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Top 3 Challenges in the Beverage Industry

What do your peers think about Beverage Industry?

Industry professionals say the instability of prices and high costs complicate operations, while providing good quality products to consumers for a competitive prices is challenging. It is also difficult to gain public awareness for products without know-how and resources

Beverage Top 3 peer challenges

number-1Customer Satisfaction

There is a constant need to create new innovative and cost-effective products while keeping the quality high and price reasonable.

number-2Price fluctuations

Increasing production costs and commodity price fluctuations make it difficult to stay competitive.


Getting a product out successfully for customers to see and try out. Lack of budget, lack of skills and lack of time, plus having a third party distributor representing the company is a concern. 

Other challenges ­

  • Rules and regulations
  • Finding good distributors
  • Green logistics: optimizing supply chain with green solutions

Research-­based trends and short-term forecast

Coffee Industry

Research states that the challenges in the coffee industry are: yield growth/productivity, weather volatility, land suitability, water scarcity, and labor availability. It is forecasted that in 2050, due to climate change, the ideal coffee-growing elevation in Central America will be 1,600 meters above sea level compared to 1,200 presently (Sintercafe).

Wine and Spirits Market

In the US, the issue in the distribution of the wine and spirits market is that 70% of the volume is controlled by top 10 wholesalers, which makes it difficult for smaller and newer brands to find distributors. Top beer brand handling wholesalers control the market even more (MHW).

Global Beverage Industry

The global beverage industry has been growing since 2009 and will keep escalating until 2018. In 2018 the value of the industry will be 2,245.6 billion USD which means an increase of 22.3% from 2015 (1,979.7 bn USD). The world’s beverage packaging market value in 2019 will be 129.78 billion USD of which plastic packaging will hold the biggest share, 45.0 bn USD (PwC).

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2 Comments on Top 3 Challenges in the Beverage Industry

  1. With Challenge #3, getting a product distributed and then, noticed/tried…..what are some successful ways that the smaller beverage companies have accomplished this for building their brand?

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