September 10, 2024 – Key trends impact the functional beverages marketplace in East Europe and West Europe. Global macro-level influences, beverage category trends, and beverage product trends all affect functional beverages. Consumer trends also drive trends in functional beverages, that is, drinks that offer health benefits in addition to hydration.
Functional Beverages Include Sports, Dairy, Soft Drinks
Sports nutrition, dairy, and soft drinks are key categories for functional beverages. Ready-to-drink sports beverages are positioned for athletes to help replace water, electrolytes, and energy after training and competition. Ready-to-drink sports protein drinks have added protein and typically display claims for high levels of protein. Within dairy are dairy alternative drinks with a base of soy milk, oat milk, coconut milk, almond milk, or others. Dairy also includes drinking yogurts, fermented and cultured beverages, buttermilk, kefir, flavored milk, and unflavored milk. Functional soft drinks can be in the form of flavored or unflavored water, carbonates, drink mixes, energy drinks, fruit drinks, iced coffee and tea, juices, nectars, and plant-based waters.
Healthy Living Resonates with Consumers
Today’s consumer focuses on healthy living. Healthcare systems are under pressure because of expanding and aging populations, so consumers are engaging in more self-care to take care of their own personal health needs. About 1 in 5 European consumers focus on positive nutrition as part of healthy eating; this is below the global average. Higher percentages of European consumers limit unhealthy foods. Cost also is a factor and European consumers are not very willing to pay more for functional products like functional beverages.
Consumers Look for Positive Health Benefits
Consumers in Europe are interested in many positive health benefits. Consumer trends research also shows European consumers report buying products for gut health, hydration, or sleep. Their desire to purchase is greater than their actual purchases, especially for products with benefits for sleep, healthy aging, and heart health.
Generations Look for Different Benefits
Different generations have different health priorities. Generation Z is more interested than others in muscle building and brain health. Millennials and Generation X prioritize relaxation and sleep. Boomers are most interested in health issues related to aging.
Energy Drinks are Top Functional Beverage Trends
Energy drinks are the most popular functional beverages in the European functional beverage market. Lower percentages of European consumers purchase sports drinks or functional waters. In energy drinks, juices, and bottled waters, vitamin and mineral fortification is a priority. Protein content is essential for sports drinks in Europe.
Energy Drinks Lead Over Sports Drinks
Retail sales of energy drinks are much higher than for sports drinks, but volume sales is similar. The European proportion of global volume sales of energy drinks and sports drinks is modest. Also, the growth of energy drinks and sports drinks in Europe is slower than global growth. The UK, Germany and Spain have the largest functional beverage markets in Europe for energy drinks and sports drinks, while France is growing fastest.
The most active subcategory within functional beverage trends is dairy alternative drinks, followed by energy drinks and juices and nectars. Functional beverage launches also are on the rise in carbonates and iced coffee.
Functional Beverage Trends from Large and Small Companies
European producers of functional beverages include global and regional dairy and dairy alternative producers, global soft drinks companies, energy drink marketers, and private label retailers. The European functional drinks marketplace also features numerous small companies and start-ups.
A Recent Uptick in Launches
Launches of functional beverages in Europe were relatively flat before solid growth over a recent one-year period. Soft drinks and dairy drinks each have a large share of the functional beverage market in Europe. Soft drinks continue to grow.
The UK leads in number of functional beverage launches, followed by Spain, the Netherlands, Germany, and Poland. Launch growth is strong in Ireland and countries in East Europe.
Energy, Protein, and Vitamin Claims Lead
Three claims are at the top in European functional beverage trends – energy and alertness, high in/source of protein, and vitamin/mineral fortified. The energy and alertness claim continues to strengthen and over indexes compared to global growth. Claims regarding immune health are strengthening, while claims with a smaller presence, namely, fiber and prebiotic, also are on the rise. Ingredient claims regarding plant-based sourcing and sugar reduction are performing well.
Vitamins and Minerals are Top Ingredients
Vitamins are the #1 ingredient in functional beverage trends, followed by botanicals and minerals. Vitamins and minerals with a strong presence include B vitamins,
vitamins C and D, and zinc. Use of taurine is growing along with expansion in launches of energy drinks.
Strawberry is the Top Flavor
Strawberry holds the top position for functional beverage flavor. Chocolate is less popular in Europe than in other regions globally. Niche flavors include lemonade, watermelon, caramel, and cinnamon.
What’s Next in Functional Beverage Trends?
Watch for continued growth in dairy alternatives, energy drinks, carbonates with functional benefits, and iced coffees. Expect to see continued use of various vitamins and minerals. Expect plant-based, ethical claims, and sugar-free positioning to add value
to functional beverages.
This article is based on our report, “Now & Next in Functional Beverages in Europe.” If you are interested in reading this report, feel free to request a demo.
You can do this by either booking a demo or using our Contact Form.
