Emulsions are gaining high traction in the beverage industry due to their wide application in both, alcoholic and non-alcoholic beverages. These emulsifiers offer good taste and flavor to beverages such as fruit juices, dairy beverages, carbonated drinks, and RTD tea/coffee, besides offering various nutritional benefits according to the type of emulsifier used in the beverage production process. With changing consumer preferences owing to rise in purchasing power and busy lifestyle, beverage consumption is increasing faster than ever before. As such, the global emulsion for beverages market is expected to experience a significant value CAGR of around 5% over the forecast period of 2020 to 2030.

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Key Takeaways from Emulsion for Beverages Market Study

• Demand for emulsion for beverages will be slightly higher during the 2020-2024 time period, than in the long-term outlook.
• North America and Europe account for a value share of around 50%<span style=”font-weight: 400;”> in the global emulsion for beverages market, owing to a large number of consumers seeking healthy drinks that offer good taste. This trend is expected to grow through 2030.
• Demand for beverage emulsion will grow the fastest across Latin America and Asia Pacific over the next ten years.
• Carbonated beverages, under the non-alcoholic beverage segment, hold the highest market volume of around 35% in 2020, owing to increasing consumption of carbonated beverages, as manufacturers are offering new and innovative drinks that can be consumed by all age groups.
• Flavor emulsion is anticipated to show high incremental opportunity, capturing nearly half of overall demand for emulsion for beverages.
• The COVID-19 outbreak is expected to complement demand for emulsion for beverages, with consumers stockpiling beverages during this pandemic situation. Rising demand for ready-to-drink beverages will also offer a boost to market growth over the long term.

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Competitive Landscape

Key players operating in the emulsion for beverages market are focusing on acquisitions and mergers to increase their production capacity. This strategy is helping these companies expand their product portfolios and offer new taste solutions.

• In February 2018, Sensient Technology Corporation acquired the natural color business of GlobeNatural, a leading natural food and ingredient company based in Peru. The new entity was named Sensient Natural Colors Peru. This acquisition helped in expanding Sensient’s food color range.

Major players are also using the partnership strategy with beverage manufactures to strengthen their distribution systems across various regions.

• In 2019, Corbion N.V. made an enhanced framework agreement with Brenntag to further strengthen their partnership in Europe and the Middle East & Africa. Brenntag is a global leader in chemical and ingredient distribution. The agreement is expected to strengthen the supply-chain network of Corbion.
• In October 2018, Palsgaard A/S appointed four new distributors to enhance its distribution system across the Middle East region. These distributors include ATOM FZCO, Alawsaj General Trading Co. Ltd, Gusto, and Brenntag Saudi Arabia. The new distribution network is expected to establish a strong presence of Palsgaard in the Middle East market.
• In August 2018, Cargill, Incorporated announced an investment of US$ 150 Mn to build an HM pectin production facility in South America. This investment is expected to boost the presence of the company in the region.

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