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READY. SET. REFRESH! Something very cool is happening in the world of iced beverages. Something that could send your market share into orbit.
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Scroll down to read about the huge opportunity that now exists in this category. How consumers are showing us that taste and quality are still the key drivers to purchase. But that mounting costs and sugar content remain an ever-present obstacle to growth. You’ll discover how, through leveraging consumer need states and future growth platforms, you can overcome challenges of driving footfall and keeping operations streamlined. All while inspiring you to create the most deliciously decadent, yet sustainable, beverages your customers have ever tasted. So, if you’re thirsty for opportunity, get ready to be refreshed.
Speak to a Kerry Iced Beverage expert Are you ready to refresh your menu by creating delicious, innovative and sustainable iced beverages that consumers will love? Let’s make it happen, together.
Together, We Can Re-define the Future of Iced Beverage in Foodservice
The Opportunity
Behaviours & Insights
Consumer Need States
Strategic Growth Platforms
Let Kerry Inspire You
We look at the numbers and projected numbers that make this market so rich of an opportunity across Europe. We’ll define what exactly we mean by “iced beverage” We’ll identify key benefits that help drive growth
We explore the “Five W’s” The who, what, when, where and why of the iced beverage category.
We establish the 7 core consumer need states when purchasing iced beverages. We'll present graphically how these need-states sit in relation to each other.
We predict the future growth platforms of iced beverage innovation using consumer need-states, expert opinion and our foresight scenario framework.
Have a look at some delicious iced beverage concepts we’ve put together to help get your creative juices flowing.
Overview
Behaviours and Insights
Some Refreshing Numbers...
Five Key Challenges
What Makes an "Iced Beverage"?
The Benefits of ‘Freshly Prepared Iced Beverages’
€24 BN* Spent on Cold Beverages in EU Foodservice in 2023.
Projected to grow by +6% CAGR over the next 4 years.
That equates to a +€7 BN* increase in annual sales!
Five Key Challenges While the opportunities are huge, operators face 5 key challenges on the road to beverage market growth.
What makes an “Iced Beverage”? We’re not talking about something you just grab from the fridge. Freshly Prepared Iced Beverages are enticing cold drinks that are crafted and presented to the consumer while they wait.
Refreshing Beverages
Carbonates, juices, smoothies, mocktails, energy drinks, iced tea, bubble tea and iced/blended beverages.
Iced Coffee
Iced latte, nitro, iced expresso, frappe, iced macchiato, iced matcha etc.
Cold Dairy Beverages
Milkshakes, non-coffee frappes, blended dairy drinks, iced chocolate, dairy alternative drinks.
The Benefits of "Freshly Prepared Iced Beverages"
Rapid Growth
Iced Coffees and dairy drinks are growing faster than the overall drinks average.
Good with Food
1 in 2 refreshing beverages are consumed with food.
Premium Price
Iced coffees and dairy drinks command a higher price per litre compared to other soft drinks.
Popular with Young Consumers
57% of under 45s buy iced beverages out of home more than once a week vs 42% for over 45s.
A Gateway to Coffee Culture
32% claim to buy a type of iced coffee regularly versus only 12% who claim to buy RTD iced coffee. And the gap is wider with under 35s.
Variety Without the Complexity
1 in 4 EU Consumers personalised their beverage on the last occasion.
Seasonality / LTO Capability
Freshly prepared beverages can easily help cater to 78% of consumers who purchase seasonal and limited offer beverages.
Creating Value
Consumers are more conscious than ever on how they spend their money. Operators must offer iced beverages that are perceived as good value for money to win that share of wallet.
Increasing Footfall
With increased competition a key challenge is to capture and keep consumers' attention. Therefore it is crucial that iced beverages stand out and drive people in-store.
Operation Efficiency
Convenience and speed of service remain key for consumers, with iced beverages posing, at times, a challenge with multiple steps involved when creating back of house.
Labour Challenges
Shortage of skilled workers and challenges with retaining staff mean iced beverage can't be complicated to make and must be streamlined to keep quality and consistency high.
Social Responsibility Expectations
From local ingredients to packaging formats, operators are challenged to live up to consumers' growing sustainability concerns.
Who
Where
What
When
Why
Young people can’t seem to get enough of iced beverages with 57% consuming them once a week or more. They present a massive opportunity for market growth.
Iced beverages are in growth with a +13% increase in NET purchase in the past 12 months. Showing this category is resilient to cost increases.
Consumers are buying iced beverages across the day with the core hours being 10am – 6pm. Half of them are purchasing with food.
47% are consuming on-premise, allowing for cross-sell and trade-ups. The other 53% are having these drinks on the go. Which means packaging and stability is important to get right.
Taste will always come first and it must be at the heart of all comms. But costs and sugar content are obstacles. For 61% of consumers, a tasty & low/no sugar option is the “sweet spot”. Seasonal/LTO products are also a big opportunity.
7 Core Needs
From extensive research involving 4,000 foodservice consumers and in-depth interviews with category experts, we have identified 7 core needs that consumers have when buying Iced Beverages.
Change and Excite
Social and Celebrate
Reward and Relax
Routine and Tradition
Light and Healthy
Energy and Productivity
I want new and exciting experiences
I want to socialise and celebrate with friends
I want to reward myself and unwind
I want the comfort & ease of my regular choices
I want to look and feel better
I want the energy to do more and recover better
I want physical refreshment & functional hydration
Refresh and Hydrate
Our strategic growth platforms for the iced beverage category were built by combining our key consumer need states, market expert interviews & our Kerry FutureLens Scenario Framework. FutureLens is our proprietary framework for exploring a range of potential outcomes and impacts. Helping you adapt to change and see the shape of tomorrow.
Developing Strategic Growth Platforms For iced beverage future growth platforms, we prioritised 3 scenarios in Kerry’s FutureLens and cross-pollinated them with our core consumer need-states and expert interviews to understand the evolving landscape of beverages. From this we've developed 8 strategic growth platforms for future iced beverage innovation. Take a sneak peek at what they are below.
Platforms
PLANETARY HEALTH CATASTROPHIC
PLANETARY HEALTH MANAGEABLE
CONSUMPTION ACCESS EXPANDS
CONSUMPTION ACCESS RETRACTS
SENSATION NATION
SOCIAL FLUIDITY
Solace & Joy
HELPFUL HABITS
PROACTIVE THIRST
H20V20
LEVEL UP
PLANET POSITIVE
Bombarded with immediate bites of sensation and excitement consumers want & expect their food & beverage experiences to follow suit.
Younger generations are experiencing increased sense of loneliness meaning there is a growing need for reasons & spaces to help people connect.
People are seeking respite from the stresses & strains of a busy, invasive and highly uncertain world via both solace and joy.
Doing the ‘right’ thing and changing bad habits is difficult with people starting to seek help from food and drink brands.
Consumers are increasingly proactive about managing their health, driven by policy & social influences and greater awareness.
The importance of refreshment and hydration is now linked to personalised needs – people are seeking effective but enjoyable solutions.
Society is highly individualised and ‘success’ focus. Whether that’s performance, look or feel, people want help performing.
This is an overarching platform that impacts all future scenarios. Important to focus on this to create sustainable innovation solutions.
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Have a look at some delicious iced beverage concepts we’ve created to help get your creative juices flowing.
Shaken Caramel Iced Latte
When it comes to iced coffee, consumers are looking for exciting new formats and tasty additions for a real treat experience. Using our unique Tastesense™ Sweet technology we have developed a delicious DaVinci Gourmet Caramel Syrup that’s sugar-free and, in taste tests, was actually preferred over the main syrup competitor. Our texture systems help to create an elevated iced latte that is a true sensory experience.
Made with our DaVinci Gourmet Strawberry & Lime Fruit blend made with real fruit, all natural flavours and no preservatives. Our DaVinci Gourmet Lemonade Base with Tastesense™ Sweet technology brings a delicious citrus taste but with less sugar.
Cool, zesty and sweet. This refreshing creation is big on fruity flavour but low on sugar and preservatives. And it pairs perfectly with food. Refreshing Beverages are key when creating an iced drinks range. You’ll want to consider how these drinks will compliment food as well as how they deliver on the key needs of “refresh & hydrate” and “light & healthy”.
Refreshing Strawberry Citrus Lemonade
DaVinci Gourmet Dairy Base is made with real dairy cream, natural flavours, no preservatives and our Tastesense™ Sweet. Kerry’s sustainable whipping cream delivers just half the fat of standard double cream. Our cream uses air instead of Nitrous Oxide in a simple countertop unit, for a perfect topping and a consistency that lasts from the beginning of the drink to end. DaVinci Gourmet Peach Syrup is free from artificial colours and flavours. It’s perfectly designed to compliment dairy and water-based beverages and is a trending summer fruit flavour for seasonal or core menus.
A rich and creamy indulgence that whips up all the flavour but with half the fat. Cold dairy drinks are here to stay with frappe an ever more popular format among younger generations. A whopping +14% net purchase increase in the last 12 months.
Peachy Fruity Frappe
This deliciously decadent treat is less indulgent than it looks thanks to our Kerry Tastesense™ sugar free caramel syrup. Iced coffee has had a net purchase increase of +23% in the last 12 months, making it a key beverage to have on your menu.
