Australia, renowned for its bustling drinking culture, has long celebrated a vibrant nightlife wrapped around bars and pubs. Yet, in recent years, a significant shift has occurred, with sober-curious consumers embracing an alternative approach to socialising and redefining their drinking habits in pursuit of better overall health, explains ADM Asia Pacific marketing director, beverages, Sarah Lim.
According to Global Market Insights, Asia Pacific’s low-to-no alcohol beverage market is estimated to grow more than 7 per cent between 2019 to 2025 to reach USD 30 billion by 2025.
31 per cent of Australian consumers are now opting for non-alcoholic products, with zero-alcohol beer and ciders leading this segment. Convenient, Ready-to-Drink (RTD) format products that offer consumers a range of flavours while boasting zero-alcohol content have also been gaining traction in Australia.
In addition to health and wellness enthusiasts choosing no-alcohol beverages to support their well-being goals, there is a growing trend among younger consumers, particularly millennials and Generation Z, who are drawn to non-alcoholic RTDs. These consumers, while not interested in alcohol, still value the social aspects that come with sharing a drink with friends, and non-alcoholic beverages emerge as a compelling alternative to their alcoholic counterparts.
Young consumers today are also more open to experimenting with new food and beverage experiences. An impressive 68 per cent of global consumers are willing to pay a premium for beverage products showcasing novel and unconventional flavours.
This thirst for new experiences, coupled with the convenience of RTDs, is providing developers with opportunities to create unique flavour profiles and combinations. Selections infused with flavours like citrus, botanicals, and spices have gained popularity without compromising taste or multisensory experiences.
With improvements in brewing technology, brands now have the opportunity to offer options with enhanced taste and a broader array of flavours in the non-alcoholic beverage category. In this fast-changing and highly competitive beverage market, consumers have specific motivations that manufacturers must closely monitor to align with their evolving preferences.
Sugar and calorie reduction
Sugar reduction options have taken a front seat in some of Australia’s prominent non-alcoholic beverage companies. Some have successfully reduced the sugar content in their drink portfolios by over 16 per cent between 2015 and 2021.
In addition, non-alcoholic RTDs typically contain fewer calories than their alcoholic counterparts, making them an appealing choice for those who are conscious of their calorie intake but still desire the tasty flavours of alcoholic beverages.
ADM’s Fibersol is an excellent and innovative complement to reduced-sugar offerings, providing noticeable calorie reduction. It imparts no flavour of its own, making it suitable for any application without any adverse impact on taste.
ADM Outside Voice research shows that 75 per cent of consumers prioritise appealing or interesting taste profiles when seeking new beverages, and 52 per cent are wary of potentially unappealing aftertastes. Fibersol enhances the sweetness of beverages without the added sugars and helps to mask off notes created by high-intensity sweeteners, giving brands an edge in the market with reduced-sugar claims.
Authentic Flavourful Ingredients
While sugar reduction remains a top motivation for health-conscious consumers, there is a growing desire for high-quality, naturally sourced ingredients such as botanicals, functional extracts, and distillates to support their overall health and wellbeing. This extends to ready-made drinks, especially non-alcoholic options for those taking a more mindful approach to alcohol consumption.
ADM boasts a curated portfolio of solutions, featuring flavours like citrus, fruits, herbs, and spices. This positions us well to support brands in creating non-alcoholic beverages that deliver an elevated drinking experience.
For authentic flavourful ingredients, beverage developers can leverage our vast ingredient pantry, deep formulation expertise, and technical ingenuity to craft innovative, great-tasting beverages that seamlessly integrate taste, mouthfeel, and nutrition. This enables the development of market-ready solutions that expedite the journey from concept to commercialisation, all while meeting consumer demands for taste and nutrition.
Multi-sensory experiences
Beyond crafting non-alcoholic RTD options that replicate the taste experiences of their alcohol-containing counterparts, the growing consumer appetite for discovery is paving the way for the fusion or blurring of flavours to create captivating flavour profiles and combinations.
In Australia, lemon and orange are viewed as mainstream citrus flavours. For beverage developers to remain current and innovative, there is an opportunity to reinvent or reinvigorate these classics for a twist in flavours. Interest for mandarin and lime are also top of mind among consumers, while next generation citrus fruits such as ‘red’ citrus fruits are growing in popularity. Specifically, interest for pink and ruby red grapefruit has sparked strong curiosity among Australian consumers, as well as emerging Asian citrus varietals such as Yuzu and Calamansi.
ADM’s diverse selection of first, second, and third generation citrus flavours and functional botanicals, coupled with our technical expertise and capabilities, can help manufacturers elevate their beverage offerings with exciting multi-sensory experiences to satisfy the demands of this expanding consumer group.
As consumers continue to seek ways to enjoy alcohol in moderation, the demand for naturally derived ingredients and convenient, zero-alcohol RTD products is expected to continue shaping the alcohol market. Beverage manufacturers that can innovate and provide unique flavour experiences while meeting consumer demand for convenience are likely to capture the hearts of consumers in this rapidly evolving landscape.
Yet, developing winning products that align with the ever-changing expectations of consumers can be challenging. Our specialised teams work closely with manufacturers from concept to commercialisation, creating market-ready alcohol-free beverage solutions that seamlessly integrate taste, mouthfeel, and nutrition, aiming to recreate the in-home open bar experience for non-alcoholic beverages.
