Solid Beverage Market - Key Point Analysis For Changeable Competitive Dynamics

Solid beverages are manufactured from raw materials such as fruit juice, plant extracts and sugar, and have a water content of less than 5%. The dried raw materials are ground into fine powder and then mixed with formula products, or are directly spray dried into powder. The finished product is usually in powdered form that is dissolved in water to make the preferred drink ready to consume. Though solid beverage is a simple drink, it should not be reconstituted with hot water because the nutrients that it contains would break down at high temperatures, thus defeating the purpose.

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The global solid beverage industry market is boosted by certain key driving factors. Solid beverages are inherently rich in vitamins, minerals and other nutrients. The consumption of these drinks replenishes the metabolism rate. Besides, the leading manufacturers in the global market are offering innovation in terms of a diverse product line such as fruit flavored drink, protein based drinks. As a result, the beverages are launched in various new varieties of flavor, thus attracting a broader base of consumers, especially in the emerging economies.

However, there are some restraints which impede the growth of this market. Solid beverages generally have a relatively higher chemical content than traditional beverages. Consumption of these drinks in large quantities on a regular basis has considerable health consequences likes weight gain, high sugar intake. Certain solid beverages have artificial flavors and color concentrate added in it. This makes the consumption unsafe on daily basis. If consumed daily it might lead to weight gain. Kids and mid age people should consume it less. Additionally, solid beverages are associated with several health problems including diabetes and various others. This can reduce solid beverage consumption, which in turn would impede the growth of the market. Moreover, the aqueous solution of vitamin C in the air gets oxidized rapidly. In spite of the hindering factors, the global solid beverage market is expected to witness decent growth rates in the coming years.

One of the main reason behind the growth of solid beverage is its high demand among consumers. Availability of the same in a variety of flavors has lured a broad base of consumers, most of which fall in the young age group. Further, the demand for solid beverage products is significantly high in tropical countries, where they consumed in abundance during summertime in order to beat the heat.

Based on type, the market is categorized into fruit flavored drinks, and protein based drinks among others. The fruit flavor drinks are mainly based on juice, sugar and nutrition which help to enhance the drinks with color, smell, taste and other sensory characteristics. In addition, based on distribution channel, the market is classified into online stores and offline store. Offline stores are inclusive of supermarkets & hypermarkets, convenience stores and departmental stores among others. .

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On the basis of geography, the global solid beverage industry market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Established regions have been generating high profit margins for key players in this market. For instance, North America and , Europe have been the major driving forces of the global market. Further, the developing countries in Asia Pacific such as India and China among others are fair contributors to the growth of this market. High population, rapid urbanization, and increased purchasing power of the consumers are key factors pushing the demand for solid beverages.

The global solid beverages market is marked by intense competition from the major players operating in this field. Frequent mergers and acquisitions, joint ventures and partnerships, product innovations are the key strategies adopted by these players to ensure long term sustenance in this market. PepsiCo, The Coca Cola Company, Abbott Nutrition, and GlaxoSmithKline Plc are some of the key players operating in this market.

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