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Kevin Lobo, FB Tech Review | Tuesday, November 24, 2020
As food and beverage companies align their portfolios to reflect changing consumer demands, the industry is expected to see changes in the future landscape.
FREMONT, CA: In the last few years, the food and beverage industry faces shifting consumer preferences due to the uncertain economic climate, the rise of eCommerce and direct-to-consumer, and other issues. Despite these challenges, according to the survey, 84 percent of food and beverage executives said they think the sales will grow in 2020. Trends are continuously evolving and emerging, and the market researchers have gathered a few trends that will stay in the market in the coming years.
• Increased Focus on Health and Wellness
Consumers are more health-conscious, and they are willing to try new, healthier options in traditional soft drinks. As carbonated food consumption declines, more brands have developed sparkling water products. Healthy food and drinks like plant-based beverages are also gaining popularity. One statistic state that bottled water dethroned soft drinks as the leader in beverage sales.
As the economy remains strong, consumer interest inexpensive drinks remain high. With access to several roasts from various regions around the globe, consumers are becoming coffee connoisseurs. For home brewing, consumers buy single-origin, whole-bean coffees that often retail for more than twice as much as the conventional mainstream brands. The growth of premium mixers is especially compelling to watch. These zero-calorie beverages are made with an herbal mix. They come with a price tag that shows quality ingredients, and consumers are willing to pay for them.
• Direct to Consumer Offerings
Just as can offer convenience, so to companies that deliver alcohol in lesser time, a direct to consumer line of beverages takes orders online through text messages. And with the evolution of subscription boxes for food and beverages and online stores, consumers are increasingly turning to the internet for their beverage requirements. These businesses are disrupting the conventional retail model while allowing brands access to consumers in a novel way.
Environmental concerns around packaging and single-use plastic are influencing consumers’ decision making. Food and beverage firms are responding to these concerns and becoming more eco-friendly. Single-use plastic water bottles are an ongoing issue, especially given the increased popularity of bottled water. Companies are beginning to change their packaging to more eco-friendly options, including aluminum cans and paper boxes.