The drinks industry is a very dynamic one; it evolves constantly in order to satisfy the ever-increasing expectations of consumers while facing multiple challenges along the way.
Given the enormous variety of products and socioeconomic factors around the world, the issues at heart of the drinks industry may vary by region or product.
Social issues
Growing trends such as healthy eating and lifestyle have been pressing the industry to innovate, to introduce new products, and to address the issue of corporate responsibility.
Producers of both alcoholic and non-alcoholic beverages need to produce healthier and more natural products in the age when obesity rates are increasing, and anticipate upcoming government regulations on nutrition and hygiene.
There is also a continued necessity to build alcohol awareness and promote responsible drinking habits.
Economic issues
The impact of the global crisis and increased prices of oil and energy contribute to higher cost of production and distribution.
The challenge is therefore to maintain the sales levels and high quality of products, while avoiding substantial price increases. Consequently, manufacturing and supply chain strategies have to be redefined through modernization and investment in production facilities.
This brings a lot of pressure especially on the small producers, who often find it very difficult to maintain their position on the market. They may need to consider compromising their independence in favour of big players, joining cooperatives, or grouping with regional or national partners in order to stay afloat.
Marketing and PR
It is crucial to continuously adapt marketing and public relations strategies to the digital age that will enable producers to attract the attention of new generations of customers. Good progress has already been made here by many individual producers as well as by regional or national partners who have joined forces in order to achieve a stronger presence on the market.
Environmental issues
The effects of global warming bring a higher risk to agriculture and natural resources. There is a pressing need to research and develop practices to respond to possible water scarcity, higher energy demand, and rising average annual temperatures.
Many companies have already done a lot of work to be “greener” by better management of resources, decrease of carbon footprint, sustainable production, and promotion of recycling, which has helped them win over large groups of consumers.
Consumer issues
Consumers are becoming more knowledgeable about the drinks industry. They are aware of the current market offer, and given the easy access to reliable information and the vast range of products, they are more eager to experiment with different brands.
They will not be happy to pay a higher price for the same product if not given something in return, no matter how much they sympathise with the producer’s difficulties. The question is then whether to take the risk to raise the prices and to what extent it would be possible and viable.
Finally, consumer-based issues will have a different range in developed countries where the spending on food and drinks constitutes a much smaller part of the income than in developing countries.
The drinks industry has to keep a very close look at the global market condition. While cutting corners is not an option, it is rather greater discipline in planning and attracting the best talent that will allow to successfully implement future-focused strategies.
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