Beverage Trends: Functional Beverages and Aluminum Cans
According to Nielsen, functional beverages and waters have spearheaded growth within the beverage industry in recent years. Sparkling beverages are also on the rise, as 3 of the fastest growing beverage segments are carbonated.
As consumers shift away from sugary drinks that contribute to obesity, they’ve embraced functional beverages that have positive impacts on health; the soda market has remained stagnant or negative for the past 5 years, while the functional drinks market is growing at 6.1% and has a valuation of over $93 billion.
Kombucha: Great Run, Slowing Growth
Kombucha has for years been the fastest growing beverage segment, as consumers have fallen in love with the bubbly drink. However, as per BevNet, both growth and growth velocity have significantly dropped off over the past year, although there’s still some room to grow. Brands like Rise Kombucha have spearheaded Kombucha’s explosive rise.
Can You Do The Can Can?
Canned sparkling waters have dominated the sparkling water growth in 2018, generating over a 40% increase in revenue than a year before. Both established brands like LaCroix and up-and-comers like Sound have lead growth, with the aluminum can as part of their packaging mix.
Functional Cans? Not Yet.
Although both cans and functional beverages have been seeing strong growth numbers, the functional can business ironically hasn’t taken off. Back in May of last year 7-Eleven launched Fizzics, a cold-brew coffee packaged in a self-chilling can at select stores in California. The can reportedly could chill its contents up to 30 degrees, but the packaging required space for cooling liquids, resulting in very large cans with small amounts of actual product. Coupled with a $6 price tag, the brand has fizzled out, and hasn’t hit the national market.