Beverages are part of every human need. We need to drink at least three liters of water every day to keep ourselves healthy. Those that consume less than that suffer less than optimal functioning from their body that day. This is why the bottled water market size is valued at $217 billion in 2020 and is expected to grow at a constant compound annual growth rate (CAGR) of 11.1%.
Aside from water, we human beings tend to consume sugary drinks like soft drinks and juice as part of our diet. Although these drinks aren’t as needed by our body, we still consume them out of their delicious taste. This particular part of the beverage industry’s market size is valued at $269 billion in 2020, slightly higher than the market size for bottled water. But it also has a lower CAGR (7%) for the next few years.
With these statistics in mind, we can see that the overall beverages market is valued at a staggering $400 billion, maybe even more. Many aspiring entrepreneurs are joining this multi-billion industry. If you’re planning to join the beverage industry, there are a couple of things you need to know that will lead your company to success. Here are some tips you need to know when starting a beverage business.
Because of the pandemic, traditional businesses are in jeopardy. They are prone to business closures due to quarantine protocols. Considering that the pandemic is still around despite vaccines being available in most states, you should prepare yourself for the possibility of temporary closures. One proactive way to keep your business’ productivity despite the pandemic is by going digital.
Online businesses are the key to the future, especially during this pandemic. Many industries have resorted to having most of their transactions done online, and this should be the case for your beverage company as well. Beverage companies nowadays sell various products like bottled water online. These companies sell these products and ship them to customers. Customer payments are also processed through online means. By doing this, you can ensure that your company functions through the pandemic. This also ensures that your sales stay up until the end of the year.
Going digital should be your first goal as a company. This can keep your company functioning in optimal conditions during the pandemic. It can also ensure that you can achieve your quota of sales by the end of the month.
Sell a Variety of Products
The beverage industry is enormous, and there is a market for all kinds of drinks. Soft drinks are at the core of this industry, but beverages like energy drinks, juices, and mocktails are all part of this ever-growing industry.
As a beverage company, your primary way of finding growth in the industry is by reaching a wide array of audiences. This means that you need to sell all kinds of beverages in your company eventually. You should consider expanding to more niche products such as mocktails because this will help your company gain audiences that other companies might not have. Ultimately, selling various products can also help you get more sales, as your diversification can lead more consumers to try out your products.
Selling a variety of products should be your main goal once you’ve set up your business. Once you’re geared for growth, having a wide array of products in your arsenal can ensure that you’ve gotten all the markets covered in the beverage industry. This will lead to more sales and the eventual growth of your company.
Branding is an essential factor to a business’ growth nowadays. People are more likely to buy a particular product when they are aware of its brand. This should be your main goal once you have established yourself as a competitor in the market.
Branding can be done in different ways. You can let it happen organically, which means through consumer recommendations, or you can manipulate it by doing some marketing. Investing in marketing to better your brand is always the right decision, especially in an industry such as this. You would hear of big brands such as Coca-Cola, Pepsi, or even Gatorade dominating each of their respective markets. Although you shouldn’t aim to be as big as these companies, you should still let your company be known to consumers.
Moreover, branding can lead to loyal customers. Once you’ve set up your company as a competitor in the beverage industry, your loyal customers will fight for your spot. They will be the ones that will lead your company to grow and drive sales organically. They will be preaching about how good your drinks are and why people should buy them. At this point, you’re investing more into your consumers than your marketing. And this will eventually lead your company to success.