The food and beverage track is a category that can create demand for consumers almost 24 hours a day. The demand for "eating, drinking, and drinking" from consumers is supporting the trillion level track. According to market data released by Zhiyan Consulting, the market size of the domestic food and beverage industry in 2023 is about 11.71 trillion yuan, a year-on-year increase of 3.75%. The food and beverage industry has a large scale, but the competition is also quite fierce. It has changed from the past of "big fish in water" to the present of "strong winds and heavy rain". The changes in the population, restructuring of channels, rapid iteration of brands and products, and downgrading of consumption are all driving the food and beverage industry into a new cycle of development, and internal competition has become an unavoidable topic. In this era of internal competition, what is the key to breaking through the competition and creating new products? These questions have been answered by FBIF2024. On June 25-27, 2024, the FBIF2024 Food and Beverage Innovation Forum was successfully held at the Shanghai National Convention and Exhibition Center. The forum, with the theme of "breaking the competition and creating new products", shared guests' discussions from different perspectives on how enterprises can break the "internal competition" and achieve differentiated competition and innovation. The following three major trends deserve attention in the future.
01
Drug and food homology becoming the second growth curve
After three years of the mask era, consumer demand has undergone significant changes. For food and beverages, the basic demand for products is weakening, and the demand for "nutrition, health, and self satisfaction" is continuing to grow. Adding some "new" content to these categories based on existing needs can help brands and products find more opportunities to break through. The medicinal and edible homology represented by Eastern herbs is a good opportunity point. This concept of light health preservation is permeating consumers' daily lives and has also become a major single product in multiple sub categories, such as Yuanqi Forest's fiber tea, Yangyang red bean Job's tears water, and a whole ginseng water. Wang Zhonghe, the founder of Keyang, stated in an interview that consumers have a clear demand for healthy drinks, and Red Bean Coix Water has precisely stepped on this demand, using modern technological processes to present traditional health culture in a convenient form. In the future, Keyang will continue to innovate in its product categories, adhering to the principle of long-term success in producing its own major products, and continuously combining traditional medicine and food culture in innovation to develop new drinks that are more suitable for local consumers. Of course, entering the field of medicinal and food related beverages is not only exciting, but Haowangshui is also gaining momentum. I was fortunate enough to drink Haowangshui's newly launched "Chenpi Water" at the FBIF2024 Beverage Innovation Branch. Xia Mingsheng, co-founder and CMO of Haowangshui, also stated in an interview that in addition to the Wangshui series, a new series of beverages will be launched in 2024. This series will focus on domestic medicinal and food ingredients to be used for daily supplies. This line may serve as a substitute for young people's water, making water with a bit of flavor. He also hopes to export this traditional Chinese culture and Chinese characteristics to the world. In addition, market data released by Yingminte also shows that herbal products are receiving attention worldwide, with 40% of food and beverages containing herbal ingredients. Consumer health awareness and functional demands are driving the rapid growth of this type of product market, including Chinese Herbal Medicine, Indian Ayurvedic herbal medicine, and local specialty herbs in South Africa and South America.
02
Focusing on the Incremental Population Market - Silver Hair Generation
The National Bureau of Statistics predicts that by 2035, the population aged 60 and above will increase to around 420 million, accounting for over 30%. without doubt, China has begun to enter the era of aging population, and the population structure has undergone a readjustment, bringing more challenges but also full of market opportunities. The silver haired generation is an undeniable group. Jan Benedict Steenkamp, a distinguished professor and writer of marketing and leadership at the Chapel Hill campus of the University of North Carolina, stated in a sharing that the Chinese market is facing an opportunity. Due to demographic changes, many brands used to focus on consumers aged 20-30, but in reality, there are many people over 50 whose needs should not be ignored. They also have many health needs that need to be addressed urgently. For the health needs of the elderly, we have observed that they can be further subdivided into many consumption scenarios, such as intestines, blood sugar, fatigue response, sleep, etc. The related product dimensions are also relatively rich. Of course, there are more segmented pain points and demands, including walking ability, muscle health, bone and joint health, vascular elasticity, etc., which are more evident in the Japanese market. At the FBIF Food Innovation Exhibition held at the same time in 2024, some participating companies also launched health solutions for the elderly population. In the exhibition area of Tetra Pak Packaging, we can see some solutions related to the silver haired population. For example, Tetra Pak and DSM Fenmeiyi jointly developed the "Bone Moving Life" milk product, which uses membrane filtration technology to increase the natural native calcium in the product to 140 milligrams per 100 milliliters. At the same time, it also adds ingredients such as Vitamin D3, collagen peptide, sodium hyaluronate, metabiotics, vitamin C, etc., mainly targeting the bone and joint health needs of the silver haired population. Tetra Pak understands the precise nutritional needs of different groups, and the silver haired population is one of Tetra Pak's focuses. In the future, Tetra Pak will collaborate with customers to develop product solutions for the silver haired population. In addition to focusing on product nutrition, attention will also be paid to the emotional needs of the elderly, such as taste and flavor, convenient packaging, and user experience. Based on in-depth insights into the silver hair market, Tetra Pak is actively customizing targeted product formulas and processing techniques to help enterprises meet the dual requirements of silver hair for nutrition and emotions.
03
Going global, searching for new markets and opportunities
Going abroad will become one of the new ways for food and beverage companies to break through in the second half, whether actively or involuntarily. For most companies, they may be more concerned about whether the first stop for their brand to go global is in the United States, Europe, or Southeast Asia. Maria Yang, the head of Lazada's Chinese food and beverage health product category going global, gave the answer that Southeast Asia should be the first choice for the food and beverage category going global, for three main reasons. 1. Population base: There are over 30 million Chinese people in Southeast Asia, all of whom are high consumption groups. 2. Geographical advantage, close proximity can reduce transportation costs, especially for beverage products with significant weight. 3. Culture, cuisine, and religion are all interconnected, and consumers in Southeast Asia may be more receptive to our food and beverage flavors. No matter which market one goes to, the key is how to better go global, and brand building and localization are important factors in the process of going global. At present, food and beverage is a category with asymmetric information between buyers and sellers. To win the favor of consumers, it is necessary to establish one's own brand, which requires time accumulation. Of course, when shaping brand image overseas, it is necessary to cater to the needs of local consumers, provide them with the desired value needs, and highlight local characteristic elements in product packaging. Localization is also a necessary step in the process of going global. For international giants with footprints in 188 countries and regions, the key to Nestle's overseas expansion is "localization". Zhang Xiqiang, Executive Vice President of Nestle Group and Chairman and CEO of Nestle Greater China, stated that localized services are the key to a company's overseas expansion and the main way to meet the needs of local consumers, including localized products, localized research and development, localized innovation, and localized business operations, to ensure that the products launched meet the needs of localized consumers, because we always believe that food and beverage can only go global by doing well in every local market. The success of Nestle's overseas expansion once again confirms that localization is the only way to achieve localization. Only by making local consumers like it can Nestle take root and cultivate in the local market. Therefore, Nestle has always been on the road to internationalization or localization. Although the path of going abroad is fraught with difficulties, including cultural exports, knowledge patents, localized talents, product language expression and communication, etc., this is a definite opportunity because globalization is unstoppable.
Shaanxi Huike Botanical Development Co., Ltd. a integrated enterprise which is focus on natural products, Plant extract related products and services.We mainly focus on pharmaceutical, functional food, Freeze-dried powder,Natural Pigment,Homology of medicine and food,beverages and other business services.
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2024-07-10
Shaanxi Huike Botanical Development Co., Ltd.
