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New Report Says Multi-Beverage Blends Trending

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U.S. Beverage Market Outlook 2019 says new innovations and mashup formulations have been growing in popularity.

Efforts by marketers and manufacturers have given the otherwise mature beverage industry the buoyancy necessary to stay afloat and thrive, according to the new report by market research firm Packaged Facts.

Among the most important recent innovations identified by Packaged Facts in the report involves mashups—the crossover fusion of two or more beverage products that traditionally wouldn’t be expected to go together.

Three key mashup trends Packaged Facts sees encouraging future growth in the beverage industry:

Trend 1: Coffee Jolts Soda, Energy Drinks, Juice and Bottled Water

More frequently, coffee is being integrated into sparkling beverages, energy drinks and juices. This is a trend that should see continued expansion as consumers seek the indulgence and flavor of coffee while also thirsting for the effervescence of a carbonated beverage, the additional boost of energy ingredients and/or more taste options.

“The carbonated soft drink or soda category is challenged, but many consumers moving away from soda still want flavored drinks that have bubbles. They also want healthier, more natural versions with less or no sugar. One of these soda alternatives is ready-to-drink coffee, which has seen a spate of sparkling versions on store shelves,” said David Sprinkle, research director for Packaged Facts. “Even more interesting is when we see coffee and sodas converge into an amalgamation that satisfies multiple tastes with a single beverage.”

Trend 2: Tea Brews Up Healthier Flavor Fusions that Appeal to Millennials

On a similar development trajectory to coffee, tea is increasingly being incorporated into sparkling beverages, energy drinks and juices. The results impart tea’s health benefits into beverages whose energy ingredients, carbonation and flavors often have a wider appeal to younger adults.

As a soda alternative, new products to market include sparking versions of ready-to-drink tea. Tea merges into the energy drink space not only with stimulants like guayusa, green tea and matcha, but also yerba mate, which is starting to catch on with young Millennial consumers who are more adventurous with their food and beverages.

Trend 3: Energy and Sports Drinks Created With More ‘Natural’ Caffeine Sources

There is an increasing blurring of the lines between sports and energy drinks, and indeed for many beverage categories.

An example of that are hybrid ready-to-drink energy teas and coffees. Coffee and tea are naturally energizing. And indeed, most Americans would consider these beverages their original energy drink. They share the most ubiquitous energy ingredient—caffeine—with today’s most popular energy drinks. Even everyday cola and its caffeine are used by many consumers as energy drinks. More recently, entrepreneurs have launched coffee and tea-based beverages that more clearly play upon their energy functionality.

U.S. Beverage Market Outlook 2019 provides a single, fully up-to-date resource on the top seven beverage categories, presenting comprehensive insights on where the market growth will be and why. The report covers the following beverage market categories:

• Bottled & Enhanced Waters
• Carbonated Beverages
• Coffee and Ready-To-Drink Coffee
• Dairy Beverages and Non-Dairy Milk Alternatives
• Energy and Sports Drinks
• Juices
• Tea and Ready-To-Drink Tea

The report focuses on the market for the aforementioned select beverage products sold to consumers in the United States through retail channels. All retail channels of distribution are covered in market sizing and discussion, including supermarkets and grocery stores, mass merchandisers and supercenters, warehouse clubs, natural food stores, convenience stores, drugstores, dollar stores, vending machines and direct-sales channels including online.

Market size data and projections are provided at the retail sales level for 2013-2018 and 2018-2023, with channel and marketer shares figures for 2018.

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services.

About the author

Renee Sexton

Renee Sexton

Renee is a graduate of the Scripps School of Journalism at Ohio University and worked more than two decades in broadcast and digital journalism before coming over to the print side.

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