Top 4 megatrends shaping global beverages in the year ahead
TREATT take a look at the top 4 megatrends set to shape the future of the beverage industry, sharing the latest global data and insights.
For each megatrend TREATT get closer to the key drivers affecting consumer behaviour, what this means for beverages across the world and helps to answer your questions around consumer trends.
The megatrends are:
1. Health and wellbeing
Health and wellbeing has morphed from a trend to a way of life but remains a key motivator of consumer behaviour globally. From the silent generation to Gen Z, all are embracing both a preventative and curative approach to health in a holistic and more personalised way than ever before. Across the CPG landscape TREATT is witnessing a rapid evolution of this megatrend.
2. Sustainability and ethics
The health of the planet is now the top consumer concern. There is a mounting awareness and concern surrounding the scale, complexity, and interdependence of shared social and environmental challenges globally. As the pandemic continues to highlight global inequalities, sustainability and ethical consumption concerns will only increase in significance and further impact consumer purchasing behaviours.
3. Sensory and indulgence
Consumers are seeking enjoyment beyond tangible products themselves. They are becoming more “experience-driven” and are willing to pay more for an enhanced brand experience. It is therefore becoming increasingly important for brands to perform at an experiential level, and offer varied, novel, and complex sensations for optimal enjoyment.
4. Digital lifestyles
Shopping and consumption patterns continue to evolve at a rapid pace in our digital world. In a hyper-connected, technology-enabled society, consumers seamlessly integrate the use of multiple technologies into their lives an d buying behaviour.
Please access the full Global Beverage Megatrends Report under: https://www.treatt.com/resources/top-4-mega-trends
Teetotalism trends in the Asia-Pacific region are becoming increasingly prevalent, with approximately *3three out of four (71 %) of consumers drinking less alcohol in August 2020, according to a survey by leading data and analytics company GlobalData. However, the adoption of alternative soft drinks remains low, at only one in five* consumers. In fact, APAC customers surveyed are more attracted by health claims – specifically products noted to help support mental wellbeing – with such products purchased by nearly a third of consumers. Going forward, it will be crucial for drinks brands to blur the lines around traditional alcoholic products and offer ‘better for you’ messaging.
Carmen Bryan, Consumer Analyst at GlobalData, comments: “APAC consumers are turning away from alcohol driven by concerns around physical and mental health. While general health concerns take precedence, backed by *almost half (49 %) of the region’s population, weight management, fitness, physical appearance and emotional wellbeing are all considerable factors driving low or no-alcohol innovations.”
Recognizing this trend, New Zealand-based companies Adashiko and Parker Beverages recently launched a collagen-infused bottled water, marketed as ‘premium’ and ‘sophisticated’. This launch leverages growing demand for alternatives to alcohol that incorporate functional properties, writes GlobalData.
Bryan adds: “By incorporating functional and beneficial ingredient formulations, companies such as Adashiko-Parker Beverages are able to align to personalized health trends and cater to an evolving consumer landscape.”
Looking at alcohol consumption trends more closely, GlobalData’s research reveals that, of the *271 % of consumers drinking less, a sizeable *20 % (one in five) have stopped drinking alcohol altogether. In contrast, when asked a similar question in the US.
Bryan adds: “As pubs and bars closed their doors this year, and tensions regarding public health heightened, consumers were forced to reassess their priorities and lifestyles. Trends are shaping new home-bound leisure and social occasions where consumers seek the same taste and feel of mature drinks without the negative implications.”
Japanese FMCG company, Morinaga, is leveraging these trends with its amazake product range. Most notably, the Morigana Collagen in Haenuki flavour puts a healthy twist on the traditional sweet and low-alcohol Japanese drink by highlighting the high collagen and alcohol-free claims.
Bryan adds: “GlobalData’s research highlights the importance of premium positioning and clear ‘better for you’ messaging. By leveraging wellbeing factors such as natural, immunity-boosting or skin health, brands can create a premium product that blurs consumers’ perceptions around traditional alcoholic products. A rebranding mission, of sorts. Going forward, it will be crucial for brands to blur these lines further, emphasizing the positive health credentials that will help reassure consumers, both mentally and physically, to tap into multiple consumption occasions and justify a potentially higher price mark up.”
*GlobalData’s 2020 market pulse survey – Asia-Pacific – published 1 September 2020
*2Combined responses: “I try to consume a moderate amount” and “I am trying to reduce my intake as much as possible”
*3Combined responses: “I try to consume a moderate amount”, “I am trying to reduce my intake as much as possible”, and “I avoid this entirely”
