2020 was a hard year for restaurants and bars, but it wasn’t all awful for the food and beverage industry – despite revenue declines. According to Research and Markets’ recent report Food and Beverage Global Market Report 2020-30: COVID-19 Impact and Recovery, the sector is expected to shrink by 2.9%, from $3,606.1 billion in 2019 to $3,503.3 billion in 2020, resulting in a negative compound annual growth rate of -2.9%. The global economic slump induced by the epidemic is largely to blame for the drop in sales.
Some excellent news is on the horizon. The report also discovered that the market is on track for a comeback, with experts expecting the sector to grow to $4,290 billion in 2021, an increase of 8% over this year’s CAGR. Currency fluctuations and shifts in consumer demand and new mergers and acquisitions were powerful influences in 2020, contributing to the success of the largest food and beverage companies— and the slumps of others. The magazine also cited product innovation and increased home cooking during the pandemic as factors influencing the overall market.
Food and beverage industry overview
The Food and Beverage Industry is vast, diverse, and replete with specialized machinery. It is one of the world’s oldest industries, but it is also one of the most innovative.
Fresh food, packaged food, and beverages are all part of this industry (alcoholic and non-alcoholic). This industry serves a wide range of retail outlets, from grocery store food to cooked meals served at restaurants, institutions, and events.
The food and Beverage Industry is one of the most innovative
This industry is constantly looking for new ways to produce the food consumers want at the lowest possible price, from new products to higher-volume, lower-cost production techniques.
And critical equipment is available at all times. The food and beverage industry relies on industrial-scale food production equipment ranging from simple ovens and conveyor belts to complex bottling and packaging machines.
World’s largest food and beverage companies
1. Nestle
Nestle is the world’s largest food and beverage company in the world 2021, maintaining its lead in the industry as sales of its frozen staples such as Hot Pockets, Stouffer’s, and DiGiorno increase alongside coffee brands such as Nespresso. The Swiss-based conglomerate sees 30% of its sales from the United States and has added overtime shifts to many of its nearly 70 US factories to meet increased demand.
Nestle has $89.9 billion in annual sales and $13 billion in profits, and a significant market share in categories such as coffee, tea, water, powdered drinks, pet food, milk products, and ice cream. It also owns slightly over 23% of the stock of the French cosmetics company L’Oreal. Nestlé experienced organic growth of 3.6% across its businesses last year, with the United States accounting for 31% of total revenue.
A product of Nestle
The company’s net sales increased by 1.2% to $95.3 billion, with the food business, including milk and ice cream, nutrition and health science, prepared dishes and cooking aids, confectionery, and pet care segments reporting combined revenue of $63.8 billion.
In 2019, the company transitioned its ice cream and pizza businesses in the United States from a direct-store-delivery network to a warehouse distribution model.
2. Archer Daniels Midland Company
ADM is a multi-national food processing company headquartered in Chicago, Illinois, with 70 countries across North America, South America, Europe, the Middle East, Africa, and Asia.
Archer Daniels Midland Company (ADMC), which has roots dating back to 1902, has been on an acquisition spree for the last few decades. According to its website, ADM most recently gained Neovia, a brand focused on animal feed, for €1.544 billion (approximately $1.9 billion). ADM has 450 crop procurement locations worldwide, over 300 food and feed ingredient manufacturing plants, and over 60 innovation centers.
The headquarter of Archer Daniels Midland Company
Agricultural services and oilseeds, nutrition, carbohydrate solutions, and other business segments are among ADM’s offerings. The extension of the biodiesel tax credit (BTC) for 2018 and 2019 resulted in significant revenue growth in the agricultural services and oilseeds segment, which earned approximately $270 million in net operating profit.
The carbohydrate solutions segment generated an adjusted operating profit of $644 million in 2019, thanks to lower manufacturing costs and higher income from co-products in North America. Margins in emulsifiers and edible beans were under pressure in the nutrition segment, but continued margin growth in proteins saved the day.
3. Cargill
Cargill, headquartered in the United States, employs 155,000 people and operates in 70 countries across North America, the Middle East, Europe, Africa, and Asia.
With strong demand for beef and eggs propelled Cargill’s protein business segment in North America to grow. To meet the growing demand for protein, particularly in Asia, the company is investing in developing and expanding multiple facilities in various Chinese provinces. With new acquisitions, it is also diversifying its protein business and expanding its food ingredients and applications business.
Cargill adapted its manufacturing operations and supply chains to the shift in consumer demand during the COVID-19 crisis, reporting a 3% increase in first-half revenue in 2020 compared to the same period in 2019.
4. Sysco Corporation
Sysco Corporation, which is considered one of the largest food and beverage companies, headquartered in Houston, Texas, operates approximately 323 distribution facilities worldwide and employs over 69,000 people. The company’s major operations are in North America and Europe.
Sysco Corporation’s net sales increased by 2.4% to $60.1 billion in 2019, aided by a 4.2% increase in sales from its US food service operations, while international sales fell by 0.2% from the previous year.
In 2019, fresh and frozen meats, canned and dry products, and frozen fruits, vegetables, bakery, and other segments generated 19%, 17%, and 15% of net sales, respectively. Restaurants are the company’s most important customers, accounting for 62% of net sales in 2019.
5. JBS
José Batista Sobrinho is the world’s largest meat processing company, headquartered in Brazil (in terms of sales). The company processes beef, pork, lamb, and chicken and produces value-added and convenience food products. Brazil, Seara, Beef USA, Pork USA, Chicken USA, and others are the business segments.
JBS is a leader in meat processing
It employs over 240,000 people and serves 80 countries across six continents, including North America, South America, Europe, and Australia.
JBS is one of the largest food and beverage companies with its headquarters in So Paulo, Brazil. JBS had 150 industrial plants worldwide as of 2017 and has a workforce of 242 000 people. The company’s revenue was $51.7 billion in 2020.
6. George Weston
Weston Foods is a North American bakery specializing in commercial bread, artisan bread, doughnuts, cakes, biscuits, rolls, and other baked goods. It has 40 bakery facilities in Canada and the United States, employing approximately 6,000 people. Weston Foods’ well-known brands include Wonder, Ace Bakery, Country Harvest, Casa Mendosa, and D’Italiano.
In 2019, George Weston’s net revenue increased by 3.2% year on year to $50.1 billion. Operating income increased by 14.4%, driven by all three operating segments, Loblaw food and pharmacy stores, Choice Properties, and Weston Foods.
7. Tyson Foods
Tyson Foods, Inc. is a food-related American multinational corporation headquartered in Springdale, Arkansas. It is a chicken, beef, and pork processor and marketer. Through its subsidiaries, it operates major food brands such as Jimmy Dean, Hillshire Farm, Ball Park, Wright Brand, Aidells, and State Fair.
Tyson Foods, Inc. is a chicken, beef, and pork processor and marketer
It provides chicken to Yum! Brands restaurants such as KFC and Taco Bell, McDonald’s, Burger King, Wendy’s, Wal-Mart, Kroger, IGA, Beef O’Brady’s, small restaurant businesses, and prisons.
Besides its brand, the company now owns a slew of meaty brands, including Jimmy Dean and Hillshire Farm. Tyson operates 19 test kitchens and a 39,000-square-foot pilot plant.
The company operates 42 distribution centers and external cold storage facilities, and two research and development centers. It employs approximately 141,000 people, with 122,000 of them based in the United States. In 2019, Tyson Foods sold its products in approximately 145 countries.
8. Danone
Have you ever wondered how yogurt came to be a thing? It all started in the early 1900s, when Isaac Carasso, a researcher at the French Pasteur Institute, was inspired by the work of Nobel Prize winner Elie Metchnikoff. Yogurt, the resulting invention, became popular in 1919 after Carasso began selling it to pharmacies and emphasizing its health benefits. Danone was named after his son, Daniel Carasso, who was heavily involved in its development. With brands like Silk and Evian in its portfolio, the company has grown into a global powerhouse.
Danone S.A. is a multinational food corporation based in France. It is organized into four divisions: Fresh Dairy Products, Waters, Early Life Nutrition, and Medical Nutrition.
Danone employs 102 449 people, and generated €28.3 billion in sales in 2020, with products sold in over 120 markets. They have a market capitalization of $45 billion. Danone’s brand portfolio comprises both international and local brands. Actimel, Alpro, Aptamil, Danette, Danio, Dannon, Danonino, Evian, Nutricia, Nutrilon, and Volvic were among Danone’s international brands in 2018.
9. PepsiCo
PepsiCo, headquartered in Purchase, New York, was founded in 1898 by pharmacist Caleb D. Bradham. When the Pepsi-Cola Company and Frito-Lay, Inc. amalgamated in 1965, the company was renamed PepsiCo. PepsiCo is one of the world’s largest corporations, with products sold in over 200 countries. PepsiCo, besides its eponymous product, Pepsi, is the tycoon behind a slew of brands such as Gatorade, Tropicana, and Quaker Oats, to name a few.
PepsiCo was founded in 1898
PepsiCo’s revenue in 2019 was $67.16 billion, with food revenues accounting for $36.26 billion, primarily driven by Frito-Lay North America sales (FLNA). In Latin America, the snacks and food division generated roughly 90% of the region’s total revenue.
10. Mondelez
Mondelez International Inc., as one of the largest food and beverage companies on the list, is a multinational American confectionery, food, holding, beverage, and snack food company headquartered in Chicago, Illinois. Mondelez generates approximately $26 billion in annual revenue and operates in approximately 160 countries.
The company operates in approximately 80 countries and employs approximately 80,000 people. It operates 126 manufacturing and processing plants in 44 countries.
A product of Mondelez International, Inc.
In 2019, the company generated approximately 74.4% of its net revenues outside of the United States. Higher net pricing and favorable volume or mix drove organic net revenue growth. Mondelez bought out most Perfect Snacks in 2019 and Tate’s Bake Shop in 2018.
Overall, throughout the pandemic, the food and beverage industry performed admirably. While there have been COVID-19-related disruptions, the industry’s largest food and beverage companies has strong fundamentals and promising long-term prospects.
Founded in 1996, Tan Do Beverage is one of the leading beverage manufacturing companies in Vietnam. We focus on juice beverage products and provide private label services for customers around the world. Contact us if you need quality nutritious product lines.
