The beverage industry constantly grapples with shifting consumer tastes. New drinks flood the market every year while familiar brands fight to stay relevant. Understanding these beverage trends could be the deciding factor between a successful product launch and a costly misstep.
The recent Bev50 Report illuminates what’s driving consumer choices in 2024. This information helps industry players make smarter decisions about product development, marketing strategies, and inventory management.
Let’s explore what’s popular, what’s losing ground, and the reasons behind consumer choices.
The power of impulse
Many believe they make careful decisions when choosing a drink. However, the Bev50 study reveals that impulse is the primary factor in beverage decisions. Consumers don’t carefully weigh options or scrutinize labels. Instead, they grab what looks appealing or feels right at the moment, a behavior highlighted in recent beverage trends.
For beverage companies, the key to using these emotional drivers is focusing on more than taste or nutrition. Creating experiences and evoking positive emotions is crucial. A drink must make consumers feel good, look cool, or satisfy their curiosity.
Price matters, but not how you’d expect
We often assume cheaper drinks are more popular, especially during tough economic times. However, the study reveals that the drinks that cause the most price concern are those that are purchased frequently, such as Coke or Pepsi. These aren’t expensive compared to newer, trendier options, but consumers notice price changes more acutely because they buy them regularly.
Pricier newcomers like Olipop or Poppi don’t face as much resistance to their higher costs. Consumers are willing to pay more for these drinks because they’re novel and exciting. The appeal of trying something new outweighs the higher price tag.
The battle of the sodas
Dr Pepper has overtaken Pepsi as the second most popular soda. The Bev50 report provides insight into this shift. Dr Pepper aligns more closely with impulse-driven behavior, coming across as more spontaneous and fun.
Pepsi, in contrast, is viewed as a more conventional choice. People expect to see it at gatherings or in someone’s refrigerator. This familiarity, however, may be working against it in the current market.
Pepsi isn’t out of the running, though. They recently unveiled a bolder and more attention-grabbing new logo. This rebranding effort seems to be paying off, as Pepsi’s scores in the study have improved since last year.
The rise of “better-for-you” sodas
New brands like Olipop and Poppi are making an impact in the soda market. These drinks market themselves as healthier alternatives to traditional sodas, containing prebiotics, fiber, and other purported health benefits. But these health claims aren’t the main reason for their popularity.
The study indicates that consumers are drawn to these drinks primarily because they’re new and different. Olipop does receive some recognition for its health claims, but Poppi is almost entirely associated with being a fun, novel experience. Consumers aren’t necessarily choosing them for health reasons but out of curiosity and a desire to try something new.
Hydration nation
Water and sports drinks are currently trending. Plain bottled water is popular and frequently purchased, landing it in a category the study terms the “promised land”—high interest and high purchase frequency.
Even in the water category, branding plays a crucial role. Liquid Death stands out due to its edgy marketing. It’s simply water in a can with a striking design, but it has captured consumer attention due to its edgy and unique appearance. The appeal isn’t about function; it’s about feeling cool while staying hydrated.
Sports drinks are also thriving, but not solely due to their hydration benefits. Brands like Body Armor and Prime succeed because they tap into impulse-driven behavior, making consumers feel energized and trendy.
What these beverage trends mean for the future
Based on these beverage trends, we can make several predictions about the industry’s direction:
Eye-catching designs will continue to be necessary. Brands that can quickly grab attention are likely to perform well.
New and unique drinks will continue to emerge. Consumers are curious about beverages and willing to try new products, even at higher price points.
Health claims alone won’t be enough to sell a drink. The overall experience and how the drink makes people feel will be more important.
Traditional brands will need to find ways to appear fresh and exciting, as they can’t rely solely on familiarity to maintain their market position.
Price increases on everyday drinks might encourage consumers to try alternatives. If a usual soda keeps getting more expensive, exploration of other options becomes more likely.
Brewing up success
The beverage world revolves around what’s new, eye-catching, and emotionally satisfying in the moment. Whether it’s water in a can with a bold design or a soda claiming gut health benefits, successful brands will understand and cater to consumer impulses.
If you want to learn more about the Bev50 Report and how to use these insights for your product, request a walkthrough of the report here.
