Hybrid Beverages Gaining Popularity in 2024
Consumers are responding to the climate crisis, the recent pandemic, and increasing daily stressors with a growing emphasis on physical and mental well-being, healthier ingredients, and cleaner labels. According to NielsenIQ, over two-thirds (68%) of consumers worldwide cite improved physical and mental performance as important1.
At the same time, a desire and curiosity for flavor, novelty, innovation, and comforting nostalgia remains. Almost three-quarters (74%) of global consumers want new and unusual flavors2.
In response, manufacturers explore and exploit exotic taste profiles, including enticing foreign drinks and unexpected functional and fun combinations. Ingredient juxtapositions marry familiarity with fresh, inviting flavor, format, and feature partners.
These exciting “mashup” experiences – hybrid beverages – reinvigorate traditional segments, bridge the gap between categories, and offer appealing features. They have also generated a distinct and emerging category that’s rapidly increasing, driven mainly by younger users. Around a third of Millennials and a quarter of Gen Zers will try something new3.
About Hybrid Beverages
Makers develop and design hybrid formulations to blur the lines between conventional segments to provide a multi-sensory alcoholic or non-alcoholic drinking experience. Combinations include teas and juices, carbonated juices, water juices, dairy juices, coffee-tea creations, and coffee or dairy-based sports and energy drinks.
Recent high-profile examples include Coca-Cola’s fusion of original Coke with 100% Brazilian coffee and Pura’s Buzz hard seltzer, offering a rum-infused taste sensation. Reign has launched a Reignbow Sherbet flavored energy drink, tapping into the heightened nostalgic trend.
Hybrids are often also a healthier choice. Many manufacturers focus on “better-for-you” ingredients: closer to nature, with no added sugar, fewer calories, and more nutrients. For example, PepsiCo’s Frutly provides a healthy, hydrating water and juice hybrid. Meanwhile, Starbucks’ Oleato line enriches each coffee serving with a spoonful of healthful extra virgin olive oil.
In addition, consumers demand “better-for-the-planet” production, spurring growth in more ethical and sustainable sourcing and practices. Fusion also plays into the consumer’s growing need for convenience in an increasingly busy milieu.
The Future of Hybrid Beverages
Driven primarily by the USA, Germany, the UK, and China, the global hybrid market is valued at $6.6 billion. It’s projected to reach $11.5 billion by 2032, with a compound annual growth rate (CAGR) of 6%4. Other popular products are functional water (34%), functional tea (30%), sparkling juice (29%), sparking fruit water (29%), and fruit water tea (28%)5.
Unsurprisingly, the existing category is fragmented, given its potential for imagination and experimentation. This diversity is a strength, catering to a broad cross-section of consumers and regularly attracting adventurous new users. The segment also lends itself to the latest AI technology, offering endless genius out-of-the-box hybrid innovations, recipes, and consumer personalization.
Successful beverage category fusions rely on the element of surprise: a dose of the known combined with an intriguing spark of the unknown, plus beneficial active extracts. They must also offer transparency about what’s in the beverage and what’s not. So, when creating your hybrid formulation, source 100% natural and well-documented flavor and aroma ingredients.
Embrace Flavorful and Functional Fusion With Advanced Biotech’s Pure Ingredients
Innovative, healthy, and functional hybrid creations can boost and add value to your beverage portfolio. Excite your user and create a positive buzz with imaginative and unusual flavor and ingredient profile combinations. Rely on our range of EU-certified, concentrated, often organic, taste and odor extracts, including concentrated distillates, oleoresins, and numerous other 100% natural extracts. Contact us today to request fusion ingredient samples or discuss novel solutions.
1 https://www.ift.org/news-and-publications/digital-exclusives/healthy-growth-for-hybrid-beverages
2 https://issuu.com/newmediab2b/docs/frv_july_2021_issuu/s/12895720
3,5 https://www.foodnavigator-usa.com/Article/2022/08/03/hybrid-beverages-lure-consumers-to-new-categories-with-blend-of-familiar-and-novel
4 https://www.ift.org/news-and-publications/digital-exclusives/healthy-growth-for-hybrid-beverages