Raising a Toast
is contributing to its success
with quality-demanding
consumers. Within the
global juice/juice drinks
market, zero-proof drinks
account for approximately
1-1.5 percent of the share,
with the segment expected
to demonstrate moderate
growth, according to FMI.
“Ongoing advancements in
the zero-proof drinks market
with innovative efforts have
further enhanced their
demand,” FMI’s Choudhury
says. “Manufacturers are
concentrating on [research
and development] (R&D)
activities to improve the
multifunctional profiles of
zero-proof drinks, which
offer high health benefi ts, in
order to have a meaningful
impact on the category.”
Related to this, Mordor
Intelligence LLC,
Hyderabad, India, reports
that the functional beverage
market will reach $208
billion by 2024 and witness
a compound annual
growth rate (CAGR) of 8.6
percent during this forecast
period, citing consumers’
inclination toward non-
alcohol beverages as the
reason behind the increased
demand for functional
beverages.
in product development
practices, coupled with
technology upgradations,
would drive the market for
functional beverages in the
forecast period.”
Demographics also play a role
in the functional, health-and-
wellness market. Generation
Z (ages 18-24) and millennials
(ages 25-39) are prime
targets for zero-proof and
functional beverages. Growth
in the zero-proof drinks in
2020 is projected to be 2.5
percent, and around 2.9
percent during the next fi ve
years, FMI states.
FMI states that innovation
has been key to success in
the beverage industry, so
brands utilizing ingredients
such as natural food/beverage
colors, low-calorie natural
sweeteners and kosher
ingredients also are gaining
traction. What this means for
brands
“One of the major advantages
of a functional beverage is
consumers are ready to
pay a premium price for
its functional advantages,”
FMI states. “Advancement According to New York-based
Nielsen’s “Total Consumer
Report 2019,” based on
the top wellness claims this
quarter, consumers hold a
particular interest in products
that benefi t their bodies.
Drinkers are
becoming
adventurous and
promiscuous,
breaking the
boundaries
between drink
categories to
gain [a] multi-
sensory drinking
experience
“There’s no shortage of
access to products that
meet a variety of health and
lifestyle needs. So, companies
need to do more than simply
make consumers aware of
their products and tell them
where they’re available,” the
report states. “[Companies]
need to convince consumers
both to try and continue to
buy their new products.”
In addition, for manufacturers
in the zero-proof and
functional beverage space,
seeking and pursuing
innovation will be key to
maintaining a fi rm foothold
in the market.
“The ‘demand for more’
is a key factor leading the
beverage industry over
the years. Drinkers are
becoming adventurous
and promiscuous, breaking
the boundaries between
drink categories to gain
[a] multi-sensory drinking
experience,” FMI’s
Choudhury says. “In the
global functional zero-proof
herbal juice/drink market,
product innovation is a
continuous process that
has evolved the beverages
market over the decades.”
As such, and with the outlook
for projected growth looking
bright, brands and retailers
paying attention to trending
demands for zero-proof and
functional beverages, and
investing in the innovation
to meet those demands, will
maintain a strong foothold
in the beverage market for
2020 and beyond.
Source
https://www.bevindustry.com/
Drink Asia
26
March-April 2020