Food and Beverage Industry Outlook for Q4 2023: Contribution of Key Strategies in the Sector’s Expansion

As a huge industry, the food and beverage sector includes everything from simple farm products to luxury foods and beverages. The industry revolves around the production and consumption of food and drinks and is influenced by a range of factors, including changing dietary trends, consumer preferences, cultural customs, and health issues. As per the analysis of Allied Market Research, the food and beverage sector has experienced several advancements and developments in Q4 2023. This period was marked by mergers and acquisitions, new product launches, technological innovations, and partnerships, all to advance the sector.

Fueling the growth of the industry with mergers and acquisitions

• Mergers and acquisitions are one of the most important tools used by companies to grow their business. It has a significant impact on the competition and the business environment in many industries. Here are some notable mergers and acquisitions in the food and beverage sector:
• In December 2023, ADM entered an agreement to purchase UK-based FDL, developer and manufacturer of premium flavor and functional ingredient systems. ADM expects to close the acquisition by January 2024. Since the acquisition of WILD flavors in 2014, several new flavors have been added to ADM’s portfolio including savory through the Eatem Foods brand, dairy through the Revela Foods announcement, Erich ziegler citrus and vanilla through Rodelle, and citrus through the Florida Chemical Company (FCC).
• Kerry Group PLC entered a carve-out agreement to acquire a portion of the lactase enzyme business belonging to the joint venturers, Novozymes A/S and Chr. Hansen Holding A/S in December 2023. The transaction is subject to the approval of the European Commission as part of the merger approval procedure between Novozymes and Kr. Hansen. As per the market analysis, the global lactase market is anticipated to witness notable growth due to surging awareness regarding lactose intolerance.
• Döhler acquired Serbian company Frikos in December 2023. Frikos is one of the most well-known companies in Serbia in the field of premium quality freeze-dried fruits. Döhler will collaborate with Frikos’ management and boost the business potential to strengthen its position in the global market with its advanced technology in organic raspberry production.

Upgrading product portfolios with innovations and partnerships

• Starburst Gummies have declared that they will launch the new product range in the spring of 2024. The new chewable confection offers the classic true-to-fruit Starburst flavors in the form of soft, chewy fruit juice-derived gummies. Starburst Gummies will be available in three flavors: Original, Sours, and fan favorite All Pink. As per the market analysis, the global gummy candy market is expected to experience a notable growth during the forecast period.
• IFF and Kemira announced the next phase of their partnership to commercialize a portfolio of unique renewable polymers deriving from IFF's innovative DEB technology platform in December 2023. For the first time, these unique renewable polymers from plant sugars are available on an industrial scale to meet the needs of a variety of markets.

Innovative product and service launches: optimizing brand impact

Product and service launch contributes to building brand image in the competitive and dynamic industry.

• The global plant-based seafood market is gaining popularity due to an emerging trend of veganism. Top entities are discovering diverse options and product range to fulfill the demand for plant-based seafood. For instance, Nestle is introducing three new plant-based fish substitutes to replace whitefish in Europe. Nestle has introduced fresh options, featuring marine-style crispy nuggets and marine-style crispy filet through the Garden Gourmet brand in Europe. The brand has already launched Crispy Fish-Free Fingers in Asia under its Harvest Gourmet label in Singapore and Malaysia.
• Red Tree Beverages (RTB), the alcoholic beverage subsidiary of The Coca-Cola Company, is set to launch a collection of flavored wine cocktails under the Minute Maid brand. The wine cocktails come in three different flavors: Strawberry Daiquiri, Piña Colada, and Lime Margarita. The new wine cocktails are available in a 1.5-litre multi-service bottle. Each bottle contains 13.9 % alcohol by volume, which is the same as a regular wine bottle.
• General Mills, Inc. has launched Cheerios Veggie Blends, a cereal created with a blend of vegetable powder and fruit puree, offering a nutritious ¼ cup of vegetables and fruit per serving. This innovative cereal brings together the goodness of carrot, sweet potato, and spinach with the nutritional benefits of whole-grain oats.

Technological advancements and other developments: building the future of the industry

• Moley, a robotics company based in the UK, has introduced the world's first robotic kitchen. The organization claims that the roof-mounted device, named the Moley Robotics Kitchen, can cook over 5,000 recipes and can autonomously clean up after completing its tasks.
• ABP Food Group, a leading player in the meat industry, is set to invest in a pet food plant in Ireland, with intentions to increase the facility's production capacity. The company is investing €48 million ($52.6 million) into the project at the County Longford factory in Ireland through C&D Foods, the pet food subsidiary of the ABP Food Group. As per the market study, the global pet food market is anticipated to hold $133,430.9 million by 2030.
• Tyson Foods has successfully inaugurated a new fully cooked food production facility in Danville, Virginia, representing a substantial investment of $300 million. This move aligns with the company's strategy to advance long-term growth, enhance operational efficiency, and make strategic investments in its poultry business. This facility represents one of Tyson Foods' most automated plants to date, signifying the deployment of innovative pilots and prototypes on a large scale.

Promising future of the food and beverage industry

According to the industry outlook for Q4 2023 by Allied Market Research, the food and beverage sector is gaining momentum due to the focus on transparency and responsible sourcing, the discovery of carbon-neutral products, the popularity of ready-to-drink alcoholic beverages, and sustainable packaging commitments. However, the sector will bloom even more with advanced technologies, collaborations, and novel products. For in-depth insights into the food and beverage sector, feel free to contact us!