Beverage trends are always changing depending on the preferences of the consumers, but the beverage industry is currently seeing a boom in the non-alcoholic market. Sales of non-alcoholic drinks have more than doubled those of alcoholic drinks in 2019 alone while sales of sodas and other sugary drinks have declined over the past decade. How are consumer preferences affecting the beverage industry and causing the rise of the non-alcoholic beverage market?
The Functional Water Market
Consumers are turning away from sugary drinks and choosing functional waters, or herb-infused sparkling or still waters, that include healthy additives like vitamins, minerals, and vegetables. More people desiring products infused with healthier ingredients that help with weight loss as well as nutrition have caused the functional waters market to grow in popularity. By 2025, the global functional water market is even expected to reach $18.24 billion. Consumer preference for eating organic foods have led to increased interest in finding organic beverages as well. As more people learn about the health benefits of organic products and thus look for beverages that do not contain sugar or caffeine and are naturally flavored, brands are providing solutions by developing organic drinks. By 2027, the global organic beverages market is estimated to be worth $32.78 billion.
There are some consumers who are aware of the health benefits of drinking coffee and see the drink as a great alternative to sugary beverages. Coffee is also easy to buy in cans, bottles, and cartons while new innovative products make the drinking experience enjoyable. Coffee has and still charges up the world in the morning, and the demand for the drink will only continue to increase. In fact, the ready-to-drink (RTD) coffee market is believed to reach $133.9 billion by 2027. However, for those who want to stay away from caffeine, tea is a great alternative. People who are conscious of their healthy lifestyle are looking towards highly oxidized and herbal teas to get the energy boost they need without consuming caffeine. In fact, innovative ways of revamping the cold tea category with cold brews and various milk blends have increased the market’s popularity with many predicting the global tea market to reach $68.95 billion by 2027.
The Rise of the Mocktail
Now, there are even healthier versions of alcoholic beverages as consumers desire to taste different flavors in their alcohol. Consumer preferences for drinks with lower alcohol content due to growing awareness of the effects of excessive alcohol consumption have caused brands to craft RTD alcoholic beverages with healthier ingredients and flavors that include tropical fruits, apples, and berries. More bars are also adding non-alcoholic mixed drinks options to their menus called a mocktail. With more customers being non-drinkers (especially the younger generations) who still want to take part in the bar scene, a mocktail is a healthier option to alcohol that looks luxurious and satisfies people’s desire for complex flavors. A mocktail can be enjoyed by anybody, not just pregnant women, like children who want to share a special drink with their families for a special event.
The non-alcoholic beverage market is now on the rise, and there is no stopping it any time soon.