Matthew Iovane Discusses the Thriving Drink Industry Post-Pandemic Outlook for Healthy Beverages is Bright, Matthew Iovane Says
The healthy beverages sector is set for a sustained boom in the US and UK, angel investor Matthew Iovane says. Consumers are returning to their normal health routines and are prioritizing beverages that can make condition-specific health claims. General wellness and hydration benefits, Matthew Iovane advises.
Iovane believes that as consumers get back to their normal routines, they will place a greater value on convenience in their beverage selections. Beverage brands will seek to secure their niches with an increasing array of product functions.
Better-For-You Beverages Are Poised to Take Off, Matthew Iovane Believes
Consumers are determined to take control over their health, the beverage sector investor advises. Consumer focus on health has led to increasing sales of no- and low-alcohol drinks and healthier choices in soda. Matthew Iovane cites evidence that these trends will continue.
"Beverages with a halo of health will lead industry growth," says Iovanne. "Grand View Research projects that the dairy alternatives market in the United States, for instance, will expand by 12.5 percent this year."
Survey data collected by ingredients supplier Glanbia Nutritionals (Chicago) finds that 46 percent of North American consumers prefer beverages that contain immunostimulant plant products. Gianba's survey also found that 30 percent of consumers have switched to brands of beverages that make immune stimulants or immune support claims.
Ready-To-Drink and On-The-Go Products Poised to Resurge
Matthew Iovane cites food innovation intelligence from Spoonshot (St. Paul, MN), finding that consumer demand for "on the go" beverage products declined 40 percent in 2020 and 2021. That is not surprising since drinking on the go frequently involved taking off PPE and juggling with packaging materials in crowded, supposedly germ-filled public places.
However, one segment of the ready-to-drink market stayed more or less steady throughout the pandemic. Ready-to-go coffee drinks increased 20 percent even in the 52 weeks ending 17 May 2020, according to data collected by IRI (Chicago). Customers still enjoy recreating the coffee shop experience at home, but refrigerated ready-to-go coffee is still a half-billion-dollar market in the States. Demand is growing at a rate between 5 and 10 percent per year in 2022.
Botanicals Buck Market Trends, Says Matthew Iovane
Nutraceutical beverages fortified with plant ingredients remain a robust contributor to total beverage sales, Iovanne says. Consumers want great-tasting natural products with added sensory and health benefits.
The Innova Market Insights’ product launch database found that there was a 46 percent increase in sales of beverages fortified with botanicals in the three years leading up to 2020.
As many as 69 percent of consumers in the Innova Market Insights survey reported that it was important for absolutely all the ingredients in their beverages to be natural. Beverage makers can distinguish their products not only as "natural" but also as "sustainable," not contributing to the environmental degradation of the planet.
Market share for healthy beverages will only go up, Matthew Iovanne explains. The growth of the sector may be uneven, but it should be sustained for the foreseeable future.
Company: Outpost Estates