Description

“The crowded and often complicated non-alcoholic beverage industry is a pace setter in the world of product innovation, tapping not only into functionality but also a solid launching point for unique flavor innovation. Taking a look at the “now, near and next” of flavor and ingredient trends in the non-alcoholic beverage category through a consumer’s lens this Report explores flavor innovation from all angles. From segment performers to brands leading innovation layered with consumer behavior and interests in flavor exploration, this Report plots a roadmap for product development and marketing from “mainstream” to emerging, cutting-edge flavors and ingredients.”
– Mimi Bonnett, Director – Food & Drink, Foodservice

This report looks at the following areas:

  • The sweet spot is less sweet
  • A mix of flavor and function
  • The flavor evolution will take both disruptors and legacy brands

Table of Contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Market Overview
          • Top takeaways
            • Taste is primary purchase driver
              • Figure 1: Important food and drink shopping factors, November 2019
            • Flavor trends are shifting
              • Figure 2: Attitudes toward non-alcoholic beverage flavors, November 2019
            • Citrus and berry flavors are currently most preferred
              • Figure 3: Preferred non-alcoholic beverage flavors, November 2019
            • Just right of mainstream flavors can cast a wider net
              • Figure 4: Non-alcoholic beverage flavor experience and interest, tier 2 flavors, November 2019
            • Left of center flavors and ingredients will require a little work
              • Figure 5: Non-alcoholic beverage flavor experience and interest, tier 3 flavors, November 2019
            • Ideal targets for flavor innovation are young, male and Hispanic
              • Figure 6: Interest in trying new flavors, by select demographics, November 2019
          • Market Landscape – What You Need to Know

            • Polarized categories slow growth in non-alcoholic beverage sales
              • Soda remains most consumed non-alcoholic beverage
                • Flavor experiences drive interest and acceptance
                • State of the Market

                  • Market Performance
                    • Figure 7: Best- and worst-case forecast value sales of non-alcoholic beverages, at current prices, 2014-24
                    • Figure 8: Total US retail sales of non-alcoholic beverages, at current prices, 2014-2019
                  • Wellness provides impetus for segment growth
                    • Figure 9: Total US retail sales of non-alcoholic beverages, by segment, 2017 and 2019
                  • Water and dairy alternatives emerge as innovative bright spots
                    • Figure 10: New product launches in non-alcoholic beverages product launches, by category, 2017-19
                  • Majority of adults have broad drink repertoires
                    • Figure 11: Non-alcoholic beverage consumption by repertoire analysis, November 2019
                  • Large repertoire of beverage types consumed leads to diverse preferences
                    • Figure 12: Preferred non-alcoholic beverage flavors, by repertoire of non-alcoholic beverage consumption, November 2019
                  • Hispanics and young adults have the largest repertoire
                    • Figure 13: Non-alcoholic beverage consumption repertoire analysis, by select demographics, November 2019
                  • CSDs still the most widely consumed non-alcoholic beverage
                    • Figure 14: Non-alcoholic beverage consumption, November 2019
                  • Young adults embrace RTD coffee, energy drinks, and hybrid/fusion drinks
                    • Figure 15: Non-alcoholic beverage consumption, by age, November 2019
                • Market Drivers

                  • Mintel Trend Drivers – mapping the catalyst of change
                    • Players are changing
                      • Figure 16: Attitudes toward food and drink brands, by age, October 2019
                    • Taste is primary purchase driver
                      • Figure 17: Important food and drink shopping factors, November 2019
                    • Foodservice operators offer a glimpse into the future
                      • Figure 18: Menu incidence Q4 2016-Q4 2019 (# menu mentions)
                  • Brand Landscape – What You Need to Know

                    • Now: Citrus flavors are a safe, yet diverse space
                      • Near: Flavors + wellness in all forms
                        • Next: Functional goes beyond the norm
                        • Product Development: Now – Current Flavor Trends

                          • Citrus and berry flavors top the preference list
                            • Figure 19: Preferred non-alcoholic beverage flavors, November 2019
                          • Product launches align with flavor preferences
                            • Figure 20: Non-alcoholic beverages product launches, top 10 flavors, 2018-19
                          • Product Trend: Familiar, yet “novel” fresh flavors
                            • Brands in action
                              • Product trend: Exotic flavors
                                • Brands in action
                                  • Product trend: Private label thirsty for flavor
                                  • Product Development: Near – What to Watch For

                                    • Flavor + wellbeing = value
                                      • Figure 21: Non-alcoholic beverages product launches, by select health claim, 2018-19
                                    • Brands in action
                                      • Product trend: Floral and herbal layering
                                        • Brands in action
                                          • Product trend: Adventure, fun, and nostalgia
                                          • Product Development: Next – What’s in the Pipeline

                                            • Function meets flavor
                                              • Figure 22: Interest in functional ingredients, October 2019
                                            • Product trend: Ease into lesser known ingredients with fruity pairing
                                              • Figure 23: Correspondence Analysis – Symmetrical map – Beverage flavor innovation/experience/interest, November 2019
                                              • Figure 24: Beverage flavor innovation/experience/interest, November 2019
                                            • Efficacy is essential to create value
                                              • Brands in action
                                              • The Consumer – What You Need to Know

                                                • Beverage marketing made challenging by shifting and mixed palates
                                                  • Less than a quarter of adults will go out of their way to try new flavors
                                                    • Cola tops list of recently consumed non-alcoholic beverage flavors
                                                      • Consumers are looking beyond basic flavors
                                                        • Emerging flavors face familiarity challenges
                                                        • Attitudes toward Non-alcoholic Beverage Flavors

                                                          • Flavor trends are shifting
                                                            • Figure 25: Attitudes toward non-alcoholic beverage flavors, November 2019
                                                          • Under 35s seek excitement
                                                            • Figure 26: Attitudes toward non-alcoholic beverage flavors, by age, November 2019
                                                          • Avid non-alcoholic beverage drinkers inspired by social media
                                                            • Figure 27: Attitudes toward non-alcoholic beverage flavors, by repertoire of non-alcoholic beverage consumption, November 2019
                                                        • Willingness to Try New Flavors

                                                          • Consumers split on new flavor trial
                                                            • Figure 28: Interest in trying new flavors, November 2019
                                                          • Hispanic Millennials emerge as ideal target for flavor innovation
                                                            • Figure 29: Interest in trying new flavors, by select demographics, Seek out new flavors November 2019
                                                            • Figure 30: Interest in trying new flavors, by repertoire of non-alcoholic beverage consumption, November 2019
                                                        • Preferred Flavor Families with Non-Alcoholic Beverages

                                                          • Citrus and berry flavors are most preferred
                                                            • Figure 31: Preferred non-alcoholic beverage flavors, November 2019
                                                        • Now: Non-alcoholic Beverage Flavors Consumed

                                                            • Cola is the most consumed non-alcoholic beverage flavor…
                                                              • Figure 32: Flavors of non-alcoholic beverages consumed, November 2019
                                                            • Under 35s skew high in consumption of sweet/indulgent flavors
                                                              • Figure 33: Flavors of non-alcoholic beverages consumed, by age, November 2019
                                                            • Highly engaged users tap a variety of flavor profiles
                                                              • Figure 34: Flavors of non-alcoholic beverages consumed, by repertoire of non-alcoholic beverage consumption, November 2019
                                                          • Near: Beverage Flavor Experience and Interest

                                                              • Consumers are edging beyond mainstream flavors
                                                                • Figure 35: Non-alcoholic beverage flavor experience and interest, tier 2 flavors, November 2019
                                                              • Flavor trial often yields positive experience among young adults
                                                                • Figure 36: Non-alcoholic beverage flavor experience flavors, by age, November 2019
                                                            • Next: Beverage Flavor Experience and Interest

                                                                • Consumers have guarded interest in emerging flavors
                                                                  • Figure 37: Non-alcoholic beverage flavor experience and interest, tier 3 flavors, November 2019
                                                                • New trend seekers and nostalgia seekers both show interest
                                                                  • Figure 38: Non-alcoholic beverage flavor experience and interest, by age, November 2019
                                                              • Appendix – Data Sources and Abbreviations

                                                                • Data sources
                                                                  • Sales data
                                                                    • Consumer survey data
                                                                      • Purchase Intelligence
                                                                        • Abbreviations and terms
                                                                          • Abbreviations
                                                                            • Terms
                                                                            • Appendix – The Consumer

                                                                                • Figure 39: Beverage flavor innovation/experience/interest, November 2019

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