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A Healthy State of Beverages Drinks packed with energy, nutrients and probiotics are resonating with consumers.
from CSN-0222
by ensembleiq
A Healthy State of Beverages
Drinks packed with energy, nutrients and probiotics are resonating with consumers
By Renée M. Covino
SURE, THE FOUNTAIN OF YOUTH would be nice, but these days, the fountain of wellness is taking precedence. Beverages providing energy, calm, nutrients, vitamins, probiotics and more are playing an increasing role in Americans’ everyday lives.
Consumers are taking a more proactive approach to managing wellbeing with functional nutrition, close-to-nature ingredients, and foods and beverages that signal self-care, according to ADM, an agricultural origination and processing company.
“Health and wellness remain at the forefront of the global conversation,” said June Lin, vice president of global marketing, health and wellness at ADM. “The pandemic has transformed how consumers perceive holistic health and wellbeing. It’s impacting how we live and increasing the importance of the foods, beverages and supplements we choose, presenting new opportunities for our industry to meet their needs.”
People are increasingly aware of the impact their environment has on their personal health, and this includes what they put into their body. As a result, there’s been a surge in interest in wellness through nutrition, according to Anders McGillis, principal at Ontario, Canada-based Jackman Reinvents, a customer engagement firm.
The firm’s Human Insights Study, released in May 2021, revealed that for 54 percent of consumers, taking care of their physical health has become more important since the start of 2020. Furthermore, taking care of their mental health has become more important to 51 percent of the consumers surveyed.
“We’ve seen this increased interest in health and wellness show up in food trends, such as plant-based diets, flexitarian and interest in functional ingredients, so it’s no surprise we’re seeing the same with beverages,” McGillis told Convenience Store News.
He has observed a shift toward people wanting beverages to “do more” for them. “Those highly engaged in the wellness category are constantly looking for ways to optimize their health and wellbeing, so they view any eating or drinking occasion as a way to do so,” he added.
Immunity Boost
The “food/beverages as medicine” viewpoint is also shared by Sherry Frey, vice president of total wellness at Nielsen IQ. “Beyond the traditional realm of vitamins and supplements to boost immunity, shoppers are opting for beverages that offer immunity-boosting benefits to get their daily dose of protective nourishment,”
she noted. “Companies around the world are taking notice and tapping into this growing consumer priority.”
For example, Frey highlighted that in the U.S. market, “immunity tea” is among the top searched terms related to immunity, and sales of beverages that support immune-system health are growing by 46 percent year over year.
Additionally, enhancements such as added vitamins and minerals are continuing to grow. Frey pointed out that 84 percent of sports drinks are now enhanced with minerals. “We anticipate this to continue with new areas like adaptogenics beginning to emerge,” she stated.
Other rising beverage trends observed by Frey include:
• Caffeine: Consumer interest in having a jolt in beverages is almost as much as avoiding it in beverages; sales of free from caffeine beverages are up 15.8 percent, while contains caffeine beverages are up 17 percent. • Unadulterated sweet: Free from added sugar drinks are up 22 percent in sales. • Low-calorie: Beverages lower in calories are outpacing the category. ADM has observed a proactive perspective on immunity in general as well. With 65 percent of global consumers more concerned about immunity since the onset of COVID-19, they are shifting from a defensive approach against illness to one that is more proactive and holistic, the firm said. Consumers are looking for ways to incorporate function-supporting solutions, such as probiotics and vitamins C and D, into their daily lives.
In Japan, “postbiotics” are gaining ground, building off the popularity of probiotics and prebiotics, and this is expected to take hold in the United States soon.
“Healthy drinks don’t just mean less sugar anymore. The emergence of kombucha and juice cleanses indicates that many consumers [have] started seeking health benefits from their choice of drinks,” Ryosuke Kimura, a spokesperson for Koso, a Japanese postbiotic drink and cleanse, told CSNews.
Postbiotics, as she defines them, are beneficial chemicals secreted by the good live probiotic bacteria after feeding on prebiotics. “Essentially, that’s what people need out of probiotic bacteria,” Kimura said. “In recent months, we have seen huge growth.”
— Anders McGillis, Jackman Reinvents
Permissible Indulgence
As part of consumers’ increased interest in health and wellness these days, indulgence is also getting a revamp. The way ADM sees it, “purposeful indulgence” is the new “permissible indulgence” — and this applies to beverages, as well as food items.
During the pandemic, consumers gave themselves permission to consume indulgent food and beverages as a form of self-care. In fact, 56 percent of global consumers say they have regularly purchased comfort food as a result of the pandemic.
“Consumers are recognizing as long as these are purposeful — and not impulsive — choices, indulgence has a role in a positive relationship with food,” ADM stated.
Cold Vault Callouts
According to consumer market researcher Packaged Facts, the functional beverage benefi ts that today’s consumers perceive as most important to them are:
• Increased energy • Enhanced hydration • Boosts in cognitive function/brain activity • Better sleep/relaxation • Immunity boost • Increased gut health • Meal replacement/weight management • Sports performance improvement
As such, the firm foresees new opportunities for beverages, snacks and confectionery products that deliver functional benefits with delicious flavor.
Beverages as meal replacements is another “permissible indulgence” trend, according to Lily Badger, head of marketing for HOP WTR, a calorie-free, hop-filled sparkling water crafted with stress-busting adaptogens and nootropics.
Tied in with this is that consumers are looking for a more “layered” beverage experience, according to Badger. “When you add flavor and functional ingredients, you end up with four layers rather than two, and people want this in their beverages,” she said. “People are wondering what’s another way to get their vitamins. How can they improve their immune health? How can they improve their gut health? They want more robustness and uniqueness in beverages that are packed with good-for-you ingredients.”
The Convenience Angle
Keeping a finger on the pulse of emerging beverage trends is a must for the convenience channel. However, it can be a challenge to know which trends have staying power. act on, convenience stores need to consider the role they want to play in all this,” said McGillis of Jackman Reinvents. “Consider what your strategy is: Are you the forward-thinking, innovative convenience store? Are you trying to support the wellness enthusiast’s on-the-go lifestyle with healthy options? Consider how your strategy impacts how you source and merchandise beverages.”
He cautions retailers not to go after every new beverage trend, in order to avoid a very haphazard, disconnected customer experience. On the flip side, ignoring the latest trends is to ignore the shifting consumer values taking place since the pandemic. Just as people have reprioritized what truly matters in their lives, c-store operators need to reprioritize what matters most to their customers.
“Rather than focusing on the beverage trend, focus on the consumer trend driving it,” McGillis advises. For a c-store, this may mean acknowledging that health and wellness matters a lot more to customers today than it did before the pandemic.
“We’re seeing the reprioritization, particularly as it relates to personal health, show up in consumers’ purchase behaviors, agnostic of category or channel,” he said.
And because convenience stores became a go-to channel for many shoppers during the pandemic, the “typical” c-store customer of today has expanded.
“The beauty of a c-store these days is that you have a less price-sensitive consumer who’s more willing to try. They’re in trial mode when they walk into a c-store,” said Badger. “Unlike when they walk into a grocery store with a list, a c-store has a better chance to disrupt them and give them options they wouldn’t otherwise choose in a different channel.” CSN
