US sales of cannabis-based drinks jumped to EUR 86 million in 2018, according to the new 2019 US CBD Drinks Report from food and drink experts Zenith Global and US industry newsletter Beverage Digest. The market is expected to rapidly achieve mass market appeal, surging to over USD 1.4 billion in 2023, even with some regulatory restrictions remaining.

“Key growth drivers for CBD drinks include loosening regulatory implementation, investment by major brewers and innovation by numerous start-ups,” commented Zenith Global Chairman Richard Hall. “This has led to far greater awareness and availability.”

“A cultural shift in consumption also contributes. Consumers increasingly look for natural products with health benefits and are reducing their alcohol intake,” added Beverage Digest Executive Editor Duane Stanford. “CBD drinks are positioned as a potential aid for conditions from anxiety to muscle pain.”

The United States, in particular, has been a hot spot for CBD drink innovation. The category received a potential boost in December with passage of the Agriculture Improvement Act of 2018, which removed hemp from Schedule 1 of the Controlled Substances Act.

Cannabis has two main active constituents – CBD and THC. THC is the element that gives an emotional high and has not been licensed for consumer products. CBD, which is an abbreviation of cannabidiol, has some reported benefits and is in the process of gaining the necessary approvals for consumer products.

The quantity of CBD in beverages varies from 2 mg to 100 mg per litre. The 2019 US CBD Drinks Report profiles more than 20 brands which span numerous segments such as soda, tea, cold brew coffee, shots, energy drinks, water (still, sparkling and flavored) and beer.

This report also assesses opportunities for other CBD products, international prospects and developments in US legislation.

As the nation struggles through the dark January days, with vitamin D in short supply, latest research from Mintel reveals some good news for the “sunshine drug”, as it is crowned Britain’s favourite single vitamin supplement.

According to Mintel, usage of Vitamin D has risen a glowing 7 percentage points in the last year and today it is used by 33 % of Vitamins, Minerals and Supplements (VMS) users, up from 26 % in 2017. The rise in Vitamin D usage saw it overtake Vitamin C in 2018, to become Britain’s most popular single vitamin supplement. While usage has ticked upwards for all age groups, it is 35 – 54-year-olds who are the main drivers, with usage rising from 22 % in 2017 to 35 % in 2018 among this group.

Britain’s top five single vitamin supplements are Vitamin D (33 %), Vitamin C (27 %), Vitamin B complex (15 %), Vitamin A (12 %) and Vitamin E (10 %). Meanwhile, well over half (56 %) of VMS users take multivitamins.

Over the past year, six in ten (59 %) Brits have taken VMS. Around one in three (34 %) take VMS daily, with women (38 %) considerably more likely than men (29 %) to do so. Only a quarter (26 %) of all Brits have never taken VMS.

Sales of vitamins and supplements are estimated to reach £442 million in 2018, a rise of 6 % from £417 million in 2013. The sector is predicted to see a steady rise in value sales over the next five years, with the market forecast to grow a healthy 8 % to reach £477 million in 2023.

Anita Winther, Research Analyst at Mintel, said: “The ongoing focus on health, both among consumers and in the public debate, is seeing people take a more proactive approach towards their wellbeing. The interest in health is expected to be a major driver for vitamin, minerals and supplements sales, while the ageing population should continue to drive growth in the over-50s segment. Vitamin D has proved to be a star performer in the sector, with its health benefits during the winter months continuing to be a popular topic. This will have undoubtedly helped boost usage, raising its profile among Brits.”

Rise in veganism offers opportunity for sales of calcium and iron supplements

Not to be outshone, calcium and iron usage among VMS users has shown an impressive rise in the last year; calcium usage increasing 9 percentage points (up from 20 % in 2017 to 29 % in 2018) and iron up 6 percentage points (up from 22 % to 28 %). The biggest increase for calcium was seen among 25-34-year-olds (up from 25 % to 39 %), while for iron, it is 35 – 44 year olds who have upped their intake the most (up from 22 % to 36 %).

Although vegetarianism remains relatively small, Mintel reveals that a flexitarian lifestyle is likely to be affecting what people look for in their vitamins and supplements. Indeed, more than one in ten (11 %) people who use and buy VMS see a vegetarian/vegan claim as an important factor when choosing one vitamin/supplement over another.

A long-term favourite with Brits, cod liver oil/fish oil remains the nation’s number one supplement, taken by 37 % of VMS users in the last year. Britain’s remaining top five supplements include calcium (29 %), iron (28 %), magnesium (16 %) and zinc (16 %).

“The trend towards meat reduction diets – including both strict vegan diets and the more lenient flexitarian approach – is likely boosting usage of iron. With as many as half of meat eaters believing their red meat intake should be limited, it is likely that people are looking to supplements to fill the iron gap left if they are reducing the amount of red meat they eat. The rise in usage of calcium could also be linked to the growing focus on plant-based foods, both in terms of vegan diets and dairy avoidance. With just three in ten adults in agreement that fortified foods and drinks are a better source of vitamins and minerals than taking supplements, consumers may well be feeling the need to complement these foods with a supplement.” concludes Anita.

Fermented drinks continue to gain traction in the beverages market driven by growing disposable incomes, rapidly evolving lifestyles and health conscience millennial consumers looking for less sugary and low alcoholic beverages, says leading data and analytics company.

According to GlobalData’s ‘Consumer Beverages Influencer Analytics Platform’, beer, wines, sugary drinks and fermented drinks emerged as the most popular trending topics over the last ^*90 days.

Vaibhav Mathur, Influencer Research Head at GlobalData, says “As calorific soft drinks lose their appeal with health-committed millennials, functional ingredients such as probiotics, vitamins and protein provide opportunities for fermented drinks new product development. Kombucha a fermented tea is rich in beneficial probiotics and is sold as a healthy alternative to carbonated sweetened soft drinks.’’

^*last 90 days refers to a timeline from 1st Aug-31st Oct

Beatson Clark’s flexible service and centuries of experience proved to be the winning formula for premium soft drinks company Eager Drinks.

The glass manufacturer based in South Yorkshire has just finished its production run for over 200,000 new and unique glass bottles for Eager Drinks’ new mixer range – Cold Brew Tonics.

Eager, founded in 2007, approached Beatson Clark last year to help them package their first glass bottle drinks range. All of Eager’s other soft drinks, including its signature cloudy apple juice, are packaged using cardboard.

To ensure the success of the new range in a competitive market, founder of Eager Drinks Ed Rigg knew the look and feel of the bottle was imperative to its longevity in the soft drinks market.

“Owing to the fact that Cold Brew Tonics is our first range packaged using glass, we had strict criteria for its look, feel and quality to ensure it was in keeping with our brand and commitment on sustainability,” said Ed.

“We wanted a bottle which used recycled glass in some way and wanted it to look contemporary and modern yet traditional to the touch. We didn’t want an off-the-shelf design. We wanted a bottle which was going to make an impression in a competitive market.

“Beaton Clark’s approach matched our vision. In terms of flexibility, service and quality, they win every time compared to competitors in the UK and abroad.”

Working closely with Eager Drinks, Beatson Clark designed and produced a unique 200ml white flint glass bottle. The brief was to produce a container which looked modern and contemporary but had a traditional and vintage feel to it.

The container is heavier than a standard bottle to give a high-quality, premium feel in line with its intended consumer market. The bottle is embossed around the shoulder with the words ’EAGER’ and around the base with the words ‘PRODUCED IN SMALL BATCHES’.

Jonathan Clark, Account Manager at Beatson Clark, commented: “It’s been a pleasure to work with the Eager team from concept right through to production. As Ed has found out, what we offer in terms of service is only matched by the quality of the product we make.

“For an established drinks company entering the competitive mixer market for the first time, the packaging is just as important as the quality of what’s inside. The drinks are different to anything else on the market owing to the unique production process, and the packaging reflects that.”

Each flavour in the range – Tonic, Light Tonic, Smoked Tonic, Lemonade, Ginger Beer, Artisan Lemonade and Club Soda – is produced by packing bunches of dried fruit peel into hessian bags and placing the oil-rich rinds in cold water for 24 hours before the product is carbonated.

“Each mixer has a purer and deeper flavour than any other mixer drink on the market, so we wanted to make sure the taste is preserved for as long as possible. That’s why we chose glass, because it does that better than any other form of packaging and it’s 100 per cent recyclable,” said Ed.

The premium, high-end range was launched last month and is already on sale in bars, hotels and restaurants across the country.

As the economic outlook for Asia-Pacific (APAC) remains strong and consumers in the region continue to put in a high level of performance, stress and overwork will be the important concerns related to mental health among them. Against this backdrop, beverage makers which offer fortified drinks with health-enhancing ingredients will have an edge over others in the region, says GlobalData, a leading data and analytics company.

According to the company’s Q1 2017 consumer survey, stress, overwork and memory loss are the major concerns for APAC consumers. Among the three, stress was the leading mental health concern with 84 %.

The company’s report, ‘Top Trends in Healthcare and OTC Products 2018’ reveals that the majority (61 %) of consumers in APAC are looking for drinks with health-enhancing ingredients but very few drinks feature them.

Will Grimwade, Consumer Analyst at GlobalData, says: “Health drinks have often been pigeon holed into being either low sugar variants or energy boosters fortified with caffeine, vitamins or minerals. Mental health is a growing concern, but fortified drinks rarely address this need.

“Sales of fortified drinks and demand for drinks with health enhancing ingredients in APAC are both currently at a medium level. There is little focus on mental health within this sector and the large size of the total soft drinks market makes this a good opportunity.”

GlobalData expects a growing number of new launches to the market that include ingredients such as Gingko Biloba, Turmeric and Lecithin. Companies such as Coca-Cola are investing in emerging ingredients such as Cannabidiol (CBD) oil in North America due to its pain and anxiety easing effects, with use of the ingredient likely to spread to Asia within the next few years. This shows that companies are looking to target a more diverse range of health needs.

Grimwade concludes: “Economic growth is unlikely to stagnate and stress levels for APAC consumers are unlikely to drop, meaning the appeal of stress relieving drinks is likely to remain strong.”

As the government contemplates a ban on the sale of energy drinks to children in England, Jonathan Davison, Beverage Analyst at GlobalData, a leading data and analytics company, gives his view on the news: “Considering a ban on energy drinks sales in the UK defined by age might seem premature given the already pervasive impact of the recently introduced sugar tax. A handful of energy drinks brands have reformulated their products and the ^*22 % volume sales increase of low calorie energy drinks in the UK in 2017 v 2016 would suggest the industry is making progress.

“Such action from the government would of course have an effect, but if reducing caffeine and sugar intake is the goal another approach could simply be to look at capping energy drink pack sizes instead. Larger energy drink pack formats have fast become the norm in the UK, particularly 50cl which has more than doubled in volume over the last 10 years to dominate the category. Limiting energy drink pack sizes to 25cl and below, and potentially the quantity that can be purchased, could go some way to addressing the current concerns without the need for an outright ban.”

^* GlobalData Consumer Intelligence Centre

Cannabis-infused drinks are set to become more widely available. Investment in the marijuana market is increasing as legal recreational use of the drug becomes more widespread, according to GlobalData, a leading data and analytics company.

The latest high profile investor is Constellation Brands, the distributer of Corona beers in the USA, which has just bought a controlling stake in a Canadian marijuana company in order to develop cannabis-infused alcoholic drinks.

A spokesperson from the GlobalData Consumer Analyst team, commented: ‘‘We believe that Constellation Brand’s investment in Canopy Growth Corp, a marijuana growing company, is a sign that the market has potential. Widespread legalization is making marijuana a trending ingredient, driving innovation in food and drink markets. As a result, the move to enable them to develop cannabis-infused drinks is a good one.’’

However, alcoholic drinks companies need to think beyond just flavor innovation when weighing up investments in the marijuana market. The legalization of recreational marijuana presents a threat, as drinkers may swap alcohol for cannabis. Drinks companies may therefore lose sales to cannabis brands.

Consumption occasions for alcoholic drinks and recreational cannabis products overlap, such as the desire to relax or to celebrate. Whilst this increases the likelihood that alcoholic drinks could be substituted by cannabis, it also means drinks brands can move into this space without diluting what their brand stands for. Cannabis is therefore a natural extension for many alcoholic drinks brands.

Alcoholic drinks companies need to see cannabis as an opportunity, and not a threat. Consumers are increasingly in favor of legalizing recreational use. Early investments in this category, such as that by Constellation Brands, will leave companies better placed to target this growing market.

WILD Flavors & Specialty Ingredients (WFSI), a business unit of Archer Daniels Midland Company (ADM), will be at this year’s SIAL trade fair in Paris, where they will present appealing vegan soy drinks and Fruit&Veggie concepts, to name only a few. They will also be featuring contemporary carbotanicals as well as new cider mixes and still drinks. All of these product ideas have one thing in common: they are based on WFSI’s great-taste expertise, and they satisfy consumer demand for natural products.

Vegan products: new concepts that drive developments in the beverage market

The growth rate for new launches among vegan foods and drinks reached 400 % between 2011 and 2015.1 This shows that vegan diets have established themselves in society around the world, and there are no signs of the trend reversing. Manufacturers who want to take advantage of these developments can sample the new soy drink concepts by WFSI in Paris. This generation of vegan power drinks is vegan and lactose-free, contains protein and important B vitamins, and is energizing. Last but not least, they will win people over with their tempting and aromatic flavor profiles, which are available in banana, chocolate and strawberry.

Cider: unfiltered, refreshing, different

To generate new impetus on the market for alcoholic flavored beverages, WFSI took the idea of unfiltered flavored beer concepts and transferred it to cider, thus creating a brand new kind of refreshment for adults. Tangy cider drinks with hints of popular citrus flavors like lemon and grapefruit contain 5 % fruit juice and 2 % alcohol. They are fruitier and less sweet than classic cider beverages, making them an attractive alternative to flavored beers.

Botanicals: fruity refreshment with a spicy and aromatic note

Carbonated soft drinks are the second-largest beverage category after water. The market is largely saturated, however, which means new inspiration is needed. At SIAL, WFSI is presenting a new concept which incorporates popular flavors while also creating buzz with unexpected flavor accents. The Carbotanicals which WFSI has developed with popular kinds of fruit will draw in new customers, and these drinks also offer a pleasant surprise with a spicy-aromatic hint that comes from natural extracts of well- known kinds of herbs. Trade-fair visitors are welcome to come to the booth in Paris and try an elegantly-balanced combination of red berries with basil.

Fruit & veggie: juicy, fruity, refreshing

Eating vegetables of all kinds is more popular than ever, and it corresponds to people’s desire for a healthy lifestyle. This is the perfect market opportunity for juices and still drinks with an added touch of vegetables. In response to the current demand for health and wellness products, WFSI’s portfolio includes fruit&veggie still drinks such as orange- pumpkin-ginger or beet-strawberry. They contain a harmonious blend of fruit and vegetable juices and are also available as a low-calorie option with steviol glycosides. At SIAL, those who like their drinks “juicier” can turn to WFSI’s concepts with a high juice content, including beverages with 50 % each fruit and vegetable juices, products enhanced with blossoms, or not-from-concentrate (NFC) juices.

¹Mintel GNPD, 2016