Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US sales of non-alcoholic beverages, at current prices, 2018-20
- Impact of COVID-19 on non-alcoholic beverages
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on non-alcoholic beverages, March 2021
- Opportunities and challenges
- Brands challenged to find the sweet spot between health and indulgence
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- Figure 3: Non-alcoholic beverage flavor attitudes, February 2021
- Classic flavor families should guide innovation
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- Figure 4: Preferred non-alcoholic beverage flavors, February 2021
- Use layered features to create a bridge between experience and wellbeing
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- Figure 5: Attributes of non-alcoholic beverages, February 2021
- Non-alcoholic beverage disruptors set up florals for growth
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- Figure 6: Interest and experience with non-alcoholic beverage flavors, February 2021
The Market – Key Takeaways
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- Non-alcoholic beverage categories fared well during the pandemic
- Innovation in coffee and sparkling water is growing rapidly
- Align current non-alcoholic beverages with the low/no-ABV trend
State of the Market
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- COVID lifts non-alcoholic beverage sales
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- Figure 7: Total US sales of non-alcoholic beverages, at current prices, 2018-20
- Functionality should be prioritized to keep pace with innovation
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- Figure 8: Beverage varieties, February 2021
- Generational divide points to Gen Zs seeking experience and added function
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- Figure 9: Beverage consumption, by generation, February 2021
- Coffee and flavored water brands lead innovation
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- Figure 10: Percent of non-alcoholic beverage new innovation*, by subcategory, 2016-2020
- Emerging flavors tied to popular flavor families are ones to watch
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- Figure 11: Top 10 flavors within new non-alcoholic beverage innovation*, 2016-2020
Market Factors
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- Young adults are passing on ABV
- The lowdown on sugar
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- Figure 12: Desired change in diet, November 2020
Market Opportunities
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- Tap into the growing interest in mocktails
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- Figure 13: Interest in cocktail-flavored non-alcoholic beverages, by generation, February 2021
- Healthy ingredient renovations can, and should, move past trendy beverages
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- Figure 14: Interest in non-alcoholic beverage attributes, by beverages consumed, February 2021
Companies and Brands – Key Takeaways
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- Tropical and citrus flavors are trending
- Botanicals add flavor and natural appeal
- Functionality gives new categories an edge
Product Development – Now
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- Tropical fruits edging into mainstream
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- Figure 15: Consumer experience and interest in tropical flavors, February 2021
- Figure 16: Pineapple-flavored innovation within CPG
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- Figure 17: Guava-flavored innovation in CPG
- Ginger beer doubles down on flavor and bubbles
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- Figure 18: Menu Matrix of non-alcoholic beverage flavors, Q3 2017-Q3 2020
- Figure 19: Ginger beer in CPG innovation
- Watermelon channels summertime and playfulness
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- Figure 20: Watermelon flavor in recent non-alcoholic beverage innovation
- Indulgent flavors are hallmarks in coffee, tea innovation
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- Figure 21: Chocolate and caramel in CPG and foodservice innovation
Product Development – Near
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- Citrus refresh
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- Figure 22: Lemongrass-flavored non-alcoholic beverages
- Pretty in pink florals
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- Figure 23: Rose-flavored non-alcoholic beverages in new innovation
- Beverage brands are cool with energy
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- Figure 24: Beverage varieties, by generation, February 2021
- Figure 25: Recent water innovation with energy functionality
Product Development – Next
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- Borrow from the beer aisle
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- Figure 26: Consumer interest and experience with hops as a non-alcoholic beverage flavor, by generation, February 2021
- Figure 27: Hops-flavored new innovation in non-alcoholic beverages
- Botanicals sprinkle in natural flavor through expertly paired combinations
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- Figure 28: Flavor family preferences by flavor family preferences, February 2021
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- Figure 29: Non-alcoholic innovation featuring tea-based flavor
The Consumer – Key Takeaways
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- Citrus, berry and tropical flavors lead
- Blurred beverage lines raise expectations from consumers
- Flavored beverages are a treat, but consumers are keeping an eye on health
Attitudes toward Non-Alcoholic Beverage Flavors
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- Make emerging flavors accessible and approachable
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- Figure 30: Interest in trying new flavors, February 2021
- Flavored beverages are a guilt-less path to enjoyment
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- Figure 31: Non-alcoholic beverage flavor attitudes, February 2021
- Changing palates indicate the need for balance
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- Figure 32: Non-alcoholic beverage flavor attitudes, by generation, February 2021
- Younger adults looking for healthy indulgences
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- Figure 33: Non-alcoholic beverage flavor attitudes, by generation, February 2021
- Interest in superfoods edges beyond trendy drinks
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- Figure 34: Non-alcoholic beverage flavor attitudes, by beverage type, February 2021
Preferred Beverage Flavor Families
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- Flavors may change, but flavor families remain constant
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- Figure 35: Preferred non-alcoholic beverage flavors, February 2021
- Gen X may be a small, but largely untapped target audience
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- Figure 36: Preferred non-alcoholic beverage flavors, by generation, February 2021
- Interest in herbals, florals driven by niche beverage drinkers
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- Figure 37: Preferred non-alcoholic beverage flavors, by beverage variety, February 2021
Non-alcoholic Beverage Attributes
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- Thirst first
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- Figure 38: Attributes of non-alcoholic beverages, February 2021
- Building the ideal beverage – a case study
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- Figure 39: TURF analysis – Drink attributes, February 2021
- Hybrid innovation sets high standards for Millennial consumers
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- Figure 40: Attributes of non-alcoholic beverages, by generation, February 2021
Primary Beverage Flavors Consumed
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- Citrus flavors dominate
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- Figure 41: Primary non-alcoholic beverage flavors, February 2021
- Indulgent flavors have a small window of opportunity
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- Figure 42: Primary non-alcoholic beverage flavors, by generation, February 2021
Interest and Experience with Emerging Beverage Flavors
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- Fruit flavors both expected and welcome in the beverage aisle
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- Figure 43: Interest and experience with non-alcoholic beverage flavors, February 2021
- Nudge consumers into emerging flavor profiles
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- Figure 44: Interest and experience with non-alcoholic beverage flavors, February 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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