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.
Shifting consumption patterns driven by evolving health trends and lifestyle changes
Unique characteristics, particularly in health trends and sustainability efforts
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
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.
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
E-commerce: 15.2% increase in online beverage sales
Digital platforms offer convenience and subscription-based models
Innovation: 258 new product launches in the energy drink industry alone
Continuous innovation (with unique functional claims and ingredients) is essential
Leverage AI, engage with real-time consumer feedback, and stir excitement through limited-time offerings to keep their products relevant and appealing.
Through captivating content and direct consumer engagement, beverage brands can forge deeper connections and boost visibility.
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
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
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
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
Incorporate gamification elements to create interactive and exciting experiences that encourage repeat purchases and deepen consumer connections.
Create Targeted Rewards
Offer Receipt-Based Promotions
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!