Segments

Beverage

Companies in this segment produce carbonated and noncarbonated soft drinks, bottled water, ice, and alcoholic beverages.

Dairy

Companies in this segment manufacture dairy-based products from both raw and processed milk, as well as dairy substitutes.

Fruits and Vegetables

Companies in this segment distribute fresh fruits, vegetables, spices, and herbs. The main task of distributors is to get the fruit and vegetables from producers to customers, including both food retailers and foodservice providers.

Grain

In this segment, companies mill flour and rice, malt grains, and mixed prepared flour mixes and dough. Major products include flour, rice, and malted grains.

Meat, Poultry, and Seafood

Major products in this segment are wholesale meat products that will be cut or processed further, ground beef for commercial use, and "case-ready" items for retail use.

Sugar and Confectionery

Companies in this segment produce raw sugar from sugar cane, refine raw cane sugar, and produce refined beet sugar from sugar beets. The most widely used product for sugar manufacturers is refined sugar for both industrial and consumer use.

The Food and Beverage industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.


Primary Demand Drivers

  • Food consumption
  • Population growth

Profitability Drivers

  • Efficient operations, because products are commodities subject to intense price competition

From the Blog Blog RSS

The consumption of plant-based meat as simply a novelty is a thing of the past. As new health and sustainability-conscious generation of people grow older and play a bigger role in the global economy, the demand for plant-based meat is quickly increasing. Concerns about the substantial greenhouse gas emissions produced by the meat industry, recognition of animal cruelty, and knowledge of the long-term health risks of traditional meat consumption are all contributing factors. In 2020, as more people embraced flexitarian, vegetarian, and vegan diets, the market value of plant-based meat worldwide grew to 6.67 billion dollars. This figure is estimated to steadily increase over the next few years and reach 16.7 billion in 2026.

As shown in a previous blog, global food prices are on the rise, and food security is an ever-growing concern worldwide. In China, there is a new issue. Last week, China urged local authorities to encourage families to stockpile “daily necessities.” Many citizens have seen this as a warning to them and have now induced panic buying.

Sources

  1. Hoovers (Date Accessed: 6/1/2017)