Powdered beverages are non-alcoholic drinks that are enriched with vitamin and mineral supplements. Changing lifestyle, increasing awareness about powdered beverages and its associated health benefits, and rapid industrialization and urbanization drive the market growth. Shifting customer preference towards on-the-go food products such as energy drinks and milk-based drinks provide an impetus to the market growth. The powdered beverages are further segregated into three primary segments, including hot drinks, soft drinks, and milk drinks.
The powdered beverages market’s most prominent driver is the rapid development in the food & beverage industry across the globe. Additionally, changing customer preference has compelled the manufacturers to develop new ingredient formulation techniques, novel products, and packaging solutions. Currently, the use of non‐calorific artificial sweeteners in the manufacturing of the beverages is considered as a debouching trend.
Sugar consumption is a leading cause of the rising prevalence of obesity and diabetes across the globe. To address this situation, the manufacturers are actively working to reduce the sugar content in the products, especially soft drinks. They are also performing extensive research to develop new flavors with the use of organic extracts that drives the market growth.
The nutritional significance of powdered beverages is the key factor boosting the market growth. Powdered beverages are a rich source for carbohydrates, vitamins, and minerals that provides a rapid boost in energy levels, further driving its adoption among the customers. Increasing participation in sports and other outdoor activities is surging the demand for powdered beverages to boost the energy level and stay hydrated. Isotonic drinks have been gaining huge popularity among the athletes in the last few years.
Rising participation in sports activities is subsequently decreasing TV audiences. For instance, ESPN lost about 10% of its subscribers in the last three years. Apart from this, powdered beverages are used as a preferred choice of on-the-go drink among the children and working women, further driving the market growth.
Powdered beverages are available in both flavored and unflavored options. The powdered beverages market is also segmented based on different offerings such as organic and conventional powdered beverages. Although organic products hold minimum market share currently, with the growing popularity of organic food products it is expected that organic powdered beverages will grow with a higher CAGR as compared to conventional products. The powdered beverage market is also segmented based on distribution channels such as B2B and B2C. B2C segmented is further sub-segmented into store-based retail and online retail marketplace.
Europe dominates the powdered beverages market. The region has the presence of the world’s largest food & beverage industry. As per the Food Drink Europe, in 2018, the region had around 294,000 companies in the food & beverage sector, with a turnover of around USD 1,275.35 billion. The growth can be attributed to the rising investment in the R&D activities by major players. For instance, in 2018, the R&D expenditure of the region stood at USD 3.33 billion. Germany held the largest share in the powdered beverages market, followed by the U.K. and France. Apart from this, the increasing number of health-conscious customers is subsequently increasing the demand for nutritionally rich food products, further driving the market growth.
North America held the second-largest share in the powdered beverages market in 2019. Shifting consumer preference towards healthier alternatives such as ready-to-drink tea and bottled water provides an impetus to the regional market growth. In the region, the prevalence of obesity and diabetes, due to the sedentary lifestyle, is rising at a concerning rate. The manufacturers are channelizing efforts to produce low-calorie food products and non‐calorific artificial sweeteners to address the situation. North America is also the third-largest consumer of milk, contributing about 14% of the global milk consumption. The rising demand for milk is putting pressure on the animal husbandry sector, further driving the demand for powder-based milk products.
Asia-Pacific is expected to be the fastest-growing powdered beverages market during the forecast period. Increasing urbanization, rising spending power, the growing number of nuclear families, and rising consumerism drives the regional market growth. Rising adoption of western culture in countries such as India and Indonesia has driven the demand for on-the-go food and casual dining in the last few years. Additionally, the governments in the region are channelizing efforts to promote the fast-moving consumer goods (FMCG) sector. For instance, the government of India reduced the goods and services tax (GST) from a large number of FMCG products. For instance, the prices of food and hygiene products have been reduced by 0–5% and 12–18%, respectively, which is further boosting the regional market growth.
Central and South America and the Caribbean
The Middle East