beverages part 2
industry
STATE OF THE
Photo courtesy of Getty Images / Brothers 91
Though a significant 90% of households express an active effort to reduce spending on their grocery bills (NIQ 2023, Nielsen Consumer LLC2), cost is not the only consideration. Consumers seek a balance between desires and necessities, and emphasize value for their dollar. This cost-benefit analysis involves weighing price against factors of individual importance. These including preferences and features relating to flavor, high-quality ingredients, health and wellness claims, and brand values, such as sustainability.
For many, relieving themselves of limits and maintaining some small indulgences adds little luxuries to their daily routine. With all the worries and stresses of the day, consumers are setting aside a little extra for self-care in the form of special treats. That could be a premium upgrade of ingredients or brand, a decadent dessert, an elevated coffee, or aesthetically pleasing packaging. Despite high prices, 50% of shoppers said they will splurge on certain items to treat themselves or their family (Acosta Group).
PepsiCo says Rockstar Focus gives consumers functional energy and a mental boost to tackle the day and be the best version of themselves. The new zero sugar, calorie-free beverage features a boost of caffeine to improve focus and cognition. Photo courtesy Rockstar Energy Drink / PepsiCo
New low-sugar, low-calorie, functional soda is infused with 200mg of ashwagandha extract to alleviate stress. Photo courtesy Rowdy Mermaid
Brand Values Alignment
Given extreme weather intensifying anxieties about climate change and improved digital connectivity amplifying awareness of social issues, it’s fair to say consumers are more attuned to environmental and societal concerns. Moreover, they’re turning those concerns into more conscious choices at the supermarket shelf. They’re seeking products that not only meet their functional needs but also resonate with personal values and ethical considerations. A noteworthy 50% express a readiness to shift loyalty to brands that align with their values (CivicScience), and one in three consumers has refrained from purchasing specific brands or products due to ethical or sustainability-related concerns (Deloitte LLP, 2023).
Awareness of environmental issues such as climate change, pollution, and water scarcity has heightened the desire to support those brands that espouse eco-conscious production and supply chain practices. One CPG corporation leading the way is Nestlé, which is among the top-ranked brands for their ESG (environmental, social, and corporate governance) values and initiatives (GlobalData). It has committed to making 100% of its packaging reusable and recyclable by 2025, 100% of its key ingredients to be sustainably produced by 2030 and reducing to a net zero carbon footprint by 2050.
Gut Check! New “probiotic refresher” line promotes gut health with lower sugar (5g) and four citrus-based flavors: grapefruit, orange, lemonade and lime. Photo courtesy Brew Dr. Kombucha
Among a plethora of initiatives, Diageo, owner of brands like Guinness and Baileys, is committed to water stewardship and using 30% less water on average in every drink by 2030. One of last year’s fastest-growing brands was sparkling tonic maker OLIPOP Inc., Oakland, Calif. It announced that it earned B Corporation certification by meeting high social and environmental impact standards, transparency, and legal accountability to all stakeholders. Companies like these are leading the way in ESG innovations and making strides toward improved consumer perception of their brands. PF
Coca-Cola Great Britain tested label-less 500ml Sprite and Sprite Zero bottles from January through March 2024. “While existing labels are fully recyclable, removing them simplifies the recycling process. It removes the need to separate them from the bottles during the recycling process, and reduces the amount of packaging material used overall,” the company said. Photo courtesy Coca-Cola Great Britain
Laura Harper is a marketing associate with Imbibe, a beverage development company. Whether through finding brand values that align with the consumer’s own, balancing needs and wants with mindful spending, or targeting specific need states for one's health and wellness, the consumer shift to personalization will have you strategizing for renovation or innovation. Accelerate your path to differentiated crave-worthy products by handing off R&D projects and leveraging Imbibe’s high-quality ingredients to enhance your portfolio and grab market share: marketing@imbibeinc.com.
