COVID-19 has drastically changed how consumers around the world live, play, eat, drink and work. Two preference changes—among the many that have come from the ongoing global pandemic—are the increased desire for premium experiences and products in convenient formats. The beverage category has the flexibility to deliver on both needs, especially within the evolving energy segment and the emerging low- or no-alcohol sector.
COVID-19 has drastically changed how consumers around the world live, play, eat, drink and work. Two preference changes—among the many that have come from the ongoing global pandemic—are the increased desire for premium experiences and products in convenient formats. The beverage category has the flexibility to deliver on both needs, especially within the evolving energy segment and the emerging low- or no-alcohol sector.
Market projections show the ready-to-drink (RTD) alcohol segment is expected to double by 2025a, growing to 8% of the global alcohol category. Energy drinks are a large growth segment as well, with a projected 5.19% CAGR expected between 2021 and 2025b. The energy category has also shifted from bulk packaging to individual RTD servings. Consumer need and desire for energy is becoming more frequent, as consumers turn to energy beverages during work and study hours, before and after exercise and while socializingc.
Holistic Health & Wellness
Interest in beverages with 5% alcohol by volume (ABV) or less has been gaining momentum in recent years, propelled by consumers’ desire to live a well-balanced lifestyle. Alcohol-free drink options have been gaining popularity due to themed months like Dry January and Sober October, as well as consumers’ desire to eliminate or minimize alcohol consumption without sacrificing feelings of inclusion during social gatherings. In 2021, 23% of people who drink participated in Dry January; of those, 27% were millennials and 23% were Gen Xd. Many people who abstain from alcohol say they do so for health reasons, such as better sleep, improved mood and weight loss. Zero-proof cocktails, elixirs, beer and wine can also offer attributes like fewer calories, reduced sugar and clean-label ingredients like natural colors and flavors.
References:
awww.theiwsr.com/driven-by-consumer-demand-rtd-volume-share-expected-to-double-in-next-five-years-in-top-markets
bwww.euromonitor.com/energy-drinks-in-the-us/report
cADM Outside Voice is a trademark of ADM.
dtoday.yougov.com/topics/food/articles-reports/2021/01/08/dry-january-2021-poll-data
For the full article, please check out the Perfumer & Flavorist+ February 2022 issue.
