Checking the trend boxes for beverage sales

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Among the trends accelerated by COVID-19, one looms particularly large—growing consumer demand for flavorful, healthy, functional foods and beverages.

In both onsite foodservice operations and commercial restaurants, consumers are seeking beverages with goals loftier than satisfying flavor cravings, quenching thirst and refreshment. They want products with functional attributes that they believe will benefit their personal health, wellness or performance. Hence the growing prominence of beverages with vitamins, minerals, antioxidants and other wellness-affirming ingredients touted to enhance bodily processes and conditions such as digestion, cognition, immunity, mental health, stress response, mood and energy.

Heeding the call

Early in the pandemic, at Rice University in Houston, students asked campus dining services to provide more better-for-you, immunity-boosting offerings. The chef-led culinary team of Rice Dining responded with new takes on fruit-flavored agua frescas, vegan smoothies and fruity iced teas—as well as plenty of pure, filtered water. Those moves have helped a student body already trending toward healthful habits stay on the right track. “We take feedback like that very seriously and implement it in our daily operations,” says Chef Johnny Curet, director of campus dining.

“The agua frescas are huge,” says Curet, referring to house-made Mexican-inspired fruit waters. A campus favorite is a medley of fresh fruit, sliced cucumbers and fresh mint leaves. Popular too are iced teas flavored with fruit, herbs and flowers, with little or no sweetener. “The one that is really huge is hibiscus tea with oranges and basil,” says Curet. Fresh lemonades garnished with frozen blackberries have gained a following as well.

Also on the rise are vegan breakfast smoothies, made with plant-based ingredients such as almond milk, coconut milk, IQF frozen fruit, spinach, kale and other local produce.

“Plus, the students also drink a lot of just filtered water,” says Curet. They help themselves to water from clear, 5-gallon dispensers.

An easy way for operators to hike the functional appeal of coffee, tea, juices, smoothies and waters without affecting their flavor profiles is by simply adding a pump or two of energy-enhancing or immunity-boosting beverage supplement.

Getting the sugar out

The above-mentioned offerings have put a big dent in sugary fountain soft drinks, which have been on the decline for more than 10 years, according to Curet.

A popular homegrown specialty beverage on campus is the boba tea created by East-West Tea, a business owned and operated by Rice students. Its signature items feature chewy tapioca pearls called boba adrift in flavorful, iced creations such as Jasmine Green Tea, Thai Tea and Rose Garden Tea. “Boba tea is huge here,” says Curet. In fact, a Boba Tea Night on campus typically sells out in just 15 or 20 minutes, he says.

The mounting trend of sugar reduction opens the door for operators to leverage specialty beverages featuring the vivid fruit flavors of non-sugar syrups and unsweetened flavor concentrates.

Third-wave health

Datassential CEO Jack Li noted the rise of functional foods and beverages and the trend of consumers using them for self-care in his remarks during the Datassential 2022 Trends Webinar. “This is very compatible without our view of the evolution of health in consumers’ minds—that we’re in the third wave of health right now,” said Li.

The first wave occurred in the 1980s with the emergence of low-fat and low-calorie foods for weight management, followed in the early 2000s by a wave of natural, local and organic products. “Now we're in the third wave of functional foods that actually improve your mental or physical wellbeing,” he said. “This is the big, growing opportunity.”

“We see a lot less stigmatization of things like anxiety and depression,” said Datassential trendologist Mike Kostyo, during the Webinar. “And we see a lot of interest from consumers in food products that help them take care of themselves.”

“So 54% of consumers say they are extremely or very likely to purchase foods or beverages that are specifically designed to improve mental health or wellbeing,” added Kostyo. “And another 33% say they are somewhat interested in these.”

Exotic but safe

Capturing the imagination of consumers with better-for-you, functional beverages may require an operator to walk the line between the familiar and the exotic. One example is Raspberry Kombucha Lemonade. In this creation, the comforting flavors of raspberry and lemon embrace kombucha, the tangy fermented tea beverage with beneficial probiotics and antioxidants.

Having the ability to welcome customers back to your dining room is critical as the pandemic recovery continues to unfold. One of the best ways to create excitement and regular patronage is to promote functional beverages and other wellness drinks with creative flair and vibrant flavors.