First, purpose. Trends behind the beverage startup growth

beverage startup trends

First, purpose. Trends behind the beverage startup growth

Beverage market is expected to grow at a CAGR of 3% from 2016 to 2021 reaching $1.9 trillion. Recent trends are pushing it. Consumers seek healthy alternatives, convenience, sustainable products, and don’t mind paying more. Therefore, these niches are even more interesting so different beverage startups are powerfully arising.

According to PR Newswire, there are four main issues that beverage startups will have to consider in order to succeed in these new markets. Firstly, knowing the concerns of millennials, their current and future consumers, and what is influencing their purchasing decision. They are willing organic beverages made with fresh and natural ingredients. Also, they are buying products from companies with social and ethical purposes.

Clear labels and natural components

Furthermore, transparency is a word increasingly present in their vocabulary. They want clean and clear labels and they would prefer more information about the supply chain of the products they buy. This leads us to a third issue, the new value-add. The sum of fresh and clean is healthy. And the new meaning of healthy is stepping up some large traditional brands to take out artificial ingredients, add natural ones and also use eco-friendly packaging. And complementing the above, more and more buyers look for “naturally functional beverages”, namely beverages with additional benefits besides quenching their thirst.

Trying to address these trends, beverage startups are rethinking traditional products and focusing on building values and identities to support a clear purpose.

Under-the-radar beverage startups

Health-Ade and Owl’s Brew are two startups, for instance, that created value-added and a differentiated product from simple tea. On one hand, Health-Ade offers a 100% all–natural fermented tea, certified organic, non-GMO and gluten-free. They only use fresh and natural ingredients and their packages are made of glass to prevent plastic and metal leaching. On the other hand, Owl’s Brew sells a more specific product. This beverage startup has created the first tea crafted for cocktails. It is an all-natural product, with no artificial flavor as well, and ready to paired with various spirits such as vodka or rum.

Some other start-ups are going beyond a healthy and all-natural product. BeluWater is a pioneering social enterprise from Britain which uses “all the profits to fund clean water projects”. This beverage startup tries to reduce its environmental impact and fight water scarcity at the same time.

WTRMLN WTR, created by two partners looking for both sustainable and healthy beverages, is another company with a purpose beyond profits. They launched a melon water extracted from discarded melons. Thanks to this sustainable business, the farmers turn a loss into a profit. And the agrifood industry turns waste into a delicious beverage.

Ample is actually a perfect example of a “naturally functional beverage” which play a new role in the consumer’s diet. Ample is a “meal shake” with quality ingredients which provides the carbohydrates, proteins, fats and oil that the body requires. They tried to design a product which synthesizes convenience, health and a good taste.

Are you a beverage startup defining your products and identity? Do you need help? Join our community here and gain business insight and knowledge from our experts.

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