The beverage market is on track to reach $141.90 billion in revenue in 2024. What’s driving this growth? A series of trends that every food and beverage business needs to know.
Whether you’re a supplier, manufacturer, or run a franchise, knowing these trends is key to staying competitive and meeting your customers’ needs.
In this blog, we will cover the top beverage trends impacting the industry and how they can influence your business strategy.
The beverage market is pulsating with new trends and shifts, setting the stage for significant growth and transformation. Let’s talk about the nuances of these trends.
Expectations are set for a 2.2% increase in world coffee consumption, reaching 177.0 million 60kg bags.
However, coffee resonates differently across generations. According to a YouGov study, Gen Z’s interest in coffee lags behind other age groups, with Gen Z much less likely to consume it than Baby Boomers and Gen X. When Gen Z does head to the cafe, iced coffee takes precedence. For coffee brands hoping to reach a younger audience, research shows that the best way to connect and engage with Gen Z is through social media.
The non-alcoholic beverage sector’s growth is notable, with non-alcoholic products seeing a 9% increase in 2022 alone and projected to dominate the category’s expansion through 2026.
Consumers want more from their non-alcoholic beverages, from flavor innovation to variety, especially in ready-to-drink formats. Collaboration between retailers and beverage companies is making these options more accessible.
A notable example of collaboration in the non-alcoholic beverage market is between the supermarket chain Waitrose and the global beverage company Diageo. They teamed up to create a dedicated space for low- and non-alcoholic drinks within 253 Waitrose stores across the UK.
The energy drinks (functional beverages) market, primarily fueled by males aged 18 to 34, is undergoing significant transformations.
The sector is booming, with projections showing a leap from $47 billion to $240 billion in global revenue from 2023 to 2027.
Consumer awareness around health has also steered the market towards products low in or free from calories and sugar.
With tools like OpenAI’s ChatGPT and DALL-E gaining popularity, the beverage industry is tapping into AI to unlock profound consumer insights and predictive analytics.
PepsiCo, Molson Coors, and other leading brands already leverage AI to inform their innovation strategies.
As AI continues to mature, its role in beverage creation, distribution, and marketing is set to expand.
On TikTok, a new trend dubbed #WaterTok is stirring up quite the debate, far exceeding the typical online squabble. It involves TikTok users concocting various water “recipes” by adding sugar-free syrups and flavor packets to water.
The trend, spearheaded by Tonya Spanglo (@takingmylifebackat42), boasts over 220 million views under its hashtag.
Critics argue that these flavored waters, masquerading as healthy alternatives, could lead to soda-like consumption habits and potential health risks due to artificial sweeteners.
Gary Hemphill of the Beverage Marketing Corporation and Caleb Bryant of Mintel have both highlighted sugar as the main hurdle facing the juice industry.
With 58% of consumers wary of the health implications of high sugar levels in juice products, the sector is feeling the pressure.
Kraft Heinz’s Capri Sun and Uncle Matt’s Organic are in charge of innovative formulations. Capri Sun has introduced juice drink pouches with nearly 40% less sugar.
Despite a growing interest in healthier beverages, carbonated soft drink (CSD) sales are climbing, with dollar sales up 7.4% to $10.7 billion in convenience stores for the year ending December 31, 2023.
In response to consumer demands for innovation and variety, brands like Coke are introducing new flavors, such as Coke Spice, to maintain consumer interest.
Plant-based beverages (such as soy, almond, and oat milk) offer a sustainable and health-conscious alternative to traditional dairy. They attract attention for their lower environmental impact and varied nutritional benefits, packed with essential nutrients like:
To match the appeal of dairy, industry leaders in plant-based drinks focus on improving flavor profiles and processing techniques while ensuring environmental responsibility.
Plant-based dairy alternatives crafted from sources like nuts, legumes, and cereals are rising in popularity. Soy-based drinks are particularly prevalent due to their protein content comparable to cow’s milk.
The production of these beverages involves water extraction from plant materials, creating a milky emulsion that can be naturally or artificially fortified to improve its nutrient profile.
Fermentation is a key process in enhancing the nutritional value of plant-based beverages, allowing for various sensory experiences.
Beverage innovation is leaping forward with technologies to improve taste by eliminating unwanted flavors.
For example, True Essence Foods, an Indianapolis startup, is leading the charge with its proprietary methods for flavor balancing and ensuring flavor symmetry.
These technologies capture, maximize, and protect ingredients’ natural, untouched flavor, resulting in truer, fresher-tasting products.
Health consciousness is reshaping consumer preferences, propelling the demand for natural and organic products, with tea reaping significant benefits.
Herbal teas have seen an impressive annual growth rate of 7.3% over the past year. Among the sought-after varieties, chamomile, ginger, and green teas stand out for their popularity and reputed therapeutic qualities.
Bubble tea, a sweet and refreshing beverage originating from Taiwan, combines tea, milk, and chewy tapioca pearls or fruit jellies. It has become especially popular among young people for its customizable flavors and fun textures.
The delightful drink has not only captured the hearts of Gen Z but is also showing signs of becoming a long-term favorite.
According to forecasts by IMARC Group specialists, the bubble tea market is expected to grow impressively, reaching a valuation of $3.6 billion by 2028. This represents a compound annual growth rate (CAGR) of 7.1% from 2023 to 2028
Keeping up with beverage industry trends can give businesses an edge, but true insight comes from understanding them through solid data.
With Brizo FoodMetrics, you get more than a glimpse into the latest craze; you get the full picture. Brizo’s market intelligence platform is your go-to source for the most up-to-date, comprehensive data on restaurant menus, offerings, and customer reviews across the US and Canada.
Ready to make smarter choices that drive sales? Check out Brizo FoodMetrics now.
