Modern options include ready-to-drink teas, drinks with less sugar and beverages containing pulses and cannabis
Comfort and health are behind the most recent trends in consumer beverage choices.
And the COVID-19 virus may affect consumer beverage purchases, said Howard Telford, head of soft drinks for Euromonitor International.
“Particularly when we think about the last few weeks, this anxiety economy of consumer products, I think that’s certainly an area where demand is going to surge,” Telford said during a panel discussion on beverage trends focusing on American consumers.
Consumers are looking for beverages that reduce anxiety, aid mental focus and offer health benefits.
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That’s what he believes is behind steady growth in sparkling, ready-to-drink teas, kombucha as an ingredient and beverages with plant-based milk alternatives, excluding soy.
Oat milk, pea and pulse-based drinks are gaining popularity, he said, and growth continues in ready-to-drink coffee beverages and energy drinks.
“Beverages in the U.S. today are finding new ways to enter the consumers’ routine,” he said. “Beverages are functioning as natural supplements in some cases.”
Consumers are opting for beverages with less sugar, while also avoiding artificial sweeteners.
“When it comes to sugar reduction, for a clear majority of U.S. respondents, about 58 percent, are trying to reduce sugar specifically for reasons of weight loss or weight management.”
Telford said beverages with cannabis and hemp ingredients are market disruptors that will likely lead to major growth in that sector, particularly given the purported calming or mellowing effects they might have.
“I do think there’s going to be an increasing focus on this emerging anxiety economy when it comes to beverages.”
However, he also cautioned that the pandemic is likely to have major economic effects so price will be an increasingly important factor in consumer choices.
Thomas Hicks, chief growth officer for Ojai Energetics, said manufacturers are seeing a slight surge in beverages that include cannabidiols (CBD), likely because of anxiety over the pandemic.
However, “we’re definitely not marketing to this crisis,” said Hicks.
His firm is working with 21 beverage companies to develop products containing CBD but they will have to wait for the regulatory landscape to clear before they can start distribution.
Holly McHugh, marketing associate with Imbibe, a beverage development company, also said the pandemic could have unforeseen benefits to CBD-infused beverages.
“I do think there is potential for beverages that address stress and immunity,” she said.
There are also myriad potential downsides, said Telford. Beverage sales are down due to less foot traffic as social gatherings are curtailed. Reduced visits to restaurants have the same effect.
