NestlÃ© Canada, Abbott Nutrition H.J. Heinz Company and Mead Johnson Nutritionals altogether account for more than 75% of the market share of baby foods in Canada. High contents of sugar has resulted into decline in the demand for Juice products for babies. Organic baby food is one of the emerging segments in this region, predominantly driven by the growing awareness on natural foods.
Alcoholic drinks across North America have seen a strong value growth as compared to volume growth, which clearly indicates consumer's interest towards premium products. Beer dominates the U.S. market with a share of around 50% followed by spirits and wine. Craft beer accounted for 19.3% of the overall beer market in U.S.
Europe is the largest alcoholic beverage market with increasing per capita consumption, followed by Asia. Wine consumption in Italy is poised to exhibit sluggish growth. It is projected to grow at a CAGR of 1.5% from 2015-2020.
Mineral water and spring water holds the largest share in sales of bottled water with more than 90%. Consumption of flavored water is highest in U.K. Coca Cola exploited this opportunity by introducing Glaceau Vitamin Water Zero in 2015 (a naturally sweetened zero calorie beverage)
To entice the consumers manufacturers are introducing low calorie carbonated drinks such as Coca-Cola Life and Coca Cola Zero. Volatile economy in Italy and Spain affected the per capita consumption of carbonated drinks.
Abolition of milk production quotas in Europe set to increase the supply of milk and cheese products in Asia Pacific market. Cheese is not a traditional part of Asian diet and the growth in its consumption is dependent on increasing urbanisation and following of western dietary patterns.
Nestle continues to dominate in the major markets of APAC such as China and India. Increasing urban population and customer spend on quality products will drive the market of premium hot beverages.
Manufacturers are widening their product range by introducing new flavors and looking for product innovation to capture market share. Ice-creams with natural flavors and ingredients exhibit strong growth owing to rising consumer awareness.
APAC market was recorded $29.8 billion in 2014 and is estimated to grow at a CAGR of 5.6% during the forecast period 2015-2020. Juice drink is highly penetrated segment in China and India with a market share of approximately 82% and 74% respectively.
Overall confectionery market has experienced significant evolution owing to the dynamic consumer demands, socio economic changes, and cultural influences.