Flavored Powdered Drinks Market: Technological Breakthroughs Value chain and Stakeholder Analysis

Flavored powder drinks are also known as processed beverage products available in powdered form which contains chocolate, fruit, instant mix and other beverage mixes. Such powders are used to make several kinds of beverages such energy drinks, fruit flavored drinks and flavored milk beverages. Such powders are soluble both in water and milk. Water based drinks usually comprise of energy drinks, fruit mixed drinks, flavor based soft drinks and various others. Milk based drinks comprise of cappuccino mixes, milk drinks, protein shakes and chocolate drinks that are usually served hot or cold depending on the need and preference of the consumer. The channel network for such products is wide, which is a major factor pushing the growth of the market.

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Health benefits associated with the consumption of such products is one of the key factors aiding in the growth of the market at present. Flavored powdered drinks contain essential ingredients such as proteins, high-quality fats, and carbohydrates to provide with energy. Carbohydrates are essential for proper functioning of the brain, heart, kidneys and the central nervous system. High proportion of vitamins and minerals that boost energy even in small servings is another factor urging the population towards the consumption of such products.

Further, such drinks are fairly popular among the young generation, working population and sportspersons which comprise of a majority of the population, which is another major factor pushing the demand for such products. Further, on account of rising health issues, consumers have shown preference toward such products in order to maintain a healthy and active lifestyle. The working population is a lucrative target market for flavored powdered drinks as such products are essential for the working population to cope with the hectic schedule.

Additionally, transition in the lifestyle of the consumers in terms of feeding habits, especially in the developing regions is another major factor pushing the demand for this market. This is backed by the increasing disposable income of the consumers. Heavy marketing and promotional activities undertaken by the leading player and advertising of such products through channels such as television and print media among others, coupled with celebrity endorsements are some of the other factors pushing the growth of this market.

However, weak economic condition in the underdeveloped countries poses a major threat to growth of the market by pulling back the same. Low exposure to such products and the benefits offered by is one of the major factors for the low market growth in the under developed regions. Economic instability in the underdeveloped regions is another major factor hindering the growth of this market to a great extent. However, the impact of this restraint is expected to minimize by the end of the forecast period.

Untapped markets provide huge opportunities for the manufacturers and give them room for expansion which is expected to be suitable opportunity for the growth of the market in the future.

Based on products, the market has been segmented into chocolate based powdered drinks, fruit based powdered drinks and malt based powdered drinks. Chocolate based powdered drinks are expected to lead the market throughout the forecast period. Chocolate based powdered drinks are fairly popular in the emerging countries.

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Based on distribution channel, the market is classified into supermarkets and hypermarkets, departmental and convenience stores among others. Supermarkets and hypermarkets are expected to lead throughout the forecast period. Rapid retail penetration is one of the key factors behind the growth of this segment. Further, wide array of products and brand variety are few other factors complementing the growth of this segment.

Although North America and Europe are the dominant regions for flavored powdered drinks, Asia Pacific is showing significant potential for the growth of this market, on account of strengthening economic condition of countries such as India and China. Further, high population in these countries is a major factor driving the demand for flavored powdered drinks in Asia Pacific. Rising working population is a major factor for the growth in the demand for flavored powdered drinks in Asia Pacific.

Some of key players operating in this market include Mondelez International, Nestle S.A., The Coca-Cola Company, GlaxoSmithKline Plc and various others.

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