Drink Trends Report 2023 - Powerhouse
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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
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
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
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.
“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
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.
“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.
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
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
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