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Ready-to-Drink Functional Beverages the Latest Growth Market

Nootropics and pre, pro, and post-biotics are all popular growing beverage offerings, particularly in RTD or premium packaging. These offerings do come with challenges for beverage manufacturers, however.

Functional beverages are a fast-growing segment of the beverage market.
Functional beverages are a fast-growing segment of the beverage market.
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While convenient packaging formats and premiumization have been driving changes in the beverage market, functional offerings are the latest consumer demand driving some of the biggest change, as consumers look for beverages that can improve their daily health in convenient formats, while catering to their active routines.

Thirty-five percent of consumers are turning to beverages as a way to incorporate functional ingredients into their diets, according to PMMI Business Intelligence’s new report “2021 Beverage Trends Driving Change.” And beverages that regulate mood, improve mental fitness, and promote physical performance are becoming increasingly popular with consumers.

In addition, consumers want to consume these offerings in convenient formats such as single-serve and ready-to-drink (RTD) packaging. These categories are experiencing robust growth, with RTD beverages slated to grow at a CAGR of 6.1% over the next five years, and functional beverages expected to expand at a CAGR of 8.6% in the next five years. “We continue to seek new flavors, healthier ingredients, and new packaging for greater consumer appeal to meet increasing competition,” said one Packaging Engineer.

Smaller sizes and easily consumable formats provide added convenience to consumers, but they often create new challenges for beverage manufacturers. To keep up with demand for these products, beverage producers often have to run at higher rates of efficiency - higher speeds, maximized uptime, continuous production, or a combination of all of these factors.


Read article   Read this story on beverage trends driving change in 2021.


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