Innovations in Beer: Growth Opportunities in Emerging Markets, New Flavors and Innovative Product Formats

Date: July 22, 2010
Pages: 120
Price:
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: I0AECAB1A4FEN
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Innovations in Beer: Growth Opportunities in Emerging Markets, New Flavors and Innovative Product Formats
Beer is an alcoholic beverage made from brewing and fermentation of starched derived from malted barley and can be classified into three categories as enlisted below. The global beer market was valued at around $546bn in 2009, an increase of 1.5% over 2008. Business Insights forecasts this market to grow at a CAGR of 1.8% during 2009–14 to reach a value of about $596bn in 2014. In Western Europe and the US, the beer market is matured registering a moderate growth rate. Emerging markets such as China, India, Thailand, Nigeria and Vietnam will play a critical role in the development of global beer industry due to rise in purchasing power of middle class population and investment in food and drink supply chain infrastructure. Ethical concerns are driving innovation and NPD in packaging material with PET emerging as a major threat to glass led by enabling technologies strengthening barrier properties of PET.

The report contains a summary of the important and novel beer launched between April 2006 and March 2010 as reported by Product Launch Analytics, an in-house database of new product launches in fast moving consumer goods. This report analyzes market data on the value growth of the beer market. Innovation and NPD are analyzed by region and category and emerging market trends are illustrated in the report. Moreover, this report enables manufacturers to identify the emerging trends and growth opportunities in beer.

Key features of this report
  • Dynamics of the major beer markets during the period 2009–14.
  • Key trends, market drivers and resistors to the growth of global beer markets.
  • NPD and innovation trends in the major beer markets based on the analysis of growth in major categories and sub-categories.
  • Analysis of innovative new beer products launched between 2006 and 2009 from the data sourced from Product Launch Analytics.
  • Investigating NPD and innovations in formulations, packaging and positioning in beer, and how these innovations help in product differentiation for beer manufacturers.

Scope of this report
  • Predict future growth areas in beer based on this report’s forecasts to 2014 of market value by category and sub-category in Europe, North America and Asia-Pacific.
  • Identify key trends that are shaping the beer market and examine the key market drivers to 2014 detailing trends in innovation, packaging and product tags.
  • Improve the targeting and effectiveness of your NPD strategy using this report’s analysis of products launch data of over 3,165 product launched between 2006–09.
  • Learn from the NPD and innovations in the global beer markets to replicate their successes effectively in the future growth markets.


Key Market Issues
  • Competition from other alcoholic beverages – Beer has been losing share to rival competitors such as wine and spirits. Wine has been gaining share in Europe due to its antioxidant properties and easy pairing with any food. Spirits is gaining share in the US due to increased promotional efforts including advertisements on television, availability of wide array of flavored products at various price points ranging from above-premium offerings to value-priced offerings
  • Prohibition on smoking in public places in the European Union – Partial and complete bans imposed on smoking in public places in countries all over Europe has led to an adverse impact on the frequency of visits to on-trade premises and in turn clip the sales volumes of alcoholic beverages. With recession curbing the purchasing power of consumers and smoking ban the desire to visit on-trade channels, the frequency of purchase of beer in retail outlets will increase, causing off-trade channels to outperform on-trade channels.
  • Preventing alcohol abuse through restriction on promotional activities – The approval of the proposition drawn by the UN health agency to prevent alcohol abuse in the first half of 2010 by prohibiting promotion of alcohol to young consumers either through advertisements or through sales promotions will cause brewers to reconsider their strategy to penetrate developing markets. With growth slowing down in developed economies, such prohibitions on promotional activities will make it difficult for international brands to penetrate emerging markets and gain share from domestic players

Key findings from this report
  • Europe was the largest market for beer in 2009 valued at approximately $267bn and projected to grow at a minimal CAGR of 0.03% during 2009–14. Health conscious consumers in Europe prefer to consume healthier alternatives such as wine will slowdown the uptake of beer in the region
  • Among all sub-categories of beer, standard lager recorded largest share of 53.2% (approximately $290bn) by value in 2009. This category is projected to grow at a CAGR of 2.1% during 2009–14 to reach nearly $321bn in 2014. The pre-mixed spirits, alcoholic soft drinks and specialty beer with projected CAGR of 2.7%, 2.2% and 2.1% respectively will be the fastest growing sub-categories in the global beer market during 2009–14.
  • Among all the new launches made through 2006–09, only 5.6% were tagged as innovative with innovation in formulation accounting for the largest share, 69.6% in 2009 driven primarily by product line extension through launch of novel flavors. Beer category leads innovative launches in formulation and has been in line with the trends of sustainability, health and premiumization.
  • Bottles have been largely used for packaging purpose in the beer market through 2006–09, accounting for 55.3% share in all the new launches made globally in 2009 followed by cans with a share of 27.6%. PET packaging is slowly gaining grounds at the expense of glass bottles due to the light weight, unbreakable nature and easy to handle characteristics and is touted as an upcoming trend for future packaging materials.

Key questions answered
  • What are the key drivers and resistors to the growth of global beer markets?
  • What key consumer trends are driving NPD and innovations in beer?
  • What are the key growth opportunities within the beer market?
  • What was the market size of the global beer market by value in 2009 and what will be the market size of the global beer market during 2009–14?
  • Which beer categories and sub-categories will achieve the highest value growth during 2009-14?

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Innovations in Beer
Executive summary
Market drivers and resistors
Growth opportunities in the beer market
Innovation and NPD in the beer market
Key trends and product examples

CHAPTER 1 INTRODUCTION

What is this report about?
The market defined
Report structure

CHAPTER 2 MARKET DRIVERS AND RESISTORS

Summary
Introduction
Driving growth in the beer market
Resurgence in DPI
Emergence of middle class
Increase in on-trade drinking among women
Responsible drinking
Campaign to reduce binge drinking
Preventing underage beer sales
Preventing drink driving
Restricting growth in the beer market
Competition from other alcoholic beverages
Regulatory issues
Smoking bans in public places in the EU
Preventing alcohol abuse through restrictions on promotional
activities
Tax structure

CHAPTER 3 GROWTH OPPORTUNITIES IN BEER

market
Summary
Introduction
Beer market value overview
Value by geography
Value by country
Value by category and sub-category
Performance of beer sub-categories in Europe
Performance of beer sub-categories in Asia Pacific
Performance of beer sub-categories in North America
Emerging beer markets

CHAPTER 4 INNOVATION AND NPD IN THE BEER

market
Summary
Introduction
Innovation type
Regional analysis
Europe
Asia Pacific
North America
Category analysis
Category overview
Beer
Cider
Packaging analysis
Packaging overview
Changing position of beer
Flavor trends

CHAPTER 5 KEY TRENDS AND PRODUCT

examples
Summary
Introduction
Premium/indulgence
New areas of NPD
Complementing food
Sensory appeal
Health
Fortified beer
Vitamin fortified beer
Mineral enriched beer
High in polyphenols
Weight management
Reduced serving sizes
Low calorie
New genre beer
Natural
High quality, less processed ingredients
Adverse impact of additives
Sustainability
Organic beer
Fairtrade beer
Ethical production practices
Sustainable packaging
Alternative sustainable packaging material – PET
Convenience
Convenient packaging
Beers emulating soft drinks and other alcoholic drinks
Borrowing functional ingredients from soft drinks
Soft drink mixes
Beer mixes
Wine mixes

CHAPTER 6 CONCLUSIONS

Key trends for the future
Increasing consumer interaction
Growth of emerging markets
PET packaging
Category blurring
Private label
Index

LIST OF FIGURES

Figure 2.1: Drivers and resistors of beer industry
Figure 2.2: Alcohol and non-alcoholic beverages spent (% of average annual expenditure) in the US, by quintiles of income, 2008
Figure 2.3: Size of the global middle class (%), 2009 and 2030
Figure 2.4: Ambar Manzana – Cerveza con Fibra
Figure 2.5: Bavaria Malt Non Alcoholic Beer
Figure 2.6: Carlsberg Eve
Figure 2.7: Heineken's 'Know the Signs' campaign and the 'Tag of Shame'
Figure 2.8: Carling C2 mid-strength lager
Figure 2.9: Comparison of growth rates across alcoholic beverage categories in Europe, 2009–14 (%)
Figure 2.10: Comparison of growth rates across alcoholic beverages categories in the US, 2009–14 (%)
Figure 2.11: Smoking ban status in the EU
Figure 2.12: Beer tax and consumption tax in major beer consuming nations, 2008
Figure 3.13: Global beer market value ($bn) 2009–14
Figure 3.14: Global beer market value share, by geography (% value), 2009–14
Figure 3.15: Top 10 beer markets, by value ($bn), 2009–14
Figure 3.16: Growth in beer sub-categories, CAGR (%), 2009–14
Figure 3.17: Beer markets with projected CAGR >3.0% ($bn), 2009–14
Figure 4.18: Share of new product launches, by region (%), 2006–09
Figure 4.19: Share of new products launched in Europe, by category (%), 2006–09
Figure 4.20: Residenz – Bio-Reis-Gold Bier
Figure 4.21: Once Upon A Tree – Blenheim Orange Cider
Figure 4.22: Share of new products launched in Asia Pacific, by category (%), 2006–09
Figure 4.23: Suntory's ready-to-drink Cocktail Calorie FAB
Figure 4.24: Sapporo Classic 2009 Furano Vintage
Figure 4.25: Share of new products launched in North America, by category (%), 2006–09
Figure 4.26: Peak Organic – Wheat Ale Pomegranate
Figure 4.27: Lammsbr?u – Premium Organic Non-Alcoholic Beer
Figure 4.28: New product launches in beer market, by category (%), 2006–09
Figure 4.29: Mongozo Exotic Beer – Mango
Figure 4.30: Sabai - Wine Spritzer with Hibiscus
Figure 4.31: Suntory – Ringo to Shokumotsu Seni no O-shu
Figure 4.32: Adnams – Broadside and Explorer
Figure 4.33: Coors Light Beer – cold-activated bottle
Figure 4.34: Coors Light Vented Wide Mouth Can
Figure 4.35: Hite's S beer in green PET bottle
Figure 4.36: Examples of different types of apple flavored beer launched over 2006–09
Figure 5.37: Crown Ambassador Reserve - Lager
Figure 5.38: Estrella Damm's INEDIT
Figure 5.39: Fusion's Bluebottle, Firefly and Prime beers, and Edelstoff's Porter
Figure 5.40: Affligem's Noel Christmas ale, and Crispin's Natural Hard Apple Cider – Honey Crisp Artisanal Reserve
Figure 5.41: 16 Mile Beer
Figure 5.42: Stampede Light low calorie lager
Figure 5.43: Autentica Bebida Energizante Tri-Malta and Asahi Honnama Aqua Blue
Figure 5.44: Kirin's Tanrei W
Figure 5.45: Dundee Oktoberfest lager
Figure 5.46: Molson Canadian 67 Light Beer and Caledonian Cooler – Arctic Strawberry
Figure 5.47: Sapporo Draft One and Double Off
Figure 5.48: Matson's Lager: natural, all-malt, chemical-free brew
Figure 5.49: Lammsbr?u Premium Organic Non-Alcoholic Beer
Figure 5.50: Colonos Premium Lager
Figure 5.51: Butte Creek' Organic Pilsner and Eel River's Acai Berry Wheat Ale
Figure 5.52: William Wilberforce Freedom Ale, and Wells' Banana Bread Beer
Figure 5.53: Adnams East Green Carbon Neutral beer
Figure 5.54: Heineken European beer brands Dreher, Cruzcampo and 33 in multi- layer plastic bottles
Figure 5.55: Heineken Zlatopramen Beer
Figure 5.56: Carlsberg's 'Club' bottle
Figure 5.57: Miller Light Home Draft Beer
Figure 5.58: Kegless beer-in-a-box concept
Figure 5.59: Beck's Level 7 and JSC Obolon's Beer Mix Energy
Figure 5.60: Mike's Premium Malt Cocktails' Pomegranate Martini with Acai Berries, Growers Cider Acai Berry, and Vex's Hard Lemonade – Pink Lemonade
Figure 5.61: Kirin's Gyugyutto Shibotta Premium Cocktail – grapefruit, peach, and pineapple
Figure 5.62: Asahi's Shunka Shibori Natsu Gentei Kan Okinawa San Shekwasha and the Shunka Shibori Natsu Gentei Kan Wakayama San Nankobai.
Figure 5.63: RICH sparkling wine drink – Passion, Prosecco, and Royal
Figure 6.64: Key future trends in the beer market
Figure 6.65: 7 Eleven's private label Game Day Light and Game Day Ice beer

LIST OF TABLES

Table 2.1: Alcohol and non-alcoholic beverages spent (% of average annual expenditure) in the US, by quintiles of income, 2008
Table 2.2: Size and share of the global middle class (m) and PPP ($bn), 2009–30
Table 3.3: Global beer market value ($bn), 2009–14
Table 3.4: Global beer market size by geography ($bn), 2009–14
Table 3.5: Top 10 beer markets, by value ($bn), 2009–14
Table 3.6: Global beer market value, by category and sub-category ($bn), 2009–14
Table 3.7: European beer market value, by sub-category ($bn), 2009–14
Table 3.8: Asia Pacific beer market value, by sub-category ($bn), 2009–14
Table 3.9: North American beer market value, by sub-category ($bn), 2009–14
Table 3.10: Beer markets with projected CAGR >3.0% ($bn), 2009–14
Table 4.11: Share of new product launches, by innovation type (%), 2006–09
Table 4.12: Share of new product launches, by region (%), 2006–09
Table 4.13: Share of new products launched in Europe, by category (%), 2006–09
Table 4.14: Share of new products launched in Asia Pacific, by category (%), 2006–09
Table 4.15: Comparison of top 10 claims in beer in Asia Pacific and Japan (%), 2006–09
Table 4.16: Share of new products launched in North America, by category (%), 2006–09
Table 4.17: Top 10 claims/tags on new products launched in North America (%), 2006–09
Table 4.18: New product launches in beer market, by category (%), 2006–09
Table 4.19: Top 10 pack types on new product launches (%), 2006–09
Table 4.20: Top 20 tags on new beer launches (% of products with tag), 2006–09
Table 4.21: Top 20 flavors in new product introductions (% of new beer launches), 2006–09 81
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Innovations in Beer: Growth Opportunities in Emerging Markets, New Flavors and Innovative Product Formats
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