Food & Beverages Industry Outlook Q1 2024: A Look into the Dynamics of the Sector

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The food & beverage industry is rapidly expanding with notable expansions and transformations. Many leading companies in the domain have adopted healthier and environmentally friendly practices to offer customizable options to consumers and ethical sourcing of food throughout the supply chain. To gain competitive advantages in the industry, these companies and several other participants engage in alliances such as partnerships, collaborations, acquisitions, and mergers. At the same time, the sector is characterized by innovations and technological advancements which are effective with continuous R&D activities carried out by governmental institutions, private companies, and other organizations. Allied Market Research analyzes some important alliances among the industry giants along with analyzing innovative product launches and services in the sector.

Profitable merges and acquisitions that are reshaping the industry dynamics

Many prominent companies in the food & beverage domain have undergone a series of mergers and acquisitions with their peers in the industry. The first quarter of 2024 has experienced some giants in the sector sign outstanding merger agreements with other companies to expand their operations in the sector.

In March 2024, Sazerac Company, Inc., a privately held American alcoholic beverage company announced its acquisition of BuzzBallz LLC, another American brand of pre-mixed cocktail drinks. This acquisition enabled Sazerac to make a deeper presence in the fastest-growing canned cocktail segments. By incorporating BuzzBallz LLC’s attractive cold-drink design concepts, Sazerac planned to offer its canned cocktail in a spherical iconic shape and unique flavors, providing a ready-to-drink alternatives to consumers globally.

Industry Players List 1

In February 2024, Asahi Group Holdings, a Japanese beverage holding company acquired Octopi Brewing, a renowned contract beverage facility. With this acquisition, Asahi envisioned introducing Super Dry beer to the US market. Asahi planned to prioritize the development of its low- and non-alcoholic product lines with an aim to increase its share to 20% total volume by 2030.

In January 2024, SYSTM Foods, a functional beverage brand platform signed an agreement to acquire HUMM Kombucha, a leading provider of delicious and fizzy fermented tea beverages. SYSTM Foods, being a gut health-focused brand, aimed to strengthen its position in the refrigerated ready-to-drink category. Furthermore, by signing this agreement, the companies planned to offer better-for-you products with added health benefits that cater to consumers’ changing lifestyles, enhancing their everyday experiences.

Innovations and partnerships changing the outline of the food and beverages domain

Along with mergers and acquisitions, partnerships, collaborations and innovations have also played an important role in the growth of the industry.

Industry Players List 2

In March 2024, Nestlé, the world's largest food and beverages company launched two new projects developed with suppliers Cargill and ETG, aiming to reduce and remove carbon emissions throughout its supply chains. These are five-year projects that promote agroforestry, accelerate the transition to regenerative agriculture, and support the reforestation of degraded lands around cocoa farming communities. In these projects, shed trees will be distributed to farmers to reduce the harsh effects of the sun and provide moisture-rich spaces for cocoa crops to survive during the dry season.

Again, in March 2024, Coca Cola, an American multinational corporation introduced Coca-Cola Spiced and Coca?Cola Spiced Zero Sugar to bring an extraordinary twist in the cold drink segment. These products are flavored with refreshing bursts of raspberry and a curated blend of warm spiced flavors. The company created the Spiced Shop in New York City while providing an experimental art installation and immersive AI-driven sampling experience. The brand also partnered with Storm Reid, the Emmy-winning actress, producer and entrepreneur, to bring the installation to life 216 Lafeyette in SoHo.

In February 2024, Kraft Heinz, an American multinational food company partnered with Carlton Power, the UK energy infrastructure development company to study the development of renewable green hydrogen plant at its Kitt Green manufacturing plant in Wagan, Greater Manchester. Kitt Green is one of the largest Kraft Heinz facilities in the world, producing a quarter of millions of tons of food annually. With this partnership, Kitt Green plant met almost 50% of the plant’s annual natural gas demand and reduced the plant’s carbon emissions by 16000T/yr.

Ingenious product and service launches changing the industry landscape

Several leading food & beverages companies have launched innovative products and services that have strengthened their position in the sector.

Industry Players List 3

In March 2024, PepsiCo, an American multinational food, snack, and beverage corporation introduced its new product in the line of its sparkling drink category, namely, “Bubly Burst”. It is a refreshing, flavor-forward, lightly sweetened sparkling water beverage with bold fruit flavors. This drink is bright in color and has minimal calories. Bubly Burst is a fun and fizzy drink that is available in six delightful flavors including pineapple, watermelon lime, triple berry, peach mango, cherry lemonade, and tropical punch.

In February 2024, Lay’s, a leading brand of potato chips with different flavors made the debut of its latest flavor innovation – Sweet & Spicy Honey flavored chips. The concept behind this interesting flavor of the chips symbolizes five years of relationship between TV star couple - Cameron Hamilton and Lauren Speed-Hamilton. It is served as the main ingredient in the “Marry Me” meal, adding a Swicy twist to the platter.

In January 2024, Nestlé, a Swiss multinational food and drink processing conglomerate corporation announced the launch of its first KitKat made with cocoa mass from beans grown by farmer families engaged in the company’s income accelerator. By launching this product, Nestle aimed to connect consumers with the farmers in Nestle’s program and raise awareness about the sustainability of the cocoa used in the iconic bars. This innovative program was launched in 2022 to help close the living income gap of cocoa farming families and reduce child labor risk.

Technological advancements creating extensive opportunities in the sector

Many leading players in the domain have taken new initiatives and adopted cutting-edge technologies to foster industry’s competitiveness.

Industry Players List 4

In February 2024, Rockstar Energy Drink, a leading provider of long-lasting started its latest campaign - “You Can Own Any Moment” to make consumers aware of the benefits of having the right kind of energy, allowing them to be the best version of themselves. The campaign was backed by a new claim that supports the brand’s goal of meeting consumers’ need for an energy drink that delivers sustained mind-body energy. The company tested their proprietary formulas with nearly 80 individuals, measuring caffeine metabolism and evaluating consumer’s physical and mental energy levels over 12 hours.

Again, in February 2024, USC (University of South Carolina), private research university in Los Angeles partnered with Grubhub and Starship Technologies to announce the launch of the first-in-the-state service to provide on-campus food delivery to the Gamecock community. Starship’s fleet of autonomous, on-demand robots served over 30,000 Columbia campus students and its faculty and staff through the Grubhub app.

In January 2024, Cargill Inc., a leading provider of food, ingredients, agricultural solutions launched REVEAL™ Layers, a first-of-its-kind, non-invasive NIR technology to monitor the body condition of poultry. This patent-pending breakthrough technology empowered producers to optimize laying persistency and egg production. It further enabled them to make real-time decisions regarding diets to support their flocks’ long-term production and performance.

Some promising developments in the sector

In January 2024, PepsiCo Beverages, an American multinational food, snack, and beverage corporation opened a brand-new 150,000 square foot warehouse in Lisbon, WI, a regional hub with 260+ employees to meet the growing demands for o meet the growing demands for store shelves for among long-term customers including Pepsi Zero Sugar, MTN DEW, Aquafina, Gatorade, Lipton, Starbuck, and many others.

Again, in January 2024, Beyond Meat, Inc., a renowned provider of plant-based meat announced the launch of a new marketing campaign - “Literally The Least You Can Do” for its revolutionary product Beyond Steak. Beyond Steak offers plant-based meat products offer strong nutritional credentials which is certified as a heart-healthy food by the American Heart Association.

Industry Players List 5

Once more, in January 2024, Avansya, the joint venture between Cargill and dsm-firmenich announced that the EverSweet® stevia sweetener received a positive safety opinion from both the European Food Safety Authority (EFSA) and the UK Food Standards Agency (FSA), bringing the advanced sweetener one step closer to commercial availability in the European Union and UK.

Verdict: The expansion of food and beverages sector in Q1 2024

Mergers, acquisitions, partnerships, and technological advancements in the food and beverages sector are expected to boost the domain’s growth ahead in the coming years. Allied Market Research highlights that the industry giants in this sector are formulating strategies to gain the upper hand in the industry and have launched innovative products and services to achieve their goals. In addition, the emergence of advanced technologies, such as advanced robotic systems, is predicted to open new avenues of growth in the industry.

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