Drink Trends Report 2023 - Powerhouse

 
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Drink Trends Report 2023 - Powerhouse
Drink Trends Report 2023
Drink Trends Report 2023 - Powerhouse
Our
menu
3.    What’s this all about?

4.    What was big on TikTok in 2022?

5.    Functional drinks

7.    Cannabidiol in drinks

10.   The Low & No drinks sector

12.   Great British wine

15.   Sustainable packaging

17.   So, what is SOJU?

19.   Sustainable Tequila

                                        2
Drink Trends Report 2023 - Powerhouse
We are
Powerhouse
Entering a new year, we’re invigorated by        And we’ve brought everything under one roof
where the World of Drinks is heading in 2023.    to share with you the ‘opportunity gaps’ these
How consumer data is shaping market trends waves are creating.
of the future and what that will mean for you.
                                                 A combination of consumer and market
We have explored how “ongoing uncertainty”,      data, predictive analytics, and action
supply issues, the increasing rates of inflation, oriented insights from our nutrition and
and environmental concerns are evolving          flavour experts, that will help you build a
consumer intent.                                 winning brand proposition in 2023.

Georgie Hodgson         James Sargent            Eden Owen-Jones           Victoria Harley
Lead Food Creative      Food Creative            Creative Food Assistant   Lead Creative
Drink Trends Report 2023 - Powerhouse
104.1 18.2
                                                                                             Damp lifestyle - having sober fun!

 trending
                                                                                             #damplifestyle

                                    Million Views
                                              Million Views

                                                                                             5.2
 What’s
                                                                                             Million Views                        Coconut cloud smoothie -

                                                            Lets make it                                                          #coconutcloudsmoothie

                                                            a mocktail!

                                                                                                                                  89
                                                                                                                                  Million Views

                                                                           200.4
                          Coffee ice - #coffeeice

                                                                           Million Views
Viral TikTok trends are inescapable!
They’ll take over your feed and hold your
sanity hostage until you finally attempt the
dish yourself... They’re a great way for brands
to fast-track their growth and connect
with millions of users! The F&B community,                                                                                                         Healthy coke - sparkling

in particular, is the 6th biggest industry on
TikTok, and has the power to drive huge
                                                                                             2.2
                                                                                             Million Views
                                                                                                                                                   water and balsamic vinegar -
                                                                                                                                                   #healthycoke

results for brands.                                                                                                                                Jalapeño rose adding jalapeño
                                                                                                                                                   to your wine, big Summer trend
                                                                                                                                                   - #jalapenorose
Emma D’Arcy’s viral TikTok Negroni Sbagliato
fad helped Lidl achieve its busiest day ever
in December, and Wakey Wines, recently
became famous for selling (£2) cans of Prime         Ice drawer - coloured & flavoured ice
                                                     cubes - #icedrawer
energy drinks for upwards of £100!
                                                                                                                                                                                    4

#Drink 25.2B views,
#Drinks 12.7B views
#DrinkTok 1.9B views
Drink Trends Report 2023 - Powerhouse
Functional
Drinks
During the pandemic, we all witnessed a clear shift
of priorities towards wellness; across health, fitness,
appearance, nutrition, sleep, and mindfulness. Being
healthy is not just about an apple a day anymore -
people are looking to more closely monitor their intake
and nutritional balance.

In 2022, Global Google searches for “health” grew
from 3.6 Billion in January 2022 to over 9 Billion in
December and has already reached 15 Billion
searches this month. “Gut health” also saw
a 83% increase in searches.

Furthermore, consumers are quoting physical
wellness (53%) and mental wellness (49%)
as being more important to them in
the next 12 months.

* WGSN’s Consumer Trend Forecasting Report 2022
* Google Search Trends 2022.
Drink Trends Report 2023 - Powerhouse
“There is a genuine / real             The last few years have seen an explosion of new       The probiotics market alone is expected to expand
                                       brands into the functional drinks sector, although     at a compound annual growth rate (CAGR) of
opportunity for brands who             without an established brand equity and recall, it     7.5% from 2021 to 2030 - increasing our awareness
                                       can be a challenge to cut through the noise.           of live microorganisms, fermentation and their
can deliver on health, taste                                                                  health benefits.
                                       Consumers are seeking quality products that can
& convenience.”                        address “wellness” across multiple dimensions.         In early 2022, Fix8 became the first UK Kombucha
Better Nature CEO, Christopher Kong.                                                          to feature “science - backed” probiotic live
                                       Starbucks entered the energy category for the          cultures and food brand “Better Nature” landed a
                                       first time last year whilst Innocent Drinks released   £700K funding boost to build tempeh awareness -
                                       Blueberry Whizz, made from crushed fruit and veg       made from fermented soybeans.
                                       with added Vitamin D and Iron.
                                                                                              We’ll see a wave of consumers looking for
                                                                                              beverages that can boost immunity, substituting
                                                                                              traditional fruit juices and carbonated drinks with
                                                                                              “Functional Drinks”.

                                                                                              Organic nootropics will continue to gain
                                                                                              popularity. We’ll see drinks influenced by
                                                                                              ingredients like green tea, ginseng, bacopa
                                                                                              monnieri and schisandra to improve cognitive
                                                                                              functions, such as mood, memory, creativity,
                                                                                              or motivation. We’ll also see brand new natural
                                                                                              ingredients emerge.

                                                                                                                                                    6
Drink Trends Report 2023 - Powerhouse
Cannabidiol
                                        Following its UK legalisation in 2018, CBD
                                        is emerging rapidly in the drinks sector.

CBD is a compound found in marijuana.   Google search volume in the UK, over the past
                                        12 months, has seen an increase of 123.2%. From
                                        27.1K searches in January to over 60K in December
                                        2022.

                                        With Google loosening its ‘advertising ban’ on CBD
                                        related content in the US in January 2023, and
                                        more commercial anticipation for the content
                                        in the metaverse, we’d expect to see a wider
                                        ‘share of voice’ across digitial spaces by brands,
                                        retailers, and wholesalers throughout the year.

                                        “Legalisation of CBD in the UK
                                        has made it a European leader,
                                        becoming a hotspot for finance,
                                        innovation, and research as
                                        well as mainstream commercial
                                        opportunities”
                                        Eoin Keenan, Founder: Goodrays

                                        * Cannabis Marketing Association 2022
                                        * Alphabet Inc. Rel. to YouTube
                                        * Google Search Trends 2022.
Drink Trends Report 2023 - Powerhouse
“Over the last 12 months,
Consumers are looking for products that can              Goodrays has really taken off,
easily fit into their busy lifestyles. As the category
matures, we expect consumers to seek out other
                                                         growing at 1,000% annually.
ways of interacting with CBD as they look to             In October, we launched as the
benefit from the effects.
                                                         first and only CBD drink in Tesco
Traditionally seen as an online purchase, we’re
seeing more brick & mortar retailers stock up            and as one of two CBD drinks in
on CBD products, expecting consumers to shop
much more frequently in 2023.
                                                         Waitrose.”
                                                         Eoin Keenan, Founder: Goodrays
In response to this trend, we’re expecting to see a
huge influx of brands and products influenced by
CBD which may become symbiotic with the “Low
& No” culture.

We’ve already seen the first few innovative,
sophisticated drinks this year, like the Alchemist’s
CBD Spritz, featured in their “Low & No” section
of their famous cocktail menu.
Drink Trends Report 2023 - Powerhouse
Ingredients:
                               1 can of ‘Elderflower
                               & Yuzu’ Goodrays
                               15ml Fresh Lemon Juice
                               6 Muddled Strawberries

                                                          Pink fizz
                               1/4 tsp Pink Peppercorns
                               Fresh Tarragon Garnish

                                                          Recipe per drink

                                                          CBD drinks can often have an earthy, slightly bitter taste due to the concentration of
                                                          cannabinoids.

                                                          With Pink Fizz, we’re offseting this with muddled strawberries; adding sweetness which
                                                          works wonderfully with the Yuzu to create a tangy concoction.

                                                          The spice from the pink peppercorns helps to augment the tingle of the fizzy soda, whilst
                                                          the fresh anise aroma in the tarragon prepares the taste buds for this fresh, zingy flavour
                                                          explosion.

                                                          Combine fresh lemon juice, strawberrries        Hit the Tarragon across the back of your
                                                          & pink peppercorns into a cocktail tin &        hand a few times to tease out the aroma
                                                          muddle.                                         and garnish, sliding the stem down the
                                                                                                          side of the glass.
                                                          Add the Elderflower & Yuzu Goodrays to
                                                          the tin, quickly stir & slowly strain using a
                                                          hawthorne & fine strainer into a highball
                                                          glass filled with ice.

Recipe Credit: James Sargent
Drink Trends Report 2023 - Powerhouse
The ‘Low & No’                The past few years have seen a dramatic shift in
                              public opinion and brand innovation in the “Low &

Drinks sector
                              No” alcohol sector.

                              With many consumers seeking to change their
                              relationship with alcohol, a recent IWSR analysis
                              shows that most adults globally (58%) are actively
                              moderating their drinking.

“The likes of Spain, France   This explosion demonstrates a clear market shift
                              and opportunity; away from the ‘sugary image’
and Germany have at           once associated with non-alcoholic beverages,
                              offering a low-calorie and low alcohol solution to
least five times the market   a crowd / group night out.
share of ‘low & no’
                              According to IWSR research; from the Drinks
options compared to the       Market Analysis 2022 - the total record of sales of
                              ‘Low and No’ alcohol drinks is predicted to grow by
UK. Consumers want            over 31% by 2024, and the market currently holds a

taste and quality, but        3.5% volume share of the entire alcohol industry.

historically there’s not
been a product that
                              That’s a 27.5% increase
fits the bill.”
                              in ‘share of market’
Luke Boase, Founder:
                              in the next two years
Lucky Saint.                  * IWSR Drinks Market Analysis 2022

                                                                                    10
“Why did we stop drinking? Well, the most
                               popular reason for ‘moderating our drinking’
                               is wanting to stay fresh for the next day (31%),
                               if others aren’t drinking within a social group
                               (30%), or being able to attend another activity
                               such as a sports (25%) event.”
                               The Low & No 2022: Consumer Perspective Report
                               by Lucky Saint.

As a result, many classic brands are releasing       have introduced or vastly expanded their Low
Low & No versions of their iconic drinks,            & No menu sections. Increasing the quality and
diversifying their offering and recapturing          imagination of their offerings - and we expect to
consumers lost to a new offering - against           see this expand much further in 2023.
independent brands who’ve been developing a
range of craft alternatives.                         However, with remote work expected to increase
                                                     in 2023 and a rolling recession underway,
Some of the innovative challenger brands making      we might see consumers looking for ways to
waves in the industry include Bemuse Drinks, who     replicate drinks at home and symbolically end
have reimagined the world’s oldest brewed drink;     their weekdays in a mindful way.
mead to create a non-alcoholic, low-calorie drink
for modern tastes, by using natural fermentation     Brands could use this opportunity to offer ways to
processes.                                           make “weeknights more special” without the need
                                                     for alcohol.
As the world becomes more health conscious
and accustomed to having “sober fun”, the drinks
industry is playing catch up. Bars and restaurants                                                        11
Great
                                In August 2021, Waitrose and Marks & Spencer
                                began stocking the first wines carrying the
                                prestigious accolade “Sustainable Wines of Great

British
                                Britain (SWGB) Trademark” – this is a huge step
                                towards supporting the UK’s commitment to
                                environmentally friendly wine production.

Wine
                                However, what’s a good news story for the UK,
                                is posing a threat to the global wine industry.
                                Hailstorms, bushfires, and historic droughts mean
                                areas now under vine, are struggling to continue
                                producing the amount, and certainly the variety,
“South of England               of wine they’re currently making.

has seen a rise in              “The warming trends in the UK will continue,
temperature of 1 degree         ‘good wine’ years like 2018 will become the norm.
                                We’re going to see a growing season climate,
since the 80s, meaning          much more like that of the last 20 or 30 years in
                                the champagne region of France” – viticulture
areas such as Sussex,           climatologist Dr Alistair Nesbitt.

Hampshire and Essex,
                                The thought of vineyard tours and tastings in the
and parts of Wales too,         UK would have been laughable 20 years ago, but
                                reality is looking very different… as consumers will
now have the necessary          soon be spoilt for choice.

temperature to fully            But for this to be a true turning point, it’s down to
ripen grapes”                   retailers, brands, and consumers to champion
                                English & Welsh wine.
Jaega Wise, at BBC’s The Food
Programme Podcast.
                                                                                        12
How will brands
promote wine culture?
Faced with increasing competition in the sector
from craft beer, spirits and cocktails, British
wineries are focusing on sustainability. And by
doing so, positioning their offerings towards
younger consumers - who are more likely to
respond positively to “eco-friendly” labels.

61 members are already part of the SWGB
(Sustainable Wine Great Britain) Scheme,
accounting for 33% of the area under vine in the
UK. As the market grows, we expect to see more
vineyards become organic or biodynamic.   

                                                   13
Autumn
                                                                  Pappardelle
                                                                  Recipe serves 2

                                                                  Earthy, hearty mushrooms pair terrifically with fuller bodied wines, like a barrel-aged
                                                                  Chardonnay, Pinot Noir or Cabernet Sauvignon. Radicchio and chicory - slightly bitter
                                                                  and crunchy – help enhance the experience by adding colour, texture, and releasing
                                                                  maximum flavour from the mushrooms; whilst the brown butter gives unbeatably nutty
                                                                  and caramelised notes.

                                                                  English Sparkling also pairs well with fried foods. Browning and crisping the mushrooms
                                                                  beforehand lends well to this flavour pairing.

                                                                  Put a large pot of salted water on to boil.      in, along with the thyme sprigs and cook
                                                                                                                   until soft.
                                                                  Chop and tear apart mushrooms into
                                                                  roughly 1 inch pieces, we went for mixed         Next finely slice your chicory and
Ingredients:
                                                                  mushrooms to give a variety of textures.         radicchio into long strips then add to the
150-200g of pappardelle                                                                                            pan with your shallots and garlic and
200g mixed mushrooms                                              In batches, brown the mushrooms until            add a liberal amount of black pepper.  
50g radicchio, thinly shredded                                    crispy and dark golden brown, add salt
                                                                  and pepper to each and set aside.                Add the cooked pasta to the pan with a
1 chicory, thinly shredded
                                                                                                                   few tablespoons of pasta water and toss
3 banana shallots
                                                                  In a separate saucepan, brown the                together.
1/3 medium radicchio                                              remainder of the butter until a deep
3 garlic cloves                                                   golden brown and set to one side.                Toss in half of the mushrooms and half of
5 sprigs of thyme                                                                                                  the radicchio.
3 tbsp Vegan butter                                               Cook the pasta as per packet
                                                                  instructions, but keep some of the               To plate, sprinkle over the remaining
Salt and pepper
                                                                  cooking water for later.                         mushrooms and radicchio, and spoon
Toasted walnuts to serve         Recipe Credit: Eden Owen-Jones                                                    over the brown butter. Add walnuts at this
                                                                  Finely mince the shallots and garlic, then       stage to give it a crunchy texture.
                                                                  add to the pan that the mushrooms were
“Glass in particular                     In the coming years, alcohol brands will need

                           Sustainable
                                         to show an increased public commitment to
is suffering bottlenecks                 sustainability. We’ll see more brands moving away

                           packaging
                                         from their traditional advertising, packaging,
in the whole supply                      and manufacturing processes - favouring more
                                         considered sustainable processes throughout.
chain, and in the value
of the product, which                    What’s driving this action?
is affected by the cost                  In the packaging - The glass melting process
                                         releases a very high level of gasses, particularly
of energy.”                              carbon dioxide. The war in Ukraine, a global
Natasha Linhart,                         sand shortage, poor regional glass waste
CEO of Atlante.                          management, and a lack of awareness are
                                         all causing serious challenges in the glass
                                         manufacturing industry.

                                         According to Clayton Glass, 20% of the cost of
                                         glass production is gas. Russia turning off the
                                         gas taps to Europe, is filtering down the supply
                                         chain as higher production costs, which is
                                         having a direct impact on brands. With these
                                         (and countries) looking to reduce resource
                                         dependence in both Russian and fossil fuels, this
                                         is leading producers to move away from glass as
                                         a viable packaging option for the future.

                                                                                              15
                                         * Clayton Glass Insights Report 2022
Truth is… the wine industry has been open to the      part of brand identity and the whole drinking
adoption of packaging innovation for years.           experience, and often not enjoyed in isolation...

We’ve seen alternatives include multi-layer           How would this affect the
cartons or bag-in-box, but both are made of two       ‘experience’ of having a bottle
or more materials, which significantly decreases
                                                      of wine.
the likelihood of them being effectively recycled.

                                                      Well, we could see a return to decanters.
Pouches (widely used in Asia markets) are
                                                      Waiters with a keen eye on plates and glasses.
another option which have grown in popularity,
                                                      An introduction to more course pairings and
especially for informal and/or outdoor occasions,
                                                      variation in vine throughout the meal.
as they have the advantage of flexibility and can
be easily packed into an icebox or picnic basket.
                                                      As the wine industry transitions to new
                                                      packaging alternatives, we might also see an
So, where do we think the opportunity sits in 2023?
                                                      interim move; such a standardization in the colour
                                                      of wine bottles, making them easier to sort and
Aluminium.                                            recycle.

Aluminium cans are the only alternative to glass      However, as the next harvest year develops,
that can handle a fizz. They chill fast, they’re      wine is steeped in heritage and tradition - with a
lightweight, and 100% recyclable.                     legacy and vintage running back decades. We
                                                      are unlikely to transition away from ‘the bottle’
We’ve seen this growth with RTD products, such        in the immediate future - but we will see more
as pre-mixed spirits and flavoured beers.             sweeping attempts to limit wasteful glass use in
But of course, wine packaging is an integral          ‘bottling’ practices from now on.
So, what
is SOJU?
Just like Spain has Sangria and Scotland has
Whisky, Korea has its own renowned drink.

Soju is a distilled alcoholic beverage, clear and
colourless. Traditionally made with rice, and other
botanicals (like sweet potato, barley or tapioca).

With the popular culture of South Korea entering
the Western creative industries of cinema, drama,
music, fandom, beauty, and fashion over the
past few years (think Squid Games, Korean BBQ,
BTS, and the influx of K-dramas on Netflix) it’s not
surprising to see some of the country’s food and
beverage products being a big hit in the populous
of the UK.

Soju is already huge in Korea, Japan, Greater
China, and Southern Asian countries, but is
gaining traction in USA and Europe; with global
Google search results more than doubling in 2022;
from 9.6M in January to 21.2M in January 2023.

                                                       17
* Google Search Trends 2022.
In the UK alone, search volume jumped from 14.8K
in January 2021 to 27.1K in November 2022, which
leaves plenty of room for it to peak in 2023.

Jinro Soju experienced their largest growth to
date in 2020, at a time when the rest of the spirit
industry suffered a 6% decline in sales. Today,
it’s the bestselling spirit in the world by volume –
selling 94 million 9L cases per year.

“It’s a social thing”

Traditionally enjoyed as a shot at the dining
table - its increasing popularity has led to the
creation of Soju being included in a variety of
different supporting beverages. It’s already being
infused with fruit flavourings into cocktails, soda,
beer, yogurt and lattes. But, we’re expecting to
see a wider Soju representation across the drinks
experience this year.

                                                       18
Sustainable
              Tequila has seen a huge growth in the US over the
              last 15 years, especially in the high-end premium
              sector, and this is set to become the biggest
              selling spirit in the US in 2023. But, the drinks
              industry is expecting the “Tequila Boom” to travel
              across the Atlantic and brands are now investing
              in their premium lines in the UK.

Tequila
              Spurred on by celebrity endorsements and
              bartenders, UK interest & demand for premium
              tequila has grown steadily over the last five years,
              but by 21% in the last 12 months alone.

              We’re expecting this demand to grow even further
              in 2023, moving it away from the ‘wild party
               novelty’ shots and towards a more considered
               and sippable product.

                 100% ‘de agave’ Tequila brands can only
                 use blue agave in their flavouring process.
               However, the long-term sustainability of the blue
                 agave is a major issue to those in the tequila
                 community; caused in large part by a volatile
                  market with boom-and-bust cycles
                       of consumer demand.

                                                                     19
Patron has been recognised as an industry
leader in waste reduction and environmental
consciousness; Mijenta Tequila has
embodied sustainability at every stage of its
production; and Flecha Azul, grows peanuts
between their agave plants to infuse the soil        Over the last two years, Gen X consumers’         years, overtaking consumption in Mexico itself.
with an extra dose of nutrients.                     preference to shop sustainable brands increased   Michael Gardner, global business leader for Del
                                                     by nearly 25% and their willingness to pay more   Maguey, a Mezcal brand, reports that the UK is
Kendall Jenner’s award-winning 818 tequila           for sustainable products increased by 42%.        one of the five best markets for the brand, along
brand announced a partnership with nonprofit                                                           with the US, Greece, France, and Australia.
organisation S.A.C.R.E.D. to support Mexican         Apart from more sustainable tequila brands and
communities and sustainability initiatives towards   products, we also expect to see its main rival;   Tequila or Mezcal?
the end of last year.                                Mezcal, gain market share in the UK.                                                                  20
                                                     We’ve already seen organic brands arise, and
                                                                                                       Who’ll win this green race?
* Ad Net Zero Report 2020
* Kantar FMCG Consumer Insights 2021                 imports to the US surging 50% over the last few
* Google Search Trends 2022.
Ingredients:
 60g corn kernels

                                 Hot ‘n’ Zesty
 4-5 tbsp veg oil
 Zest of 1 lime
 1 tsp chipotle chilli flakes

                                 Popcorn
 ½ tsp ground coriander
 ½ tsp coriander seeds  
 ½ tsp salt  
 ½ tsp pepper
                                 Recipe Serves 2 / 4

                                 Classic flavours that pair well with tequila are citrus (lime and coriander) and chilli.

                                 If we’re beginning to enjoy it as a sipping drink, having a ‘bar snack’ with it that
                                 extenuates its flavours - just like we have strawberries with champagne, or nuts with
                                 whisky, wine with cheese - will make the experience more luxurious and encourage people
                                 to savour it. There is also a very strong cultural link between maize and tequila.

                                 In a medium saucepan heat the                    more than 3 seconds apart most of the
                                 vegetable oil on a medium high heat.             popped corn will be ready. You don’t
                                                                                  want to leave it on the heat for much
                                 Add the corn kernels and quickly mix with        longer as you will risk burning them.
                                 a spoon to ensure all pieces are coated
                                 in oil then put the lid on.                      Quickly transfer the popped corn into the
                                                                                  bowl, then sprinkle your spices on top
                                 Meanwhile into a bowl zest the lime and          and mix well.  
                                 add all the spices, salt and pepper and
                                 mix.                                             Serve with a sprinkle more chipotle on
                                                                                  top for more spice if you want.
                                 The kernels will be popping vigorously
                                 at this point, when the pops start being
Recipe Credit: Eden Owen-Jones
Chat to us about how you can start incorporating
       these trends into your content messaging:
          hello@wearepowerhousestudios.com
           www.wearepowerhousestudios.com
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