Trending Flavors and Ingredients in Non-alcoholic Beverages - US - April 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways 
Market overview 
Figure 1: Total US sales of non-alcoholic beverages, at current prices, 2018-20
Impact of COVID-19 on non-alcoholic beverages
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
Figure 3: Non-alcoholic beverage flavor attitudes, February 2021
Classic flavor families should guide innovation
Figure 4: Preferred non-alcoholic beverage flavors, February 2021
Use layered features to create a bridge between experience and wellbeing
Figure 5: Attributes of non-alcoholic beverages, February 2021
Non-alcoholic beverage disruptors set up florals for growth
Figure 6: Interest and experience with non-alcoholic beverage flavors, February 2021
THE MARKET – KEY TAKEAWAYS 
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
COVID lifts non-alcoholic beverage sales
Figure 7: Total US sales of non-alcoholic beverages, at current prices, 2018-20
Functionality should be prioritized to keep pace with innovation
Figure 8: Beverage varieties, February 2021
Generational divide points to Gen Zs seeking experience and added function 
Figure 9: Beverage consumption, by generation, February 2021
Coffee and flavored water brands lead innovation
Figure 10: Percent of non-alcoholic beverage new innovation*, by subcategory, 2016-2020
Emerging flavors tied to popular flavor families are ones to watch
Figure 11: Top 10 flavors within new non-alcoholic beverage innovation*, 2016-2020
MARKET FACTORS 
Young adults are passing on ABV
The lowdown on sugar
Figure 12: Desired change in diet, November 2020
MARKET OPPORTUNITIES 
Tap into the growing interest in mocktails
Figure 13: Interest in cocktail-flavored non-alcoholic beverages, by generation, February 2021
Healthy ingredient renovations can, and should, move past trendy beverages
Figure 14: Interest in non-alcoholic beverage attributes, by beverages consumed, February 2021
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Tropical and citrus flavors are trending
Botanicals add flavor and natural appeal
Functionality gives new categories an edge
PRODUCT DEVELOPMENT – NOW
Tropical fruits edging into mainstream
Figure 15: Consumer experience and interest in tropical flavors, February 2021
Figure 16: Pineapple-flavored innovation within CPG
Figure 17: Guava-flavored innovation in CPG
Ginger beer doubles down on flavor and bubbles 
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
Figure 20: Watermelon flavor in recent non-alcoholic beverage innovation
Indulgent flavors are hallmarks in coffee, tea innovation
Figure 21: Chocolate and caramel in CPG and foodservice innovation
PRODUCT DEVELOPMENT – NEAR
Citrus refresh 
Figure 22: Lemongrass-flavored non-alcoholic beverages
Pretty in pink florals
Figure 23: Rose-flavored non-alcoholic beverages in new innovation
Beverage brands are cool with energy 
Figure 24: Beverage varieties, by generation, February 2021
Figure 25: Recent water innovation with energy functionality
PRODUCT DEVELOPMENT – NEXT
Borrow from the beer aisle
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
Figure 28: Flavor family preferences by flavor family preferences, February 2021
Figure 29: Non-alcoholic innovation featuring tea-based flavor
THE CONSUMER – KEY TAKEAWAYS
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
Make emerging flavors accessible and approachable
Figure 30: Interest in trying new flavors, February 2021
Flavored beverages are a guilt-less path to enjoyment
Figure 31: Non-alcoholic beverage flavor attitudes, February 2021
Changing palates indicate the need for balance
Figure 32: Non-alcoholic beverage flavor attitudes, by generation, February 2021
Younger adults looking for healthy indulgences
Figure 33: Non-alcoholic beverage flavor attitudes, by generation, February 2021
Interest in superfoods edges beyond trendy drinks
Figure 34: Non-alcoholic beverage flavor attitudes, by beverage type, February 2021
PREFERRED BEVERAGE FLAVOR FAMILIES
Flavors may change, but flavor families remain constant
Figure 35: Preferred non-alcoholic beverage flavors, February 2021
Gen X may be a small, but largely untapped target audience
Figure 36: Preferred non-alcoholic beverage flavors, by generation, February 2021
Interest in herbals, florals driven by niche beverage drinkers
Figure 37: Preferred non-alcoholic beverage flavors, by beverage variety, February 2021
NON-ALCOHOLIC BEVERAGE ATTRIBUTES
Thirst first
Figure 38: Attributes of non-alcoholic beverages, February 2021
Building the ideal beverage – a case study
Figure 39: TURF analysis – Drink attributes, February 2021
Hybrid innovation sets high standards for Millennial consumers
Figure 40: Attributes of non-alcoholic beverages, by generation, February 2021
PRIMARY BEVERAGE FLAVORS CONSUMED
Citrus flavors dominate
Figure 41: Primary non-alcoholic beverage flavors, February 2021
Indulgent flavors have a small window of opportunity
Figure 42: Primary non-alcoholic beverage flavors, by generation, February 2021
INTEREST AND EXPERIENCE WITH EMERGING BEVERAGE FLAVORS
Fruit flavors both expected and welcome in the beverage aisle
Figure 43: Interest and experience with non-alcoholic beverage flavors, February 2021
Nudge consumers into emerging flavor profiles
Figure 44: Interest and experience with non-alcoholic beverage flavors, February 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations