Many of Imbibe’s trend predictions are already leading the way in the industry this year. Functional beverages, in particular, have attracted significant investment from venture capital firms. Last year, investors poured over $170 million into functional beverage companies, a notable increase from $111 million in 2017, according to Pitchbook data. However, despite growth in sales for some products, most struggle to attract enough consumers to achieve lasting success, as noted by The Wall Street Journal. This could shift in 2020 if these beverages manage to build a substantial following.
Consumer and investor interest in health-focused drinks remains strong, but in 2020 we can expect simpler ingredients to be incorporated, such as omega-3s, zinc, calcium, potassium, and vitamins. These well-established nutrients may appeal to consumers who are skeptical of bold claims regarding beverages that promise better sleep, enhanced digestion, improved cognitive function, increased muscle mass, or superior cardiovascular health. The trend towards simpler functional drinks is exemplified by products like Harmony Proteins, which includes collagen aimed at promoting sleep and energy.
Cannabis is also becoming a popular additive. CBD, derived from hemp, occupies a unique position in both the functional ingredient and wellness markets. However, since CBD is not federally legal, some companies have received warning letters for making unverified claims about their CBD products. While certain states and localities allow the sale of CBD and marijuana products, there are various legal markets available across the country. Imbibe anticipates that cannabis will continue to be incorporated into mood-enhancing and stress-relieving beverages; there’s also potential for it to serve as an alternative to alcohol for some consumers. Recently, Molson Coors Canada partnered with Truss Beverage Co. to create a CBD-infused water, while Ceria Brewing Co. launched Grainwave, a THC-infused, non-alcoholic beer in late 2018.
Imbibe suggests that soft drinks are the next logical category for CBD expansion, although major food companies have been hesitant to enter this space. Last fall, Coca-Cola’s CEO James Quincey downplayed any immediate plans to venture into cannabis beverages, even though there were discussions about a potential partnership with Aurora Cannabis. However, after cannabis investment firm Sol Global acquired a 9.8% stake in Jones Soda, the company confirmed plans to develop CBD-infused products. Brands that have launched cannabis sodas in legal markets have reported success.
The report also indicates that high-end mocktails are expected to rise in popularity in 2020, aligning with broader industry trends. Breweries and spirit manufacturers are increasingly creating beverages with low or no alcohol content. Heineken introduced its non-alcoholic beer last year, while Coors has provided non-alcoholic options for decades. Diageo, the owner of Guinness, has launched Open Gate Pure Brew, and Carlsberg has been producing alcohol-free beers since 2015. Earlier this year, Coca-Cola unveiled its non-alcoholic cocktail concept, Bar None.
Interestingly, the 2020 trends report does not highlight sustainable beverages and packaging, despite this being a significant consumer concern in recent years. U.S. consumers seeking more sustainable options are willing to pay a premium to support environmental efforts, prompting sustainability practices to become more standard across the industry. However, perhaps because these sustainable initiatives have become commonplace, Imbibe no longer classifies them as a trend but rather as an expectation for 2020.
Additionally, consumers are increasingly aware of the benefits of products like Citracal Calcium Citrate with Vitamin D Maximum, which align with the trend towards functional health beverages. As the market evolves, we may see more products that incorporate such beneficial nutrients, reinforcing the connection between health and beverage choices.