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The on-trend tipples of discerning drinkers: Craft beer, gluten-free, lighter and adventurous option

foodingredientsfirst 2019-06-27
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NPD in the alcoholic beverage category is connected with mindful drinking, a concept that encapsulates low- and no-alcohol, mainly driven by younger people who just aren’t as interested in alcohol as previous generations. This has led industry to innovate to appeal to cohorts of health-conscious consumers who are driven by health and wellness trends, as well as the “experience” surrounding drinking alcohol. These consumers are not necessarily tea-total but do need something a little more sophisticated to tempt them to the bar.

Craft, premiumization and adventurous cocktails with interesting and exotic flavors are the new approach to appeal to this consumer demographic. If a drink looks good on Instagram – and expresses something unique about one’s personality or signals wher they are while drinking it – then all the better. There’s even a relatively new phrase, “Drinkstagrammers,” used to describe this trend. 

As health and wellness trends gain traction around the world, some players in the global beverage alcohol industry are diversifying their offerings to keep pace with alcohol lovers as well as those looking for lighter options. However, innovation opportunities remain as the low- and no-alcohol sector is “poorly served”, with few clear category leaders, according to a recent International Wines and Spirits Recor(IWSR) study. It indicates that, though forecasted to grow significantly, overall the current marketplace for low- and no- alcohol products is still small in most parts of the world. 

“For leading producers of alcohol, this obviously presents considerable opportunity to develop new products, claim their share of the category and ultimately grow revenue,” says Mark Meek, IWSR’s CEO. 

Though 52 percent of US consumers surveyed in the IWSR study report that they are trying to reduce their alcohol intake, over 70 percent say they have not yet considered drinking low- or no-alcohol beverages. However, a recent influx of investment by key beverage alcohol companies is anticipated to draw in a new generation of consumers and contribute to the forecasted rapid growth of the category, notes the report. 

Gerd Diefenthäler, Innovations Manager at Austria Juice, tells FoodIngredientsFirst how mindful drinking trends benefit products that are lower in alcohol than their established precursors. “Good examples are low/non-alcohol wines, ciders and ready-to-drink (RTD) cocktails. Next to these, alcoholic products that are assumed as ‘better-for-you’ with healthier formulations will be on the rise,” he says. “Beyond these categories, consumers are on the look-out for natural, plant-based ingredients, as well as organic products.”

Moreover, botanical ingredients stand for naturalness and unique taste experiences, and according to Diefenthäler, that is “exactly what consumers are looking for.”

Many botanicals are already present in spirits, ciders, craft beers and alcohol mixers, and botanical-infused sparkling drinks are also increasing, he notes. “In the wine and beer categories, these products are already established in Central Europe. ‘Mocktails’ are also becoming more and more requested by consumers, as well as alcohol-reduced ciders,” Diefenthäler adds.

Personalized nutrition and health trends impacting alcohol consumption 
A “few pints down the pub” doesn’t really cut it anymore, when considering the penchant for personalized nutrition that permeates the millennial professional lifestyle. With a plentiful array of low alcohol wine, beers and ciders hitting retail shelves as well, there are diverse options for stay-at-home drinking occasions. 

A recent Innova Market Insights survey (US, UK, France, Germany, China and Brazil) revealed that one in four consumers have cut down on their alcohol consumption in the past years. Offering solutions that are lower in alcohol but still full of flavor and experience, is expected to be on trend throughout 2019 and beyond.

This is not to say that Millennials are not drinking, they are, but there are much more discerning on precisely what they are drinking. This is wher the craft appeal comes in. 

Craft brewers have driven a revolution in the brewing industry worldwide by offering unique, premium flavors and taste experiences that resonate with beer drinkers. Craft beer consumption in the US, for example, has experienced massive growth in the past decade. The nation is now home to over 6,000 craft brewers, and the landscape looks similar in Europe, with craft beer consumption soaring. 

“A DSM survey that interviewed 3,300 consumers across the UK, Belgium, Spain, France, Italy, the Netherlands and the US, also found that 64 percent of people are now consuming more craft beer than just two years ago, and it is consumers under 30-years-old who are leading this revolution, notes Joana Carneiro, Business Director Beverages, DSM Food Specialties.

“This has also opened up the market to new consumer groups, including those that do not necessarily drink regular beer. For example, 20 percent of women in Belgium, surveyed by DSM, said that craft beer is the only beer they consume,” she tells FoodIngredientsFirst. 

“To meet growing consumer demand for craft beer, brewers worldwide are under increasing pressure to maximize production capacity, speed up the brewing process, reduce waste and beer losses and achieve the necessary savings in energy and water use to continue working sustainably,” she adds. 

“Enzymes can support craft brewers in managing these challenges. DSM’s brewing enzyme Brewers Clarex, for instance, can help brewers increase production capacity, performance and yield, or shorten the processing time, all while enabling the production of high-quality, great-tasting beer. By adding Brewers Clarex, brewers can reduce water use, tally energy cost savings of up to €70,000 per one million hectoliters of beer produced, as well as cut their carbon footprint by 5 to 6 percent,” Carneiro notes.

DSM also offers Brewers Compass, which can actively reduce the impact the brewing process has on the environment by replacing malt with locally available raw materials, such as barley. The barley malting process accounts for around 10 to 15 percent of the eco-footprint of beer. Switching from malt to barley brewing allows for a 10 percent reduction in barley use and cuts water and energy use.

Gluten-free trends in beer
The gluten-free movement is also gaining traction, with growing numbers of consumers drinking gluten-free craft beer because they perceive it to offer health benefits. In Europe, 24 percent of Spanish, 15 percent of French and 13 percent of Italian consumers, interviewed by DSM, find gluten-free craft beer more attractive than regular beer, says Carneiro. The gluten-free trend is also anticipated to expand its market share in the next few years. 

“DSM’s consumer insights report on craft brewing found that 87 percent of beer drinkers surveyed define craft beer as beer made in small batches, and 75 percent believe that craft beer is made with fresh, locally sourced ingredients and is available in a range of different product types,” she adds. “Two out of three consumers, interviewed by DSM, also purchase craft beer because it feels more ‘special’ to them than drinking regular beer; they associate it with the term ‘premium’.”

What’s next?
Health and wellness trends across multiple food and beverages categories are here to stay and the alcoholic beverages segment is no different. As evidenced by the IWSR study, even if people have the desire to reduce their alcohol intake, some consumer demographics haven’t quite got around to doing so, yet. However, as younger drinkers will continue to demand novel lower alcohol innovations, the health-inspired discerning drinker could become much more commonplace. 

By Gaynor Selby 

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