Speaking at WorldWideBev in New York City, Tarick Gamay, vice president of retail and contract manufacturing at liquid beverage concentrate and enhancer contract manufacturer DreamPak LLC, said the market is expected to expand to $1bn by 2020.
The liquid concentrate and enhancer market is currently worth $461m, meaning there will be approximately 14% CAGR.
Gamay said this market, which the MiO Liquid Water Enhancer helped build from nothing earlier this decade, will become more popular due to consumers' desire for convenience.
Concentrates and drink enhancers serve different purposes, he said: concentrates attract at-home usage, while mixes target the on-the-go crowd.
Innovating new products
One product that Gamay believes will help the growth of concentrates is coffee mixes and coffee concentrates. In 2016, DreamPak will unveil Swirl, an “all in one liquid latte mix.”
“It gives the ability to make a Starbucks quality latte for $0.67,” he said.
Another product, Press’d, is shelf stable coffee concentrate that is squirted into a cup of hot water for “on the go coffee”, Gamay said.
A difficult aspect of building up to the $1bn market will be educating customers in order to create awareness, Gamay said.
“A key is the consumer education piece,” Gamay said. “We’ve been looking at the space of liquid enhancers and concentrates since 2005. It’s really not getting picked up or noticed by the broader market.”
He believes it has a real chance at “significant, incremental growth opportunity” with technology improvements as a key to success. Other regions will likely follow once the US market expands.
While the UK may have as much potential as the US when it comes to enhancers, he said there is no frame of reference or similar products currently on the market. This is something DreamPak and other companies will have to build over time.
WorldWideBev was hosted by Zenith International in New York City last month.