An eye on market trends:

The Beverage Menu

OCTOBER 2022

HIGHLIGHTS:

The popularity of low and no alcohol alternatives is rising due to the rise of the health-conscious consumer and “sip and savour” behaviours.
Customers are looking for new and adventurous premium beverages (and willing to pay for them too).
The growth in these trends highlight new and innovative business opportunities for food service providers

With the weather getting warmer and the days getting longer, customers are coming out of the long winter hibernation and looking to spend time and money with friends and family. As you may have already seen, some new trends are sweeping the food service beverage industry - they're travelling in from overseas with the recent influx of international tourism and gripping the local market. Lately, we have seen an uptake in low and no-alcohol beverages and beverage premiumisation. Let's take a closer look at what's behind these trends and whether they are here to stay.

Non-Alcoholic Beverages:

Non-alcoholic beverages are a growing trend which has risen in the wake of the greater health and well-being movement. This trend has been further catalysed by how the pandemic changed perceptions of personal health (EHL Insights, 2022). According to the New Zealand Alcohol Beverages Council (NZABC), there is demand for decreased and zero-alcohol beverages, as studies show 47% of kiwis opting for alcoholic beverage alternatives over the past year.

An Alcohol Beverages Industry report from the NZ Institute of Economic Research further illustrates how social experiences alter how individuals consume alcohol. Highlighting the shift to "sip and savour" behaviours which prioritise meaningful socialising with friends and family over food and drinks, these behaviours emphasise a preference for high-quality beverages and no-to-low-alcohol options.

With alcohol consumption habits trending downward, potential earnings from premium alcoholic alternatives are rising. For example, revenue from the non-alcoholic beer segment reached AUD$75 million in 2022, with the market forecasted to grow by ~10.5% each year (Statista, 2022).

Beverage Premiumisation:

More consumers opt for premium alcoholic alternatives to fulfil "sip and savour" behaviours. This trend rides on the quality over quantity experience economy, where customers are willing to pay a little more to enjoy boutique flavours and a drinking experience in a slow and relaxed style. NZABC details how 56% of kiwis have purchased a premium drink in the past year and that customers are looking to try adventurous new flavours.

Boutique flavours range from botanicals like elderflower to sharper elements such as rhubarb, ginger and kiwi favourites like feijoa. Think iced tea with a twist, similar to our using Barker's Professional Fruit Tea Syrups in mocktails.

Although the beverage premiumisation trend also encompasses a growing consumer interest in seltzers, craft beers and homegrown wines, it does not mean businesses need to specialise in these product categories or solely diverge into these markets. Offering premium beverages can be as simple as serving one of our Barker's Professional Fruit and Premium Syrups with sparkling water and an aesthetic presentation. If you want to take your zero-alcohol options to the next level, a growing market of non-alcoholic spirits is becoming available for commercial and household use.

In sum, there is a need for food service providers (from restaurants to suppliers) to diversify product offerings in response to consumer demands and trends. In a post-pandemic world, businesses must develop flexible capabilities to answer consumer demands for market retention and sustainability. The data shows these trends continue to grow as the conscious consumer segment evolves. Businesses can leverage these trends by catering beverage menus to various consumer types and incorporating new and exciting beverage flavours.

For beverage menu recipe inspiration, click here, and browse some of our premium craft syrups, fruit tea syrups and other mixers in the portfolio below.