Beverage Trends Startups Should Know

Functional Waters

These drinks can be still or sparkling, and include herbs infused in water. Common additives include vitamins, acids, minerals, herbs, fruits, and vegetables. Functional waters’ main attraction is that they present a healthy, low-sugar alternative to soda. By 2025, the global functional water market is expected to reach over $18 billion. Seeing the trend, top soda maker PepsiCo has acquired multiple functional water brands in the recent past.

Organic Beverages

Consumer preference for organic food has spilled over into the beverage market. There are many health benefits consumers associate with organic products, and there is a large market for sugar free and caffeine free drinks. By 2027, the global organic beverage market is predicted to reach nearly $33 billion.

Varied Coffee Formats

Coffee fuels the modern world, and demand for the natural energy drink will only increase. Consumers can buy ready-to-drink (RTD) coffee in cartons, cans, and bottles. COVID-19 lockdowns shifted coffee demands towards at-home coffee, and new variants have come out to meet demand for low-sugar and sugar-free alternatives. By 2027, the global ready to drink tea and coffee market is anticipated to reach almost $134 billion.

Tea

Cold brews, nitro offerings, functional add-ins, and plant-based milk blends are revamping the cold tea category. For health conscious consumers worried about the effects of caffeine, herbal teas provide an excellent energy boost. There exists a growing preference for herbal and highly oxidized tea within the beverage market. As of 2027, the global tea market is expected to be just shy of $69 billion.

Innovative Alcohol Flavors

Brands are adding some healthier ingredients to their RTD alcoholic beverages, including apple, tropical fruits, citrus fruits, and berries. Adventurous consumers are trying alcoholic beverages featuring new and interesting flavors. Furthermore, not all of these alcohol flavored drinks have alcohol in them. Consumer awareness of the effects of excessive alcohol consumption are driving preferences for low- and no-alcohol content drinks, though many still want the flavor of mixed drinks to be available to them. Mocktails aren’t just for pregnant women. They offer a chance for many non-drinkers to enjoy the bar experience without ingesting alcohol. The market for these drinks is expected to reach $19.46 billion by 2027.