level of largest number of consumers.

Indian market for dairy products has an entire production sector that is considered as the largest dairy sector but there is a level of tough competition for the multinational companies to establish the business setup. Modernization and timely development with catering of services to the 200 million count of cattle population is an added advantage for the dairy market in India. But there are also certain types of short comings that involve quality and other shortages during the process of dairy product making and subsequent inelasticity.

It is seen that there can be timely involvement of the toning up and evocation of various technologies and equipments which can help in conducting high quality process and development.

Certain types of process involves:

1) Handling of raw milk: This process is used for handling various physicochemical and other type involving microbiological properties of the product milk in a combination procedure.

2) Processing of Milk: The milk processing of raw level assists in providing high quality of dairy products. It involves broadening of the actual product life with involvement of quality and properties.

3) Packaging: A primary area in dairy products also involve better and high level packaging sessions that can assist in broadening the product shelf life. This is especially for the value added products such as puddings, nectars, desserts, etc which can now capture the dairy market in India.