An erosion of traditional beverage segments has resulted in migrating flavors and new packaging methods to reignite consumer interest in the non-alcoholic beverage sector across the Asia-Pacific (APAC) region.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, highlights major innovation trends and opportunities that are going to impact the production, marketing and sales of non-alcoholic beverages in 2019.
Migrating flavor influences
GlobalData’s 2018 Q4 Consumer Survey reveals that more than half (60%) of 18-24 year olds in APAC are willing to experiment and try new flavors and different varieties in soft drinks out of all other age brackets. Asian ingredients are growing in popularity owing to the claims of natural health benefits and an exotic perception. With Asia becoming home to both rapidly developing countries as well as to a number of unique drinks and ingredients, brands tend to emphasize some combination of unique flavors and healthy ingredients to sell non-alcoholic beverages. For instance, Applelachia launched a sparkling apple cider drinks range in 2018, featuring the flavors of Ginger Turmeric Yuzu, and Raspberry & Native Lime, for consumers in Australia looking to experiment with new and unique tastes.
Alternative energy ingredients
The rise of Asian-inspired infused beverages featuring natural ingredients such as matcha, ginseng and guarana with energy qualities are at the forefront of consumers’ product purchase decision-making, as they look to lead a healthy lifestyle. In line with this trend of offering alternative energy ingredients in non-alcoholic beverages, manufacturers are creating a variety of healthier options with natural and exotic ingredients. For instance, Nature’s Way Sparkling Natural Energy Tea is available in Hibiscus & Pomegranate flavor in Australia. The green tea, which features ginseng and B vitamins, comes with ‘natural energy hit’ claim with 99% sugar free.
Growing awareness of environmental issues and demand for more convenient packaging has put reusable packaging in the spotlight. GlobalData found that 52% of APAC consumers’ product choices are often influenced by how ethical/environmentally-friendly/socially-responsible the product is. With increasing scrutiny on single use plastics, several beverage brands are turning to reusable packaging. For instance, in 2019, Australian beverage giant Coca Cola Amatil launched 100% recyclable carbonated pressure proof soft drink bottle to overcome the challenge of using eco-friendly container through unique design and innovation.