Powdered Beverage - spotlight article

products in 2017

products in 2019

152

319

– Euromonitor, Food Intolerance reports

Sales of "free-from" foods are expected to grow 15%, or $1.4 billion, between 2017 and 2022 — with the U.S. as the largest global growth market.

The Power of Powder

Powdered drink mixes have come a long way since the days of Ovaltine and Tang. Instead of just providing flavor to milk or water, they have become premium products with value and function. New flavored powdered beverages now contain a variety of healthful ingredients from fruit and fiber to protein, and tout health benefits such as energy, performance recovery, and bone and joint health. And it’s possible these mixes are now the right products at the right time in a growing era of label-friendly, functional and sustainable products. Business for powdered drink mixes is booming as consumers seek both healthier options as well as functional alternatives. But it is a bit difficult to pinpoint overall category sales revenues. Future Market Insights puts the global powdered soft drink market at $10.6 billion, but that likely does not include the $7 billion sports nutrition supplement segment, where powdered mixes make up 81.4% of the market and is expected to drive a lion’s share of the growth, according to data from Nutrition Business Journal’s 2020 Supplement Business Report. Powdered beverage mixes are certainly in an enviable spot for a number of reasons. Perhaps most importantly, consumers are relying on beverages more than ever for their daily nutritional intake. According to the report Modern Beverage Culture 2018, from The Hartman Group, beverages are now increasingly viewed as a source of healthful nutrition and meal replacement, especially among young consumers.

POWDERED BEVERAGE OPPORTUNITY SPOTLIGHT

What’s more, powdered mixes now provide a wide range of nutritional benefits with a high degree of functionality. They are also cost-effective, easy to store and more sustainable when packaging doesn’t rely on single-use plastic bottles. And in these times of pandemic, consumers will also appreciate the convenience and safety of buying in bulk and mixing their own beverages as opposed to popping into the store for an RTD beverage. The rise of the active lifestyle consumer is another driver of the powdered drink market. Consumers across all generations and from all walks of life now see themselves as “active.” They’re seeking out products that offer energy, endurance, and recovery, whether it’s for added focus on the job or a day on the trail. And this broad swath of consumers is now more educated about the nutrients they need before, during and after their chosen activities. Sky high expectations What all this means is that consumers expect more from powdered drink mixes than ever before. First, these products have to provide the basics: powders must dissolve quickly in the chosen liquid, taste good, they can’t look cloudy or have gritty sediment, and they have to last in the pantry for about a year. Adding functional ingredients complicates the picture even further. Botanicals, vitamins, minerals, proteins and antioxidants all provide value, but they can also impact taste. Product formulators have traditionally compensated for this with sugar or sucrose-based sweeteners. But given that three in four Americans are now seeking to limit or avoid sugar in their diets, formulators are turning to alternative sweeteners to keep the sugar and calorie count in check. High-intensity sweeteners like stevia leaf extracts are increasingly combined with sugar alcohols such as erythritol to mask bitter off-notes and provide bulk for mouthfeel. Fiber ingredients, such as chicory root fiber, can add bulk to a dry beverage powder while also enhancing fiber content. Compared to other fibers, chicory root fiber won’t add viscosity and because it contains inulin, a well-studied prebiotic fiber, that can also add digestive health benefits as well as enhance calcium absorption for support of bone health. But when it comes to nutrition in powdered beverage mixes, high protein content is virtually essential. Two in three consumers still say they are paying attention to their protein intake and just as many are trying to get more protein in their diet. This demand is illustrated by the dominance of protein in sports nutrition powders, which reached $5.7 billion in 2019 as these drink mixes transitioned from the gym to the kitchen with active Moms seeking a protein boost in their smoothie.

However, protein in general can cause grittiness and poor dispersibility, so plant-protein sources must be carefully chosen. Pea-based proteins are now a go-to option, offering a mild flavor and can meet popular requirements for products that are vegan-friendly, non-GMO, certified organic and soy free. With all this interest in beverages and new ingredient solutions, powdered beverage mixes are poised for strong growth. Companies are pushing the envelope with product claims around performance, wellness and lifestyle, but top products will have to increasingly deliver on proven function, limited sugar content as well as great taste. Clearly, choosing the right ingredients for these mixes is essential and the ticket to success will be a combination of functional and label-friendly ingredients.

1 Future market Insights. Powdered Soft Drinks Market Expected to Behold a CACG of 2.9% throught 2018-2027. https://www.globenewswire.com/news-release/2019/02/06/1711430/0/en/Powdered-Soft-Drinks-Market-Expected-to-Behold-a-CAGR-of-2-9-through-2018-2027.html 2 International Food Information Council (IFIC). 2020 Food and Health Survey. https://foodinsight.org/2020-food-and-health-survey/. 3 Azpiroz F et al. Effect of Chicory-derived Inulin on Abdominal Sensations and Bowel Motor Function. Journal of Clinical Gastroenterology. 2017. Aug; 51(7): 619-625. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5499961/ 4 Whisner CM, Castillo LF. Prebiotics, Bone and Mineral Metabolism. Calcified Tissue International. 2018. 102(4):443-479. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5851694/ 5 Cargill Proprietary Insights. Consumer Attitudes and Usage of Plant protein. Feb. 2019. 6 Nutrition Business Journal. Sports Nutrition and Weight Management 2020 Report. 7 Walji A. Look out for these three trends in sports nutrition. Mintel Blog. https://www.mintel.com/blog/food-market-news/look-out-for-these-3-trends-in-sports-nutrition

REFERENCES

18%

34%

11%

31%

54%

38%

24%

22%

21%

15%

14%

10%

For more on trends transforming beverages click here:

Proteins like soy and whey have long been a part of the mix, but as consumers further embrace label-friendly ingredients, a challenge for many sports and nutrition beverages formulations that are thought to have too many artificial ingredients, this has put a spotlight on new protein options. Plant-based protein, in particular, is becoming a new benchmark in powdered mixes.

2019 Protein sports nutrition powders U.S. sales

$5.7 billion

27% of nutrition drink/mix buyers indicate interest in drinks and/or bars made with plant protein such as pea

24% of performance drink/mix buyers indicate an interest in drinks and/or bars made with plant protein such as pea

24%

27%

Beverages play a very important role in my health and wellness

I often use beverages as a snack (instead of food)

I often use beverages to replace meals

I like my beverage to do something for me (like provide energy, nutrients or other benefits)

Total Responses

62%

44%

39%

28%

38%

24%

17%

49%

31%

55%

45%

33%

65%

61%

60%

Millennials GenX Boomers

Source: Mintel, Plant Based Foods Association

Source: Modern Beverage Culture 2018

Beverage use by generation

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