Three Mashup Trends That Will Spur Future Beverage Growth

ROCKVILLE, Md. — Innovation by manufacturers and marketers is adding to the boost in the cold vault.

According to U.S. Beverage Market Outlook 2019, among the most important recent innovations identified involve mashups — the crossover fusion of two or more beverage products that traditionally wouldn't be expected to go together.

The new report from Packaged Facts identifies three key mashup trends the market research firm sees spurring future growth in the beverage industry:

1. Coffee jolts soda, energy drinks, juice, and bottled water.

More frequently, coffee is being integrated into sparkling beverages, energy drinks and juices. The trends, according to the market research firm, should continue to expand as consumers seek the indulgence and flavor of coffee while also wanting the effervescence of a carbonated beverage, the additional boost of energy ingredients, and/or more taste options.

"The carbonated soft drink or soda category is challenged, but many consumers moving away from soda still want flavored drinks that have bubbles. They also want healthier, more natural versions with less or no sugar. One of these soda alternatives is ready-to-drink coffee, which has seen a spate of sparkling versions on store shelves," said David Sprinkle, research director for Packaged Facts. "Even more interesting is when we see coffee and sodas converge into an amalgamation that satisfies multiple tastes with a single beverage."

One example is 7-Eleven Inc.'s private label Fizzics Sparkling Cold Brew Coffee. The beverage is packaged in self-chilling cans that cool the coffee when the user turns the can upside down and twists the base until a hissing sound is heard. The product is cold in 75 to 90 seconds.

2. Tea brews up healthier flavor fusions that appeal to millennials.

On a similar development trajectory to coffee, tea is increasingly being incorporated into sparkling beverages, energy drinks and juices, Packaged Facts explained. The results impart tea's health benefits into beverages whose energy ingredients, carbonation and flavors often have a wider appeal to younger adults.

3. Energy and sports drinks are created with more "natural" caffeine sources.

As the report pointed out, there is an increasing blurring of the lines between sports and energy drinks, and for many beverage categories. Examples include hybrid ready-to-drink energy teas and coffees. Coffee and tea are naturally energizing and most Americans would consider these beverages their original energy drink, according to Packaged Facts.

For example, 5-hour Energy added 5-hour TEA Shots to its in 2018. The product, designed to appeal to more health-conscious users, gets its caffeine from green tea leaves. The drinks contain the same ingredients as regular 5-hour Energy except for caffeine.

U.S. Beverage Market Outlook 2019 is the companion report to Packaged Facts' U.S. Food Market Outlook 2019, published in February.

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services.