Welcome to BSDA’s first Quarterly Market Trends & Analysis Insights newsletter, developed in partnership with GlobalData. The drinks industry is a fast-moving market, not least recently due to the pace of innovation and reformulation, breadth of new products coming onto the market and brands ever-swift response to changing consumer needs. This quarterly update will provide a helpful snapshot into how the market is performing, key market data, and highlight emerging trends and provide valuable insight into industry activity and product innovations. The insights in this brief are based on analysis from GlobalData’s market analysers database, recent consumer surveys and the author’s industry expertise and experience. The surveys typically cover more than 26,000 consumers (aged 18+ years) in over 30 countries, with around 900 consumers surveyed in UK in each wave of primary consumer research. Market Insight 24% of British consumers would pay a premium for 'craft' drinks 68% of British consumers are interested in food or drink that improves alertness 27% of British consumers are influenced by how sustainable a product is Emerging Trends Thinking Outside the Bottle The move away from plastic packaging towards more sustainable alternatives is gaining pace. In the recently launched Environment Plan, the UK government has pledged to phase out avoidable plastics by 2042. Soft drink manufacturers will be looking to their packaging suppliers to provide sustainable innovation in areas including refillables, recyclables, alternative materials and material weight reductions in order to reduce its waste and environmental impact. Authentic Indulgence "Craft" drinks are typically defined as high quality beverages made by producers that emphasise brand heritage, localism and craftmanship. Many craft beverages feature regular sugar varieties as they seek to replicate authentic sodas which captured the interest of consumers in the past. Interest still remains for regular sugar options - these soft drinks are now seen as more of an indulgent beverage to be consumed as an occasional treat. Focus will shift towards quality and taste as consumers look to maximise this short, indulgent experience with a premium and authentic beverage. Natural Energy & Vitality Health-conscious consumers faced with pressures from work and life are seeking products that deliver an energy boost to help fuel their hectic lifestyles, without compromising on health. Producers are tapping into this natural energy trend by creating enhanced soft drinks that use naturally-energising ingredients such as guayuse, guarane, and yerba mate. Other ingredients being used in the new product development include botanicals and herbs with therapuetic properties that claim to help consumers relax and rejuvenate. Added Carbonation The popularity of carbonates in the UK soft drinks industry is encouraging a number of other categories to create sparkling varieties of their own in a bid to capture sales from traditional carbonated soft drinks. This new generation of carbonated beverages includes sparkling coconut water, vinegar drinks and even RTD tea and coffee. Adding carbonation offers another level of sensory enjoyment to enhance the consumption experiences and appeal of these perceived "healthier" categories. 'Healthy' Junk Food Snacks considered to be junk food are getting a healthy makeover with “better for you” ingredients. Snack makers are using ingredients perceived as being "better for you" as a virtue-signalling mechanism to induce health-conscious consumers to try snacks that may have previously been off limits for health and nutrition reasons. Healthful ingredients like avocado and coconut oil along with plant-based proteins are changing the face of so-called junk food. Novel ingredients like jackfruit and moringa are also finding their way into junk food, challenging consumer perceptions. I 'Made' It “I made it.” Nothing tastes as good, looks as good, or works as well as a product you helped create. The “I made it” trend celebrates this sentiment and taps a growing consumer desire for control, self-sufficiency, personalisation, and transparency. According to a Q3 2016 survey by GlobalData, a majority of consumers globally – 60% – say they find the concept of products they helped create to be appealing. Consumer Survey What are the most important factors for you in environmentally friendly packaging? Top 5 Factors: What does healthy mean to you? For more information about this commentary please contact |