KEY RESEARCH FINDINGS
- Worldwide sales of ready to drink shake totaled US$ 9 Bn in 2019, with annual growth estimated at a 6% rate in 2020.
- While production and supply drop due to COVID-19, a sudden rise in sales in line with panic buying practices may prevent a steep decline in market revenue.
- Chocolate remains highly preferred flavor, accounting for over 1/3rd of the total sales value.
- Market players are capitalizing on exotic vanilla and fruit flavors for product differentiation and competitive advantage.
- Increasing spending on food offering convenience and taste remains a key growth catalyzer of the market.
- Conventional ready to drink shakes continue to experience higher sales.
- Manufacturers are tapping into opportunities in organic space to fulfill newer demands.
- Sales through modern trade channels and convenience stores account for significant revenue share.
- A major portion of the business is likely to move online during the COVID-19 pandemic.
KEY FACTORS SHAPING READY TO DRINK SHAKE MARKET
Convenience and On-the-go Consumption Trend
With a sprung in number of time-poor consumers, a greater share of food budgets has been going towards convenience foods or the ones prepared outside. This, in turn, is contributing to the demand for ready to drink shake. In addition, consumers with high disposable income are willing to spend on quality food, thereby compelling market players to explore potential opportunities in natural or organic ingredients, strong nutritional profile, and clean label spheres.
Gradual Shift in Consumer Preferences
Today, a growing number of consumers are paying more attention to the impact of their food choices. High prevalence of lifestyle diseases such as obesity and diabetes along with greater tech-enabled knowledge sharing is providing consumers with the tools to seek out information about the food they consume. Manufacturers are thus hard pressed to be agile and responsive to rapidly changing consumer preferences to maintain a strategic position in the market.
Panic Buying and Stockpiling Triggered by COVID-19 Fears
In the initial stage of COVID-19 pandemic, fears over lengthy quarantines and social distancing requirements have influenced panic buying and stockpiling practices among consumers, thereby potentially raising the sales of ready to drink shake and leaving the shelves empty. While an unprecedented spike in sales is contributing to the market growth, the ripple effects of factory closures, manufacturing and supply chain disruptions, and logistical delays are showing fragility in access to ready to drink shake, causing product shortages.
READY TO DRINK SHAKE MARKET STRUCTURE ANALYSIS
- The ready to drink shake market is characterized by a handful of global and regional players.
- Product innovation and new launches remain crucial focus areas of these market players.
- Capitalization on omni-channels and social medial platforms for product awareness will be a key to gaining competitive edge.
- Inorganic growth strategies including R&D investments and M&A activities are also adopted by leading market players.
- Base year considered - 2019
- Actual estimates/Historical data - 2014 – 2018
- Forecast period - 2019 – 2028
- Market Value in 2019 - US$ 9 Bn
- Segments covered - Nature, Packaging, Flavor, Distribution Channel
- Regions covered - North America, Latin America, Europe, APEJ, Japan, and MEA
- Key Players - Nestlé S.A, Atkin Nutritionals Inc., Bolthouse Farms, Inc., The Coca-Cola Company, Monster beverage Co., Starbucks Corporation, Arla Foods amba, The J.M Smucker Company, Lotte Chilsung Beverage Co., and PepsiCo Inc.
- Growth Drivers -
- Growing interest in convenience factor
- Shifting consumer preferences
- Prioritizing strong nutrition profile and clean label requirements
Most Preferred Chocolate Flavour Accounts for About 36% Share
Chocolate is the most preferred flavour of the ready-to-drink shakes in the global market, followed by vanilla and other flavours. Exotic flavours such as vanilla and fruit flavours are returning to the market and vanilla flavoured ready-to-drink shakes are anticipated to have high growth rate over the forecast period.
Ready-to-drink shakes are available in the market in various flavours and without the need to go through the process of mixing. Manufacturers of ready-to-drink shakes are incorporating various novel and exotic flavours in their portfolio to drive sales. Chocolate, banana, vanilla, peaches, cream, and caramel are some of the popular flavours of ready-to-drink shakes in the market.
Increasing Consumption of Healthy Products Rises in North America
North America, followed by Europe, are prominent shareholders in the consumption of the global ready-to-drink shakes market. Most of the North American and European countries are highly prone to chronic diseases such as, obesity, diabetes, high cholesterol, and heart diseases. This is one cause for the increasing demand for the healthy and nutritious products and subsequently major share of these countries in the global market of the ready-to-drink shakes.
Developed Markets Offer Impressive Growth Opportunities
Currently a majority of the key market players are located in the North America and Europe, which enabled them easy access to consumers of ready-to-drink shakes. Simultaneously, these ready-to-drink shakes are marketed as the premium products in the developed markets. Considering the high demand for the premium products in the developed economies, ready-to-drink shakes market is likely to gain momentum in these economies.
The Middle East and Africa, followed by Asia Pacific Excluding Japan, is expected to exhibit high growth rate in the ready-to-drink shakes market among other regions. Expanding gym culture and trend for health and wellness in the developing countries of these regions is positively affecting the gym accessories along with the protein-packed food and beverage products. Increasing middle class population and increasing awareness about the premium products are collectively driving the market growth in the respective regions.
How Growth will Unfold
While the global food and beverage industry is witnessing high demand for fortified food products and dietary supplements, protein remains the common ingredient among the healthy products and nutrition-packed products. The health halo surrounding the protein and respective amino acids resulting into positive outlook for the protein-packed products. Likewise, ready-to-drink shakes consumption is driven by the increasing demand for the protein products.
Many new innovative and nutritious food products have entered in the market setting the new trends in the global market. RTD beverages are also seen gaining the traction from various class and age groups in the global market. Ready-to-drink shakes popularity among the consumers is increasing due to the easiness in the consumption and handling of the product around.
READY TO DRINK SHAKE MARKET TAXONOMY
The global ready to drink shake market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
Nature
- Organic
- Conventional
Packaging Type
- Bottles
- Tetra Packs/ Carton
- Cans
Flavour
- Chocolate
- Banana
- Strawberry
- Vanilla
- Others
Distribution Channel
- Supermarket/Hypermarket
- Online Retail
- Specialty Stores
- Convenience Stores
- Other Retail Formats
Region
- North America
- Latin America
- Europe
- APEJ
- Japan
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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