Raising a Toast
or THC, not only cater to
the zero -proof-seeking
consumers, but they speak
to another rising trend:
beverages with benefi ts.
Beverages that do
more
Experts note that health-
conscious consumers want
what they drink to do more
for their bodies. A report
titled “Fusion Beverages
Market - The Next Frontier
of Beverage Industry ”
by London-based Future
Market Insights (FMI) reports
that with health-minded
consumers, optimistic
selections involve healthier
nutritional beverages derived
from natural sources.
“Consumers are opting for
natural beverages (plant- or
animal-based), that are more
benefi cial compared to other
beverages like carbonated
drinks,” says Nandini Roy
Choudhury, senior research
consultant at FMI. “With
increasing awareness
among the population about
health benefits of natural
beverages, consumers are
inclining toward natural,
non-modified functional
ingredient products.”
We l l n e s s - f o c u s e d d a t a
technology company SPINS
also has seen this shift.
“Seemingly overnight,
traditional beverage brands
with poor ingredient quality
and high sugar have fallen
out of favor. We’re living
through tremendous shifts
in the way people eat and
drink. People want quality
product ingredients at a fair
price,” says Tony Olson, chief
We’re living
through
tremendous shifts
in the way people
eat and drink.
People want
quality product
ingredients at a
fair price
executive officer of SPINS
LLC, Chicago.
SPINS data for refrigerated
juices, functional beverages,
shelf-stable functional
beverages and waters
sales demonstrates these
categories are up 5.9
percent across all channels.
In 2019, this created a $27.2
billion market, with high
performance seen in shelf-
stable energy and other
functional beverages, which
saw an 11.7 percent sales
increase. Additionally, shelf-
stable enhanced waters saw a
12.8 percent increase, while
refrigerated kombucha and
fermented beverages saw
Drink Asia
24
a 15.7 percent increase.
Refrigerated coconut and
plant waters also are on the
rise as the segment saw a
10.1 percent increase, SPINS
data indicates.
Ingredients making
waves
With functional ingredients
being of growing importance
to consumers, ingredients
making waves in the ready-
to-drink (RTD) category
include cannabidiol (CBD),
electrolytes, botanicals,
adaptogens, fruits,
vegetables, roots and herbs.
According to Mintel’s “U.S.
Flavor & Ingredient Trends
2019” report, 75 percent of
cannabis users in cannabis-
legal states say they use
cannabis to relax and 34
percent of cannabis users
in states where recreational
cannabis use is legal have
reduced alcohol consumption
because of its legalization. As
a result, CBD has become
the focal point of what has
been dubbed the “functional
plus” category.
March-April 2020
Mintel reports that with
cannabis now legal in several
U.S. states and industrialized
hemp production legal
nationwide, consumer
curiosity in alternative
forms of stress-release and
relaxation is piqued. Whether
it is tetrahydrocannabinol
(THC), CBD, or other
botanicals with purported
relaxation benefits,
consumers are interested
in trying drinks that support
their desire to slow down,
the market research firm
says.
“CBD and other adaptogens
are netting a lot of buzz
as supplements, and even
as an ingredient in food
and drinks, despite not-so-
defi ned legality,” says Mimi
Bonnett, director of Food
and Drink and Foodservice
at Mintel.” Nearly one-fi fth
of consumers report past
or current use of food and
drinks with CBD, she adds.
Electrolytes also are making
waves. Purchase, N.Y.-based
PepsiCo’s portfolio includes