Market Trends of Ethical Label Industry
Beverages To Occupy Highest Market Share
- The beverage industry is anticipated to occupy a robust market share as there is a growing concern over consuming alcoholic, carbonated, and sugar-based beverages; now, the focus has shifted toward non-alcoholic, plant-based alternative beverages among health-conscious consumers worldwide.
- Further, the beverage industry faces challenges in maintaining the reputation of ethical treatment of animals and ensuring safety. The emergence of plant-based beverages, like packaged coconut water and non-dairy milk beverages, is another primary driver for the vegan label market.
- According to Kilne & Company, healthy living has evolved to include a holistic approach to self-care. This encourages eating a healthy organic diet, taking supplements, using cleaner products, exercising, and managing stress. In their quest to live greener and more hygienic, consumers choose beverages they perceive as 'clean' or 'natural.' Products claiming to be gluten-free, non-GMO, free of artificial colors and preservatives, organic, and grass-fed are gaining more and more space on retail shelves.
- In terms of geography, the Asia-Pacific region is expected to offer significant growth opportunities as the economic growth of the region has significantly enhanced the disposable income of the consumers, along with a changing lifestyle. These factors are expected to influence the demand for packaged beverages in this region. According to the National Bureau of Statistics of China, in November 2022, about 10.97 million metric tons of non-alcoholic beverages were produced in China.
- Conventional beverages such as tea, coffee, cocoa-based, and packaged water are witnessing high adoption. Additionally, halal, ethical-certified products have found their way into packaged water, gaining consumer traction. Further, adopting low-calorie variants in conventional beverages, such as carbonated soft drinks, also influences the demand for clean labels.
- Soft drinks hold a substantial share of the market studied, owing to the popularity of such beverages and increasing consumption worldwide. Soft drinks offer various flavors and formats to suit every drinking occasion; according to UNESDA, sugar-free, low-calorie beverages currently account for up to 30 percent of sales in many European markets. According to Britvic Soft Drinks Review Convenience and Impulse, the total cola sales volume was 45.03 million liters in 2022 in the United Kingdom.
- Moreover, manufacturers in the beverage industry are choosing ethical label which is niche enough to differentiate them from other competitor brands and want to appeal to a broad base of customers. This is further fueling the growth of the ethical label market in the beverage industry.
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The Asia Pacific Region is Anticipated to Register Robust Market Growth Rate
- The changing consumer demand and the need for consistent food quality have created the need for ethical labeling solutions to maintain high quality and productivity in the Asia Pacific region.
- The increasing beverage production and consumption in the Asia Pacific region is likely to offer lucrative opportunities for the growth of the studied market. For instance, according to the National Bureau of Statistics of China, in January and February 2023, around 26.9 million metric tons of soft drinks were produced in China, showing a 0.5 percent increase compared to the same period of the previous year. In addition, in November 2022, approximately 11 million metric tons of beverages were produced in China. Furthermore, in August 2022, approximately 18.85 million metric tons of soft drinks were produced in China.
- Further, according to the National Bureau of Statistics of China, in 2022, China had an output of approximately 39.3 million metric tons of cow's milk, the highest volume in recent years.
- In the region, packaged foods are gaining high traction owing to busy work schedules, the rising number of working women, and the shift toward on-the-go consumption, which is anticipated to increase the utilization of innovative and sustainable ethical label markets across the food sector. This is likely to fuel the market's growth during the forecast period.
- According to Agriculture and Agri-Food Canada, packaged food retail sales in China were about USD 298.01 billion recently. Further, the packaged food retail sales are expected to reach USD 366.7 billion in 2025.
- Additionally, the switching cost is becoming moderate due to the decreasing price differentiation of low-end and high-end products due to the emergence of numerous vendors in certain segments like halal, organic, and clean certifications. Several players are anticipated to expand their presence worldwide during the forecast period, especially in the APAC region.
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