Watch out Frito Lay, Nabisco, and traditional snack giants—plant-based beverages are gunning for ya.

Beyond just thirst-quenchers, plant-based drinks are slowly pouring into the snack category with over a third of consumers considering dairy alternatives a snack on their own.

We speak to consumers to explore current consumption and purchase drivers of plant-based drinks, then chat with a world-class beverage trend and innovation expert, a plant-based nutraceuticals startup, and a premium plant-based juice franchise shop to find out what the future may look like for the growing plant-based beverage market.

Snapshot

We’ll cover the following:

The evolving dairy and non-dairy consumer perception
Plant-based beverage usage: why and how they’re consumed
What the ultimate plant-based beverage snack should taste like, according to consumers
What the future of plant-based beverages might look like, according to industry experts

Dairy and Non-Dairy Drink Perception

MILK As a SUPPORTING ACTOR

Added to your morning bowl of cereal with a side of OJ, a carton on a school lunch tray, or a nutritious addition to family dinner.

For decades, US consumers have looked at dairy milk as an accompaniment and “a part of a complete meal”. But all of that is shifting due to changes in consumer perception of dairy alternatives.

nutrient dense smoke & mirrors

As food industry professionals, we’re well aware that plant-based animal alternatives are often less nutritious and, at times, significantly higher in fat.

But to the Americans who purchase plant-based dairy alternatives (39%), oat milk, soy milk, cashew milk, and almond milk are taking the cake as perceived “better-for-you” and “better-for-the-environment” offerings.

You can’t spell “plant-based” without “Plant”

According to Matt Sabo, owner & CEO of Slipstream Innovation, the plant-based claim simply triggers a strong connection to the halo of natural. “Consumers are increasingly curious and proactive about where and how their beverages are created, and they see plants playing a stronger role in driving trial and repeat.”

“Consumers are increasingly curious and proactive about where and how their beverages are created, and they see plants playing a stronger role in driving trial and repeat.”

— Matt Sabo, owner & CEO of Slipstream Innovation

a treat to be reckoned with

Of the percentage of consumers who purchase plant-based beverages, 61% consume as “a treat” and 36% view as a snack on their own.

By no means does 36% capture the majority of national consumers and in no way is the discovery of “beverages as snacks” ground-breaking consumer research.

Check out the famous, revolutionary “job” of a McDonald’s milkshake research by Clay Christensen

However, what is notable with these findings is the fact that the majority of the other beverages that are considered “snacks” are rather thick in viscosity—by way of hydrocolloid blends, plant starches, hemp, and numerous added ingredients—and/or contain textural inclusions. While a regular ’ole cup of straight-up almond milk is considered a filling snack.

This could have a major domino effect, which causes a lot of questions…

CONVENIENCE & SUSTAINABILITY

Brisan Group Plant-Based Beverage Survey Dec 2019.

With a few plant-based beverage brands already in the single-serve format, will plant-based drinks continue to trickle into c-store market and steal market share from traditional snack giants?

And what about packaging implications? With environmentally-friendly purchase drivers (39% of consumers), how will plant-based beverage companies combat the unsustainable nature of single-serve packaging?

COGS & PROFITABILTY

…Will plant-based beverage co’s make a killing on profit margin with 11 oz. tetra packs with just a handful of ingredients?

And is there a way to increase consumer cost-allowance with value-add ingredients? —In the next section, we ask consumers what the ideal plant-based beverage snack should taste like.

Check out what consumers have to say about general plant-based snacks.

The Ultimate Plant-Based Beverage Snack

Smoothies (87% of votes), protein shakes (69% of votes), yogurt drinks (56% of votes), and beverages-with-inclusions (39% of votes) were more commonly considered snacks over plant-based beverages (36% of votes).

We spoke to consumers to better understand how to modify the ideal plant-based beverage to advance it as the beverage snack-of-choice.

Overall Build

Dial in the sweetness and pump up the protein.

The sweetness intensity has got to be “just right”, and according to Chris Manderino, co-founder of LYFE Fuel—a premium plant-based nutraceutical company, plant-based beverage sweetness should also be achieved with clean ingredients that don’t impact added sugar content.

All in all, consumers noted that plant-based beverages should be similar in attributes to smoothies in order to be considered a top snack drink.

Flavors

Just the basics and familiar flavors reign supreme among consumers. A higher percentage of consumers want plant-based snacking beverages to be classic flavors, such as: chocolate, strawberry, and vanilla.

Other flavors receiving a high amount of survey comments were: almond, berries, banana, and leafy greens like spinach and kale.

It’s healthy, but It’s gotta be delicious too

Sure, there are a small percentage of loyal consumers who don’t view taste as a purchase motivator however, at the end of the day, everyone wants something delicious.

According to Dr. Stella Salisu Hickman, VP research at Brisan Group, that’s why getting experiential consumer feedback is paramount. “Consumers can talk about what they like and what they don’t like in a digital survey, but in order to get the taste right, consumers need to experience beverage samples. Let them be a part of the design.”

“...In order to get the taste right, consumers need to experience beverage samples. Let them be a part of the design.”

— Dr. Stella Salisu Hickman, VP Research at Brisan Group

The Future of Plant-Based Beverage Snacking

Life stages & personalization

Manderino of LYFE Fuel notes that the next wave of plant-based beverage innovation will be within the personalization of products based on specific life stages, consumer health goals, and dietary restrictions. “The rise in special diets and food intolerances show that there will be new niches within the larger plant-based beverage market to address.”

eco-Packaging

And when it comes to packaging, Manderino also predicts a shift away from single-use plastic packaging and an industry focus on compostable and more biodegradable solutions.

Healthy halo-effect beyond vegan

Sabo of Slipstream Innovation predicts plant-based ingredient usage to expand across all beverage categories. “There are many functional, better-for-you brands that are dialing up the inclusion of plant-based raw materials.”

And while a lot of focus on the growing plant-based category goes to fully vegetarian or vegan categories, omnivores are joining in.

NUTRACEUTICAL CROSSOVER, PLANT POWER

Rarely are plant-based functional ingredients truly new discoveries, but a more targeted approach or a new application for a given ingredient into a formulation may be a future pathway for this category, according to Sabo.

“Plant-based ingredients that are more commonly found in nutritional supplements or other markets will continue to move from the sidelines into more mainstream applications.”

When asked to provide examples of trendy plant-based ingredient additives, Sabo noted: Adaptogens, nootropics, immune health, and related mood-targeting ingredients.

Organic certification to differentiate

Michelle Constantino of Clean Juice, a high-end franchised juice shop, is educating her customers that conventional, processed plant food doesn't always equate to nutritional health.

That’s why Constantino advices her customers to choose organic plant food.

Odds are, the USDA won’t be getting behind “organic as BFY option” with plant-based ingredients (as it can put conventional farmers out of business) nevertheless, the organic seal has the potential to become the tie-breaker as Gen Z and Millennial consumers compare the noise on the plant-based beverage market.

Take Aways

WHAT IT ALL MEANS

Over a third of consumers consider plant-based beverages “filling snacks”. Overall, the beverages that consumers consider “snacks” have a positive correlation with thick viscosity, protein, sweetness, and vegan plant-based dairy alternatives.

Now What?

Environmental values are at the core of a growing number of American consumers. Sustainability is a major UN focus, and a pillar of numerous plant food company mission statements.

The plant-based category is in its infancy, but no passing fad. As this category continues to grow, it’ll be crucial for the industry to question and monitor the real impact to sustainability.

Thousands of companies are jumping on the “plant-based” bandwagon and it’s hard not to see this claim anywhere and everywhere (projected to reach $85 billion by 2030). As food industry folks, we’ve seen this theme before—non-GMO, clean-label, etc.

While the plant-based beverage landscape continues to unfold, I, for one, will curb my eye-rolling at this buzzword game. Because what this category represents, is a real appetite for change.

Although significantly helping the environment isn’t quite as easy as choosing oat milk for your latte or sipping a cold glass of almond milk at snack time, every effort matters.

That’s the real takeaway message.

The Future of Plant-Based Beverages