Functional drinks aim to change the beverage industry these days. It’s no longer about hydration, but we also live in an age of wellness where consumers demand more functionality from every sip. Added ingredients like minerals, probiotics, vitamins or herbs offer much more than just a bit of sugar and fake flavors to support busy daily lifestyles.
Whether you go to local shops or bars, you’ll find more and more retailers introducing all sorts of functional drinks, whether you’re after a CBD can or perhaps something to stimulate your gut health.
Now, from a business point of view, are functional drinks a proper opportunity for retailers? Here’s what you should know about this rapidly growing market shift.
Lifestyle Updates
Alcoholic drinks represent a way to have fun if you’re part of an older generation. Even millennials have changed their habits these days, not to mention Gen Z who are prioritizing mindful living over late-night drinking. More and more people turn to nonalcoholic alternatives, mainly because of the general focus on wellness and long-term health.
In other words, while alcohol is still a primary option in nightclubs and bars, plenty of people choose the social profile of going out, rather than the idea of getting wasted. This is one of the reasons why sales and demand for functional drinks have surged lately in retail venues across the UK.
For instance, CBD drinks for UK retailers are extremely varied and can be found everywhere these days.
Daily Habits & Routine Purchases
While you can certainly make alcohol a daily habit (not recommended though), functional drinks are more likely to be successfully integrated into your daily routine. Alcohol and other beverages are often seen as occasional treats.
On the other hand, a functional beverage is different due to its wellness benefits. For example, whether you prefer the calming benefits of CBD, probiotic kombucha, wellness shots or energy drinks, such things can be easily integrated into your daily life.
They offer consistent benefits that can help you perform better as an individual both at work and at home. And once they try it, people fall in love with these benefits, hence the surge in popularity and demand that retailers are currently witnessing.
A Shift from Alcohol
Now, what defines this shift from alcohol? Simply put, it’s the side effects of having it. You can’t drive, so you’ll spend money on a taxi. You’ll have a hangover in the morning, which isn’t great if you have a busy day. You lose control based on how intoxicated you are.
While having a few glasses at home is desired by some, there are still plenty of people who like the effects of alcohol on a night out. But there’s an obvious shift from this trend, mainly because having other types of social drinks will clear out all the disadvantages while keeping the social fun intact.
You can have a CBD drink and drive home safely afterward. You can have kombucha and still socialize and have a good time out. You can have some herbal can with countless benefits and experience no hangover sensations in the morning.
Alcohol is no longer trendy, so more and more people shift away from it, especially the newer generations. That’s what drives sales and opportunities when it comes to functional drinks.
So, Where’s the Trend Going?
So, if people shift away from alcohol, what are they going for? It’s pretty obvious. Anything with health-related benefits will dominate the market. It’s the age of wellness or fitness. Most people have friends who smash the gym on a daily basis. Most people have friends who eat healthy stuff only.
When it comes to functional drinks, people try to find functional attributes that actively support their daily well-being.
- Energy and focus. There are plenty of beverages in this category. Many of them are based on natural ingredients too.
- Digestive health. With so much trash on supermarket shelves, people need to supplement their digestive health with different beverages.
- Calmness and relaxation. Stress is one of the world’s main enemies today, hence the necessity of extra ways to unwind and relax.
- Immunity. Compared to 30 years ago, immunity standards are incredibly low. People no longer strengthen their systems naturally, so there’s an obvious demand for supplementation.
From a Business Perspective
The business point of view is just as attractive when it comes to functional drinks. There’s obviously a high demand for this type of drink across almost every demographic. At the same time, industry giants are aggressively investing in functional brands. Marketing has never been more aggressive either.
Consumers are more aware than ever about the benefits of functional drinks. And then, they also realize that they actually need them. It’s not just a trend, but an actual necessity for modern self-care.
Shoppers are also willing to pay much more for a beverage with enhanced attributes and benefits, so the profit margin is pretty high too.
Bottom line, functional drinks aren’t all about being interesting and trendy. They come with numerous benefits, as well as added ingredients that can seriously add to one’s health and long-term vitality.
Since people have never been more concerned about their health, it’s easy to understand why functional drinks are so popular these days. And this is only the beginning of a major beverage retail revolution.
The post Why Functional Drinks Are Becoming a Serious Opportunity for UK Retailers appeared first on 365 Retail – Retail News and Events.
