Soft drinks are declining or stagnating in some sectors, even though the market is ripe for a lot of NPD. According to Euromonitor International, this means manufacturers must balance the development of higher-value, premium products with increasing volumes per capita in developing markets. Global Carbonated Beverages Market Report .
Beverage manufacturers can benefit from growing consumer behavior trends, including those that promote fitness, gut health and physical endurance.
As younger consumers place greater emphasis on their personal health, energy drinks, sports products and drinks that support gut health are becoming increasingly popular.
According to ADM 2024, the lines between sports drinks and energy drinks are blurring, with energy drink-like ingredients being used in sports drinks as well as low-alcohol or non-alcohol and/or low-sugar options. Beverage Innovation Report.
ADM predicted that the shift in boundaries would "prepare the market for bolder and newer entries."
Beverage manufacturers are also able to generate new revenue from consumers’ long-term health goals. About 71,133 Gen Z consumers say they take a “proactive approach” to their health by preventing diseases (FMCG Gurus’ Top Trends 2024). Gen Z and millennials continue to reduce their alcohol consumption to lead healthier lives.
‘Social influencers’ are opening up new markets. The rise of [the] Euromonitor said Prime Sports Drink is an example of celebrity-backed soft drink innovation, and its devoted online fan base has led to strong retail growth.
Four trends in non-alcoholic and functional beverages that are driving sales of these products:
1. Active Hydration
Nielsen Revenue Growth shows that sports nutrition continues to expand its appeal beyond athletes, pushing the category's value to $14 billion by 2023.
Sports drinks are increasingly being designed to offer more features, including added protein, vitamins and weight loss claims.
Consumers continue to shift to plant-based proteins. Tetra Pak says people are increasingly looking for varieties with “conscious” consumption and less impact on the environment or climate. 6 Trends That Are Transforming Soft Drinks report.
Rapid hydration is also on the rise and is blurring the lines between carbonated beverage segments. The ADM report says the rapid growth of hydration beverages is further blurring the lines. Electrolytes are increasingly found in other beverages, so consumers aren’t looking to sports drinks for their electrolytes alone.
Three-quarters of all Gen Z, Millennial and Gen X consumers are interested in quick hydration (Mintel US Functional Beverages 2023).
Sports drinks are becoming increasingly popular for their ability to improve performance and digestion.
2. Hydration
ADM reports that 54% of consumers purchase non-alcoholic beverages for this purpose, and 17% are interested in quick hydration.
Euromonitor reports that non-RTD forms, such as powder mixes, tablets and high-electrolyte oral reconstitution products, are gaining market share. This is due to the growing importance of hydration in functional beverages.
According to Innova Market Insights, juices and bottled waters remain in the top 10 non-alcoholic beverages consumed worldwide. Its Drinking the future report said. Report said.
As drinkers demand beverages containing prebiotics and probiotics, juices containing proteins or electrolytes as well as those containing electrolytes, the complexity of this category continues to increase.
There are now waters that help consumers achieve a calmer mood or relieve stress. More than 60% of Gen Z and Millennial consumers, as well as Gen X and Gen Xers in the US, are looking for calming or relaxing claims (Mintel US Functional Beverages 2023).
According to Innova, the dominant flavors are:
- Tea
- Spicy
- Flowers
Three mental and physical energies
The second most common beverage claim is energy, which includes both mental and physical endurance. The number of mental health claims has increased dramatically, with 57% of consumers looking to improve their mental wellbeing, up from 36% in 2021. (FMCG Gurus Top Trends for 2024).
Euromonitor reported that “energy drinks remain the fastest growing sector within non-alcoholic beverages, with further innovations in advanced hydration beverages.”
Nielsen Market Value estimates the category's value at $24 billion.
ADM reports that energy drinks no longer just contain caffeine but also promote mood, mental clarity and focus.
Energy leads all non-alcoholic categories in terms of flavor, thanks to its many launches with new and sometimes “wild” flavor combinations.
Mintel US Energy Drinks data for 2024 shows that the segment is most popular with millennial men. However, innovation and clean label ingredients have proven attractive to other generations.
ADM cites the following as key areas of innovation for energy:
- Performance: Improve physical performance
- Cognition: Helping consumers stay focused or alert with less caffeine
- Natural caffeine like guarana or yerba mat can promote stable energy levels.
- Flavor – Berry and candy flavors are popular sellers
4 Digestive health
The ADM report indicates that 38% of consumers search for products with these claims.
Nielsen Revenue Growth 2023 shows that between 2022 and 2023, demand for carbonated beverages with digestive health claims increased by 141,133.
Innova says that as the functional beverage segment grows, plant-based immune health, high fiber and prebiotic claims are emerging in the carbonated beverage category.
The growing popularity of kombucha is a testament to the beverage’s role in gut health today and tomorrow. Prebiotic sodas are also gaining popularity in the West and Asia.
According to Market US, data shows that the U.S. prebiotic soda industry is expected to grow from $246 million in 2023 to over $500 million within a decade. Other media outlets predict even higher growth.
English 
French