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4 leading trends in the 2019 functional beverage market

2019-07-18 11:53 Thursday


Health and wellness are undoubtedly driving a lot of innovation in the functional food and beverage industry at the moment, led by increased consumer awareness of both the environment and their own nutritional needs.

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Bearing this in mind, here's a look at the four major trends in non-alcoholic beverages for 2019 that are driving product launches and seeing the largest consumer growth for niche and major brands.

These trends are largely influenced by the appetite of Millennials who are increasingly abstaining from alcohol and necessitating a cultural shift that beverage producers must learn to keep up with if they want to find further success and expand their product line.

1. Sustainability

One of the other main factors currently affecting the food and beverage industry at large is sustainability, and it is bound to remain this way. Buyers are growing more and more aware of the effect that they have on the world around them and are looking for ways to make a difference.

Several leaders in the bottled water and soft-drink market announced their intention in September last year to make sure that their packaging is 100% recyclable or reusable by 2030. They plan to achieve a minimum of 70 percent by 2025.

Many brands have similar sustainability goals. PepsiCo says it intends to use 25 percent recycled material by 2025, for its plastic packaging.

The reduction of plastic waste is a key factor in the sustainability objectives of the beverage industry. Coca-Cola Amatil just recently released 100% recycled plastic carbonated drink bottles.

As the caution for plastic waste grows, the market for canned beverages is also increasing and is expected to rise at a rate of 3.19% between 2018 and 2022.

2. Fermented drinks

Drinks produced through fermentation are rich in probiotics and are valuable for gut health. This category is growing more popular, and this is likely to continue.

BCC Research reported that the ingredient market for fermented drinks is likely to grow up to US$28.4 billion next year. This is a yearly growth rate of 3.4 percent.

One major contributor to this growth is Kombucha, a fermented tea that contains live healthy bacteria to help with the digestive process.

Researchers envisage that the market for Kombucha will grow in N America by 13 percent annually, and reach US$3.5 billion in 2025. Kombucha normally comes ready to drink, like Revive Kombucha's novel sparkling canned Kombucha. This makes the product more accessible to consumers.

Other rich fermented drinks are kefir drinks, which are loaded with probiotics and functional ingredients for treating digestive issues and boosting immunity. Bio-tiful Dairy has released new flavors of the kefir smoothies. Captain Kombucha has also launched a new range of sparkling water kefir drinks. New kefirs are flooding the market.

3. Niche categorization

Of late, there has been an increase in the number of new beverages with health-related functions. There are beverages that promise to relieve stress, boost immunity, and even improve beauty. Buyers now want more from the products they consume.

Several new ready-to-drink beverages now contain collagen, a major component chemical in hair, skin, and nails. Vital Proteins and Protein Water Co have both included this ingredient. Top brands, like the Coca-Cola Company, have also joined this trend, improving its VitaminWater line and releasing a new energy drink containing guarana extracts, caffeine, and B vitamins.

Many beverages are also including CBD for pain and stress relief, and they have gained popularity.

4. Non-alcoholic options

IWSR reports that consumption of alcohol dropped all over the world by 1.5 percent in 2018. People are beginning to choose to reduce their intake of alcohol, and this has created a leeway for drinks appealing to both abstinent consumers and those watching their consumption level.

This trend has grown beyond mere soft drinks and sodas. At the start of the year, Sparklingly Sober released a non-alcoholic fizzy wine, and Coca-Cola also put out a new line of sparkling, non-alcoholic adult drinks.

Alcohol-free beers are springing up all over the place, including with the big names like Peroni and Heineken. Some of them contain CBD instead, in line with the recent wellness-centered trend.

These products are majorly aimed at health-conscious customers, and a lot of brands are tapping into the health trend to boost growth and make sure that they remain relevant.

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