Flavoured Powder Drinks in 2017: Confronting an Ageing World

Introduction

Scope

Euromonitor International definitions

Definitions (continued)

Key findings

Category Overview

Flavoured powder drinks are only a small part of hot drinks

Europe and Latin America dominate current consumption

Increases in population and GDP drive category forward globally

Malt-based drinks in Asia are the key area of growth

Apart from India, Brazil and Indonesia drive global growth

Powders are inelastic compared to other hot drinks

Inelasticity means that growth is usually stable but slow

Health positioning is an important category attribute

Chocolate beats malt-based in most areas

A brief note on non-chocolate-based flavoured powder drinks

Key takeaways

Demographics

Population growth is keeping the category moving forwards

A majority of the world’s young people live in Asia

Most children are being born in the Middle East and Africa…

demographics

…owing to high birth rates in much of Africa

Could the category take advantage of this African growth?

The example of Nigeria suggests that African growth will be difficult

Latin America’s demographics pose a major challenge

A demographic case study: Mexico

Competitive Landscape

The category is quite consolidated at a global level

Global companies on top, but national companies are also strong

Nestl é usually rules where there is no big local company

Outlook for the key players

Chocolate-Flavoured Powders

Europe and Latin America dominate chocolate drinks

Appeal that goes beyond children makes Brazil the largest market

Stagnation in the big chocolate drink markets of Western Europe

Cola Cao tries to diversify away from an ageing Spain

While Nesquik’s dispersed sales continues to grow

Malt-based Powders

India is the centre of the global malt-drinks market

Outside India, Southeast Asia is the key area

Southeast Asia is dominated by Nestl é’s Milo

Associated British Foods rarely leads, but has wide footprint

Emerging Trends

Focusing on both body and mind

Powders as energy drinks for children

Making chocolate appeal to mature consumers

Anti-sugar trends pose a threat going forwards

Could the future lie outside of the powder format?

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