Beverages are no longer just a way to quench thirst; consumers want drinks that support their health. Recently, research firm SPINS released growth data for five beverage categories with high market demand, all with clear health attributes, which saw significant growth over the past year, especially during the pandemic: oat milk, non-alcoholic beverages, mixed drinks, water, and probiotic functional drinks.

-01- Oat Milk The rapid development of plant-based food and beverages has brought unprecedented innovation across many categories, especially in milk alternatives.

Plant-based milk alternatives are not only the largest category in the plant-based industry but are also starting to encroach on the traditional dairy market, now accounting for 14% of total dairy beverage sales. Within the plant milk category, oat milk has shown tremendous potential and sustained growth. According to SPINS data, last year oat milk sales grew by 293.7% in the natural enhanced channel and 345.2% in the conventional channel—truly astonishing figures.

Why has oats triumphed over soy and nuts to become the most popular ingredient for plant milk? Besides oat milk's creamy texture, rich dietary fiber and polysaccharides, and low allergenicity, one reason consumers prefer it is that it better supports sustainable development. Compared to other plant milks, producing oats requires fewer resources, and the greenhouse gas emissions from producing oat milk are only one-fifth of those from cow's milk. It also significantly reduces water and land consumption, aligning with a shift in consumer demand toward deeper satisfaction and lifestyle expression.

The oat milk space is crowded with players: Quaker, the oat industry giant; Oatly, known for brand marketing; Califia, known for packaging design; Elmhurst, known for clean labels; and brands like Silk and Pacific that have pivoted from other plant milks to oat milk. See the Chinese version of the Plant Milk Industry v1.3 panorama published by Food Research. Image source: Califia Farms Califia Farms oat milk—Califia is a trendy plant milk brand in the U.S., and its elegant, streamlined bottle design makes it stand out on shelves.

Image source: Amazon Elmhurst oat milk contains 20g of whole grain oats, with only five simple ingredients on the label, and no added colloids, emulsifiers, or flavors.

Future Market Insights projects that the global oat milk product market will grow at a compound annual growth rate of 8.2% from 2018 to 2027. With the rapid growth of oat milk sales and the development of other categories like oat milk creamer and ice cream, more oat milk products are expected to emerge.

-02- Non-Alcoholic Beverages In recent years, non-alcoholic beers like those from Athletic Brewing Co. and Well Being Brewing Co. have sprung up like mushrooms. As consumers seek to balance or limit alcohol intake, new products have flooded the market with non-alcoholic craft beers, non-alcoholic wines, and non-alcoholic cocktails.

According to SPINS data, last year sales of beers with less than 2% alcohol grew by 22.5% in the natural channel and 31.0% in the conventional channel.

Globally, young people in various countries are reducing their alcohol consumption. According to the Health Survey for England, the proportion of adults drinking at least once a week fell from 64.2% to 56.9%, and among young people aged 16-24, the proportion not drinking reached 29%, compared to 18% a decade ago.

China's "Post-90s Alcohol Consumption Guide" published by China Alcoholic Drinks Weekly shows that those aged 18-25 spend more than 10% less on various alcoholic beverages than other age groups, and over half of post-90s consumers buy alcohol no more than once a month on average. To meet the needs of young people, many companies are launching low-alcohol or non-alcoholic beers, allowing consumers to enjoy the flavor and social aspects of alcohol while staying sober.

Currently, there are two main methods for brewing non-alcoholic beer. One is to reduce the alcohol content based on traditional brewing techniques; the other is to replace alcohol fermentation with other materials—only the latter can be completely alcohol-free. Asahi's non-alcoholic craft beer brand DRY ZERO blends the fermented components of beer wort, removing the sweetness and bitterness to maintain a refreshing taste.

Image source: ebay Bud Zero, a non-alcoholic beer from Budweiser, is brewed with premium Budweiser barley, hops, and malt, using beechwood aging to achieve a mild flavor similar to Budweiser, plus a four-fold cold filtration process. It contains no sugar and only 46 calories.

Image source: Budweiser

-03- Mixed Drinks The COVID-19 outbreak has had a huge impact on food and beverages. With consumers restricted from in-store shopping, large amounts of products were stuck in inventory, and since the pandemic is not fully over and could easily resurge in winter, causing continued inventory buildup. In this context, instant and concentrated beverages that consumers can mix at home and that have a longer shelf life have seen good market growth.

SPINS data shows that last year, sales of mixed drink products in the natural channel grew by 28.6%. This includes concentrated drinks, as well as dry-based instant drinks in powder or effervescent tablet form. Among these, products labeled "no artificial sweeteners" saw high growth in the natural channel, reaching 29.1%. This is a good trend because it helps reduce close contact during the pandemic.

Image source: Liquid I.V. Liquid I.V., an American electrolyte drink brand recently acquired by Unilever, has launched a series of powdered drinks for sports nutrition. They use rapid and effective Cellular Transport Technology (CTT) to deliver hydration to cells, transporting water and other key nutrients into the bloodstream, including B vitamins that are beneficial for natural energy metabolism, helping consumers rehydrate and replenish nutrients faster.

Liquid I.V. also launched a sleep aid powder drink made from a blend of melatonin, L-theanine, and valerian root to help ease mood and improve sleep.

Image source: Four Sigmatic Four Sigmatic launched a chaga mushroom mixed drink designed to boost immunity. Chaga contains high levels of antioxidants that support immune and overall health, and it also includes rose hips rich in vitamin C.

-04- Water Over the past year, SPINS recorded double-digit growth for non-carbonated flavored water (+14.4%), sparkling water (+15.3%), and flavored sparkling water (+22.3%).

Flavored water looks clear and transparent, much like regular water, and is also called "near water." Common flavors in China include peach, lemon, and orange, which are flavored with real fruit juice or sweeteners. In Europe and the U.S., flavored water is further segmented for children, office workers, and other scenarios, with products developed to cater to different needs.

Image source: RETHINK Rethink is a children's boxed water startup. Its products are zero sugar, zero calorie, and zero sodium, with organic fruit flavors certified by the USDA. The innovative paperboard packaging is brightly colored and has refreshing fruit flavors, making it very appealing to children.

Sparkling water and flavored sparkling water are the best substitutes for carbonated soft drinks. With the trend of sugar control, zero-sugar, zero-fat, zero-calorie sparkling water has emerged as a rising star. Unlike other zero-sugar drinks, sparkling water doesn't create taste expectations that lead consumers to seek differences; as long as the flavor is good, it can win market approval. The fact that Genki Forest is more popular than zero-sugar cola proves this point.

Cranberry producer Ocean Spray leverages its strengths to launch cranberry-flavored sparkling water, made with real cranberry juice, no high-fructose corn syrup, and the diet version has only 1 gram of sugar and 10 calories per bottle.

Image source: Ocean Spray

-05- Probiotic Functional Drinks Looking at beverage trends, functional drinks have grown steadily since 2018, with probiotic drinks that improve gut health and regulate the immune system growing particularly fast. In SPINS' natural channel, sales of functional drinks with probiotic ingredients grew by 6.3% compared to last year.

Kombucha, kefir, apple cider vinegar, and kvass are among the more popular probiotic drink categories. Kombucha is not a true "tea" but a fermented tea beverage made from tea, sugar, and a symbiotic culture of bacteria and yeast. It has a slightly sour and astringent taste with a fruity aroma, combined with a slight fizz for a refreshing feel.

Mother Kombucha is a hybrid of kombucha and sparkling water, with 4 calories and 1 gram of sugar per can. It uses a proprietary process that maintains shelf stability without pasteurization.

Image source: Mother Kombucha

Kefir comes in milk kefir and water kefir. Milk kefir is made from cow's or goat's milk, fermented with kefir grains (KG) as a starter, producing a composite fermented milk containing alcohol, acid, and a small amount of CO2. Water kefir is made by fermenting kefir grains in sugar water; the resulting water kefir is a sparkling beverage rich in various vitamins (especially B vitamins), nucleic acids, amino acids, free fatty acids, and other trace elements.

Water Kefir is a non-dairy kefir drink fermented from kefir grains, organic sugar, figs, and pink salt, and is a healthy beverage rich in electrolytes, probiotics, and enzymes.

Image source: Goodwolf Feeding

Kvass is a low-alcohol beverage popular in Russia, made from dried bread fermented with a mix of probiotics, lactic acid bacteria, and other cultures. It resembles beer in color but is slightly red, with an alcohol content of only about 1%.

Image source: Volgin

Source: Food Research FTA (ID: FTA_21FOOD) Author: kariya

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