THE BIG BUSINESS OF BEVERAGES: LIQUID GROWTH OPPORTUNITIES AT GULFOOD MANUFACTURING

THE BIG BUSINESS OF BEVERAGES:  LIQUID GROWTH OPPORTUNITIES AT GULFOOD MANUFACTURING

-New segments, line extensions, technology and services showcased at region’s most important trade show-
 

ATP-  Arab tourism portal- Dubai, – While the beverage market in the Middle East and neighbouring regions continues to grow at rates that are faster than many more mature markets around the world, the challenges for regional business owners in the sector are also growing. These include an increasingly competitive market landscape comprising both home-grown and international beverage companies and concepts, rising operational costs, and the need to identify new business opportunities to generate new revenue streams.   Gulfood Manufacturing provides an invaluable platform for the region’s beverage industry to source and secure solutions to these challenges from regional and international suppliers showcasing the latest product innovations and technologies.

Taking place from 27 – 29 October at the Dubai World Trade Centre (DWTC), Gulfood Manufacturing is the largest sector-specific trade exhibition in the Middle East, Africa and South East Asia (MEASA) region, focused on food & beverage manufacturing, processing and packaging industries.  More than 1,500 exhibitors from 60 countries will participate, introducing the latest equipment, ingredients, packaging and technologies to the region.

According to market research company Euromonitor International, robust growth for the Middle East beverage industry has propelled the region’s sector from 20th in 2009 to 4th in the top emerging markets around the world. While all categories continue to enjoy sustained year-on-year growth, health beverages are forecast to lead at 8.6 percent.  More modest in percentage forecast growth at 2.9 percent year-on-year, the carbonated drinks category continues to dominate in terms of market share, with Saudi Arabia, Egypt and the United Arab Emirates the largest consumers of carbonated soft drinks in the region.

Trixie LohMirmand, Senior Vice-President, Exhibitions and Events Division, DWTC said: “As the most comprehensive marketplace for the regional food & beverage industry to access the latest in innovation, technology and new business channels, Gulfood Manufacturing is an essential event for all sectors in the trade to attend. Our exhibitors bring solutions and new opportunities – ranging from more efficient equipment, to innovative packaging, new technology, and the latest ingredients driving trends around the world.  They are also here to share valuable data and present new products for new target segments, so that businesses can increase their revenues from new streams. It really does make business sense to attend.” 

While most beverage businesses have adopted process automation in one format or another, technology continues to evolve to offer new benefits.  Increased levels of automation are necessary to meet international legislation, compete in the market place and reduce production costs.  Global packaging and processing solutions provider Tetra Pak will present its Tetra Pak TR/G7 low-cost, high performance filling machine for chilled distribution.  Not only does it have a capacity of 6,500 gable top packages per hour, it is compactly designed to take up less than 19m² of floor space, and is easy to install, use and maintain.  The machine also delivers significant environmental benefits compared with equivalent machines in the market, cutting electricity consumption by more than 30 percent.

Amar Zahid, President, Greater Middle East & Africa (GME&A) for Tetra Pak said:: “With its comparably small footprint, low utility consumption, minimal complexity and outstanding quality, Tetra Pak TR/G7 delivers tangible benefits that help to improve the bottom line for producers. It is not only suitable for small and medium dairies who are looking for low cost investment, but also for producers that intend to upgrade their existing lines,”
New business opportunities being showcased at Gulfood Manufacturing include franchise partnerships being offered by regional and international companies in the beverage sector.  Arab Beverages Establishment (ABE) has more than 30 years’ experience in filling, packing and distribution of conventional drinks in an assortment of concentrations and 100% organic fruit juices. With their brands already available in 52 countries, ABE is looking to expand its global brand presence through franchise partners in strategic locations around the world.

Capitalising on the growing segment of health drinks, ABE has also expanded its reach into the production of rehydrating vitamin waters.  The company believes that diversifying its product range will give in an edge over competitors.   According to Euromonitor, health drinks have seen increased popularity in Saudi Arabia, UAE, Iran, Morocco, Tunisia and Algeria driven by consumers’ interest in healthy lifestyles and are sometime considered as status symbols by younger consumers.

Changing lifestyles and dietary patterns are also driving dairy product beverage opportunities across the GCC in particular.  With Saudi Arabia once again the biggest market, the Kingdom accounts for 74 percent of volume and leads the way in consumption per capita.  The most popular dairy product in the GCC is fresh, unflavoured white milk, with more than 1.5 billion kg consumed last year.  Flavoured milk consumption continues to increase, driven by the perception that it is nutritionally better for children and a more ‘natural’ product than carbonates.

Coffee and tea continues to grow both globally and regionally – as hot, cold and health drinks.  Iced tea offers strong opportunity, often considered the beverage of choice for refreshment in countries such as Lebanon and Saudi Arabia, while ‘green tea’ as an ingredient in myriad beverages, for its healthy anti-oxidant properties, continue to command a premium across the entire MEASA region.

The significant fruit juice market in the Middle East and Africa continues to present good opportunities, as showcased at Gulfood Manufacturing.  Companies such as FSL, which has been in operation in the region since 1991, enjoys long term partnerships with the largest juice concentrate manufacturers in Europe and the Americas and together, to collectively build new products, new markets and new customers with differing taste profiles across the Middle East and Africa.

Sandeep Vaidya, Business Development Manager at FSL said: “Our team of technical experts and sales personnel understand the intricate demands of the fruit juice business and work together with our customers to create unique taste profiles for their brands while keeping our customers up to date on new technologies and flavours within the industry. Our services and expertise merge the technical and business considerations in developing new products for our customers with shorter lead times, trouble shooting support and up to date advice on local regulations, market information and packaging design. We look forward to presenting our services at Gulfood Manufacturing.”

Beverage innovations will also be showcased during the Next Generation Manufacturing conference – one of three conferences being held alongside Gulfood Manufacturing.  The conference agenda on 29th October will include presentations on “Function Beverage Revolution – Defining the New Frontier” and will be presented by specialists from Fonterra and DuPont Nutrition & Health, and will include valuable insights into functional ingredients, leveraging local ingredients and flavors to boost business, and understanding what next generation beverages will contain.

A GCC-focused presentation on beverage trends in the region will also be presented by James George, Senior Beverage Analyst at Euromonitor International, with key focus on how to meet the demands of the Middle East customer.

Gulfood Manufacturing is open between 10am-6pm from 27 – 28 October  and 10am-5pm on 29 October 2015 at DWTC. Visitor attendance is free of charge. For more information, please visit www.gulfoodmanufacturing.com