GLOBAL – The beverage market is experiencing significant growth, fueled by consumers’ increasing focus on health and wellness and a rising preference for premium products.
According to industry experts, holistic solutions featuring enhanced nutrition profiles, low-sugar options made with natural sources, and health-forward innovations are leading the charge in this evolving space.
“The demand for healthier beverages, including low-sugar, plant-based, and functional drinks like kombucha and energy drinks with added vitamins, is driving growth and creating significant opportunities for companies,” Douglas Lim, head of North America Business at Samyang said.
Lim highlighted that from 2019 to 2023, sugar reduction claims saw the fastest growth, with ‘sugar-free’ growing by 9% and ‘no added sugar’ by 4%, particularly in soft drinks and sports nutrition products.
Additionally, subcategories such as flavored alcoholic beverages, chilled desserts, and energy drinks have expanded rapidly.
Lim noted that niche brands offering unique flavors and high-quality products are experiencing strong growth as consumers are increasingly willing to spend on premium and craft beverages.
Adams Berzins, senior manager of Sugar Reduction at Ingredion, emphasized that the focus on sugar content in nutrition labels is significantly influencing consumer purchasing decisions.
According to Ingredion’s ATLAS research, about half of consumers are less likely to buy a product based on the amount of added sugars.
“Stevia sweeteners, popular plant-based, zero-calorie alternatives, meet demands for sustainability, taste, and health. From 2020 to 2023, global acceptance of stevia rose by 15%, making it a top choice for sugar replacement in high-intensity, natural sweeteners,” Berzins explained.
He also highlighted Ingredion’s Purecircle Clean Taste Beverage portfolio, which offers innovative solutions for enhancing flavors in beverages while maintaining a sugar-free profile.
Meanwhile, Micah Greenhill, senior marketing director for Beverages at ADM, pointed out that functional attributes are now a critical factor in consumers’ beverage choices.
This trend is especially evident in the energy drink and sports beverage categories, where ingredients like electrolytes, vitamins, protein, and biotics are increasingly common.
“These ingredients support hydration, energy, focus, and various health aspects such as mood, stress, digestive, and immune health,” Greenhill said.
He also stressed the importance of sugar reduction in meeting consumers’ wellness goals. ADM’s Replace Rebalance Rebuild method helps manufacturers create low- or no-sugar beverages that maintain flavor and functionality.
“The company’s SweetRight Stevia Edge-M is an innovative solution for reduced-sugar formulations, offering improved solubility and taste.’
Moreover, Greenhill highlighted the growing potential of gut health as a market driver. Ingredients like prebiotics, probiotics, and postbiotics are becoming essential in beverage innovation, with significant opportunities for creating products that promote digestive health and overall well-being.
Lim concurred, noting that ingredients promoting gut health, such as fiber, are gaining attention. Samyang’s Fiberest Resistant Dextrin, a low-calorie, high-dietary-fiber ingredient, is one such innovation.
It supports gut health by nourishing beneficial gut bacteria and is suitable for enhancing the dietary fiber content in beverages while maintaining clean label claims.
As the beverage market continues to evolve, experts agree that the lines between functional beverages and foods will increasingly blur.
Consumers are expected to seek products that help them proactively manage their health, with a growing focus on gut health, sugar reduction, and high nutritional value. Brands that can deliver on these expectations are well-positioned to thrive in this dynamic market
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