LONDON, Nov. 25, 2020 (GLOBE NEWSWIRE) -- The global food and beverages market is hugely diverse with many local suppliers catering to national and regional dietary needs and preferences; owing to this, it is a fragmented market. The largest companies in the food and beverages market vary in their purpose, with packaged food and snack manufacturers, meat processors, tobacco companies, brewers and agribusinesses all placing in the top 10.
Nestlé S.A. is a Swiss company, and its headquarters remain in Switzerland. Its operations however span 189 countries, with approximately 339,000 employees. Nestlé S.A. makes up its market share from the sales of over 2,000 brands, some with global recognition and others, local. The largest share of their revenue is earnt in the beverages category with recognizable brands such as Nescafe, Nespresso, Nesquik and Nestea. Other large and internationally recognizable brands include KitKat, Maggi, Toll House, and Milo.
Nestlé has followed an engaging strategy in the last few months, cleverly engaging the younger generations who are more difficult to reach through conventional advertising. Their recent campaigns saw KitKat trying appealing to gamers through Twitch with its well established ‘Take A Break’ slogan, with taking a breaking being something gamers are renowned for not doing! Targeting gamers at a time when more people are seeking in-home entertainment makes perfect marketing sense, allowing the brand to connect with a younger audience than it is usually associated with. Another example is their Milo cereal campaign through TikTok, encouraging young adults to engage in activity and sport while at home. Again, targeting through social media and on young persons’ platforms is a newer concept to the brand, but one which has proven successful as it brought elements of fun and was set at a time when the platform saw more users as people needed entertaining at home.
PepsiCo follows Nestlé with the second largest share in the market, with Anheuser-Busch InBev just behind. PepsiCo is an American company led from headquarters in New York; it services over 200 countries but is most established in North America. PepsiCo’s focus areas are in beverages and snacks with their key brands composing Pepsi Mountain Dew, Lay’s, and Gatorade.
Like Nestlé, PepsiCo has followed a different approach to marketing through the pandemic. As sales of carbonated drinks fell with foodservice outlets and bars being forced to close, they reigned in their marketing spend – but did so strategically, focusing on those campaigns and strategies that produced a good return on investment even through lockdowns. PepsiCo seems to have taken more of its marketing inhouse, allowing for lower costs and faster reactions. They are also homing in on ecommerce – offering bundles of PepsiCo products online and ensuring their products are always readily available.
Anheuser-Busch InBev claims to be the world’s largest brewer, which is confirmed by The Business Research Company’s study, with its revenues preceded only by those of Nestlé and PepsiCo. The company is based in Belgium and was formed in 2008 when InBev acquired Anheuser-Busch. The company focuses on the beer and soft drinks market and its key brands include Budweiser, Corona and Stella Artois. It also maintains a strategy of owning and championing many local brands to appeal to more localized trends and preferences.
Given the essential nature of the food and beverages market, it is not surprising that its value is expected to top $6 trillion in 2020, with this market value forecast to almost double over the next 10 years to 2030. Growth in the market can be attributed to population growth, higher consumption rates, changing shopping habits as more consumers globally have access to supermarkets, and the ever-expanding premium food and beverages sector. Although the global recessions brought about from the impact of COVID-19 are likely to influence the premium and luxury end of the market, much of the market is considered essential, and therefore consumer demand will continue.
Methodology
The company revenues are captured from the latest annual reports available at the time of publishing and other publicly available sources and allocated to specific markets based on the relevant companies divisions and analyst estimates based on secondary research, industry knowledge and expert interviews caried out by TBRC Consultants.
Research is sourced from TBRC’s Global Market Model.
The forecasted revenue of the company is calculated based on the assumption that the company’s market share will remain same during the forecast period.
Disclaimer
The facts of this report are believed secondary sources, whose accuracy we are not always in a position to guarantee. As such TBRC Business Research Pvt Ltd can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Analysis and findings included in TBRC reports and presentations are our opinions, and are not intended as statements of fact or investment guidance.