The beverage industry is witnessing a remarkable transformation as consumers increasingly favor functional drinks that provide hydration, energy, and health benefits. This shift is evident in the global functional beverage market, which reached $206 billion in value in 2022. In the wake of a post-pandemic era, there is a growing trend among consumers, especially among the Gen-Z cohort, to opt for healthier food and beverage choices and seek premium alternatives.
Some of the trends driving growth in the alcoholic and non-alcoholic space include:
- Health and wellness are becoming a greater priority for consumers
- Sustainability continues to be a focus as companies aim to be more environmentally friendly
- Innovative flavors are appealing to a wider audience
- Ready-to-drink beverages have soared in popularity due to their convenience
The global beverage market was $1.6 trillion in 2022 and is projected to reach $2 trillion by 2030, representing a CAGR of 3.0%. This growth will be fueled by new product innovation and adjacent category expansion from large beverage players looking to capitalize on shifting consumer interests and preferences. Limited edition flavors, stand-out packaging, and new-age marketing tactics are all steps producers are taking to get their products to stand out in an increasingly competitive market.
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