Beverages make a big splash

Beverages make a big splash

Beverages are one of the most cutting-edge FMCG categories, accounting for more than one of every ten dollars spent on pre-packaged groceries. Currently responsible for 19% of annual sales growth across the grocery channel, total Circana defined Beverages are valued at $1.8B thanks to innovative products that satisfy shoppers’ diverse demands and needs. From health and wellness, performance and energy, convenience, sustainability; beverage categories are full of examples where manufacturers have leveraged consumer trends to drive these categories forward.

Lifestyle drinks are driving much of the growth underpinned by consumer desire for better performance, targeted hydration and functional benefits. Energy and Sports drinks are worth more than $200 million in grocery alone and have been experiencing double digit growth in both value and unit sales. While big brands are contributing a healthy share of growth, there are many smaller up and coming entrants now playing in this space. Innovative new flavour profiles and low sugar offerings are driving overall growth in the Energy drinks space. Sports drinks which were quite limited in functionality a few years ago, are responding to market trends with the introduction of products with functional benefits, unique formats and layouts, and novel active ingredients. Such an exciting category.

Chilled Juices are on the rise as consumers enjoy the new cold pressed versions which are made using a hydraulic press to extract the juice, preserving more of the nutrients and enzymes in the fruits and vegetables. Chilled Juices with added functional benefits are also performing well, with ingredients such as probiotics, collagen, or turmeric, providing additional health benefits.

Flavoured Milk is proving to be the ideal affordable indulgence with growth in both value and units. Rich indulgent offerings featuring Belgian chocolate or coffee seems to be hitting the mark with consumers, along with ranges with less sugar, and more calcium and protein.

Julie Bramley, consultant at Circana, who recently spoke at the Beverage Council’s June conference, says “Beverages are an extremely dynamic sector that is at the forefront of global trends. From composition, function right through to packaging, the Beverage department stands out as being one of the most responsive to consumer needs.”

If you want to know more and would like get your hands on Circana’s first syndicated, in-depth Beverage Report get in touch with Julie Bramley at Understand the data behind the trends in Circana’s highly visualized analysis, which delves deeply into the state of the beverage market to understand what’s driving growth be it brand, format, flavour, function or trend. The 100+ page powerpoint-based report covers the following categories alcohol, hot drinks, carbonated beverages, lifestyle drinks, juices and milks. It also comes with a separate global trend report. Get in touch now to find out more.

Source: Circana MarketEdge Grocery *Circana defined total Beverage universe

Scroll to Top