CPG Beverage Industry - Trends & Marketing Strategies [Infographic]

Success in the fiercely competitive beverage industry demands a keen understanding of shifting consumer preferences, a willingness to embrace current trends and the ability to leverage data-driven insights. By focusing on agility, continuous innovation, and deep customer engagement, beverage brands can navigate the ever-changing landscape to thrive. Here are key trends transforming the beverage landscape and actionable marketing strategies to help your brand thrive in this dynamic environment.

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CPG BEVERAGE MARKET OVERVIEW

USA: $359 Billion

Shifting consumption patterns driven by evolving health trends and lifestyle changes

EUROPE: $527.2 B

Unique characteristics, particularly in health trends and sustainability efforts

4  KEY TRENDS SHAPING THE CPG BEVERAGE INDUSTRY

1. THE WELLNESS WAVE

High demand for drinks that boost energy, enhance immunity, and sharpen mental clarity

• 46% of people are focusing on physical and mental wellness
• Instant Hydration:  73% CAGR from 3 years ago
• Powdered hydration: 37%  growth over last year
• Functional Beverages: Projected  to reach $190.2 BN by 2028. 

  Popular and trending ingredients include mushroom infusions and superfoods (magnesium, ginseng, ashwagandha)

• Caffeine: 113%  increase in online searches for “high caffeine”
  Exploding demand for energy-boosting drinks with higher caffeine levels

• Sugar Free: 30% of consumers seek low-sugar options and 29% look for no added sugar.
  Significant shift towards sugar-free alternatives with natural ingredients like stevia and monk fruit.

• Non-Alcoholic Beverages: 32% increase in sales with 35% from insurgent brands.
  Fewer young adults drink alcohol today than two decades ago.

2. PLANET-FRIENDLY PICKS

Sustainability and ethics are no longer just trends, theyʼre core expectations in the beverage industry

• 38% of consumers actively seek out eco-friendly beverage brands
• 71% of consumers are more concerned about the environment than ever before

• Sustainable Products: 30% of US consumers plan to increase intake of plant-based substitutes
  Eco-conscious consumers are driving the demand for sustainable and health-centric beverages - alternative milk and plant-based protein shakes.

• Eco-Friendly Packaging:  5.1% CAGR global sustainable packaging market 2020-2027
  Brands are increasingly moving towards eco-friendly packaging. Deposit Return Schemes (DRS) are gaining ground, promoting recycling and reducing litter
  

• Gen Z and Millennials are particularly vocal, pushing brands to source responsibly and innovate with sustainable packaging - minimizing their environmental footprint

3. GRAB-AND-GO VALUE

Convenience reigns supreme

• The global ready-to-drink beverages market size is projected to grow from $ 766.7 Billion in 2024 to $1,227.8 Billion by 2032

• Private Labels: 21% of US grocery industry unit sales
  Products appealing to price-sensitive and health-conscious consumers.
  

• Pack Size: 2000% growth is beverage combo packs

  Increased demand for varied and convenient options to cater to cost-conscious and adventurous consumers
  

• Ready to Drink:  43% of RTD consumers drink them more than once a week
  Busy lifestyles and on-the-go consumers seek quick energy boosts and hydration.
  

4. TECH TASTES

Technology ushering in an era of unprecedented convenience and personalization

• 1.8x Sales growth for manufacturers focusing on innovation

• E-commerce:  15.2% increase in online beverage sales
  Digital platforms offer convenience and subscription-based models

• Personalization: +5% yoy  increase in utilization of AI tools in Coffee and Tea
  AI-powered platforms and services offer customization based on taste, dietary needs, and health goals.

• Innovation: 258  new product launches in the energy drink industry alone
  Continuous innovation (with unique functional claims and ingredients) is essential
  

MARKETING SUGGESTIONS FOR CPG BEVERAGE BRANDS

Embrace Continuous Innovation

Leverage AI, engage with real-time consumer feedback, and stir excitement through limited-time offerings to keep their products relevant and appealing.

• Leverage AI-Driven Insights
• Listen To Social Feedback
• Experiment With Limited Drops

Leverage Social Media

Through captivating content and direct consumer engagement, beverage brands can forge deeper connections and boost visibility.

• ‘Influenceʼ Your Marketing
• Offer Social Media Exclusive

Evoke Nostalgia

By tapping into nostalgic feelings, brands can connect with a broad audience, bridging the gap between past and present in a way that feels both fresh and familiar.

• 'Renew' with Retro

• Stir up fond memories - packaging / communication

Showcase Sustainability

Implement sustainable solutions, reduce carbon footprints, and embrace eco-friendly manufacturing processes. Avoiding greenwashing is crucial!

• Source Ethically

• Package Sustainably

• Build Trust with Clear Labeling

Optimize Omnichannel

A seamless omnichannel strategy (integrating online and offline touchpoints) is crucial for delivering a satisfying consumer experience and to gain an understanding of consumer behavior.

• Gain Shopper Insights

• Refine Product Offerings

• Collect First-party Data

Leverage Experiences

Harnessing the power of major events and occasions can dramatically boost brand visibility and consumer engagement.

• Tap Into Events

• Design Unique Experiences

• Create Pop Culture Tie-Ins

Engage Through Promotions & Rewards

Incorporate gamification elements to create interactive and exciting experiences that encourage repeat purchases and deepen consumer connections.

• Create Targeted Rewards

• Offer Receipt-Based Promotions

Tap Into FMNs (Financial Media Networks)

Deliver personalized SKU-level promotions to consumers, by tapping into bank audiences, directly at the time of their card-based purchase.

• Tap into 67M+ shopper

• Leverage Top-tier bank partnerships

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As brands strive to remain competitive and relevant, the ability to adapt to changes in the market and consumer behavior has never been more critical. Contact us to discover how our best-in-class promotions and loyalty solutions can help to drive sales and engage your customers.

Don’t miss the full guide: INNOVATION ON TAP - CPG Beverage Industry Trends & Marketing Strategies - USA & EUROPE - Click here to read it!