Consumers have never been more curious about new tastes and experiences, and it’s no different when it comes to beverages. Demand for clean label drinks that provide greater variety and quality in taste is challenging producers to innovate. In order to ensure they meet business goals, beverage producers need to be aware of the new innovations being developed and increase portfolios according to consumer taste demands.
What Consumers Want – and Why
The question is, what has changed? In short, the answer is that consumers are more aware of their eating choices than ever before as they are increasingly motivated by the desire to live AND feel healthier.
As savvy consumers, millennials and Gen Z have had the most influence compared to other target populations. And, with large disposable incomes at hand, beverage producers are paying close attention to the fact that these generations are both aware of what they are putting in their bodies, and want to know the sources of the ingredients. In essence, their beverage choice has become a reflection of their identity and demanding healthier, more natural premium beverages has become apart of who they are.
Sparkling Water for Health-Conscious Millennials
Many millennials who have moved past soft drinks are trending to the sparkling water market, with Americans buying 821 million gallons this year. Most typically produced with no sugar and no artificial flavors, it’s attraction is as a calorie-free refreshing beverage. Counting technically as water, it can be consumed in large quantities. The bubbly trend for sparkling water is sophistication combined with health and youth; innovation at its very best.
Moreover what started as a non-alcoholic beverage, most recently has found its way into the alcoholic sector as spiked seltzer. Seltzer sales are on the rise with close to $300 million this past year. The fact that the seltzer is still relatively low in carbs and sugar, yet is spiked, provides a winning combination. Spiked seltzer offers an alternative to other niche alcohols such as hard cider, and even beers. With healthier beverages as a lifestyle choice, this speaks to a “rising culture of people wanting to work hard, play hard, and live a well-balanced lifestyle.”
Sweeteners that are Sweet AND Healthy
We know that the use of sugar alternatives to produce ‘diet’ and ‘sugar-free’ alternatives is nothing new. Most people who regularly consume diet beverages say they can never go back. Low-calorie drinks have been produced regularly since the 1960s, so why the recent surge in innovation and research?
The most well established natural sugar alternative, stevia – first introduced into the market in the mid 1980s – is known to be challenging from an aftertaste standpoint. As a result, scientists are working hard to develop low-calorie sweeteners that do not compromise on taste.
It seems that they have certainly delivered! In addition to ‘next generation’ stevia, new sugar alternative options include sugar alcohols (like Erythritol) and various natural sweeteners. Emerging as innovative sweeteners: monk fruit, coconut, sweet potato, oat, honey, agave and date syrup are further contributing to the rapid adoption of sugar alternatives.
A Thirst for Exotic Flavors
The casual curiosity of Millennials and Gen Z means they welcome any changes to traditional recipes. Product development for beverages is pushing the boundaries to be the first to introduce exotic flavors. Forward thinkers are seeing the potential opportunities for portfolio expansion and growth by embracing these trends.
There has been particular focus on creating botanical and floral flavored - like elderflower, lavender, chamomile, and hibiscus - and spicy flavored drinks. Ingredients such as dandelion greens and ginger meet the growing demand for more natural flavors while boosting the “oomph” of beverages. The challenge presented when developing these flavors lies in the ability to extract a flavor that is true to the fruit and yet accepted by the mainstream consumer. For this very reason, scientists often pair an exotic fruit for a more well known product.
What’s Next?
The clean label trend is driving the move toward beverages made with natural, healthy ingredients with a nod towards premium botanicals. New beverage products that will be produced to meet these preferences, appealing to today’s food-savvy consumers, provide bottlers and beverage companies with golden opportunities to increase expansion and growth.
The RCCI family has been driving innovation for over a century and doesn’t plan to stop. Now is the time to increase your portfolio with the new products our researchers are formulating as we speak and ensure you provide the innovation your customers are looking for.
