We are riding a “blossoming new wave” of beverage where consumers are breaking from conformity and embracing diverse categories according to SPINS VP of brand growth solutions Andrew Henkel, who broke down how the evolving beverage landscape during a presentation at BevNET Live Winter 2018.
While the major conglomerates — Coca-Cola, PepsiCo, Keurig Dr Pepper — still hold the majority market share, natural products are the industry’s main growth driver today with a growth rate of about 10 percent. Furthermore, they are quickly gaining traction in mainstream retail channels, in convenience alone the growth rate was at 15 percent, compared to relative stagnation in the conventional beverage space.
“[Natural products] are the engine of growth in the industry when conventional beverages are basically flat at 1.6 percent,” Henkel said.
In this clip, Henkel also discusses how major beverage companies are investing in natural products, the factors that are changing consumer habits, and how the fastest growing independent natural brands are capitalizing on the new landscape.