By Wasana Nadeeshani Sellahewa
(Commonwealth) _ According to Finlays, a top B2B tea, coffee, and botanical solutions provider, some of the significant trends the beverage sector should be preparing for in 2023 include “selective spending,” “mindful sipping,” “mood enhancing drinks,” and “retail re-imagined.” Finlays identified five important themes that it expects will influence the development of natural drinks and products over the course of the upcoming year and beyond in its annual Global Beverage Trends Report. “The events of the last 12 months felt just as seismic as the preceding 12,” said Sian Edwards, group insights manager at Finlays, “with persistent instability in global economy, supply chains, and politics continuing to drive big changes in how customers acquire beverage goods.”
Consumers everywhere aim to make wise decisions for both the environment and their own well-being, according to Edwards. Even though we anticipate that people will be cutting down on their spending, we are already observing the comeback of beverages as ‘affordable indulgences,’ which opens up potential for innovation and value creation. The continuous interest of consumers in sustainable and nutritious beverages presents substantial business opportunities for brand owners. World Tea News chatted with Edwards to learn more about the report’s main beverage trends for 2023, how tea fits into each trend, and how the tea business can adapt in the coming year.
According to the Finlays analysis, consumers are currently dealing with a wide range of financial issues as a result of the increase in “revenge spending,” which saw them squander when lockdowns loosened. Spending restraint will thus be a key trend in 2023 (and beyond), although Finlays anticipates an emphasis on “cheap luxury” as customers look for economical ways to stay upbeat. Owners of beverage brands that can provide customers a taste of inexpensive luxury delight will be in a better position. Edwards offered the following advise to the tea business: “Tea brands and suppliers must immediately strike a balance between the customer need for inexpensive enjoyment and the cost-of-living issue.
In comparison to earlier generations, Millennials and Gen Z are drinking less and doing so more carefully. According to the Finalys survey, they are also considerably more open to novel beverage concepts, which has sparked the growth of new specialized and hybrid categories. Due to brand owners’ desire to gain market share in this quickly expanding market sector, the beverage industry has developed innovations in the areas of alcohol alternatives, reduced alcohol, and RTD alcohol in response to changing customer behavior. According to Edwards, the rapid rise of “hard” iced teas and botanical alcohol substitutes presents a significant potential for tea companies and suppliers. “Investigate the function of tea and look for methods to create low- or no-alcohol beverages with more upscale “adult” flavor profiles.”
For good cause, “permacrisis” was chosen as the word of the year. According to the latest survey, people are increasingly searching for solutions that enhance mental health to reduce stress after the hardships of the COVID-19 epidemic and rising financial strain. They include both useful items and those that offer pleasure and relaxation. The use of hot tea infusions in moments of relaxation is common in most cultures worldwide, whereas caffeinated liquids like iced coffee are frequently eaten for a more energizing boost. According to Edwards, there is an obvious potential for tea brands because hot tea and infusions are well-established as a soothing, mood-enhancing beverage in many cultures throughout the world.
Many people in 2022 considered the significance of traceability, and businesses showed real efforts to lessen their environmental effect, from packaging to sourcing methods. As Finlays highlighted in the paper, there will be a laser focus on carbon emissions in 2023 as government laws, consumer awareness, and growing energy costs combine to highlight this trend.
