The beverage market is increasingly driven by a health-conscious and sustainable lifestyle: fortified beverage—in addition to juices and liquid dairy—are categories that are crucial within this development. By Sidel.

The move towards a better-for-you, sporty and wellness-focused lifestyle affects several beverage segments. Within the market of juices, nectars, soft drinks, isotonics and teas (JNSDIT) as well as liquid dairy products (LDP), the focus is on natural ingredients, using less sugar and preservatives, high fruit quality and extra nutrition elements. This is creating opportunities for continuous innovation across infused teas, plant-based drinks, premium juices and milk-based products. Meanwhile, the water market concentrates on super-premium products infused with electrolytes, vitamins, probiotics or flavours.[1]

Furthermore, the demand for fortified beverages is growing at a progressive rate in selected countries. India and China, for example, are offering huge market potential for this drinks category, perfectly reflecting what is happening in the whole Asia Pacific. In fact, this region is projected to register the highest compound annual growth rate (CAGR) of fortified beverages[2]. The notion of good-for-you nutrients on-the-go is primarily fuelling this green trajectory. Mainstream consumers are inclined to consume fortified beverages as it helps them curb their appetite and burn fat, thus supporting their search for lighter foods.

Alongside these trends, there is an increasing preference for more sustainable packaging, affecting questions of materials, designs and formats[3]: impulse occasions as top priority are leading to smaller sized, single-serve package formats for consumption on-the-go in Asia Pacific, based on the busier-than-ever and always-on-the-run lifestyle. Also, multipacks are emerging as a take-home option. As a leading global provider of solutions to package drinks in PET, can and glass, Sidel is able to serve both of these opposed but complementary developments. The company does that by developing equipment and services to match with the industry’s needs.

As the beverage market continues to evolve with ever-changing consumer demands and a stricter regulatory environment, APFI magazine interviews Sidel’s experts for their opinions on the trends they believe are here to stay.

GR—Guillaume Roland, Vice President Sensitive Products, Sidel

SP—Simone Pisani, Marketing Director Water, Sidel

AL—Andrea Lupi, Marketing Director Carbonated Soft Drinks and Beer, Wine & Spirits, Sidel

Which factors have affected the demand for healthy and functional drinks?

GR: The trend for healthy living has accelerated the growth of juices, nectars, soft drinks, isotonics and teas (JNSDIT) as well as liquid dairy products (LDP). Consumers are looking for products sourced from natural ingredients, such as preservative free beverages with a low sugar content or naturally sweetened products, and drinks with extra nutrition. This is driving innovation within infused teas, coconut water, plant-based drinks, flavoured waters, premium juices and milk-based products fortified with vitamins, proteins, probiotics or fruit.

SP: The water segment is driven by growing consumer demand for healthy drinks and we see the rise of flavoured and functional products, for example waters with added vitamins, mineral infusions and botanical extracts. Alongside this, there is a growing preference for more sustainable packaging, impacting choices of materials, designs and formats.

AL: Sugar consumption is a consumer concern so carbonated soft drink (CSD) brands are reformulating beverages with less sugar, or introducing different sweeteners, low or no-calorie recipes, or creating smaller sized packs. In some countries, this trend is also underpinned by regulation. On the premium side, we’re increasingly witnessing the addition of nutritional or flavouring elements, such spices, herbal extract or fibres, also appealing to consumers’ sensory curiosity.

Where are these trends most in evidence and what’s driving them?

GR: In JNSDIT and LDP, the trend started in Europe and Asia but is now global. For example, North America is now highly focused on healthy and nutritional products. Other markets, such as Africa or Latin America, are also buoyant with growing populations and evolving lifestyles.

SP: In water, the strongest consumption growth is taking place in Asian markets. While affordable uncontaminated water is a key driver in emerging markets, functional packaging differentiation and water source quality are key drivers in the mature regions. Here there’s a clear polarization between premium and commodity water.

AL: The biggest CSD markets are USA, Mexico and China but several Asian and African countries are enjoying dynamic growth, with increasing urbanization and booming demography creating opportunities for appealing and affordable CSD beverages, especially consumed on-the-go. In more mature regions like North America and Europe, CSD brand owners are diversifying pack sizes and formulations, with the major brands also moving into premium products.

[1] Euromonitor Soft Drinks: Coconut And Other Plant Waters – An Introduction To The Category

[2] Fortified Beverages Market 2018 (2017-2023) – Global Demand, Latest Development, Growth Estimation, Business Strategies, Upcoming Trend and Fast Forward Research

[3] Fortified Beverages Market 2018 (2017-2023) – Global Demand, Latest Development, Growth Estimation, Business Strategies, Upcoming Trend and Fast Forward Research Sustainable

Further reading:

All The Right Moves For Fine Pralines