Given the extensive use of various ingredients and raw materials from around the world, it is essential to stay ahead of market trends and dynamics in Europe’s beverage industry, a vital sector of the global economy. Several key trends are shaping the industry, some of which are a result of recent extreme volatility in important regions around the world, including the Russia-Ukraine war, the COVID-19 pandemic, and the subsequent inflationary and high-interest-rate environment.
While these factors impact all commodity market prices, some have a more significant impact on the beverage industry than others. All beverages require packaging of some kind, whether glass, plastic, or aluminium. The glass industry has long since been opaque, with little price transparency. However, with the aid of Expana’s market-leading proprietary glass manufacturing benchmarks, market players can have much greater visibility over their spending on glass containers.
This report highlights packaging costs and how there has been some substitution from glass to cheaper materials, such as plastics and metals. However, glass remains a key material for the food and beverage industry.
Additionally, consumers remain extremely cautious about spending, especially on alcoholic and non-alcoholic beverages. The health and wellness trend has resulted in lower demand for certain alcoholic beverages and rising interest in fruit juices by consumers. Weather has also been a commonality among beer and juice production, with barley prices, for instance, being influenced by wet conditions in Europe this year.
