In the dynamic landscape of the food and beverage industry, the year 2023 brings forth a shift in consumer preferences towards conscious consumption. Today’s consumers seek inventive flavor profiles that emphasize naturally and sustainably derived ingredients, allowing them to indulge in guilt-free pleasure. While the beverage industry faced significant challenges in recent years, including lockdowns and a reluctance to socialize, resulting in slashed profits, the tide is expected to turn this year. Consumers are once again purchasing and, more importantly, willing to pay for unique taste experiences. However, their awareness of the detrimental effects of certain ingredients and manufacturing processes on human health and the environment remains a driving force in their decision-making process.
Alcoholic and soft beverage trends in 2023 reveal an increased demand for citrus flavors, particularly in ready-to-drink form. Consumers are increasingly drawn to fruity blends of orange, grapefruit, lime, and berry. Among the citrus flavors, orange reigns supreme, with variations such as tangelo and different mandarins also garnering attention. Berry flavors, including strawberry, raspberry, and elderberry, as well as elder-flower blends, follow closely in popularity. Additionally, botanical ingredients such as butterfly pea flower, chamomile, and black tea are gaining traction. Generic black tea flavors are also highly sought after. While ingredients like black tea and butterfly pea flower may be considered experimental in alcoholic and soft drinks, consumers are already familiar with them. Moreover, these ingredients are often associated with health benefits, such as immunity boosting. This allows customers to explore unique blends without worrying about the potential harm to their health. The concept of guilt-free enjoyment is increasingly important for today’s consumers.
Interestingly, the demand for experimentation in taste does not extend to the health and fitness beverage market. In 2023, consumers are gravitating towards simplicity in the ingredients of their drinks, seeking more balanced and healthy options. Recent research reveals that consumers prioritize bold ingredients, nostalgic flavors, and guilt-free indulgence. However, this year’s beverage trends showcase a shift towards using ingredients that are not only beneficial to health but also offer exceptional taste. Natural sugars derived from juice are replacing added sugars, while herbal ingredients like ginseng root and ginger are being utilized to strengthen immune systems, provide cognitive energy, and offer pain relief. Functional beverages, including energy drinks, detox blends, and anti-hangover solutions, incorporate light and flavorful herbs, with a preference for plant-based ingredients. The demand for functional and multi-tasking drinks is soaring, with a global study indicating that 71% of consumers are actively seeking these products.
Health consciousness is also reflected in consumers’ color preferences. With an increasing focus on natural products and a desire to avoid artificial ingredients, many consumers associate vivid colors with artificiality and potential harm to their health. Consequently, the prevailing trend in 2023 is a “less is more” approach to color. The emphasis is now placed on the flavor and function of the drink rather than its appearance. This shift towards natural products has also impacted packaging preferences, with consumers favoring drink cans over glass or plastic bottles. As a result, beverages are becoming less colorful overall. Even in the spirits category, consumers are less interested in innovative colorings. Caramel coloring and a limited number of botanicals are accepted in a few spirit categories, with the vivid violet-blue color of pea-flower being the only color that currently excites consumers.
Beyond the beverage itself, sustainability emerges as the biggest trend of 2023. This trend encompasses not only the use of sustainable ingredients but also the selection of packaging materials that can be produced or extracted without harming the environment. Consumers are increasingly conscious of the impact their choices have on the planet and actively seek out organic certifications on the ingredients used in the products they purchase. Manufacturers are racing to obtain these certifications to meet consumer demand.
According to the United Nations, the food and beverage industry accounts for approximately one-third of the world’s greenhouse gas emissions, a statistic that has alarmed many consumers. Consequently, consumers are scrutinizing the companies they purchase from more closely than ever before. Sustainable manufacturing practices have become a critical selling point for brands aiming to capture the attention of environmentally conscious consumers. Promoting products as “carbon neutral” or “regenerative” has proven effective in attracting this target market. These terms are used to signify that the emissions generated during production and transportation are offset through agricultural techniques or nature restoration initiatives. To validate these claims, third-party organizations or non-profits certify the foods and beverages. For example, AB InBev, a leading alcohol company, introduced Bud Light Next beer, which offsets its carbon footprint by engaging in forest management efforts. Conagra launched carbon neutral Evol frozen meals, offsetting their carbon emissions by installing wind energy systems. Fresh Del Monte plans to launch carbon-neutral pineapples this year. Smaller brands have also gained prominence and continue to grow their market share by focusing on their efforts to go carbon neutral. Neutral Foods, for instance, offsets the footprint of cows by converting waste to bioenergy.
The beverage industry is poised for recovery this year after experiencing a slump in sales in recent years. Ongoing research highlights the importance of continuing to explore natural alternatives to artificial colorings and flavorings as a key goal for manufacturers. While consumers still crave exciting taste experiences, they are now more conscious of the price they pay for them. The use of ingredients that connect consumers with nature and offer justifiable health benefits will capture their attention. Moreover, ingredients that grow freely and can be easily extracted, such as tea, will appeal to the growing number of ethically conscious consumers. Similarly, opting for natural or multiuse plastic packaging will increase the likelihood of repeat purchases. Brand loyalty is increasingly rooted in the ethical stance of companies, making collaboration with or initiation of regenerative projects a worthwhile long-term investment.
