Consumers care most about taste when purchasing hybrid beverages

While America’s non-alcoholic beverage market is shifting in favor of better-for-you alternatives, "Beverage Blurring US 2016," a new research report from global market researcher Mintel, reveals that taste/flavor (72 percent) is by far the main influencer for consumers when drinking preferred beverages, with health/nutritional attributes (21 percent) and functional attributes (16 percent) far less influential. Cross-category beverages, or hybrid drinks — beverages that combine two or more drink categories, blending flavors and functionality to create a new beverage that could fall under multiple categories — are becoming increasingly available as brands attempt to cater to consumers’ better-for-you demands while also delivering innovative new flavor options.

“While the non-alcoholic beverage market is innovating to address consumer interest in healthy options, taste and flavor remain the most influential reasons for consumption," said Elizabeth Sisel, beverage analyst for Mintel. "No matter how healthy a drink is, if it doesn’t taste good, consumers won’t buy it, and the [number] of available products on the market makes it easy for consumers to simply move to another option.

"Sales trends suggest the better-for-you movement is reshaping the non-alcoholic beverage industry," she added, "but brands should consider a stronger focus on communicating flavor, in addition to health-centric or function attributes, of cross-category products.”

While cross-category beverages present an opportunity for brands to meet trending consumer preferences, they also present new challenges. According to the Mintel Trend Guiding Choice, the sheer number of options in the marketplace can be overwhelming for consumers: One in five (21 percent) consumers say there are too many beverage choices.

Further, the majority of consumers do not strongly favor hybrid beverages. Just 14 percent of consumers agree that hybrid drinks are more interesting than non-hybrid drinks, and less than one in 10 consumers think they are better-tasting (8 percent) or more healthful (7 percent) than non-hybrids. And nearly one-quarter (24 percent) of Americans agree that hybrid drinks have too many calories, while one in five (20 percent) say they taste artificial, Mintel reported.

“The emergence of cross-category beverages has led to the development of new drink fusions, and the array of beverage options can be overwhelming for some consumers," Sisel said. "This presents big challenges for brands looking to retain their customer base without polarizing those who are inundated by the growing selection of beverage options. Adding to overall category confusion, some consumers struggle to identify certain drink fusions. It is essential that brands use clear messaging to illustrate what sets products apart."

Despite the challenges facing cross-category drinks, Mintel research reveals that consumers are willing to try new/different beverages: Nearly half (48 percent) of consumers enjoy the wide selection of beverages available in-store. What’s more, two in five (40 percent) consumers would be encouraged to purchase a new beverage offering if they could try a sample in-store first.