Size of the market The European beverage market is varied, combining the preferences of diverse cultures within one relatively small continent. In general, Europeans are willing to spend their money on drinks that suit their tastes, preferences, and lifestyles. According to data from Foodtrending, Western Europeans consumed 224 billion litres of beverages in 2019, a market worth about USD558 billion – and beverages accounted for nearly a quarter (23%) of all food and drink spending.1 Despite this high level of spending, sales growth in the beverage sector is sluggish, standing at about 1.3% a year, while some subsectors are growing much more rapidly.2 Milk alternatives, nutritional beverages (protein shakes, energy drinks, functional beverages and meal replacements), and ready-to-drink tea and coffee are among the star performers, according to Jamie Rice, Director of Food Trends and Insight for Foodtrending.3
Growth in beverages by category Western Europe, CAGR 2017 - 2019 Milk alternatives
11,8%
Nutritional beverages
5,9%
RTD
3,9%
Soft drinks Milk shakes Hot beverages Alcohol
2,2% 1,6% 1,3% 0,9%
Source: Foodtrending, presentation at Fi Europe CONNECT 2020, “Which ingredients are trending in beverages?”3
At the recent Fi Europe CONNECT 2020 event, Jamie Rice said;
“What this means is that when we are looking for growth, the opportunities are small, but they are growing very, very rapidly. Interestingly, sales of these products have been boosted by the COVID-19 pandemic as consumers look for convenience and healthy drinks to consume at home.”4 According to Sai Swaroop, Project Manager at Kline & Company, also speaking at Fi Europe CONNECT 2020, many trends and innovations tend to primarily originate from smaller, independent companies before being taken up within the broader market.5 He stated that independent beverage companies were growing at around 45% a year, due to their innovative offerings and the targeting of younger consumers.6
Beverages in Europe 2021 | 3
