Simple and Sophisticated Drives Beverage Innovation
The New Zealand non-alcoholic beverage industry is, arguably, in a more dynamic space than ever, and transformation is very much the name of the game.
Article by Co Chair Grant Jeffrey
Canvas the views of NZ Beverage Council members and the message is clear – this transformation is due, to a large degree, to consumers wanting more from their beverages. Great taste and thirst satiation were once the key beverage boxes to tick. Good, yes, but consumers of today also want their beverages to DO good. Functional drinks are the new norm.
Beverages of today (and looking to the future) are being called upon to play a significant role in providing hydration, energy boosts, gut health, immunity, muscle recovery, mental clarity, relaxation and even mood support… a big ask, yet the industry is delivering and continuing to investigate transformative ways to do so.
The word from our Beverage Council’s key formulators is that functional ingredients that were once confined to the world of powdered supplements and pills are now being integrated into convenient ready-to-drink formats. Proteins, electrolytes, nootropics and pre-workout formulas are all part of that equation. We’ve seen the emergence, for example, of sparkling water that delivers added magnesium for stress support, and energy drinks with a focus on cognitive performance instead of just caffeine and sugar, and iced teas that are infused with collagen! Thanks to evolution within the industry, beverages can be thirst quenching while also making health simple and accessible.
The team at Alchemy Agencies - a leading supplier of beverage and food ingredients in New Zealand - report that a top trend shaping the non-alcoholic beverage industry is the popularity of prebiotic sodas, adoptogen-infused drinks, and nootropic beverages – these are gaining traction. Unsurprisingly, products that support immunity, energy, relaxation, and mental clarity are in demand. In addition, “Clean label” and low-sugar options are preferred, especially among health-conscious millennials and Gen Z. The NZ Beverage Council is, of course, a proponent of healthy options - the industry continues to provide more choice. Good inroads have been made in recent years to reduce sugar content in beverages and this will remain a focus into the future.
We note that beverage marketing has moved beyond a focus on the benefits of solely physical health. Increasingly, emotional well-being is very much a thing in the beverage marketing world. Alternatives to alcohol is one result, hence the popularity of “relaxation mocktails” and “mood-enhancing” drinks. Our Beverage Council members report that words like “sophisticated flavours” have become part of our vernacular. What we are seeing is the demand for complex, adult-style flavour in non-alcoholic drinks, driven by the “sober curious” movement. Alcohol-free cocktails and spirits are becoming mainstream, especially in social settings and hospitality and, in some cases, brands are using distillation and fermentation techniques to mimic traditional alcohol profiles without the alcohol.
Furthermore, as those at Alchemy, for example, will also attest, hydration is now seen as a “lifestyle statement” with premium water brands and influencer-backed products leading the way.
At Sensient - a leading global manufacturer and marketer of colours, flavours and other specialty ingredients - there’s no doubt Kiwi consumers are increasingly health centric. They’ve seen consumer demands change over recent years in terms of increased interest in fresh, natural and authentic tastes. Now, in 2025, they’re noting consumers are continuing in their pursuit of uncovering “unexpected flavours and memorable experiences”… especially those that have the potential to convert to viral social media content.
Within NZ’s non-alcoholic beverage industry it’s not just what consumers want in their beverages that is driving transformative change. There’s a total package to consider beyond the beverage.
For example, both social media and artificial intelligence are increasingly impacting our sector, changing the way product is marketed, and developed. We’ve noticed how emerging beverage brands are, by and large, picking up on the power of socials, building demand and credibility online. Instagram, influencers, or going viral on Tik Tok are their marketing/advertising tools. This digital-first mindset is undeniably another key trend and sign of our times.
Also of our times are tech-enhanced experiences. AI and AR are being used in product development and marketing to personalize consumer experiences. In addition, smart packaging and interactive labels are emerging to engage tech-savvy consumers. We anticipate AI may shape a lot of our future, not only in terms of how research is conducted and a product developed, but how that technology (from a decision-making point of view) may be used by consumers, or by stockists. What we see now in terms of the reach of AI isn’t necessarily what we will see in a few years’ time – just look how quickly things have changed over the last few years.
Unchanging in terms of commitment is the sector’s focus on sustainability, with eco-conscious packaging a major focal point. Think recyclable, refillable, and on-the-go formats as these are trending.
While we don’t have a crystal ball at our disposal, we do have savvy formulators in touch with where things are at, and offering a glimpse into the future.
Beverage and Food Gurus (BFG) managing director Sam Borgfeldt tells us that, if he had to list three major factors impacting the “dynamic transformation” of our industry they would be: health-conscious consumers, innovation, and agile entrepreneurs. Look at the brands thriving today, he says, and chances are they will have combined science-backed functionality with social media savviness, and “most importantly” they will include the ability to innovate at high speed. How speedily? Well, start-ups, for example, now work in cycles of weeks or months, not years, he tells us.
Reassuringly, this leading NZ formulator is of the belief that when it comes to beverage innovation, “NZ has access to high quality ingredients, smart and ambitious founders, agile supply chain partners and a retail landscape that’s increasingly open to new and exciting formats”.
It’s a positive viewpoint for beverage council members to take on board, reassuring, no doubt, for those who have recently joined the NZBC – we welcome these hugely talented entrepreneurs who hail from varied backgrounds, and not just beverage or food sectors. The NZBC remains appreciative of the support it receives from long-standing ingredients and development companies – such as the aforementioned Alchemy, Sensient and BFG – in helping NZBC thrive.
The NZBC membership is diverse, and ranges from large multinational brands, local New Zealand producers, to those companies that provide a wide range of goods and services to the industry. Members represent over 75 percent of the non-alcoholic ready-to-drink industry sold at a retail level.
We are committed to providing our members with a strong and united voice so as to create an environment in which our members thrive – ultimately resulting in a stronger New Zealand Beverage Industry, poised to take us forward to face whatever will next transform us.