The demand for sustainable development has resulted in green explosions across the economy. Beverage companies are coming up with beverage innovations for healthier and more eco-friendly options, such as beverages with lower sugar content and eco-friendly packaging solutions.
Let’s take a closer look at the 7 trends that are pushing the industry towards a sustainable future.
The rise of sugar-free beverages
By 2032, the market for sugar-free beverages is projected to be worth USD 38 billion globally. This explosive forecast is indicative of customer’s growing awareness of sugar’s harmful effects. In addition, developments in alternative sweetener technologies are driving this trend.
Sugar-free or low-sugar drinks have recently gained popularity among consumers
Definition of a sugar-free drink
Any beverage without added sugars is considered sugar-free. Alternative sweeteners, such as stevia, saccharin, neotame, sucralose, and aspartame, are used to sweeten these drinks instead of regular sugar. It contains none of the calories or glycemic effects of regular sugar.
Market trends for sugar-free drinks
The Centers for Disease Control and Prevention USA estimated that in North American countries, including the United States, the obesity rate of people aged 18 and older was 31.9% . Furthermore, Vietnam’s obesity rate is rising at the quickest rate among Southeast Asian nations, at 38%.
These factors have led to a rise in consumer awareness in recent years regarding the health hazards—such as obesity, diabetes, and cardiovascular diseases—that come with consuming large amounts of sugar. This enables individuals to look for healthier substitutes, such as beverages without added sugar.
Moreover, since many diet fads like paleo, keto, and low-carb emphasize cutting back on sugar, the demand for sugar-free options has increased.
Market segments of sugar-free beverages
The product type, claims, and distribution methods are the main factors used to segment the global market for sugar-free beverages.
Many kinds of beverges can be made sugar-free, such as: dairy products, energy drinks, soft drinks, juices made from fruits and vegetables, and other sodas. Due to its significant health advantages, the sugar-free fruits and vegetable juices sub-segment holds the largest market share among them.
These are the most common alternative sweeteners found in today’s beverages:
- Artificial sweeteners: like saccharin, sucralose, and aspartame;
- Natural sweeteners like erythritol, stevia, or fruit extract;
- Sugar alcohols: such as xylitol and sorbitol, which are frequently combined with other sweeteners.
Popular sugar-free drink products
Actually, the Coca-Cola Company introduced Diet Coke, the first carbonated drink without added sugar, back in 1982. However, their first big breakthrough was Coca-Cola Zero Sugar in 2016. The product, which was advertised as being free of calories and sugar, gained popularity right away and had a sharp rise in sales.
As a result, Many large firms are joining the competition for sugar-free drinks. Pepsi, a direct rival of Coca-Cola, couldn’t stay still and introduced Pepsi Zero Sugar.
Adapting to sustainability regulations
The beverage industry is undergoing a significant transformation, as sustainability becomes a driving force for change. New regulations are mandating sustainable packaging worldwide. Here are a few details of this trend:
DUTCH LADY Milk with environmentally friendly packaging on the Vietnamese market
Packaging Revolution
Many beverage brands make packaging changes as part of their development strategy.
- Moving away from virgin plastic, and choosing sustainable alternatives. This includes using recycled plastic content, biodegradable materials like plant-based polymers, and exploring innovative solutions like edible coatings.
- Optimizing packaging design to minimize material usage is another key strategy. Lighter bottles, redesigned caps, and concentrated formats for products can all contribute to a smaller environmental footprint.
For example, Coca-Cola Vietnam declared in 2021 that transparent PET plastic bottles will take the place of the company’s iconic green plastic bottles for Sprite products (the company had previously used these bottles in countries in Southeast Asia, Western Europe, and the US). Recycling PET bottles will be simpler if Sprite’s iconic green plastic bottles are replaced.
DUTCH LADY Milk introduced new packaging in 2022, which is an environmentally friendly brown paper carton with a layer of bioplastic made from sugarcane bagasse. This first dairy packaging innovation reduces CO2 emissions by up to 10.4% by reducing the use of chemical ink.
Sustainable Manufacturing
Manufacturers also consider sustainable production trends as part of their overall product development strategy.
- Implementing water-saving technologies, optimizing energy use in production facilities, and utilizing renewable energy sources are crucial steps towards more sustainable manufacturing practices.
- Minimizing waste generated during production and exploring recycling or upcycling opportunities for waste materials demonstrates a commitment to responsible resource management.
Government Regulations as a Catalyst
Governments around the world are implementing stricter regulations to promote sustainable practices. This includes deposit-return schemes for beverage containers, bans on single-use plastics, and regulations on tethered caps that remain attached to bottles to prevent littering.
As a matter of fact, disposable plastic plates, knives, and scissors, as well as some polystyrene cups and containers, are prohibited as of October 2023 in the UK.
The European Union is now championing a new wave of sustainability in the food and beverage space, the Tethered caps regulation. Article 6.1 of Directive (EU) 2019/904 clearly states that “single-use plastic products, etc. may be placed on the market only if the caps and lids remain attached to the containers”.
Because the bottle cap is attached to the bottle body, it cannot be thrown away separately. Instead, it will be recycled with the bottle body and, after sorting and processing, join the new plastic product cycle.
Bottles with tethered caps are required in the EU
The Canadian government also published regulations in 2022 that outlawed single-use plastic goods; these regulations became formally operative in December of 1013.
The Road Ahead
The journey towards a fully sustainable beverage industry is ongoing. Continuous progress in packaging innovation, responsible sourcing, and transparent communication with consumers will be crucial. However, by embracing these changes, beverage companies can secure their long-term success in a market increasingly driven by sustainability.
This commitment not only benefits the environment but also attracts environmentally conscious consumers and builds a stronger brand reputation.
An exploding functional beverage market
Consumers are becoming more interested in enhancing their health through their diets. When asked how they want to eat healthily, one-fifth of customers say they pick foods or beverages with health-boosting elements. Some consumers claim they are willing to pay more for food and beverages that improve their physical or mental well-being.
Looking at the worldwide functional beverage industry, we can see that Asian consumers are more prone to choose health-promoting food and beverages.
Digestion-enhancing kombucha beverages are steadily gaining traction in the market.
What are functional beverages?
Functional beverages are those that offer additional health advantages beyond basic nutrition. These beverages contain substances that provide specific health benefits, such as helping digestion, boosting the immune system, increasing energy, or supporting general wellness. They cater to customers looking for easy methods to incorporate health-promoting foods into their diets.
Key Features of Functional Beverages
Functional beverages have the following key characteristics in terms of use and classification:
| Health Benefits | Nutritional enhancement contains vitamins, minerals, and other critical nutrients |
| Ingredients that improve physical and mental performance. | |
| Disease prevention components that may lower the risk of chronic diseases | |
| Special Ingredients | Probiotics and prebiotics, which promote gut health and aid digestion |
| Antioxidants such as vitamins C and E, can help combat oxidative stress | |
| Botanicals and herbs such as ginseng, turmeric, and green tea extract, provide a variety of health benefits | |
| Electrolytes used for hydration and electrolyte balance | |
| Amino acids and proteins aid in muscle repair and growth | |
| Types of functional beverages | Energy drinks contain caffeine, taurine, B vitamins, and other substances to promote energy and alertness, will account for 23% of all functional beverages by 2022 |
| Sports drinks formulated with electrolytes such as sodium and potassium to promote hydration and recovery | |
| Probiotic drinks such as kefir, kombucha, and some yogurts, promote intestinal health (prebiotic soda). In fact, gut health is the largest functional beverage market sector, accounting for 26% of functional beverage market launches in 2018-2022 | |
| Nutritional and protein shakes beverages such as meal replacements and protein shakes that promote muscle growth and overall nutrition | |
| Enhanced waters that have been reinforced with vitamins, minerals, and, in some cases, electrolytes | |
| Herbal and botanical teas that have been infused with herbs and botanicals to provide various health benefits, such as chamomile for relaxation or green tea for antioxidants | |
| Functional juices and smoothies include functional components such as superfoods, fiber, and probiotics |
Due to rising consumer interest in wellbeing, functional beverages are a dynamic and quickly growing segment of the beverage market. As consumers become more health conscious, the functional beverage industry is expected to grow, with innovations in product composition and delivery leading the way.
High caffeine for alertness and performance
Our fast-paced job and personal lives require constant attentiveness. High-caffeine beverages provide a quick and easy solution to overcome weariness and boost focus. The beverage sector has seen a boom in the popularity of drinks with higher caffeine content.
Consumers choose drinks with caffeine to help them stay awake and alert for work
Many types of caffeinated beverages such as: canned coffee, packaged tea drinks, energy drinks and sports drinks are seeing massive sales boosts. .
Here’s a closer look at the phenomenon:
Factors Driving the Trend
The factors listed below, based on changes in consumer preferences and habits, have contributed to the growing popularity of caffeinated beverages.
- Consumers enjoy the taste of caffeine in drinks. According to a Food Insight report, 93% of survey respondents in the United States drink caffeinated beverages on a daily basis as of 2022.
- The second most common reason for drinking caffeinated beverages is that caffeine makes them feel alert. This is attractive to students, gamers and office workers.
- Caffeinated drinks, such as tea and coffee, are also popular among older people (aged 45 and up) due to appropriate habits and tastes.
Potential Concerns
Excessive caffeine consumption can cause anxiety, sleeplessness, and other health issues. The increased caffeine level in beverages raises worries about potential overconsumption, particularly among young people.
The Future of High Caffeine Beverages
While the high-caffeine trend is expected to continue, there will be a greater emphasis on appropriate usage and providing customers with caffeine levels. Furthermore, we may see innovation in natural caffeine sources, such as guarana extracts or green tea blends, which provide a more balanced energy boost.
The US Department of Agriculture (USDA) and the European Food Safety Authority (EFSA) both recommend consuming 400 mg of caffeine per day as safe. This amount is equivalent to three to four cups of coffee, eight cups of green tea, or ten cans of soda. You should also limit your caffeine consumption to 200 mg at a time (dose).
Following these recommendations, beverage brands with caffeine-containing products should include specific instructions or display the caffeine dosage on the label so that customers can make informed decisions.
Plant-based to replace dairy
The global dairy alternatives market was valued at USD 29.18 billion in 2023 and is expected to rise significantly in the next few years due to increased consumer awareness of health, environmental, and ethical issues, as well as the vegan eating trend or lactose intolerance.
This trend is especially noticeable in the beverage business, where plant-based alternatives to traditional dairy and other animal-derived products are gaining popularity.
Plant based milk has many surprising benefits
Consumer awareness
Customers are becoming more concerned about the health advantages of their beverages. Plant-based choices frequently have reduced fat content, are high in nutrients, and accommodate dietary constraints such as vegetarianism.
Concerns about the environmental impact of cattle raising activities (like dairy cows) are leading to a shift toward plant-based alternatives. Soy, almond, oat, and other plant-based milk alternatives are regarded as more sustainable.
Product Development
Continuous innovation in technology and ingredient sourcing has resulted in high-quality plant-based beverages that taste and feel similar to their animal-based counterparts. Consumers can choose from a wide range of plant-based components, including almond, soy, oat, coconut, pea, and rice.
Among young people who are health-conscious and follow vegan and ketogenic diets, almond milk is growing in popularity. Because of its high lipid, fiber, and protein content, almond milk is a rich substitute for dairy and is predicted to be widely adopted by end-user sectors as well as consumers.
One of the first and most widely consumed plant-based milks, soy milk is high in protein. Given that soy milk includes isoflavones, which are thought to lower the incidence of breast cancer and heart disease, it is anticipated that soy milk will become more and more popular in the United States among women and the elderly.
A plant-based beverage produced with oats is called oat milk. It is renowned for having a mildly sweet flavor and a creamy texture. Additionally, it has a lot of beta-glucans, which can decrease cholesterol.
Soy milk led the dairy substitutes with over 35% of the US market revenue in 2023.
Challenges
Plant-based alternatives have recently gained popularity, but these beverages are not without challenges.
- Although plant-based substitutes have advanced significantly, it is still difficult to produce dairy-like flavor and texture. Widespread adoption depends on ongoing improvement in processing and taste.
- It’s important to consider how some plant-based foods, like almond milk, may affect the environment. Businesses are looking at more environmentally friendly solutions, such as oat milk, or creating closed-loop water systems for use in production.
The Prospects for Plant-Based Drinks
The emergence of plant-based substitutes is a long-term trend with substantial room for expansion. Plant-based beverages have the potential to become more widely accepted when issues with taste, texture, and sustainability are resolved. This change will encourage more creativity in flavors, ingredients, and manufacturing processes, resulting in a more varied and sustainable beverage market.
Lower alcohol consumption and 0% alcohol drinks
The once-unchallenged reign of alcoholic beverages is facing a new reality: a growing trend of alcohol aversion. This shift in consumer preferences is impacting the beverage industry, prompting innovation and adaptation.
Budweiser and Heineken introduced non-alcoholic beer products to meet market demand
Factors Driving the Trend
- Consumers are increasingly health-conscious, opting for beverages with lower sugar content and mindful of the negative health impacts of alcohol.
- Busy lifestyles and a focus on well-being are leading some consumers to prioritize healthy choices, including reducing or eliminating alcohol consumption.
- Younger generations are showing a decreased interest in traditional alcoholic beverages, seeking out flavorful and innovative alternatives.
Impact on the Beverage Industry
- Specialty spirits and alcoholic drinks are surging. Craft beers, wines, and spirits without alcohol are gaining popularity, offering sophisticated flavors and social settings without the drawbacks of alcohol.
- Ready-to-drink (RTD) mocktails are becoming a major trend, offering convenient and flavorful options for social gatherings or everyday refreshments.
- The emergence of a non-alcoholic cocktail culture is fostering creativity and experimentation. Bartenders are crafting complex and delicious mocktails using botanicals, spices, and innovative flavor combinations.
The Future of Alcohol Aversion
The trend of alcohol aversion is likely to continue. As options become more sophisticated and readily available, non-alcoholic beverages will become a mainstream choice. This will necessitate continued innovation and diversification from the industry to cater to this evolving consumer demand. By embracing this shift, beverage companies can expand their product offerings and reach a wider customer base, ensuring their future success in a changing marketplace.
Clean labels in healthy beverage products
Consumers are increasingly seeking transparency and simplicity in their food and beverage choices, and the beverage industry is no exception. This trend is fueled by the “Clean Label Movement,” which emphasizes products with recognizable and natural ingredients, minimal processing, and a clear absence of artificial additives.
Consumers prefer products that have minimalist labels and health claims
What exactly is a clean label drink?
“Clean label” has existed in the food and beverage market for a few years. Generally, the clean label drink is manufactured with natural or organic ingredients instead of artificial ones (flavourings, preservatives, artificial sweeteners, emulsifiers, colourings, etc.).
There is no official government regulation to award “clean label” certification. It is up to consumers to be aware or through 3rd party organizations like the “Clean Label Project” (CLP) (a nonprofit organization whose mission is to bring transparency to food and consumer product labelling).
Why Clean Label Matters?
- Consumers are wary of artificial ingredients and potential health risks associated with them. They desire beverages that are perceived as natural and wholesome.
- Transparency in labeling fosters trust with consumers who want to understand exactly what they are putting in their bodies.
- Clean label products are often seen as premium offerings, commanding a higher price point and attracting health-conscious consumers.
The Clean Label Revolution in Beverages
- Beverage companies are reformulating their products to use natural ingredients, recognizable by consumers.
- Simpler ingredient lists with fewer artificial additives, preservatives, and hidden sugars are becoming the norm.
- Companies are emphasizing the use of natural sweeteners, flavors, and colors derived from fruits, vegetables, and plants.
The Future of Clean Label Beverages
The Clean Label Movement is likely to remain a driving force in the beverage industry. Consumers will continue to demand transparency and natural ingredients. Companies that embrace clean label principles and invest in innovation will be well-positioned to succeed. The future lies in offering a diverse range of clean label beverages that cater to various taste preferences and dietary needs.
Conclusion
The FnB industry is currently evolving to meet future beverage trends. Tan Do Beverage’s 25-year experience ensures your future growth in line with beverage industry trends.
Find out more about how our OEM/ODM beverage production service can support your growth in the FnB sector and help you introduce your beverage brand to a global audience. Reach out to us now to actualize your vision. Our goal is to supply beverage companies with cutting-edge, premium, and trendy formulas. Important certifications have been awarded to TanDo’s products in both domestic and foreign markets.
