The beverage industry is being challenged with expanding or diversifying its portfolio in order to meet the changing consumer demand. Many large beverage companies are already investing in or acquiring other beverage businesses in order to accelerate their growth in the market of healthy drinks.
According to data compiled by Allied Market Research, the non-alcoholic drinks market was valued at approximately $1.54 Trillion in 2015 and is expected to reach $2.09 Trillion by 2022.
The non-alcoholic industry is being driven by seasonal demand and various campaigns about healthy drinks.
Additionally, with government initiatives to promote healthy drinks, many beverage companies have added product options to promote health and wellness. Some of those companies are: Koios Beverage Corp., GNC Holdings, Inc., The Coca-Cola Company, Keurig Dr Pepper Inc., Cott Corporation (NYSE: COT)
The soft drinks segment accounts for a large portion of the non-alcoholic drink market. However, the segment is expected to decline in market share due to escalating health concerns over obesity and diabetes.
The tea and coffee segments, however, are projected to experience the highest growth rate and is identified as a lucrative sector for investment.
These two segments are appealing due to the beneficial effects associated with antioxidants and the prominence of the cafe culture, even though tea and coffee currently account for a small market share of the overall beverage industry.
Due to the recent consumer shifts in demand, healthy drinks are becoming widely popular.
“Taste and price are no longer the only criteria for beverage launches: brands need to meet consumer demand for health, natural ingredients, responsible sourcing and sustainability. While the baseline for innovation has become more demanding, there is still a huge white space for new ideas and products,” according to Zenith Global.
Companies Invest in Healthy Drinks
Koios Beverage Corp. announced that “has received its first purchase order with GNC Holdings, a leading global health and wellness brand with thousands of retail stores across the US and Canada.
Koios is an emerging player in the functional beverages industry. It has developed a proprietary blend of nootropics and natural organic compounds to help enhance a person’s ability to focus and concentrate.
The order is for Koios’s four most popular flavours – Apricot Vanilla, Berry Genius, Peach Mango, and Pear Guava. The beverages will be available for purchase initially in approximately 2,700 GNC retail stores in the US.
“Securing a partnership with the leading nutritional retailer in the world quickly validates our product and increases the demand in the market place for products such as ours,” said Koios CEO Chris Miller.
GNC sets the standard in the nutritional supplement industry-demanding truth in labeling, ingredient safety and product potency, all while remaining on the cutting-edge of nutritional science.
Koios’ healthy drinks are expected to be available in GNC stores before the end of Q1, 2019.
The Coca-Cola Company recently announced that it has completed the acquisition of Costa Limited, from Whitbread PLC. The $4.9 Billion transaction follows approval from regulatory authorities in the European Union and China. Costa, which has operations in more than 30 countries, gives Coca-Cola a significant footprint in the global coffee business. Worldwide, the coffee segment is growing 6% annually.
Keurig Dr Pepper announced last year the successful completion of the merger between Keurig Green Mountain and Dr Pepper Snapple Group. The transaction creates the seventh-largest company in the U.S. food and beverage sector and third-largest beverage company in North America, with annual revenues of approximately $11 Billion.
Cott Corporation, a water, coffee, tea, extracts and filtration service company, recently announced that DS Services, a Cott Corporation subsidiary, acquired The Mountain Valley Spring for $78.5 Million in cash from Great Range Capital. Mountain Valley is a fast-growing American brand of spring and sparkling water and is one of the most recognized home and office distribution (“HOD”) brands in the United States.
Information provided by PRNewswire.