ROCKVILLE, Md. -- Retailers and consumers are living in "a golden age of beverage innovation," according to a report from Packaged Facts that looks at trends in packaged beverages.
"Ideas are flowing like perhaps they haven't in decades, if not a century," says David Sprinkle, research director, Packaged Facts, Rockville, Md. "Indeed, until recently the beverage industry had remained untouched by radical transformation. That is not the case any longer."
After decades of being a rather staid business dominated by only a few major, national brands that were slow to innovate, a confluence of modern trends has unplugged the innovation pipeline for the beverage industry.
Among the innovations:
- Extended-release energy drinks that last longer.
- Meal-replacement drinks customized to individual needs.
- Water bottled from trees.
- Milk from a new kind of cow that is easier to digest.
These are just a few of the innovations that everyone will be talking about in the next few years, according to the report, which concluded, "We are living in what can only be described as a golden age of beverage innovation."
Among the consumer trends driving the new innovation, according to the report, are:
- A desire for more healthful products with cleaner labels.
- The emergence of new ingredients, production processes and technologies.
- The coming of age of millennials as the dominant consumer demographic, a group that is adventurous when it comes to trying new things.
Even beverage categories that have struggled in recent years—carbonated soft drinks and juice, for instance—are newly invigorated with innovation, the report says.
"Innovation is touching every aspect of the beverage industry today, and there is a lot more on the horizon," says Sprinkle.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.