Functional formulations may be the next step in the future of non-alcoholic beverages.
The trend towards non-alcoholic beverages was initially focused on creating sober beer options, but over the past few years, there has been a growing interest in non-alcoholic beverages.
Data from beverage market analyst firm IWSR found that the value of the low- and non-alcoholic product segment grew to more than $11 billion in 2022 and by more than $3 billion since 2018.
According to a survey conducted by Edelman Data and Intelligence, 69% of drinkers, 81% of Gen Z consumers, and 78% of millennial consumers explore a "sober and curious" lifestyle.
Vikrant Lal, director of technical business development at food and beverage consultancy Bevsource, explains that the growing interest in beer has prompted manufacturers to ramp up their product development efforts to include a wider range of alcohol-free options in addition to beer analogues, while also offering complex flavor profiles and a sensory experience that precisely mimics traditional alcoholic beverages.
For example, some of the recently launched non-alcoholic products include a wide variety of mocktails and White Claw's 0% alcohol soda, all of which were launched to meet the changing needs of consumers.
"The industry is ripe for disruption as demand for delicious, non-alcoholic beverages continues to rise, but current options, such as overly sweet mocktails and light beer drinks, are out of touch with the needs of today's adult drinkers," the expert said. ”
Some companies are already looking for the next step in alcohol-free innovation and are turning to infusing their products with functional benefits.
Experts note that consumers are looking for beverages that provide "non-high-pleasure". "People want to consume something in a social setting, in a bar, in a restaurant, or in a family setting, not just a sweet drink, but also to give them a noble feeling. I think the trend right now is to focus more on the effect rather than the taste, and I think in the last four or five years, the focus has been on the taste. ”
Ingredients like ashwagandha and cordyceps are particularly popular for their adaptic, mood-boosting effects. Experts point to ingredients such as turmeric, caffeine, theanine, and ginger extract as also common potential additives. Turmeric has an anti-inflammatory effect.
Experts believe that for non-alcoholic beverages to become more mainstream, they must be made enjoyable. Most consumers want something that makes people feel good and makes them feel like they can do well in social situations, regardless of how it tastes.
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