RTD trends 2021 – what the industry is expecting

From the rise of premium plant-based beverages and natural sugar replacement, to various aspects of functionality and cold brew offerings, the Martin Bauer Group has identified the main beverage trends that have become evident this year and will likely to continue and expand in 2021.

Premium plant-based beverages

More than ever before, consumers take a closer look at the ingredient lists of beverages. In line with the trend for more naturalness, thinking premium has been relevant for a while. However, this trend still does not flatten as consumers increasingly value high quality natural products – meanwhile with plant-based becoming one of the top buzzwords in this context.

Premium plant-based beverages stand for their naturalness, freshness as well as their authentic taste, which is why they are in high demand.

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Sugar replacement – 100% natural!

Reducing or replacing sugar will be an ongoing trend across many categories of the global food and beverage industry not least since consumers are increasingly looking for natural, healthy and clean-label products. Whilst shifting away from sugar is one key concern, it is not surprising that “naturally sweetened” is the most appealing claim in food and drink worldwide (Global Data), likely to continue.

The average sugar content in global RTD tea launches has seen a steady decline over the past few years. This will not change as consumers increasingly opt for RTD beverages with reduced or no sugar, ideally on a 100% natural basis. While there is an increasing demand for reduced sugar content, the exceptional taste experience remains one of the top considerations for consumers. The reformulation and development of new beverages without compromising on taste will thereby be a key challenge for most companies.

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Functional plus

Especially in pandemic shaken times, health has become highly relevant and will remain one of the key topics of the beverage industry next year. Consumers will continue to seek improving their health. In 2021, this will include paying closer attention to immune-boosting options and those meant to improve physical and mental health.

This leads beverage companies to innovate and launch beverages featuring powerful botanical ingredients as most of them are said to have the functional properties mentioned before.

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On the pulse of time: drinking habits change – hot becomes cold

Over 2020, cold brew tea has managed to establish itself as a steady item on the shelves.

Still niche in the RTD beverage aisle though, cold brew tea will likely continue to convince health conscious consumers as a better-for-you alternative.

Cold brew teas differentiate from their sugary alternatives due to their naturally sugar-free or low-calorie credentials. Thus, they are leaning on hot tea’s health profile and combine several trends in just one product.

(Source: Mintel, 2020, Cold Tea is getting hot)

Quickly prepared, cold brew tea is ready to drink immediately after the infusion time – for either enjoyment at home or on-the-go use. While cold tea often tends to be a refreshing summer product, there is a great opportunity to extend usage occasions of this natural, healthy and sugar-free alternative year-round. Further trend paths we expect for this category are functional cold brew teas and more tea bags in pitcher size served in larger jugs.

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