Future of Adult Beverages Report May 2020

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Beverage Futures

Playbook Launch
Introduction

This report is intended to be used as a


strategic planning resource for your
organisation. The insights are built on a John Talley at IBM believes that for
solid foundation of consumer and industry innovation to succeed we need to
research and the emergent themes keep asking “What if?” questions; be
represent potential pathways for future unconstrained in our thinking.
innovation in the Irish non-alcoholic
beverage sector. We hope that this support tool will
encourage you to ask this simple
Included in this pack there is a toolkit to question; “What if?”
help you to work with the trends and
consider their implications for your business.

If you need support with this as you


progress, Bord Bia are on hand to help.

2
Photo by Jeswin Thomas from Pexels
https://hbr.org/2002/08/inspiring-innovation
Extensive Brief
Scope
The scope of this project is extensive,
uncovering trends that apply to all elements of
the out of home* adult non-alcoholic cold
beverage market; a market this is estimated
to be worth €400bn** globally.

This includes everything from soft drinks and


kefirs to water and non-alcoholic beers.

This report has been developed to provide


inspiration to the industry, a reference guide to
emerging trends around the world and to
promote innovation in the sector here in
Ireland.
• Out of home accounts for about 41% of global Non Alc Value
and 11% of its volume (Statista, 2019)
• ** Based on a 1.2tn total global NA beverage value

• Note: Dairy/ alternatives, and meal replacement not included in scope of 3


this project however insights may be applicable to these sectors
Photo by Meghan Rodgers on Unsplash
What we Did

CO-CREATION
EXPERT
COUINCILS
INTERVIEWS
IE, UK

DESK REVIEW

INDUSTRY SURVEY
INTERVIEWS IE, UK, FR, DE, NL, US

MARKET INDUSTRY CONSUMER

4
What we did

5.Consumer
2.Expert Interviews Councils
We talked to a We conducted in
mix of local and total two workshops
global experts in (Dublin &
1. Desk Review the beverage 3. Industry Manchester) to hear 5.Future Survey
We reviewed an category to get We interviewed a consumers We surveyed
extensive array clarity and selection of small perspectives, almost 5,000
of third party alignment in and large understand potential consumers in 6
and information relation to beverage trends and co-create countries; IE, UK,
in the public current and producers to innovations for the FR, DE, NL, US.
domain related future trends in explore their future. Included reaction
to beverages. the market. perspective on to potential
This is the industry and “futures” and
considered and the key trends in attitudinal
reflected the future. insights from the
throughout the markets.
trend's analysis.
A Big Thank you to our Contributors
Beverage Trend Experts

Aveen Bannon Simone K. Frey Alex Beckett Claire Cogan


Owner, Dublin Founder, Future Associate Director, Behavioural Scientist,
Nutrition Centre Nutrition & Mintel Food & Drink at Former Head of Insight and
Nutrition Hub, Mintel Category, Britvic Ireland
Germany
Industry Professionals

Peter Mulrine Michael Cairns Gerry Scullion John Kelly


Managing Director, Sales/Commercial Founder, King of Senior Strategic
Mulrines Manager, Glenpatrick Kefir Marketing Manager,
Spring Water Kerry Taste & Nutrition
Navigating the Report
Setting the Scene

SECTION ONE: Forces


A brief look at some of the Global Contextual Forces that are shaping consumer behaviours.

SECTION TWO: Consumer Need-scaping


The Introduction of our needscape model of consumer beverage needs.

SECTION THREE: Trends & Expressions


A collection of Trends and Expressions developed to inspire and provoke fresh thinking.

SECTION FOUR: Exploring “Futures”


Consumer response to a selection of potential future beverage scenarios.

SECTION FIVE: Toolkit


LAUNCHING MAY 22nd
A proprietary approach and suite of templates to help you work with the emerging trends. 7
Photo by davide ragusa on Unsplash
Setting the Scene

8
The Challenge
With beverage volumes relatively flat overall in Europe and
showing limited growth globally, innovation is critical to
derive value from a market that is under pressure.

This report seeks to inspire consumer-led innovation to


provide a solid future platform for growth for the Irish
beverage industry.

Innovation in the world of beverages is a high-risk


business, with reported failure rates of 95% for true
innovations in this sector. Overall, Harvard and
Nielsen put the failure rates at around 90% and
according to Mintel, “beverages are in chaos at the
moment”.

In such a high-activity sector, according to industry experts


retailers don’t have time to wait and new products are
generally only given a year at most to prove themselves,
so it’s critical to get it right.

9
Photo by Mars Williams on Unsplash
60% of global respondents said
there are too many options out
there to choose from today. This
makes it extremely tough for new
products to cut through and
succeed.
(Opinions/Bord Bia, Global Beverages Study)

10
Photo by Mars Williams on Unsplash
Global Dynamics

When it comes to beverage trends, the


US leads the way, but now the best of the
world quickly makes it way to our shores.

In fact, the sector locally in Ireland is


highly developed and has adopted many
of the global trends quickly.
Source: Statista 2020 11
60%We ofrecognise
global respondents said a
that Brexit represents
vexing
there areparallel threatoptions
too many to indigenous
out Irish
beverage
there producers
to choose fromwho rely heavily
today. This on
the UK market for exports. The UK
makes it extremely tough for new
accounts for 57% of the total NAB export
products
value, but to cut90%
over through and
of the indigenous
succeed.
producer exports* (ex MNCs).

It is hoped
(Opinions Bird that this document
Bia, Global Study) can
provide inspiration to unlock further future
value from the UK market into the future
and open up opportunities further afield.

Photo by Mars Williams on Unsplash * CSO 2020 12


UK Market Profile Value in USD Forecast*
CAGR 2019 -
Value in USD Forecast 2023 2023
The UK, while still seeing forecasted growth is only showing
Carbonated Soft Drinks 6.2289 bn USD 3.5%
marginal growth rates with higher value propositions offsetting Bottled Water 2.3903 bn USD 4.4%
pretty anaemic volume growth. In particular we see a drop-off Juice 2.5975 bn USD 0.3%
expected for Juices. In this context higher value propositions will Energy Drinks 2.1806 bn USD 2.7%
be necessary. *Source: Mintel Market Sizes, UK 2019

Revenue in the Non-Alcoholic Drinks market amounts to US$37,607m in Total Market Volume Forecast*
2020. The market is expected to grow annually by 2.0% (CAGR 2020-
CAGR 2019 -
2023). Volume Forecast 2023 2023
(Statista, 2019)
Company retail market share by volume (%) Carbonated Soft Drinks 5,145.4 m litres 1.2%
(UK 2018) Bottled Water 3,882.2 m litres 2.1%
44.7 Juice 1,558.1 m litres - 0.6%
*Source: Mintel Market Sizes, UK 2019
33.3

Retail Market Volume Forecast*


20.6
17.5 16.4 15.8 CAGR 2019 -
13.6
11.8 10.9 Volume Forecast 2023 2023
6.6 8.3
4.8 3.8 4.3
1.8 1.7 1.1 Carbonated Soft Drinks 3,891.1 m litres 1.3%

The Cola- PepsiCo, A.G BARR Britic UK Groupe Nestlé S.A. Highland Lucozade Suntory Red Bull Bottled Water 2,927.5 m litres 1.8%
Cola Inc. PLC PLC Danone Spring Ribena Holding Ltd GmbH
Company S.A Group Suntory Ltd Juice 1,193.3 m litres - 0.9%
Carbonated Soft Drinks Bottled Water Juice Energy Drinks
Energy Drinks 680 m litres 1.6%
*Source: Mintel Market Sizes , UK 2019 *Source: Mintel Market Sizes , UK 2019 13
Getting Started

14
The Futures Structure

Inform CONSUMER NEEDS

Inform
FORCES

TRENDS Inform EXPRESSIONS

Big Picture Global Themes that Manifestations of how


Influences that shape we see for the category these will show up in the
consumer’s lives based on consumer needs real World

15
SECTION ONE

Forces

16
Planet Environmental
Sustainability

Keeping it
Plastics
Real

17
(Picture by ActionVance, Unsplash)
Environmental
sustainability

Almost 6 in 10 (58%)
of adults worldwide
said they are
concerned by the
impact of beverages
they choose on the
environment.

(Source: Opinions/Bord Bia, Global Beverages Study) 18


(Picture by Ipopba, Adobe Stock)
Plastics

34 billion plastic
bottles that are
produced by the soft
drink industry enter
the ocean each year.

(Source: Oceana, 2020)


(Picture by Snemann, Flickr)
Plastics

With the increasing


.
quality of materials,
Recycled PET (rPET)
could reach as much
as 55% of total PET
demand by 2030 in
Europe.

(Source: Global WebIndex, 2019) 20


(Picture by Mali maeder, Pexels)
Keeping it Real

70% of global 69% of global


consumers associate respondents agree that
local or locally foods without artificial
produced products ingredients are always
with being "fresher". more healthful.

“As Trust Among Consumers


Waivers, Authenticity is Critical”
Michael Fertek, Forbes, Jan 2019

(Source: Global Data, 2018 and Nielsen, 2016) ( 21


(Picture by Mali maeder, Pexels)
Population
Growth Ageing Urbanisation

22
Photo by Jade Masri on Unsplash
Population growth

The global non-


alcoholic beverage .
market is anticipated
to grow at an
estimated CAGR of
5.8% up to 2025,
owing to factors such
as rising disposable
income, population
growth, and changing
lifestyle.

(Source: Grand View Research, 2017) 23


(Picture by H. Armstrong Roberts, Getty Images)
Ageing population

According to Mintel, 55% of Polish and


49% of Italian adults aged 55+ use
functional food and drink to maintain a
healthy heart.
Targeting this large
demographic profile is not
only positive for public health
and wellbeing but can also
be profitable. Elderly
consumers have shown an
interest in healthy eating and
are open to purchasing
innovative products that
meet their needs.

(Source: Mintel, 2019)


(Picture by Zszen John, Pexels
Urbanisation

54% of the worlds


population now lives in
cities. In 1950, only
30% of the world lived
in urban areas; that Functional Food and Beverages Market
figure is expected to to Rise at 8.49% CAGR till 2026;
reach 66% by 2050.
Increasing Health Awareness in Urban
Areas to Fuel Market Expansion:
A new class of tech-
savvy, youthful, and
Fortune Business Insights
cultured consumers
is emerging from
these varied urban
environments.
( 25
(Source: World Urbanization Prospects: The 2018 Revision)
Picture by sp_arquiplay77, Fotosearch)
Increasing
Health &
Wealth
Wellness

Community & Plant


Belonging Power

Society

(Picture by Simon Shim, Unsplash)


26
Busy Lives

Many people today Almost 6 in 10 adults


feel time-poor. Adults globally are
work longer hours increasingly looking for
and often face ways to simplify their
longer commutes lives.
than in years past.

(source – Bord Bia consumer lifestyle trends, 2019 27


and Bord Bia: What Ireland Ate Last Night, 2020 ) (Picture by Hugh Han, Unsplash)
Increasing Wealth

In Trillions of Dollars
As income rise, consumers tend to
A report in $361
increase their spending on higher
December 2019 income elastic goods and
services.
from Credit Suisse
shows that global UK consumer spending on soft
$200 drinks is up, reaching ten billion
wealth has pounds in 2018. In 2011 it had
increased from exceeded eight billion for the first
time. However, the average
$200 trillion in consumption is declining. The
2010 to $361 average person drinks five litres
less per year in 2017 as compared
trillion in 2019. to 2012.

2010 2019
(Source: Credit Suisse 2020 and statista, 2020) 28
(Picture by Hugh Han, Unsplash)
Community & Belonging

According to Global Data,


consumers are looking for
more bespoke, individual
experiences, with 61% of
global consumers
expressing an interest in
creating their own
products.
6 in 10 (60%) of global
respondents said the drinks they
choose reflect the type of
person they are.
(Source: Opinions Global Survey and Global Data,2019) 29
(Picture by Belle Co, Pexels)
Health & Wellness

Consumer health trends


71% of global
have shaken things up, respondents claim
moving demand away they go for the
from sugar-filled healthier option
carbonated products when choosing a
and towards alternative non-alcoholic
‘health drinks’.
beverage.

(Source: Opinions/Bord Bia, Global Beverages Study) 30


By Subbotina Anna, Adobe Stock
Plant Power

Plant-based beverages
market is projected to grow at
approximately 8.50% CAGR
.
during the assessment period
(2018-2023)

So much so that the plant-


based beverages market is
estimated to reach a valuation
of approx. USD 388.42 BN by
the end of 2023.

(Source: Market Research Futures, Jan 2019) 31


(Picture by Freshidea, Adobe Stock)
Social Media

Connectivity

Technology

(Picture by David Yu, Pexels) 32


Connectivity

Due to busy Shoppers desire


lifestyles, 66% of UK traceability and
adults would use transparency into their
blockchain for just products. With information
some products, via the blockchain,
including tea (55%), consumers can make
coffee (56%) and purchasing decisions on
bottled water (50%). their beverage choices.

(Source: Epicor.com, 2019 and FMCG Gurus, 2020) 33


(Picture by Production Perig, Adobe Stock)
Social Media

45% of the total


Social media has changed world population uses
the way we eat and drink social media. That’s
with consumers expecting 3.48bn people – and
every dish and beverage to 3.26bn of them use
be #Instaworthy mobile devices to
(Kerry Foods) access social media.

(Source: Hootsuite Digital, 2019 and


Initiative for Kerry Foodservice, 2019) 34
(Picture by Skylines, Shutterstock)
Social Media

Using the Power of Social Media

Brand: Bubly Sparking Water (from


Pepsico)

Origin: US

Research company ‘Black Swan’


ingested 157m real-time beverage
conversations from online data
sources that identified key themes
that led Pepsico to create a new
range of eight flavoured, zero-calorie,
sweetener-free sparkling waters –
was launched in the USA with a TV-
ad during the 2018 Oscars.
(Source: Pepsico)
Sum Up on Forces
The Forces that shape our World influence our priorities and shape our needs.

In the world today the forces of urbanisation, increased sophistication,


connectivity and wealth there is a collective drive toward “better for you” Better For You
lifestyles.

Consequently, for beverages there is a move to more functional beverages


which is evidently the direction of travel for this sector; everything needs to think Functionality
about its “job to do” in this context. New Hope Network’s (2020) State of the
Industry report found that the U.S. market for functional food and beverages
grew 5.3% to $71.4 billion in 2019, with MCT, melatonin, L-theanine,
collagen, curcumin, prebiotics and hemp/CBD as the most sought-after Sustainability
ingredients.

And also we see a strong influence of sustainability and naturalness on


consumers‘ lives.
Naturalness
For many these are now regarded as mandatory “must haves” or “givens” so
they are more than trends. We will focus on the manifestations of these
influences as we progress through the trends.
SECTION TWO

Exploring Consumer Needs


Adult Beverage Needscape

37
Remember: Taste is Paramount

While specific needs will come to


the fore, and functionality and “Consumers want a
health are all pervasive,
consumers have limited willingness
better-for-you product,
to compromise on great taste. but they will not
compromise on taste”
However, we found that their Shan Joslin, VP of Commercial Development, Flavorhealth
tolerance to do so increases
somewhat as the focus on
functionality becomes more
significant.

38
Photo by Nathan Hanna on Unsplash
The War on Sugar (and calories) Continues

“Sugar is the new tobacco” (Dr Simone Frey)

Sugar remains under pressure globally and remains the biggest challenge
facing industry. With a consumer who is evidently unwilling to compromise 81% of
on taste, but striving to avoid sugar the industry has to respond creatively.
consumers in the
There are now 45 countries around the world that have implemented a
sugar tax including Ireland and the UK (Obesity Evidence Hub, 2020), so
US are trying to
this will continue to further accelerate consumer’s desire to reduce sugar stop or reduce
intake.
sugar intake
The anti-sugar sentiment is having a considerable impact too on juice (Statista 2020)
consumption.

To complicate things questions around sweeteners are growing also with


consumers variously questioning their safety amid growing social media
debate.

For consumer this further fuels a desire for more NATURAL and
FAMILIAR formulations.
39
Photo by Sharon McCutcheon on Unsplash
“A tasty, nutritious “Sugar free sparkling water with added
beverage, that's indulgent, pure fruit juice”
but low in carbs”

“Drink that boosts immune health” “A reduction in the amount of


plastic that is used”

“Drinks that improve your looks “something that's natural, inexpensive


(complexion, hair, weight)” and with very little packaging”

The next big thing “More environmentally friendly packaging,


even fewer calories and no sugar.”
“Be organic and from sustainably obtained
in the world of “energy drinks without sugar and caffeine”
ingredients”

beverages will “a complete switch to glass and reusable


be… “healthy drinks that do the same as an
energy drink”
containers”

(Consumer View)

“natural energy drinks with “A positive carbon footprint in the


health boosting manufacturing process”
ingredients”
“A drink that contains a range of “a natural drink rich in vegetables and fruits”
vitamins and minerals”

“Completely recyclable drink “A drink with few ingredients and only


And can you please complete the following with 100% goodness that is natural ingredients”
statement in 10 words or less: also affordable”
40
Beverage Needscaping Tool
Our needscaping model is built on extensive
qualitative consumer work, industry consultation
and expert engagements.

Consumer needs are evidently shaped by two


principle dimensions:

Self – Others; the extent to which the focus is on


internal, personal needs or that they are influenced
by others either directly or indirectly.

Feel – Do; the extent to which they are driven by a


quest for functional gains or pure sensorial
pleasure.

Through this lens we gain a deeper understanding


of the motivations that influence consumer choice
when it comes to adult non-alcoholic beverages.
Leading Influences on Global Beverage Choice
Never/ Rarely Sometimes Often/ Always
Influences Influences Influences

INDULGE 12% 24% 62%

BAL AN CE 18% 26% 53%

I M M O R TA L I S E 23% 30% 46%

BELONGING 31% 27% 39%

E NHANCE 30% 28% 39%

IDENTITY 32% 29% 38%

ENERGISE 33% 33% 32%

FIX 42% 23% 32%

Q8, When it comes to choosing beverages in general, to what extent do each of the following influence your choice? (n=4,567)
Influence by Beverage Chosen Last Occasion
(Base: All Respondents, n=4,257)

Iced Tea
Still bottled water
Sparkling bottled water
Non-alcoholic beer Diet Soft Drinks

Natural or Pure Juice Regular Soft Drinks

Iced or Cold Brew Coffee


Flavoured Waters

Energy Drinks Sports Drinks

INDULGE B A L A N C E I M M O R TA L I S E E N E R G I S E IDENTITY BELONG ENHANCE FIX


Q3 Thinking now about the last occasion on which you had a non-alcoholic beverage outside home or on the go which did you choose?
#1 Enhance: Helping me Perform
Giving me a sense of vitality that helps me to
perform everyday. It’s part of my regime to
release my “super me”.

It does more than keeping me hydrated, it gives


me a little something extra.
39%
of beverage
It has become part of my routine. It is all about
functionality and gives me what I feel my body
consumers are
needs to be at its best. often
I often choose H2O with added vitamins,
influenced by
electrolytes or antioxidant fruits that help to this need
quench my thirst and to optimise the body or I
choose sports drinks, but I’d love a more natural
version.

Photo by Jong Marshes on Unsplash


44
#1 Enhance: Helping me Perform

Brand: trimino
Brand: Super Charged
Origin: USA
Origin: USA
Benefits: Refresh, Rejuvenate and
Benefits: The product contains
Hydrate. Protein infused water is
electrolytes and B vitamins to
made with whey protein isolate and
help your performance and to
includes essential amino acids
keep you hydrated.
required by the human body to
perform effectively.
Features: natural flavours,
ginseng root extract, green tea,
Features: 7g of protein, 28 calories
Vitamin B3, calcium.
per bottle , o sugar/ carbs/ fats/
gluten free, lactose free, 00% B3,
Source: Mintel GNPD Source:trimino B5, B6, B2

Photo by Jong Marshes on Unsplash


45
#2 Immortalise: Make me healthier

It helps my longer-term health and builds


my immune system to keep me active and
ready for the next challenge. This most functional
of needs is a
It is good for me and supports my physical growing influence
and mental wellbeing enhancing my and a choice factor
natural defences. With these drinks I can
for almost half
hydrate and refresh on-the-go which
benefits my body. of all beverage
consumers
It helps to keep me in my best condition
and maintain good health.

46
Photo by Chase Kinney on Unsplash
#2 Immortalise: Make me healthier

Brand: Purdey's Edge Brand: Organic Human

Origin: UK Origin: Denmark

Benefits: It contains fruit Benefits: It’s all about feeling


juices, sparkling water and better and stronger. In long term
botanical extracts with all the the main goal is to have a
vitamins that your body needs. healthier lifestyle choosing
something pure and good for you.
Features: Vitamin B, free from
caffeine, artificial flavours and Features: No added sugars, no
sweeteners. additives, organic fruit juices ,
Source: Purdeys Source: Organic Human pure ingredients.
Source:

47
Photo by Chase Kinney on Unsplash
#3 Fix Me: Make me better

It is a cure for the mind and body.

Its medicinal properties resolve my


ailments; temporary and long term. The most

It puts me in control and helps me to


niche influence
feel good again and get on with my
of all, but an
life. It feels like a safer, more natural important driver for
choice than reaching for medicines. 1 in 3

Proven benefits in a bottle.

48
Photo by Magic Bowls on Unsplash
#3 Fix Me: Make me better

Brand: Trader Joe’s


Brand: Rakmai
Origin: USA
Origin: Thailand
Benefits: This product is a mix of
Benefits: This low calorie product
coconut water, turmeric and
contains chrysanthemum which
lemons juices.
promotes a healthy liver, lung and
eyesight. It also helps to reduce the
Features: USDA organic and
risk of heart disease, high blood
kosher certified
pressure and obesity.

Source: Mintel GNDP Source: Mintel GNDP

49
Photo by Magic Bowls on Unsplash
#4 Identity: Be a part of who I am

The choices we make define who


we are, and these reflect us and
how we want others to see us.
Interestingly
These drinks reflect who I am and
my priorities in my life; sporting, Seltzers have
health, rebel, maverick. a strong connection
with this motivation
The power of identity is strong;
make sure your drinks represent
your values..

50
Photo by Farid Askerov on Unsplash
#4 Identity: Be a part of who I am

Brand: Revive Kombucha


Brand: Green Monkey CBD
Origin: USA
Origin: UK
Benefits: This product is made
Benefits: Alternative to caffeine
with probiotics and sparkling
based drinks offering consumers
water. Contains 5 billion live
relaxation and enjoyment.
probiotics.
Features: 50 calories per can,
Features: 5g of sugar,20 calories
zero caffeine and 10 mg of CBD
per can, natural fermentation,
mixed with fruit flavours and
unique cultures. Organic, Non
carbonated water
GMO.

Source: Revive Kombucha Source: Green Monkey CBD


51
Photo by Farid Askerov on Unsplash
#5 Belonging : Allow me to feel part of it

It gives me a sense of connection


with others, I can share and
celebrate moments with others.
Strongly connected to
I care about my family and friends
and want to spend quality time with
“alcologs”, but
also iced teas and
them.
coffees….
My choice allows me to be part of
the group. Most influential in FR
and NL
This “sober-curious” groundswell
has driven a surge in innovative
NPD in the non-alcoholic space.
52
Photo by Levi Guzman on Unsplash
#5 Belonging : Allow me to feel part of it

Brand: Sparklingly Brand: Seedlip


Sober
Origin: UK
Origin: Scotland
Benefits: This product is
Benefits: A refreshing described as a high quality
new choice of alcohol non-alcoholic option made
free drinks based on with natural botanical
classic champagne extracts.
cocktails
Features: alcohol free, sugar
Features: alcohol free free and no artificial flavours.
Source: Seedlip
Source: Sparkling Sober

53
Photo by Levi Guzman on Unsplash
#6 Balance: Let me enjoy a guilt free tasty treat.

It gives me permissible pleasure


and refreshment, without having The heartland of diet
to compromise. sodas; the
I can feel good about my choices second most
and indulge my taste buds, influential
without feeling guilty or judged.
This is a choice I am happy to driver….. Behind
make a part of my everyday life. pure indulgence

With more naturally sweetened


and diet options to choose from
there are a world of options out
there. 54
Photo by Jeremy Thomas on Unsplash
#6 Balance: Let me enjoy a guilt free tasty treat.

Brand: Fuze Tea Brand: Spindrift Brand: Sprite

Origin: USA Origin: USA Origin: USA

Benefits: This is a low calorie Benefits: Unique and delicious Benefits: Free from calories,
product made from fruit blend and taste from real fruit flavour and caffeine and sugar
tea extracts. sparkling water.
Features: High quality ingredients Features: No additives/
Features: Ingredients sourced from family farms around the US Preservatives, No calories,
from selected farms, antioxidants, caffeine free, sugar free,
tea extracts. Environmental friendly package.

Source: Fuze Tea Source: Spindrift Source: Coca Cola 55


Photo by Jeremy Thomas on Unsplash
#7 Indulge: Give me comfort and pleasure

It is pure pleasure that appeals to


our hedonistic side. For those
times when we want to forget
about our diet. Our top
It stimulates my senses and influence on
makes me want to try it. It is fun choice… key to over 6
and makes me want to in 10 consumers in all
experiment. markets
It tastes great and it makes me
feel free.

56
Photo by Erwan Hesry on Unsplash
#7 Indulge: Give me comfort and pleasure

Brand: Fanta Brand: Twist Brand: Mountain Dew

Origin: USA Origin: South Africa Origin: Sri Lanka

Benefits: The classic Benefits: The product Benefits: This products


recipe with strawberry contains 10.7g of sugars contains 12.30g of
flavour that brings joy to per 300 ml and is made sugars per 100 ml.
consumers. with non-nutritive
sweeteners.
Source: Coca Cola Source: Mintel GNPD Source: Mintel GNPD 57
Photo by Erwan Hesry on Unsplash
#8 Energise: Buzz me up

It helps me get through the day and it


has a sense of adventure. It wakes me
up in the morning and allows me to keep A frequent influence
up with my hectic days.

It gives me the kick I need to stay alert


for1 in 3 adult
beverage consumers
throughout the day.

I love that there are many new ways to


get this energy kick especially with more
natural options available all the time.

58
Photo by asoggetti on Unsplash
#8 Energise: Buzz me up
Brand: Coca Cola Energy Brand: Monster Energy Brand: Runa Natural
Espresso Energy
Origin: USA Origin: USA Origin: USA

Benefits: Energy with Coca Benefits: Three shots of Benefits: an all natural tea-
Cola taste. Caffeine from expresso blended with based energy drink made
derived sources. European milk and from Amazonian Guayusa
enhanced with Monster’s Tea. Original and Berry.
Features: Guarana energy blend. They are carbonated and
extracts, B vitamins, free provide consumers with
from taurine and Features: 150 mg caffeine a natural alternative while
sweeteners. per can providing twice the
antioxidants of green tea. 59
Source: Coca Cola
Photo by asoggetti on Unsplash Source: Monster Energy Source: RUNA
Sum Up on Needs

These are the consumer needs we are hearing about;


the jobs they want their beverages to do.

They represent the direct input from consumers we


consulted in the UK and Ireland and are reflective of
the broader consumer needs expressed in the wider
beverage literature.

This in-depth understanding of needs can become an


important tool in the development of innovation
whether it is to drive redevelopment, reinvention or
repositioning.

60
Photo by Alexis Fauvet on Unsplash
Flavours, Formulations
and Formats in Brief

61
(Irish) Forest & Forage
In the quest for authentic goodness and natural functionality there is a growing
interest in wild ingredients that can be foraged around us.

BOTANICALS FOREST FRUITS ANCIENT REMEDIES LOCAL HEROES

Irish botanicals can provide Berries are big at the moment, Find some ancient recipes and Showcase their origin from
medicinal qualities and wild berries are even more traditions. There are lots of “around here”… Elderflower
vitamins. White horehound, interesting…. Blackberries or Irish Druid herbal remedies for from Wicklow, nettle from
Plantain, Mullein…. Bilberries with their wonderful example. Donegal.
ancient history here.
Photo by Joshua J. Cotten on Unsplash
Photo by Jaël Vallée on Unsplash 62
Image by Valgerd Kossmann from Pixabay
Processes
There are processes too that are gathering momentum due to their more premium
edge…… Language is an ingredient too!

INFUSIONS COLD BREW PRESSÉS SELTZER

Extracting subtle flavours over Popularised from the world of With juices squeezed from the The language of refreshing
time for a more refined taste coffee, it is making its way into fruit; this brings you a premium sophistication with a delicate
experience…. teas, kombuchas and other taste experience. flavour.
areas.

Photo by Ryan De Hamer on Unsplash 63


Copyright: Pcholik
Ingredients: Some things we are hearing about

“Herbs and Spices are Taking Off”


Aveen Bannon, Dietician

Curcumin Watermelon Grapefruit


CBD Basil Berries
Golden Photo by Dose Juice on Unsplash
(Spiced) Cinnamon (Antioxidant)
Milk Turmeric Blood
Cucumber Orange
Mushroom Ginger
Extract Lavender Pomegranate Cherry

Function Taste

64
PPhoto by Karoline Stk on Unsplash
Some Noteworthy Format Trends
While there are consumers who will always “go large” the future
trend is towards smaller formats.

“PET the time is nigh, 250ml can the time is now” Alex Bennett
More eco friendly and considered a more “delicate” option.

Shots (DE, UK, IRL, US) are growing with strong associations
around medicinal needs and in keeping with busy lives.

There is also a desire among breakthrough brands to create


proprietary iconic formats and others play around with textured
packaging to create a premium and distinctive edge.
65
Photo by Dose Juice on Unsplash
SECTION THREE

Leading Beverage Trends


With Supporting Expressions

66
Introduction to Trends

These trends represent directions of travel for the


beverage sector over the next 5 years as it
continues to evolve.

While the relevance of each will be dependent on


your sector and circumstances, they are designed
to provoke thinking and to seek out ways in which
your proposition can be as relevant as possible into
the future.

These trends are all at varying degrees of


development and have different levels of mass
market interest, but all are equally interesting to
explore. 67
Photo by Daniel Tseng on Unsplash
The Trends At a Glance

Functionality: Health Functionality: Wellness Adultification

TRENDS

Blurred Lines Premiumisation

Exploration Stripped Back Personalisation 68


This is an overview of
the emerging trends
identified, with trends
appearing on the inner
Beverage circle and expressions
Trends of these trends on the
outer circle.
TRENDS & EXPRESSIONS
Mapping

1.01 Nutri
These Expressions have Boost These are resonating with
mass market interest but the masses and are
6.01 Free From
they are relatively settled in buzzing right now. Well
6.05 Truly Ethical established trends that
terms of current “buzz” in 4.01 Simply Better
the market as they are 1.04 Immunise may be peaking in terms of
8.03 Water 2.0 3.01 NALA opportunity.
more established trends 4.03 Better made
7.03 Flavourful
7.01 New Horizons 2.02 Stress 1.05 Protection
6.04 Less Is More 1.03 Gut Health
8.01 Energy 2.0 These are exciting
Expressions here are of 3.02 Canned Café
2.01 Sleep expressions that are
relatively niche interest 5.01 Tailored Tastes 5.03 Personal Nutrition buzzing at the moment and
overall, but as trending 2.03 Beauty 4.02 Provenance
are resonating strongly
phenomena have the 1.02 Antioxidise 6.03 Herbal
1.06 Adaptogens Essences 7.02 CBD
with a niche within the
potential to break out 6.02 Ancient market; clear potential here
5.02 Home Tech Elixirs to break through to the
8.02 Medley Mashup masses.
3.03 Rewind

FUNCTIONAL FUNCTIONAL
Trends> HEALTH WELLNESS ADULTIFICATION PREMIUMISATION PERSONALISATION STRIPPED BACK EXPLORATION BLURRED LINES
Trend Exploration
Reading the Slides
There are three key slides supporting each of the trends as follows:

There will be a brief


narrative description of the
expression shown here These are some examples to help
bring the expression to life. These
are sourced from around the world
for inspiration.

These icons refer These scales show the


Some simple Some interesting Sources if you A summary to show Using our Some
to the earlier extent to which this
thought features and want to find out the mapping of needscaping indications of
FORCES in terms expression is “buzzing”
starters to get ingredients for this more about expressions in terms of model to show the the main
of their influence and the scale of
you thinking product these products “Buzz” and market key needs beverage
on this trend “relevance”; niche to mass
“relevance” addressed by this categories
trend impacted

72
Trend Expressions

1 Functionality: 1.01 Nutrified 1.02 Protection 1.03 Gut Health


Health Over half (52%) of consumers in
Singapore say they check the
Protective qualities in food
and drink are being
The home of kombucha and
kefirs; these are trending and
ingredients list and nutritional increasingly used to defend we see a strong response to
Functionality is the biggest information on packaging before our “gut future”. (more later)
against the perils of modern
driving force for change in purchasing beverages.
life from anti-inflammatories
57% consumers want to use
(Nielsen, 2020) beverages as a vehicle for
the beverage sector as Many categories of beverage are to protections from colds digestive health benefits,
consumers demand more, frequently infused with nutritional and flus through to the use (Globaldata) With growing
seek to offset any negative boosters. And the University of of collagen and Vitamin A to evidence of the gut-brain
Warsaw found that 15.9% of the protect use from the eye connection and more palatable
effects and producers strive vitamin C, 9% of vitamin B6 and and accessible options coming
damage caused by
to maximise value. This is a folates in Poland come from non-
screens.
on-stream this is expected to
alcoholic beverages. grow significantly.
selection of the trending
BUZZ
functional benefits.

RELEVANCE
Key Forces: Think About…..
How you can add nutritional claims to The use of protective ingredients Is there a pre or probiotic dimension
your products…. Omega 3, Protein, berries, Vitamin A, Vitamin E, Holy you could consider?
Fibre, Vitamins, Magnesium and Basil, Medicinal mushrooms, Apple Cider Vinegar, Probiotics,
Minerals Carotenoid, Algae, Lutein, Prebiotics, Kombucha, Kefir
73
Photo by Darran Shen on Unsplash Green Tea
Trend Expressions

1 Functionality: 1.01 Nutrified 1.02 Protection 1.03 Gut Health


Health ABCD Vitamin Water GET more ViTS KOE

New Zealand UK USA


The product is made with real
Key Forces: This is a functional product that The product contains vitamin D to
fruit juices and purees, not
contains zero sugar, zero salt and help the levels of calcium in your
vitamin A which is said that helps eye body. Vitamin D is good for teeth, artificial ingredients and billions
health, skin and to support the bones and muscles. of live probiotics per can that
immune system. fortify the digestive system.

Source: Parkers Beverage Company Source: GETmoreViTS Source: KOE


Photo by Darran Shen on Unsplash
Trend Expressions

1 Functionality: 1.04 Immunise 1.05 Antioxidise 1.06 Adaptogens


The global antioxidant An emerging class of
Health According to a recent study
from Mintel, immunity interest beverages market size will beverages, typically derived
reach USD 300 billion by 2022, from herbs that help the body
Functionality is the biggest will remain among adapt to alleviate problems
(Technavio, 2018) as
consumers. Vitamin C and
driving force for change in consumers seek protection from heart health and stress to
digestive health formulations from free radicals in the food inflammation and energy .
the beverage sector as will have a persistent appeal, and drink they consume (Bord Often found in teas and
consumers demand more, especially as COVID-19 and Bia Covid Indicators, 2020)…. infusions, they include
new severe viral strains antioxidant-rich fruits and centuries-old ingredients like as
seek to offset any negative vegetable-based beverages, maca, holy basil, Arctic root,
threaten society.
effects and producers strive green tea, and other Aloe Vera and Siberian
(Mintel, April 2020) Ginseng.
to maximise value. This is a antioxidant beverages feature
BUZZ
in this trend.
selection of the trending
functional benefits.

RELEVANCE
Think About…..
Key Forces: Immunity is trending; can you Antioxidants aren’t new, but for As natural super nutrients that
make the most of it? your beverages it may be a new cover a range of bases, are
Vegetables, Citrus, Elderberry, departure. Green Tea, Berries, these herbal additives
Turmeric, Ginger, Garlic, Carotenoids, Vitamin C, Zinc, something for you to think 75
Photo by Darran Shen on Unsplash
Almonds, Hibiscus, Aloe Juices, Smoothies, Water about (see also trend 6.03)
Trend Expressions

1 Functionality: 1.04 Immunity 1.05 Antioxidise 1.06 Adaptogens


Health Vive Organic ALO Taika

USA USA Finland


Key Forces: Vive Organic is a functional shot made This product contains pomegranate Taika, which means “magic” in Finnish, is aa
with cold pressed ginger root, turmeric and cranberry juices rich in sugar-free, keto-friendly macadamia latte that
root, elderberry, black pepper, pineapple antioxidants. The product is free from contains the adaptogen blend of Cordyceps,
and lemon that help to boost the artificial flavours, preservatives or Lion’s Mane, Reishi, Ashwagandha, and L-
immune system. colours. theanine designed to balance out the effects
of caffeine.
Photo by Darran Shen on Unsplash Source: Mintel GNPD Source: ALO Source: Sprudge
Consumer Created Innovation
Pains Addressed

Non Ethical
Feel Guilty
Unhealthy Drinks
Misleading health claims

Gains Created

100% Natural
Good For You
Honest
Nutritional
Ethical
This is a natural and straightforward fruit juice that has a low carbon fruit
CONSUMER CREATIONS print. The sleek design and allergen-free product attracts young adults.
Visualised by graphic artist 77
© Opinions Market Research
Consumer Created Innovation

Pains Addressed

Unhealthy ingredients
Not getting enough vitamins
Use of plastic

Gains Created

Daily vitamins
Boosts immune system
Helps your appearance
Boosts confidence

Vita-mine is a natural remedy drink composed with vitamins and supplements that boosts
CONSUMER CREATIONS immune system and is used in daily shots. The way that consumers are consuming
vitamins and supplements today is changing. People are searching for a more holistic
Visualised by graphic artist approach when it comes to their health.
© Opinions Market Research 78
Consumer Created Innovation

Pains Addressed

Unhealthy drinks
Unsustainable packaging
Feel Guilty

Gains Created

Probiotics
Boost immune system
Small bottle
Natural ingredients

CONSUMER CREATIONS This type of beverage responds to the need of a daily boost to your immune system using
plant based ingredients. We can also see an interest for a more environmental friendly
Visualised by graphic artist packaging.
© Opinions Market Research 79
Trend Opportunity

1 Functionality:
1.01 Nutri Boost
Health MASS 1.04 Immunise
MASS
These trends sit firmly in the SETTLED BUZZING
“functional” needs area of 1.05 Protection
our need scaping tool and
1.03 Gut Health
their high consumer BREAK BREAK
1.02 Antioxidise
relevance pulls them to the
1.06 Adaptgens THROUGH
OUT?
top of our map with gut,
protection and immunity hot
spots for the future.
KEY CATEGORIES:
Enhanced Water, Juice 2.0, Kombucha, Kefir, Seltzers, Smoothies, Pressés & Speciality,
Some premium natural energy (see energy 2.0)

Key Forces: Capture your thoughts here…..

80
Photo by Darran Shen on Unsplash
Consumer Created Innovation

Pains Addressed

Lack of functionality

Gains Created

Boost immune system


Hangover cure
Small package

CONSUMER CREATIONS The need for a quick fix after a night out or a potion that will make us younger, healthier
and prettier are the reasons why this idea was created. A natural supplement that boosts
Visualised by graphic artist your immune system using super ingredients (botanical, charcoal, collagen).
© Opinions Market Research 81
Trend Expressions

2 Functionality: 2.01 Sleep 2.02 Stress 2.03 Beauty


Wellness 44% of adults surveyed
75% of US adults reported 87% and 86% Asia-Pacific
Consumers are becoming experiencing moderate to high consumers claimed that
globally admit their sleep has
levels of stress in the past incorporation of vitamin C and
more and more interested in worsened in the last five
month and nearly half reported E, in their beauty and grooming
years. (Philips, 2019)
naturally-functional food and Sleep inducement beverages
that their stress has increased products make them
drinks to improve wellness. in the past year. somewhat/very appealing. 72%
are being touted as the
(American Psychological said incorporation of collagen in
saviour with proven relaxants
Association, 2019) their beauty products makes it
added to natural bases. May
This rise in health be suited to dairy innovations.
It is unsurprising that we are somewhat/very appealing.
seeing these elixirs on the rise. (Global Data, 2019)
consciousness, partnered with
hectic on-the-go lifestyles, has BUZZ

prompted innovation around


smart, nutrient-rich beverage
solutions to improve sleep,
RELEVANCE
stress and beauty. Think About…..
Is there a role for sleep CBD-infused, Ashwagandha With a wide array of proven youth-
Key Forces:
inducing ingredients? beverages are believed to help promoting additives there may be
Chamomile, Magnesium relieve stress and anxiety. Is opportunities here?
Peppermint, Tryptophan, this zone for us? Collagen peptides, Retinol, Vitamin
Melatonin and Valerian root C, Vitamin A, Lysine, Silica 82
Photo by Wesley Tingey on Unsplash
Trend Expressions

2 Functionality: .01 Sleep .02 Stress .03 Beauty


Wellness So Good So You Pfanner Diva's

USA SLOVAKIA UK
This product is made with pressed Diva’s vitamin water is a non-carbonated
This cold pressed juice is made with
and non-alcoholic drink made with
Key Forces: honeydew juice, lemon juice, apples, cherries, blackcurrants,
natural blueberries and acai berry
pineapple juice, California poppy elderberries, raspberries, hemp,
cinnamon extract and magnesium used flavour, Vitamin C, B3,B5,B6,B9,B12,
extract, lavender extract, butterfly pea
to preserve the health of the nervous Niacin and Coenzyme Q10 that helps to
flower powder and probiotics to
system. produce collagen and elastin.
improve sleep quality.
Source: So good so you Source: PFANNER Source: Diva’s 83
Photo by Wesley Tingey on Unsplash
Trend Opportunity

2 Functionality:
Wellness MASS MASS
The wellness SETTLED BUZZING
connection with 2.02 Stress

beverages is a new 2.01 Sleep


BREAK BREAK
area, but one we think 2.03 Beauty
OUT THROUGH
will gain traction.
Stress is the easy-
access option in this
functional zone. KEY CATEGORIES:
Natural extracts of fruit & vegetables, Enhanced Waters, Wellness shots,
CBD-infusions, Vitamins
Key Forces: Capture your thoughts here…..

Photo by Wesley Tingey on Unsplash


Consumer Created Innovation

Pains Addressed

Sugar
Bad packaging
Non-ethical

Gains Created

Feel good
Gut health
Relaxing
Restore body

CONSUMER CREATIONS A drink with relaxing properties that is beneficial not only for your body but also for your
soul. This type of drink is created from the need of real healthy beverages that are 100%
Visualised by graphic artist natural and have functional/nutritional benefits related to their ingredients (probiotics,
© Opinions Market Research cultures, etc) 85
Functionality Case: The Naked Collective

Putting functionality to the fore with a line of non-


alcoholic beverages that call out their function quite
clearly.

They play in a number of trend spaces containing


just water, plants and vitamins, they are also low in
sugar and additive free. And they do a “non-alc
tipples” range too.

And there’s more: to deliver on their Carbon Neutral


Commitment, they produce in Ireland for Ireland and
in the UK for the UK.

See www.thenakedcollective.com

86
Trend Expressions

3 Adultification .01 NALA .02 Canned Café .03 Rewind

Bringing Adult sensibilities to 25% The percentage of UK RTD coffee continues to drive Nostalgia, retro and vintage
consumers cutting back on the category as the fastest packaging is becoming
the beverage space brings alcohol (Stylus) and global growing segment, growing 31% popular. “Vintage-inspired
us in some interesting in the last two years. (Mintel)
alcohol consumption is down packaging is being used to
Now 1 in 5 coffee launches are
directions and bringing the by 1.5% in 2020 (IWSR). This cold. This is a playground for convey the impression of
adult worlds of pubs and is tapping into a wider theme the coffee companies, with 20% age and prestige”.
of busy lives and a annual growth expected for the (Eastpac, 2019)
cafes to the beverage fixture heightened emphasis on next 5 years led by the US, This is aimed at restoking
is becoming more prevalent. staying “straight” to perform China and Japan. interest with an older
It also opens the possibility without missing out. audience and asserting
for a throwback to the past to BUZZ brand heritage.
appeal to the nostalgic in
people.
RELEVANCE
Think About…..
Key Forces: Alcolog versions of familiar Capturing the magic of the The reintroduction of glass
favourites including beer, wine café in a bottle or can; coffee bottles, old flavours, old-
and spirits, but also and tea, in all their forms and fashioned fonts and colour
accompaniments and mixers for “blurred line” mixes have a schemes
that true “night out” experience role (later) 87
Photo by Park Street on Unsplash
Trend Expressions

3 Adultification .01 NALA


Bar None Daylesfort Ritual Curious
Elixirs

USA France USA USA


Key Forces:
Non-alcoholic crafted drinks Looks just like champagne, Can be swapped out 1:1 for Shaken not Slurred! A pre-mix
created from bar recipes to but it is Apple and Bilberry whiskey or gin to make cocktails cocktail without the alcohol.
offer an alternative to non- Juice from organic orchards in or enjoy with a coke or tonic… Handmade with the finest
alcoholic drinkers that are in the Nantes in North West France. ingredients. . .
88
mood of being out together.
Photo by Park Street on Unsplash Source: Bar None Source: Daylesfort Source: Ritual Source: Curious Elixirs
Trend Expressions

3 Adultification .02 Canned Café .03 Rewind

Byron Beverage Pepsi

Australia India
Key Forces: Organic Cold Brew Coffee infused with PepsiCo India used a retro design as
Nitrogen. The product is described as a part of a limited edition campaign.
smooth and creamy texture with chocolate
and berries flavour. Made with organic coffee
beans and sugar free.
89
Source: Byron Beverages Source: Mintel GNPD
Photo by Park Street on Unsplash
Trend Expressions

3 Adultification
This space is about MASS MASS
identity and belonging SETTLED BUZZING
3.01 NALA

with choices
appropriate to their BREAK
3.02 Canned
BREAK
Café
adult world. With a OUT THROUGH
3.03 Rewind
focus on inclusion and
sociability they offer a
adult option to suit the
KEY CATEGORIES:
mood. Any alcohol type, Sodas, Sparking water, Cold Brew Tea and Coffees; these
trends are also amenable to blurred collaborations with other categories.

Key Forces: Capture your thoughts here…..

90
Photo by Park Street on Unsplash
Consumer Created Innovation

Pains Addressed

No variety
Image

Gains Created

Alternative for non drinkers


Appropriate for social
setting
Natural ingredients

The idea originated from the need to have more non-alcoholic alternatives available in the market.
CONSUMER CREATIONS Some of the participants in the group noted there is moments that they don’t feel like having an
Visualised by graphic artist alcoholic drink but they still want to have a night out with their friends. A natural drink that you can
enjoy on nights out, cinemas, pubs and events! 91
© Opinions Market Research
Trend Expressions

4 Premiumisation 4.01 Simply Better 4.02 Provenance 4.03 Better Made


Adults want the joy of a soda 42% of global consumers Consumers want products that
Adults love the joy of that’s a cut above. Better favour smaller and locally contain clean and simple
beverages, but they want sourced ingredients and an produced brands over bigger, ingredients that they recognise.
upmarket sensibility, while still mass market brands. 70% of 39% of U.S consumers say
something a little bit doing its refreshment duties. global consumers associate they would switch from their
special sometimes. This San Pellegrino has seen double local or locally produced current brand to one that
digit growth for several years, products with "fresher". provides clearer, more accurate
trend towards indulgent with better ingredient focus: (GlobalData, 2018) product information on how it is
Clementina, Aranciata, Think about hyper local made. (Nielsen, 2017)
adult treats take Limonata…. What’s not to like…. ingredients or heritage to give a This is all about leveraging the
beverages in a number of sense of place and tradition. value of a better production
method.
exciting directions from BUZZ

ingredient twists to ethical


turns, there are lots of
RELEVANCE
adult only beverage fun.
Think About…..
Key Forces: Passionfruit, Dragon Fruit, Country of origin, region of Pressés, Infusions, Cold Brew
Turmeric, Moringa, Blook origin or sourced from a famous and Seltzer…. This is the
Orange, Pomegranate and a source; Valencia oranges, alluring language used referring
visual makeover for a premium Sicilian lemon… Elderflower towards better production
edge. from Connemara…. methods. 92
Photo by lucas Favre on Unsplash
Trend Expressions

4 Premiumisation .01 Simply Better .02 Provenance .03 Better Made


Nix and Kix San Pellegrino Press

UK Italy UK
With Adult flavours and a more This sparkling limonata is made 100% plant-based quality nutrition to
Key Forces: mature sensibility, Nix and Kix with 100% Sicilian organic help customers to live happier and
does mainstream “better made” lemons, cane sugar and natural balanced lives. Cold pressed
well. Watermelon and Hibiscus, lemon flavour. natural fruit juice.
Blood Orange and Turmeric, with
a subtle kick of cayenne. Yum.
93
Source: Nix and Kix Source: Mintel GNPD Source: Press
Photo by lucas Favre on Unsplash
Trend Expressions

4 Premiumisation
MASS
4.01 Simply Better
MASS
For adult drinkers this is SETTLED BUZZING
4.03 Better made

a reflection of
themselves and their 4.02 Provenance
BREAK BREAK
identity allowing them to
OUT THROUGH
indulge in pleasurable
non-alcoholic
beverages that suit their
needs and match with KEY CATEGORIES:
Water, Juices, Premium Soft Drinks and Seltzers
their status.
Key Forces: Capture your thoughts here…..

94
Photo by lucas Favre on Unsplash
Hot Topic
Sustainability & Plastics

95
Sustinability
Beverages are at the coalface of the consumer drive for sustainability;
driven principally by the reliance on plastics, but also increasingly
responsible sourcing of natural ingredients. 6 in 10 consumers across
Ireland and the US are concerned by the impact of their beverages
choices on the environment.

However, there is widespread acknowledgment that the industry has


been doing a good job in improving the sustainability of the beverages
they produce, with 71% believing that to be the case.

In discussion with UK and Ireland consumers, while this is a concern and


they respect brands who contribute positively, it does not have a
significant bearing on choice for the mainstream consumer. It is generally
perceived to be an issue for the industry and governments to resolve.

The role of government policy in shaping behaviour is considered by both


the industry in Ireland and consumers to be the most effective way to
tackle this issue.

In Ireland we recycle 70% of plastic bottles (Repak, 2020), one of the


highest in Europe.

With annual consumption estimated at 1 trillion bottles a year, it is an issue


that will continue to take attention of policy-makers, industry and 96
Photo by Alena Koval from Pexels
consumers alike.
A combination of Measures…..
Reverse Vending VEPR Deposit & Return
“Reverse vending” has been trialled Voluntary End Producer Responsibility Ireland’s waste reduction bill
here in Ireland and is commonly used schemes, whereby producing come proposes a “Deposit and Return
in other markets such as Germany, together to take responsibility for Scheme” for plastic bottles. While
China and Canada. The system recovery and recycling have had a there is some debate about the
issues vouchers for each bottle huge effect in Africa. This is funded by efficacy of such schemes, and
deposited in the machine that can be a levy on PET resin and grants. ultimately the consumer and retailer
used in local stores. will pay, it has been proven in the US.
In South Africa recycling of PET bottles With the US overall recycling rate for
has gone from 14% to 65% compared beverage bottles at 33%, in states
with 60% in the EU and 28% in the US with deposit laws it is 70% and it has
(TCCC). halved little rates from bottles
(Bottlebill.org).

In May 2019, Scotland announced


that it would be implementing a
similar scheme with a 20p deposit
return on bottles; the first part of the
UK to do so (Packaging News).
97
Pic: Extra.ie Pic: REUTERS/Siphiwe Sibeko
rPET; a solution to single-use plastics?

rPET or recycled PET is the current lead solution for industry. However,
Europe is facing a shortage of supply (Plastics Today), which is
hindering its potential. This is being caused in part due to recovery
rates and also capacity in the system. There is simply not enough raw
material.

Britvic have co-invested €5.8m in new rPET manufacturing plant in


Esterform in the UK for UK & Ireland (Checkout, 27/11/2019) with 100%
of its PET bottles now recycled. Suntory (Lucozade, Ribena) have also
committed to making its plastic supply chain 100% recyclable having
signed up to the WRAP UK’s Plastics Pact (Edie, January 2020).

The Coca-Cola company in Ireland is currently at 50% rPET in its on-


the-go formats (Irish Times, 17/8/2019).

Indigenous Irish producers too are committed to rPET systems.

So the industry is committed to rPET and will need greater compliance


to “feed” the closed loop system.

Photo by Jonathan Chng on Unsplash 98


Packaging Innovation
Producers and packaging companies have been busy creating new and
innovative approaches to minimise plastics too, ranging from paper, pouches,
aluminium and glass.

Note: There are additional packaging resources available via Bord Bia here
Novel Materials

One of the more interest packaging


innovations that is making its mark is a
seaweed derived pack from Notpla that
can be eaten as a pod containing
beverages.

These were provided to athletes in the


London marathon in 2018 to reduce
packaging waste on the course.

100
Photo by Notpla
Trend Expressions

5 Personalisation 5.01 Tailored Tastes 5.02 Home Tech 5.03 Personal


Nutrition
According to Global Data, 1 in 6 Belgian households Health-promoting juice shots in
We are individuals with consumers are looking for more currently owns a soda small to-go bottles are providing
bespoke, individual experiences, consumers with a quick, natural
individual health, taste with 61% of global consumers
maker machine.
boost of nutrition for their busy
(GFK, 2017)
and nutritional needs expressing an interest in creating
2018 saw a huge
lives. Cafés on the continent
their own products. are offering these and on the
and this trend is a (Global Data, 2019) comeback in SodaStream high street brands with brands
Pepsi’s ‘Drinkfinity’ system allows for fun at home beverage like Mio, Zero and Oxygen are
reflection of that and the you to do this, but simpler water- production. bringing it to the masses.
control that we can now additive taste solutions like
Robinsons and Mio.
have to create BUZZ
beverages that suit us.

RELEVANCE
Think About…..
Key Forces: Drops to add to your product or Can you facilitate your Ways to create a system to
to water to give it a flavour drinkers to customise at deliver specific personalised
twist; this can have an ethical home and create their own nutritional/medicinal drink.
dimension too! and have a little fun? The difference here is
101
Photo by Ilya lix on Unsplash
functional.
Trend Expressions

5 Personalisation 5.01 Tailored Tastes 5.02 Home Tech 5.03 Personal


Nutrition
Pepsi Home Made Life Fuels OXiGEN shot

USA USA USA


Pepsi Home Made caps Smart nutrition bottle that turns The product is said to help
Key Forces: allow you to customize normal water into flavoured water your brain and body after
your drinks with the perfect with vitamins and nutrients at workout or a night out. Just
amount of flavour and home. add to Oxigen water.
carbonation.
102
Photo by Ilya lix on Unsplash Source: Pepsico Source: Life Fuels Source: Oxigen
Trend Expressions

5 Personalisation
This trend is in its infancy MASS MASS
and in relative terms is SETTLED BUZZING
niche, but the creation of
drinks “systems” represents
5.01 Tailored Tastes
an interesting space to BREAK BREAK
5.03 Personal Nutrition
explore for brand owners OUT THROUGH
and the ability to tailor to suit 5.02 Home Tech

generates experimentation
and engagement .
KEY CATEGORIES:
Water base but extension territory for cordial, sports, energy and functional
drinks.

Key Forces: Capture your thoughts here…..

103
Photo by Ilya lix on Unsplash
Trend Expressions

6 Stripped Back 6.01 Free From 6.02 Ancient Elixirs 6.03 Herbal Essences
The consumer desire for purity According to Mintel “people Half of supplement users now
This is all about in a world where there is a are seeking the safety of take a herbal/botanical
heightened sensitivity to health
simplicity and and a common mistrust of
products that are supplement. (CRN 2019)
Nearly one-third (31%) of
producers, the drive for “clean
recognizable rather than
transparency; taken as labelling” is pervasive. No revolutionary,” and that adults now consider herbal
flavours highly appealing, up
a sign of quality and artificial ingredients is the manufacturers should look 5% over the past two years.
panacea, and ideally no sugar to “ancient recipes, (Technomic 2019)
authenticity this is a either! But there are also practices and traditions” as Our experts are excited by the
opportunities in Vegan claims,
trend we see in all non GMO etc.
a source of innovation. potential that herbs have to
offer in the future.
areas of food and drink. BUZZ
Nothing to hide; as
things should be.
RELEVANCE
Think About…..
Key Forces: How can you strip back your Are there ancient recipes or Is there a herbal twist that
product to minimise additives ingredients that could credibly fit you can add to bring a
and make the label legible for with your product to bring natural edge or functional
consumers? authenticity and intrigue? benefit? 104
Photo by Louis Hansel @shotsoflouis on Unsplash
Trend Expressions

6 Stripped Back 6.01 Free From 6.02 Ancient Elixirs 6.03 Herbal Essences
Cappri Humble Warrior Firefly

Poland UK UK
This product is gluten free, no sugar This is a botanical sparkling drink Made with still water, fruit juice and
Key Forces: added, low fat, no additives or made with turmeric, Indian herbal essences such as thyme,
preservatives and is made with 100% gooseberry, black pepper, ginger, kola nut, elderflower and rosemary.
watermelon juice. mango and mandarin. It’s low This product can be used on its
calorie with no sugar added. own or as a mixer.

Source: Firefly
105
Source: Mintel GNPD Source: Humble Warrior
Photo by Louis Hansel @shotsoflouis on Unsplash
Trend Expressions

6 Stripped Back 6.04 Less Is More 6.05 Truly Ethical


LemonAid
Shorter ingredient drinks are Claims of sustainable and
This is all about sought after increasingly by ethical beverage production
simplicity and consumers. Almost 80% of
consumers look for products
are plentiful, but as we
found in our research
transparency; taken as with fewer ingredients.
consumers are sceptical.
(Nutrifusion, 2020)
a sign of quality and According to Kerry Foods they They are seeking
want “fewer, recognizable watertight, straight-talking
authenticity this is a ingredients that are free from and genuine commitments
trend we see in all artificial additives. This is about and clarity.
simplicity and transparency.
areas of food and drink. BUZZ
Nothing to hide; as Germany
things should be. You get dark and sweet blood orange
RELEVANCE from Sicily, more orange from Brazil,
Think About….. topped up with grapefruit, lemon, a hint
of cherry, and a little cane sugar. Made
Key Forces: Is this something you can Unequivocal ethicality at from organic, Fairtrade ingredients that
aspire to? Fewer, more the heart of the brand; are sourced from small-holders, this is a
decidedly more ethical take on
natural and recognisable even in the name; but you
supermarket lemonade.
ingredients. have to live it!
Source: LemonAid
Photo by Louis Hansel @shotsoflouis on Unsplash
Consumer Created Innovation

Pains Addressed

Misleading products
Design
Unsustainable packaging

Gains Created

Not complicated
Attractive packaging
Good for you
Simple recipe
Honest

CONSUMER CREATIONS A simple, transparent fruit juice made from 4 ingredients (water, fruits, vegetables & flowers).
Visualised by graphic artist Consumers today want to know exactly what ingredients are going into their products. Clean
labels with high ethical values are more important than ever. 107
© Opinions Market Research
Consumer Created Innovation

Pains Addressed

Guilt free
Non ethical
Unsustainable packaging

Gains Created

Sustainable
Ethical
Biodegradable packaging

CONSUMER CREATIONS This is a punch-based beverage with biodegradable packaging and comes with seeds to grow.
Consumers are becoming more environmentally aware and want eco-friendly packaging. They
Visualised by graphic artist want packaging to be designed in such a way that it can be reused, recycled, or composted.
© Opinions Market Research 108
Trend Expressions

6 Stripped Back
The stripped back MASS
6.01 Free From MASS
6.05 Truly Ethical

promise delivers SETTLED BUZZING


balanced pleasure and 6.04 Less Is More
a sense of spiritual and BREAK BREAK
6.03 Herbal
Essences
physical wellbeing. THROUGH
OUT 6.02 Ancient
This is one of the Elixirs

leading ways of adding


value to your beverage
KEY CATEGORIES:
proposition. In an environmental sense water is a focus here, but beyond these flavours
generally including seltzer can be amplified for juices and smoothies. How
can you strip back your beverage?
Key Forces: Capture your thoughts here…..

109
Photo by Louis Hansel @shotsoflouis on Unsplash
Consumer Created Innovation

Pains Addressed

Guilt Free
Unhealthy Ingredients

Gains Created

Nutritional
Full of vitamins
No regrets
Good for you

CONSUMER CREATIONS This idea was created from mapping traditional drinks perception in the market as some drinks come
across as healthy options but their components are not as healthy as we think. Using fruit and
Visualised by graphic artist vegetables in seasons and simple recipes will earn those healthy qualities that consumers are looking
© Opinions Market Research 110
to find in their drinks.
Trend Expressions

7 Exploration 7.01 New Horizons 7.02 CBD Infusions 7.03 Flavourful


Trends are originating from The global cannabis beverages Almost 8 in 10 (77%) of global
Consumer’s loyalty to anywhere in the world and market size is expected to respondents said they would
beverage brands is reaching us much more quickly
today. Many brands are making
reach USD 2.8 billion by 2025.
(Grand View Research)
love to explore new flavours
and types of drinks. (Opinions
becoming eroded by the their way around the world and However, for the local Irish and Global Survey)
therefore we are ending up with UK markets the expectations According to Euromonitor, 60%
proliferation of choice a wide variety of options. We are more subdued as the say that they spend money on
see leading brands psychoactive agent isn’t yet “experiences” and therefore
and they are embracing experimenting all the time with legal here. Nonetheless there is prefer creative, exciting and
the opportunity that this new exotic variants to retain a lot of intrigue in this area unusual tastes. (Euromonitor)
interest. Red Bull and Monster which will continue for some Humans are curious to try new
presents to explore and for example. time. things.
BUZZ
experiment with new
things.
RELEVANCE

Key Forces: Think About…..


Are there heroes from around the world A CBD infused drink can become an Can you bring a sense of excitement
that you can bring it to expand our integral part of a larger healthier and to your brand through variant guests
horizons; drinks of the world. Think of holistic lifestyle (managing stress, or limited time flavour options?
the rise of pomegranate, cranberry and wellness routine) – is it for you?
coconut in the past. 111
Photo by Mathieu CHIRICO on Unsplash
Trend Expressions

7 Exploration 7.01 New Horizons 7.02 CBD Infusions 7.03 Flavourful

Aje Big Green Monkey CBD Pepsi

Thailand UK Japan
Key Forces: This product is made with Alternative to caffeine This product is a limited edition
blueberry and lime based drinks offering launched this year. It has orange
flavours. consumers relaxation and flavour.
enjoyment.
Source: Mintel GNPD Source: Green Monkey CBD Source: Mintel GNPD 112
Photo by Mathieu CHIRICO on Unsplash
Trend Expressions

7 Exploration
MASS MASS
SETTLED
7.03 Flavourful BUZZING
7.01 New Horizons
This variety seeking brings a
spirit of adventure that
allows for indulgence and BREAK BREAK
expression. For a certain OUT THROUGH
7.02 CBD
cohort there is an openness
to experimentation who often
marks the path for others to
follow and this zone is for
KEY CATEGORIES:
them. Flavoured Waters, Smoothies and flavoured CSDs, but all categories can extend some
creative and experimental flair.
Key Forces: Capture your thoughts here…..

113
Photo by Mathieu CHIRICO on Unsplash
Trend Expressions

8. Blurred Lines 8.01 Energy 2.0 8.02 Medley Mash-Ups 8.03 Water 2.0
From Pepsi White yoghurt Cola
64% of global consumers said More than 7 in 10 Americans
Beverage categories are they often use drinks for energy
and Bilk containing both Beer
(72%) say bottled water (still
and Milk to Coca-Cola's Salad
not so neatly defined to get them through the day.
Water; the drinkable Lettuce
and/or sparkling) is among their
anymore. With restless (Opinions Global Survey) most preferred non-alcoholic
Leaves from Japan….. There
But energy often now has a beverages. (IBWA, 2019)
consumers, evolving are lots of weird and wonderful
twist of added value; vitamins But it is under attack from
combinations going on.
demands and global or added natural energy. This refillables, fonts and the plastics
Consumers can get involved
is a big topic on its own, but debate. The “pimping” of water
influences, lines too, like Fanta’s flavour lab in
Monster and Red Bull are is adding value and sustaining
Australia which invited fans to
between categories that embracing the need to
“mix, name and submit” their
its growth.
constantly reinvent and
are blurring with the maintain relevance.
favourite combinations.
injection of “magic” by BUZZ

borrowing from other


tangential categories.
RELEVANCE
Think About…..
Key Forces: Guarana, Ginseng, Low Are there ways that you can How can you make water
caffeine, Matcha, B vits… fuse flavours to create new better? Alkinity, Origin,
Adding a new (more natural) combinations that work? Potassium, Vitamin C, Vitamin
dimension to the much- B6 and Vitamin B12
maligned energy drink. (See next page) 114
Photo by Christopher Johnson on Unsplash
Focus: Water 2.0
While water continues to be the top beverage, with a drive toward refillable water bottles, fonts, price
pressure and evolving consumer demand, standard bottled water has needed to react, and it has.

The priority for water brands has to be on adding value and it has been doing so by building in
functionality beyond hydration, with an ever more exotic array of functional enhancements to maximise value
from consumers…

For Expectant Mums add For exercise add For functional For energy add For relaxation
Folic acid and vitamins protein & caffeine recovery add oxygen caffeine & vitamins add hemp

That’s not to mention the proliferation of intriguing flavoured waters, spritzers and infusions that are making
their way onto the market.
115
Trend Expressions

8 Blurred Lines 8.01 Energy 2.0 8.02 Medley Mix 8.03 Water 2.0

Starbucks Triple Shot Pepsi Café Acaii Elixir


Energy

USA UK Indonesia
The product is made with caffeine, This drink from Pepsi features the Cola This Chlorophyll water helps the
maltodextrin, inositol, guarana, B classic with a twist of coffee for a burst metabolism by improving the
Key Forces: vitamins, ginseng. of caffeinated, cold filtered goodness. oxygen circulation in the body.
The product contains 0 calories,
Source: Mintel GNPD Source: Pepsico
80 mg of caffeine and 30 mg L-
Theanine to help us to stay
(See next Page too). focused.
Source: Acaii Tea
Photo by Christopher Johnson on Unsplash
Trend Expressions

8 Blurred Lines 8.01 Energy 2.0


Next Generation Energy has a strong natural dimension to it.
These two examples show how this can be done.

Inspired by the Sherpa A light, lasting energy seltzer


Tenzing, the caffeine in this is (sparkling energy water) using all
derived from coffee beans, natural ingredients. It is
Key Forces: green tea, and guarana. unsweetened with zero calories.

USA USA
Source: Tenzing Source: Hiball 117
Photo by Christopher Johnson on Unsplash
Consumer Created Innovation

Pains Addressed

Traditional unhealthy
energy drinks
Work appropriate
Sugar

Gains Created

Natural ingredients
Slow release energy
Caffeine alternative
Taste
Enhance performance
Alternative and natural sources are some of the reasons why this idea was created.
CONSUMER CREATIONS Consumers are expecting to see more natural and healthy sources to replace ingredients
such as caffeine without compromising the pick me up effect. This type of drink will also
Visualised by graphic artist respond to the need to find brands that are more adult branded and can be consumed at work.
© Opinions Market Research 118
Trend Expressions

8 Blurred Lines
MASS MASS
With the drive for health SETTLED BUZZING
and functionality, 8.03 Water 2.0

categories will borrow 8.01 Energy 2.0


from each other to BREAK BREAK
develop solutions OUT THROUGH
8.02 Medley Mashup
across the needs map,
but these examples sit
within the Energy and
KEY CATEGORIES:
Enhance zones in This is a playground for all categories, but Water, Energy and CSDs fit most
particular. naturally.

Key Forces: Capture your thoughts here…..

119
Photo by Christopher Johnson on Unsplash
Trends Overview
Mapping

120
TRENDS & EXPRESSIONS
W rapping Up

1.01 Nutri
These Expressions have Boost These are resonating with
mass market interest but the masses and are
6.01 Free From
they are relatively settled in buzzing right now. Well
6.05 Truly Ethical established trends that
terms of current “buzz” in 4.01 Simply Better
the market as they are 1.04 Immunise may be peaking in terms of
8.03 Water 2.0 3.01 NALA opportunity.
more established trends 4.03 Better made
7.03 Flavourful
7.01 New Horizons 2.02 Stress 1.05 Protection
6.04 Less Is More 1.03 Gut Health
8.01 Energy 2.0 These are exciting
Expressions here are of 3.02 Canned Café
2.01 Sleep expressions that are
relatively niche interest 5.01 Tailored Tastes 5.03 Personal Nutrition buzzing at the moment and
overall, but as trending 2.03 Beauty 4.02 Provenance
are resonating strongly
phenomena have the 1.02 Antioxidise 6.03 Herbal
Essences 7.02 CBD
with a niche within the
1.06 Adaptadgens
potential to break out 6.02 Ancient market; clear potential here
5.02 Home Tech Elixirs to break through to the
8.02 Medley Mashup masses.
3.03 Rewind

FUNCTIONAL FUNCTIONAL
Trends> HEALTH WELLNESS ADULTIFICATION PREMIUMISATION PERSONALISATION STRIPPED BACK EXPLORATION BLURRED LINES
SECTION FOUR

Some Beverage Futures


Ideas Worth Testing

122
Introducing the “Futures”
• Following a review of the emerging consumer insights, in collaboration with the
Bord Bia team, we developed a series of illustrative “futures” in order to
explore some of the more interesting emerging themes.

• A total of n=7 alternative futures were explored across 6 countries: IE, UK, DE,
FR, NL & US among a total of n=4,260 beverage drinkers aged 18-49.

• The survey included a selection of general interest topics as well as a review of


these futures using standardised metrics as follows:
• Belief; that they will become a reality
• Consumer Connection; that they will become a popular choice
• Desire; at a personal consumer level; a product for me
• Relevance; to solving a consumer problem

• A summary of these findings are provided here… 123


THE FUTURES
Responsible Sourcing
&
Production
Non-Alcoholic
Nature’s Energy
Tipples

Fermented for More H20 2.0

Medical Marvels CBD Has Come

124
Sum Up on Futures
There is clear gravitational pull toward more natural and sustainable
propositions in line with the market Forces identified earlier. However, it is worth
noting that these features are fast-becoming “expected” by consumers.

Both Non-Alc Tipples and Fermented For More are expected to make it to the big
time, despite not being a strong draw for the respondents themselves which
indicates that their functional pulling power will see them win despite a reluctant
base of active supporters.

The remaining Medical Marvels and CBD are likely to remain niche, but they are
aligned with identified needs and will find a dedicated following in the
marketplace.

All of these futures will play a role and will be a growing part of the future of
beverages. 125
A brief look at the futures

126
Futures Mapping
+

Responsible CONNECTION
Sourcing &
Production
Future Purchase Potential

Higher
MOMENTUM

Nature's
Energy Natural
Alcohol
Tipples

H2O 2.0
Fermented For More

Medical Marvels

Lower

CBD Has Come

- MASS APPEAL +
Will become a Reality 127
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
129
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
Non Alcoholic Tipples
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

67 31 30 74
€7.41
# 1/7 # 2/7 # 3/7 # 3/7 Of 20

For ‘Non Alc. Tipples’ it is clear that it has momentum and it solves an
issue for consumers, but it is not a choice for everyone. #1
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
• Female Oriented Mapping The Future
BELONGING • Under 35 year old Overall
• Workers Preference
• City / urban area
BALANCE • Non-alcoholic beer tends to
be most often consumed
1/7
FORCES… 39% A top Tier
23% 24% Performer
overall with
high
31% 29% 32% Non Alc. Tipples has strong expectations for
mass appeal with moderate growth
momentum
132
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
Responsible Sourcing & Production
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

65 34 39 84
€7.21
# 2/7 # 1/7 # 1/7 # 1/7 Of 20

For ‘Responsible Sourcing & Production’ it is expected to become a regular


choice and has been clearly identified as a problem solver. #2
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
• Female Oriented Mapping The Future
IDENTITY • 35-39 year olds
• Higher Social Grade
• City / urban area
• Tends to drink Kombucha or Overall
BELONGING
Kefir most often Preference
FORCES…
35%
44%
40%
2/7
39% 42% 35% Responsible Sourcing & Production has
extremely high momentum and appeals
to the masses.
135
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
Nature’s Energy
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

64 30 31 76
€6.71
# 3/7 # 4/7 # 2/7 # 2/7 Of 20

For ‘Nature’s Energy’ it’s clearly seen to solve a problem and will become a
regular choice in the future. #4
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
• Male Oriented
Mapping The Future
BALANCE • Lower Social Grade
• 30-34 year old
• Young Families
• City / urban area
ENERGISE • Tends to drink Energy Drinks
Overall
most often Preference
FORCES…
23%
36%
29%
4/7
29% 33% 34% Nature’s Energy have strong mass
appeal and moderate momentum.
138
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
Fermented for More
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

64 27 27 73
€6.65
# 3/7 # 5/7 # 5/7 #4 /7 Of 20

‘Fermented For More’ is not for the mainstream public but holds strong
expectations. #5
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
• Female Oriented Mapping The Future
IMMORTALISE • 35-39 year old
• City / urban area
• Tends to drink Kombucha or
Kefir most often
ENHANCE Overall
• Married couples & parents
Preference
FORCES… 34%
18% 28% 5/7
32% 26% 24% ‘Fermented for More’ does not
have strong momentum at
present.
141
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
H20 2.0
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

60 27 30 66
€6.21
# 5/7 # 5/7 # 3/7 # 7/7 Of 20

‘H20 2.0’ scores lowest in problem solving when compared to the rest of the
concepts but may become a regular choice. #6
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
Mapping The Future
IMMORTALISE • Female Oriented
• Higher Social Grade
• 25-29 year old
ENHANCE • Working full-time Overall
Preference
FORCES…
28%
36%
23%
6/7
32% 33% 28% H20 2.0 has some momentum at present
but struggles when compared to the rest
of the concepts.
144
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
CBD Has Come
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

59 31 23 69
€6.99
# 6/7 # 2/7 # 7/7 # 6/7 Of 20

The public perception for ‘CBD Has Come’ is that while it solves a problem and is
expected to happen, it isn’t expected to become a regular choice. #3
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
• 18-24 year olds Mapping The Future
INDULGE • Lower Social Grade
• City / urban area
• Non-working
ENHANCE • Tends to drink Kombucha Overall
or Kefir most often Preference
FORCES…
14%
31%
22%
3/7
CBD Has Come has low
21% 24% 26%
momentum globally and moderate
mass appeal.
147
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
Medical Marvels
Backing
Expectation Mass Appeal Connection Solution This Future
IT WILL HAPPEN MAINSTREAM REGULAR CHOICE SOLVES PROBLEM

51 24 24 72
€5.47
# 7/7 # 7/7 # 6/7 # 5/7 Of 20

While ‘Medical Marvels’ scores poorest in almost all fields, there is still strong
public perception it may solve a problem in society. #7
NEEDS FIT… RESONATES WITH… IT SHOWS UP HERE… AND…
• Female Oriented Mapping The Future
FIX • 30-34 year old
• City / urban area
• Tend to drink drinks with
IMMORTALISE specific Medicinal benefits Overall
most often Preference
FORCES…
15%
29%
26% 7/7
24% ‘Medical Marvels’ has low mass
26% 25%
appeal and low momentum.
Futures Mapping
+

Responsible CONNECTION
Sourcing &
Production
Future Purchase Potential

Higher
MOMENTUM

Nature's
Energy Natural
Alcohol
Tipples

H2O 2.0
Fermented For More

Medical Marvels

Lower

CBD Has Come

- MASS APPEAL +
Will become a Reality 150
KEY
RSP
BELIEF CONNECTION DESIRE APPLICATION
Will become a Reality Future Popularity Future Purchase Potential Solves a Problem Responsible Sourcing
& Production
Strongest
NE
RSP
Nature’s Energy
RSP
RSP
NAT
RSP NE NAT
NAT
Non Alcoholic Tipples
FFM NE
CBD FFM NE
FFM
NE
NAT Fermented for More
H2o H2o NAT
FFM
CBD 2 2 H2o
MM MM
2
H2o H2O 2.0
FFM 2 CBD
MM
MM
MM H2o
Medical Marvels
2

CBD
CBD
CBD has come

Weakest
SECTION FIVE

Futures led Innovation


Toolkit

152
Futures-led
Innovation Toolkit
This toolkit is provided to support you in
working through this Futures Playbook and
to facilitate the capturing of insight and
inspiration from this materials.

Following this 8 step innovation journey


will ensure that your solutions are insight-
led and connected to consumer needs.

It will also help you to deliver clarity and


focus so that you can present your case
and proposition more effectively to your
commercial partners and stakeholders.

It is designed to be used alone or to help


you to facilitate group based innovation.

153
Opinions Define and Refine Model
The Define and Refine system outlined below will help you to navigate the Beverage
Futures and explore potential opportunities for your business. We have developed this
toolkit to help structure your thinking as you work through the process and to ensure that
you get the most out of this playbook.

Refine Refine Refine


The Challenge The Brief The Solution The Outcome

154
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DEFINE The Challenge
In order to develop elegant and relevant solutions to any problem we need to first define what is being asked of us and what
we are asking of ourselves. This focus clarity of purpose will help to keep us on track as we progress to the development of
solution.
Think about the challenge presented to us by a customer, a problem we wish to resolve for consumers or an internal business
challenge capture it.
Then turn this into a provocative question to keep you on track, focus your efforts and to get you in problem solving mode.

CUSTOMER (Big ask) CONSUMER (Problem to solve) BUSINESS (Internal)


PROBLEM

How can we… So that….


Example:
CHALLENGE

How can we create a “better for


you” version of our product so
Develop your question in that we can secure a listing with
Express the outcome you Wholefoods in the US?
two part.
are aiming for from this
Your aim and the desired
initiative or intervention. How can we deliver a fresh
outcome.
seltzer water proposition for
Tesco so that we secure a long
term pipeline?
155
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DISCOVER Dynamics
This tool should be used in conjunction with this trends playbook to allow you to consider the various forces that are
influencing the market and selecting those that offer the greatest potential for you in light of the challenge you identified.
This filtering tool will allow you to concentrate your attention on the important market and consumer dynamics; those that will
have the greatest impact on your ability to resolve your particular challenge.

FORCES TRENDS EXPRESSIONS NEEDSCAPING

Consider our Forces model and Now shortlist the trends that align Are there particular expressions For consumer oriented
other macro influences in terms of most with the challenge you face; of these trend(s) that are challenges will help to connect wit
their relevance to the challenge; the ones that offer potential especially important or that offer the underlying needs you wish to
the ones that need to be solutions or inspiration on how to clues on the direction you might tap into in pursuit of a solution.
considered as you move forward progress. take?
FOCUS ON….

156
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DEFINE The Brief
With your challenge clarified and the most relevant market dynamics and trends identified you can develop you innovation
brief to ensure you are progressing in the right direction and that the team are aligned on the ambition and are appraised of
any important context.
Capture critical market, sector and consumer dynamics Include any high level requirements that must be delivered
that need to be considered. against and inspiration from other businesses

Empathy Guidance

Key Market & Societal Dynamics Must Have

Challenge

Key Consumer and Target Market Insights Nice To Have

Re-state your Challenge….


Key Customer requirements and requests Inspiration; who does this well?

INSIGHT Insert their “need” or motivation Insert desired outcome Insert impediment to this currently
Important!
<<TARGET>> WANTS ___________________ SO THAT THEY __________________ BUT ________________________
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DESIGN Options
Quick Fire ideation is a great way of getting lots of embryonic solutions to your challenge from which to develop a final
solution….. This is about quantity of ideas as opposed to fully worked solutions.
Try to keep initial ideas to short 10 word descriptions and get your team working on them with you.

CANVAS FOCALISER PIPELINE PLANNER

Stretch
We can
do it
Next Wave

Do
Now

It can People
make € want it

Yes this is a blank page; get a flipchart, some Produce a large Venn diagram like the one Let’s go further now and choose the one(s) to
post-its and start thinking… above to start to shortlist your ideas…. The ones bring forward. Which ones feel right and
Try to ideate within thematic areas. For that seem financially viable, technically feasible provoke passion? Which should we do now?
158
example wellness or premiumisation and aligned to consumer needs & trends Which should be in the pipeline?
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DEFINE The Solution(s)
You may have one or more ideas to progress. This is where you get to bring them to life and think a little more about them. This stage
works best in collaboration with others where you can pool your ideas and stress-test assumptions.

COMMIT THINK ABOUT VISUALISE


What is it? (15 Words or Less) As you are developing your idea, try Visualise it (draw pictures, download mood images; anything goes)
to bring it to life in your mind; how it
will look, taste and the job it will do

Format

Formulation
Why is it great? What problem is it solving?
(15 Words or Less)

Flavours

Functionality

RIVALS
Why can we do it better? (10 Words or Less)

Free From? Who are the big competitors?

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DEVELOP The Plan
Of course there will be lots of detailed planning required to get your product on shelf, but here are a few areas to think
about at a high level early in the process; if you hit a blocker step back and refine!

PRODUCTION PHYSICAL AVAILABILITY MENTAL AVAILABILITY


Inputs (Ingredient partners and sourcing) Where? (Geographical Distribution) Socialisation Plan (Media, Paid, Owned, Earned)

Channel? (Retailer Profile)

Go to Market Plan
Facilities (Line availability / Co packer partners) Partners? (Specific Retail/Wholesale/Food Service) Message Focus (What we will be famous for)

Partners? (Specific Retail/Wholesale/Food Service)

Scaling (capacity to scale up / issues) Iconography (Icons & distinctive assets)

Packaging? (Range, Size, Formats)

16
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DEFINE Success
There are lots of potential ambitions for your new product or innovation from protecting listings, reigniting interest in an existing product, responding to a PL brief or
creating the next big thing. Capture your ambition here and think about how you can evaluate this as you move forward. These are examples with space for your own
Key Indicators
Commercial Physical Availability Mental Availability Others
What are the commercial Targets relating to making your These are measures of overall These are measures of overall
milestones and requirements for product physically accessible to the brand/product salience, familiarity brand/product salience, familiarity
this project market and being selected and appeal. and appeal.

Revenues Distribution (stores/%) Awareness (%) KPI 1


Minimum On Target Minimum On Target Minimum On Target

Yr. 1 € € Yr. 1 Yr. 1 % %

Yr. 3 € € Yr. 3 Yr. 3 % %

Margin Rate of Sale (Stock T/O) Consideration (%) KPI 2


Goals

Minimum On Target Minimum On Target Minimum On Target

Yr. 1 € € Yr. 1 % % Yr. 1 % %

Yr. 3 € € Yr. 3 % % Yr. 3 % %

Volumes (Units, Litres) Market Share (%) Trial (%) KPI 3


Minimum On Target Minimum On Target Minimum On Target

Yr. 1 Yr. 1 % % Yr. 1 % %

Yr. 3 Yr. 3 % % Yr. 3 % %

The Small print!

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DEPLOY Actions
The hard work is done, lets get down to action and execute our plan. As you mobilise and watch your KPIs for signs of success,
be mindful of the helpers and hindrances to your success as you progress with this new product.

Hindrances Helpers

162
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Thank You

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