The recent acquisition of Bai Brands and KeVita Inc. by Dr Pepper and PepsiCo Inc. respectively, is a sign on how the beverage industry is undergoing a major transformation. Not only does it reflect how the industry is struggling with new taxes on sugary drinks, but it also indicates the falling demand for diet sodas as well. The arrival of exotic ‘functional beverages’ like aloe vera-based juice drinks, coconut water and fermented tea shows the growing demand for healthy beverages at a global level. In fact, analysts at Technavio predict the global market for aloe vera-based drinks to grow significantly in the next five years, recording a CAGR of around 10% by 2020.
Factors contributing to the growth of aloe vera-based drinks market:
Immense health benefits
It goes unsaid that aloe vera is highly beneficial for one’s health. Rich in calcium, sodium, iron, potassium, manganese, zinc, vitamin A, vitamin B, vitamin C, vitamin E, amino acids and folic acid, aloe vera juice is one of the best juice drinks to boosts one’s immune system. Apart from flushing out toxins from the body, the juice fights and cures a range of digestive disorders including poor digestion, constipation, acidity and gas. Very effective in curing anemia, aloe vera juice also cures hormonal issues, as well as disorders related to pancreas and spleen.
Emergence of new product variants
The high demand for aloe vera-based drinks has encouraged vendors to launch new flavors of aloe vera-based drinks. For instance, ALO has launched ALO Light – a low calorie aloe vera juice, targeted at the health-conscious population. Likewise, Forever Living Products has launched aloe vera drinks in three flavors: lemon lime, orange papaya and cran-apple. Claimed to be gluten-free, fat-free and without any artificial colors or flavors these drinks are gaining popularity over the soda-based drinks.
High investments and increased partnerships
Another major factor which is the reason behind immense growth of the aloe vera based drinks market is the immense amount of investments and growing number of M&As in the beverages industry. The trend of large players in the industry investing and acquiring smaller and more innovative players, has broadened the scope for aloe vera-based drinks market. For instance, in June this year, Coca-Cola invested in Aloe Gloe, a California-based startup. Similarly, in July 2016, Simplee Aloe signed distribution agreements, worth about $444,000 a year, with Co-op Group and Nisa Retail.
Immense potential in untapped markets
North America and Europe are some of the major untapped markets for aloe vera-based drinks. Vendors are looking for ways in which these markets can be captured through well-planned marketing strategies and development of new products. Even the Middle East and Australia, which are large untapped markets and have consumers who are ready to pay premium price for healthier food options; have emerged as major targets for big players in the beverage industry.
All these developments have further pushed the demand for aloe vera-based drinks. Regarded as the ‘new coconut water’, some of the major vendors of aloe vera-based drinks are Aloe Farms, ALO, Houssy Global, OKF Corp. and Forever Living Products.
