The increase in consumer demand for functional drinks has led to innovation in new products and expanded this category.
According to senior industry research analysts at IBISWorld, sports drinks and protein drinks (functional drinks) have performed better than non functional drinks in the past year.
Experts point out that "in recent years, driven by the expansion of functional foods and beverages and targeted marketing, the popularity of functional drinks has exploded. Despite many sports drinks containing high calories and sugar, manufacturers have introduced a large number of new and healthier flavors in the past year."
Experts from Yingminte also pointed out that the sports beverage market has experienced growth in the past year. Compared to the previous year, the overall sales of sports drinks have increased by 18%, with 32% of consumers indicating that they have purchased more such products than the previous year.
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Finding space for fitness, health, and functional trends
As consumers increasingly value fitness and healthy lifestyles, experts point out that consumer demand has put greater pressure on beverage companies to expand their product supply.
The improvement of fitness lifestyle trends has driven the demand for sports drinks and protein drinks, both of which are aimed at consumers who want to improve performance and recovery ability. For example, people often drink protein drinks to promote muscle growth and recovery, while sports drinks can help people replenish electrolytes, which is particularly useful during vigorous exercise.
Experts say that consumers are also looking for sports and protein drinks containing high-quality ingredients. "This encourages more manufacturers to implement transparent labeling and third-party testing of their products. In addition, the increasing trend in fitness lifestyle consumption has also promoted the expansion of fitness related events, such as triathlons and marathons, which typically require participants to consume specific products to improve performance and recovery."
Experts also point out that due to the high correlation between sports and performance drinks, while sports are related to consumer identity recognition, the trend of fitness lifestyle will naturally affect the sports and protein beverage market.
The improvement of fitness lifestyle is part of the reason why consumers are encouraged to drink energy drinks. In fact, the Circana 2023 snack survey found that 35% of consumers consume them for mental health, and 31% consume them for immunity.
As the boundaries between beverage categories become blurred, this will "continue to put pressure on the industry to differentiate interests in order to leverage the current growth trajectory." She said that additional benefits include expanding health benefits, expanding physical stores, and online sales channels.
Experts also suggest that the trend towards functional and blended drinks also encourages manufacturers to innovate and increase their product portfolio to attract a wider customer base. Functionality and blending trends have led to new innovations in taste, attracting consumers to purchase beverages.
"The trend of functionality and hybridization blurs the strict sports connection and expands the audience. The identity related connection based on sports will always be the core feature of such products and drive them forward, but now we see products stacked with functional statements, not just sports performance, thereby expanding relevance."
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Other trends
In addition to health and wellness trends, consumers are also shifting towards more natural and organic products. Although the growth of such products in the sports and protein beverage fields is small, experts believe that there is still room for growth in these types of products.
"Although 100% natural sports drinks and protein drinks are small in scale, their share in this field is growing, indicating that they still have room for further expansion. In the past few years, organic drinks have performed poorly in this field and their scale is also small."
Although some consumers believe that sports drinks and protein drinks are unhealthy because they contain sugar or calories, healthier choices have emerged due to natural and organic trends. This has also led to a broader consumer base. Brands like Gatorade and Powerade have launched low sugar and sugar free sports drinks.
In addition, the manufacturer has also launched beverages without spices, pigments, artificial additives, or genetically modified organisms. In addition to cleaning ingredients, manufacturers also pay attention to transparent ingredient labels and ingredient sources. The natural and organic trends in the sports and protein markets have also changed pricing strategies, as most of the ingredients used involve higher production costs.
Although major brands are calling for a change in standard ingredients to natural sources, the chemical formula and proportions have not changed. Component names that are more familiar and accessible to consumers are more popular.
At the same time, consumer interest in vegan sports and protein drinks is still somewhat niche. Although more and more consumers have become vegetarians in recent years, most sports drinks are vegetarian friendly. "As for protein drinks, many are produced using whey and other dairy ingredients, and the expanding vegetarian lifestyle among consumers has prompted manufacturers to produce plant-based protein drinks, including beverages extracted from rice, peas, and other plant-based ingredients."
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Predicting the Future
Looking ahead, experts say that the blurring of boundaries between beverage categories will continue to affect the sports and protein beverage markets. Companies that offer beverages that help consumers on the go will succeed, especially those that use social and digital media to share their benefits with consumers.
In this market, both recovery and meal replacement products have performed well. Experts also pointed out the overlap between products, mainly based on restored protein products and meal replacement products. But they target different use cases, have innovative space, and can share audiences rather than compete with each other.
In recent years, the popularity of meal replacement drinks has surged as they are ideal choices for time sensitive consumers. Recovery protein drinks are usually suitable for people who exercise regularly, including athletes, who want a drink to help with recovery, reduce soreness, and increase muscle growth. Although the restoration of beverages and meal replacement drinks cater to consumers' different needs, meal replacement drinks have taken the limelight
As for the next development in this field, experts say that cleaning labels, marketing, and functional innovation are worth paying attention to. The market will continue to change according to consumer trends, mainly focusing on consumers who prioritize health and environmental protection. This has led many manufacturers to use simple, minimally processed, and easily recognizable raw materials to produce products. This trend, along with a desire for diversity, will encourage more manufacturers to try new raw materials and formulas.
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2024-02-26
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