Mark Gilman, Benzinga
The demand for prepared foods and beverages and growing consumer concerns about what they are ingesting would drive the growth of the specialty foods and beverages market.
Data Bridge Market Research shows that the specialty food and beverage segment is expected to grow by 11.5% from 2020 to 2027.
According to Mintel analysts, surpassing conventional grocery store sales, specialty foods and beverages grew 10% between 2016 and 2018 to reach $148.7 billion in sales.
Specialty beverages are even more popular, outpacing the growth in specialty food sales.
“There’s a lot of excitement and surprise in the specialty beverage market. It’s a good place to be right now,” said David Browne, principal analyst at Mintel. “We are rapidly approaching the point where the specialty represents 20% of all food and beverage sales. This is a significant milestone.”
Mintel research showed that beverage sales are growing faster than food sales, up 13% and 10%, respectively, over the two years. The reason, according to Browne, is that consumers are looking for functional drinks that promote energy, mental focus, relaxation and digestive health.
Major players in the specialty food and beverage market include Archer-Daniels-Midland Co. (NYSE: ADM), DuPont de Nemours Inc. (NYSE:DD), Chr Hansen Holding A/S
(CPH: CHR), Advanced Food Systems, AmTech Systems Inc. (NASDAQ: ASYS), Hansen Holding and Tate & Lyle PLC (LON:TATE).
But small businesses also seem to be taking an increasing slice of the pie. Based in Fort Lauderdale Splash Beverage Group Inc. (NYSE: SBEV), which owns and markets a growing portfolio of alcoholic and non-alcoholic beverages through organic development, offers four beverage brands. These brands are TapouT Performance, SALT Naturally Flavored Tequila, Copa di Vino single serve wines and Pulpoloco Spanish sangria.
Splash reports that it plans to continue expanding its portfolio, primarily through acquisitions and joint ventures. The company wants to work with brands that already have pre-existing brand awareness where Splash can leverage its marketing and distribution expertise to expand the product’s regional presence.
According to Allied Market Research, the global alcoholic beverages market was valued at $1.4 billion in 2017 and is expected to reach nearly $1.7 billion by 2025 at a compound annual growth rate (CAGR) of 2%. from 2018 to 2025.
Allied believes that the growth of the global alcoholic beverages market is driven by an increase in the global population of young adults, an increase in disposable income and an increase in consumer demand for premium/super premium products.
The timing of Splash’s launch of its TapouT Performance drink could coincide with global demand for sports drinks. The category now has a market size of $26 billion, representing a growth of nearly 8% in 2020. Allied Research Projects predicts the market to reach over $36 billion by 2028 with a CAGR by 4.2% over the 2021-2028 period.
For more information on Splash Drinks, visit www.splashbeveragegroup.com.
Splash Beverage Group, a beverage industry innovator, has a growing portfolio of alcoholic and non-alcoholic beverage brands, including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria and hydration drink and high-performance recovery TapouT. Splash’s strategy is to rapidly grow early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovative in their categories. Led by a leadership team that has built and managed some of the beverage industry‘s biggest brands and driven sales from product launch to billions, Splash is rapidly expanding its brand portfolio and global distribution. For more information, visit: www.SplashBeverageGroup.comwww.copadivino.comwww.drinksalttequila.comwww.pulpo-loco.comwww.tapoutdrinks.com
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Splash Beverage Group
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