Cheers! Here’s to the future of the drinks industry
From start to finish, Bread & Jam’s Cheers! The Drinks Summit showcased the vast potential of the beverage industry. We heard it direct from ambitious founders, who have taken fresh ideas and a passion for challenging the norm to create profitable drink brands. It was also a strong message from those who’ve dug deep into data and crunched the numbers to pinpoint emerging drink trends.
So, what are the headlines? During their talk, Nielsen IQ showed us that even in a tough economic environment, the drinks market is still growing, with an estimated industry value of £41.5bn, up by £1.9bn from last year.
It’s also changing, adapting to the opportunities and challenges thrown up by changing consumer behaviour. Shifts towards plant-based diets and low or no alcohol lifestyles (particularly from Gen Z consumers), demand for ready-to-go drinks options and cost of living concerns are all shaping the future of the drinks industry. This can be seen in the fact that while sales of beer, wine, and spirits have dropped, there’s been an increase in the volume of soft, dairy, and plant-based alternative drinks sold. In fact, the non-alcoholic drinks market is predicted to reach a value of £432m by 2027 (Kantar Global).
In one of our favourite Cheers! sessions, experts in consumer buying behaviour, Nielsen IQ, shared their data-driven thoughts on emerging trends in the beverage market. Here are some of the points that resonated with us:
Challenger brands hold a lot of power. They are leading the way in creating new categories of beverage (health and wellness and low or no alcohol products) in response to market demand.
A renewed focus on health is sparking greater scrutiny of what goes into drinks. Awareness of what exactly we are drinking, and what it means for our long-term health, is growing. Health-conscious consumption means artificial sweeteners, flavours, and colours are out and, for many, natural and organic ingredients are becoming the first choice.
Consumers are seeking out sustainable alternatives. Whether that means choosing plant-based milks or biodegradable packaging, a desire to buy sustainably is driving behaviour change.
Consumers look for value and quality of experience over volume. As consumers respond to cost of living increases, they are reducing their volume of consumption, preferring to focus on value and quality.
The value of B Corp
As advocates of B Corp, it was great to listen to panel discussions featuring inspiring B Corp brands, such as botanical drink brand Nix and Kix, NICE Wine, alcohol-free beer producer Lucky Saint and Jimmy’s Iced Coffee. We particularly liked the ethos shared by the latter’s founder Jimmy Cregan who reminded us ‘to keep your chin up’ and advised other sustainable brands to ‘celebrate the wins’.
The positive impact that certification has had on business was also a key, and welcome, takeaway. Holland and Barrett’s buyer was clear that, ‘in a sector with nearly too many innovative products, standing out is important.’ We hear consistently from food & drink brands how certifying B Corp has given investors, retailers and consumers confidence in their ethical and sustainability credentials, helping to boost brand appeal.
There are lots of opportunities for purpose-driven brands in this space, particularly those with a strong health or sustainability proposition. We’d love to hear from you if you’d like our support to develop your brand strategy or would like to join our 12-week B Corp Group Programme.
