The document discusses growth trends in the global food and beverage industry. It notes that the industry is projected to reach $8.2 trillion by 2015, growing at an annual rate of 3.2%. Asia Pacific accounts for the largest share, followed by Europe and Americas. Organic food sales are also growing, especially for fruits and vegetables. The market share of private label food products is expected to double from 25% to 50% by 2025 as consumers increasingly seek value.

1. Food & Beverage Industry – Growth Statistics
21 February 2012

2. Presentation Plan
 Global food, beverage and tobacco industry value
 Food & Beverage consumer survey
 Organic Food
 Private Labels
© 2012 Grant Thornton International Ltd. All rights reserved.

3. Global food, beverage and tobacco industry is projected to
reach value of USD 8.2 trillion in 2015
The global food, beverage and tobacco industry is expected to grow at CAGR of 3.2% for the five year period 2010-2015. The industry
is highly fragmented with leading incumbents, such as Coca-Cola, PepsiCo and Nestle, holding just over 8% of the total industry value.
Global food, beverage and tobacco industry value 2006-2015(E) Global food, beverage and tobacco industry segmentation
USD billion Growth Rate
9000 15
7764
8043 8242 8%
8000
7052 7250
7506
22% 36%
6722 6878 10,4
7000 6255 6390 10
7,5
6000
3,5 3,4 5
5000 3,6
2,3 2,5
4000 2,8 34%
0
3000
2000
-5
1000 -7,1
0 -10 Asia Pacific Europe Americas Rest of world
2006 2007 2008 2009 2010 2011 2012(E) 2013(E) 2014(E) 2015(E)
• The Asia-pacific region accounts for the largest share of global food, beverage and tobacco industry followed by Europe and the
Americas.
• Factors driving growth in the F&B industry in the developing countries are different from those in the developed countries. While
growing population, favourable demographics and rising income levels are expected to be key drivers in developing countries; rising
health consciousness and increasing need for convenience foods are expected to drive growth in developed countries.
Sources
© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Datamonitor

4. According to consumer survey done in UK, moving towards
2012 health and wellness food & beverage sales is expected
to increase
Increasing
importance
Health &
Demanding Wellbeing
The demand for quality Quality
Out of home
food products will also consumption
increase as consumers
will not be hesitant to Organics More
Convenience
buy expensive ethically
considerate
products
Variety
Online
shopping
Price led
value
Low
High importance
importance
Sources
© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link

5. Organic food sales continues to grow in all parts of the world;
Fresh products(Fruits and Vegetables) are highest selling
organic foods segment
Growing Organic Food Markets Global Organic food market segmentation (2009-2010)
• In 2015, the global organic food and beverage
market is projected to reach USD 104.5 billion from
USD 57.2 billion in 2010. 6,3%
11,8% 31,5%
• The market is driven by factors such as increasing
consumer awareness towards organic benefits and 12,2%
due to execution of various government regulations.
• North American organic food market is expected to 17,8% 20,4%
witness a CAGR of 11.9% from 2010 to 2015.
• In Europe, Germany is the biggest consumer with a
share of 32% of organic food and beverages in the
region. Fruits and Vegetables Prepared foods & others
Dairy Beverages
• Asian organic food market is expected to grow at an
Bread & Grains Meat & Fish
estimated CAGR of 20.6% from 2010 to 2015. Japan
leads the Asian countries in terms of organic food
consumption.
Sources
© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Link

6. According to some experts the global market share of private
label food products will double from 25% to 50% in 2025
Private Labels
• Private labels offer consumers high quality products at low prices thus making it popular among consumers.
• In the APAC region, spending on private label is expected to reach USD 24.6 billion for food, USD 11.2 billion for
non-alcoholic drinks and USD 580 million for alcoholic beverages by 2014.
• In the UK, private labels are also expected to have strong growth. From 2009 to 2014, private labels in the food
segment are expected to grow from USD 51,885 million to USD 65,938 million, non-alcoholic drinks from USD
9,877 million to USD 12,557 million and alcoholic drinks from USD 4,105 million to USD 4,740 million.
• Despite strong growth opportunities, the road ahead for private labels is not an easy one. Private labels must
improve and maintain their low operating cost to retain their competitive pricing.
DRIVERS INHIBITORS
 Consumers seeking value  Brand loyalty towards large brands
 Retailers giving more shelf space to private  A lot of people don’t consider private
labels labels as a credible alternative to
 Growing awareness about private labels name brands
 Inadequacy of large brands to meet  Criticism of poor quality
consumer’s desires
 Consumer perception that private labels
are as good as name brands
 Retailer consolidation
Sources
© 2012 Grant Thornton International Ltd. All rights reserved. 1 – Evalueserve Industry Report

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© 2012 Grant Thornton International Ltd. All rights reserved.