Page 44 - Beverage MasterAprMay 2021
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Craft Beverage News



               2021 BEVERAGE TRENDS

               By: Tracey L. Kelley

                N      o producer wants to feel like their busi-    selections and receive their purchases within 60

                                                                    minutes. Many local producers also have access to
                       ness is simply dictated by trends and not
                       backed by individual vision and a solid
                                                                    DoorDash and other delivery services, regulations
               plan. However, if 2020 taught us anything, it’s to be  permitting. “Ghost bars” — extensions of virtual
               strategic, targeted and, most of all, flexible.      or cloud bars or restaurants often accessed only
                                                                    through third-party delivery services — also saw an
                 To understand what consumers want in 2021 and      increase in consumer interest as producers found
               beyond, Beverage Master Magazine gathered some  new ways to lower overhead but expand product
               trend data and talked with Holly McHugh, market-     offerings and brand awareness.
               ing associate for Imbibe, a beverage development
               company focused on the formulation, customiza-         Do-it-yourself kits, mixology classes, premium bar
               tion and commercialization of cutting-edge bever-    selections, unusual or over-the-top experimental
               age products that provide a “bolt-on R&D function”  selections and other experienced-based offerings
               for companies without R&D or that need to expand  continue to drive consumer interest in 2021. They
               in this area.                                        also still desire personal connections with makers.

                              So—What’s New?                          Non-standard Products Continue to Rise

                 Taking stock of the past year and establishing       Hard seltzer, cider, tea, kombucha and beer tap
               aspects of revision is still a personal and profession-  into consumers’ desire to balance healthy libations
               al journey. Still, maybe some of these indicators will  with beverage-driven exploration.
               resonate as either extensions of current practices
               or sparks of innovation.                               For example, pandemic purchases of hard selt-
                                                                    zer, in particular, rose significantly in 2020, moving
                            People are Eager for                    beyond previous limitations of seasonality, and
                         To-go and Online Options                   there’s no stopping point yet. Nielsen reported that
                                                                    “Hard seltzer-correlated ready-to-drink cocktails
                 “The pandemic changed the way we shop, social-     drove $120 million in U.S. off-premise sales in the
               ize, entertain and more,” McHugh said. “This cre-    52-week period ending June 2020, while growing
               ated a need for CPG (consumer packaged goods)        at a 127% rate compared with the previous year.”
               brands to offer products that provide an escape      That growth, Nielsen states, “opened the doors
               from the mundane but can be enjoyed at home.”        to an even broader array of new and bolder fla-
                                                                    vor options accompanying the base liquid, and it’s
                 In December 2020, Forbes reported that “total      allowing manufacturers to expand the limits of
               eCommerce penetration experienced 10 years of        what ‘hard seltzer’ means.”
               growth March through May 2020.” It cited research
               from IWSR that stressed “online sales of alcohol in     Zero-proof spirits, especially those enhanced with
               the U.S. alone are expected to grow by more than     adaptogens – herbal substances that promote well-
               80%” in 2021. The IWSR analysis indicated that       ness – botanicals and CBD also have growth poten-
               “beverage alcohol eCommerce value grew by 42%        tial.
               in 2020,” and the forecast is that the U.S. will over-
               take China “as the world’s largest beverage alcohol     As regulations shift, CBD- and even THC-infused
               e-Commerce market by the end of 2021.”               products are positioned for a meteoric rise, accord-
                                                                    ing to a 2020 report by Grant View Research. “The
                 Quite simply, customers are fond of the conve-     global cannabis beverages market size is expected
               nience and expanse of options online ordering pro-   to reach USD 2.8 Billion by 2025 at a CAGR (com-
               vides. In major and secondary market areas, con-     pounded annual growth rate) of 17.8 percent.”
               sumers use platforms like Drizly to browse various   While some consumers might opt for THC’s “thera-

              42    April - May  2021     BEVERAGE MASTER





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