If you’re thinking about developing a new beverage for 2023, you’ve picked a great time to introduce a new product to the market.
The global beverage industry is expected to boom in 2023 and beyond, with experts predicting the industry will be valued at $1.96 trillion by 2024.
Consumer tastes are changing. The pandemic was a catalyst for growth in the sector, and this is expected to continue even after the pandemic ends. This is good news for businesses in the beverage industry, as there is a lot of potential for growth and expansion.
Of course, a hot market doesn’t always translate to a desirable product. However, understanding the changing consumer beverage consumption trends helps emerging brands break into the crowded market with a product that people want to buy.
Here we’ll dive into three beverage development trends to keep an out for in 2023.
Functional Wellness Beverages
As consumers become increasingly health-conscious, many beverage companies are changing their products and packaging to appeal to this growing functional beverage market.
From 2019-2024, the global functional beverage market is predicted to grow at a Compound Annual Growth Rate of 8.66%, according to market researcher Linch Pin. This rapid growth is driven by increasing consumer demand for healthy and convenient beverage options.
So what are functional beverages? This market includes a wide range of products, from energy drinks and fortified juice to sports drinks and dairy alternative beverages. In addition, enhanced water products, ready-to-drink tea, and coffee are significant segments of this category.
From digestive health and energy-boosting drinks to those that improve mood (such as adaptogen-infused beverages) and promote relaxation, functional beverages with quality ingredients are becoming increasingly popular outside the traditional functional nutrition market catered to the hardcore fitness crowd.
This is especially true among middle-aged and senior consumers seeking functional beverages that promote cognitive health. In addition, stress and sleep-related functional drinks are also becoming more popular as people strive to manage their physical and mental health.
As we move into the new year, fermented flavors are set to make a significant impact, according to Jan Matsuno, founder of Yumbini Foods and Mindful Food Consulting, as reported by the IFT Foundation. Fermented foods are rich in umami flavors and known for their savory, crave-able flavors. And it’s not just for food.
This trend is closely related to the growing beverage industry demand for more complex flavors that are often naturally gained as a result of the fermentation process.
Matsuno also pointed out to the IFT Foundation that fermented products tie in directly with Korean cuisine, which is currently the hottest ethnic cuisine. Korean dishes often feature tangy, spicy fermented vegetables, making this trend appealing to consumers.
Moreover, fermented beverages fall into the aforementioned trending functional beverage category. Consumers are increasingly interested in fermented foods and ingredients for their gut-healing properties.
Probiotics, or good bacteria, are responsible for these benefits, including increased immunity and brain function. Beverage products like kombucha and kefir are rich in probiotics and are becoming more popular as a result.
While the demand for high-end spirits has surged in recent years, consumers are looking for innovative and unique flavors that elevate their drinking experience.
And it’s not just limited to the traditional flavors of tea, berries, citrus, and coffee. More daring drinkers are now venturing into exotic territory with flavors like rhubarb.
This shift is credited to consumers’ desires for a more sensory experience with food and drink. According to Imbibe Live, this shift is due to people wanting to connect with their senses and create memories associated with certain flavors.
This is an excellent opportunity for beverage businesses to connect with their customers on a deeper level by offering products that are not only delicious but also evoke positive feelings and memories.
And people are willing to pay for a premium spirit.
In its 2021 Global Brand Ambassador Survey, Bacardi reported that 50% of bartenders globally said that their customers are opting for premium drinks which again speaks to consumers’ desire for high-quality products.
Develop A Beverage in 2023
Whether you’re looking to develop a functional beverage or high-quality spirit, now is the time to develop your new beverage product and take advantage of the expected growth in the industry.