Fortified/functional (FF) beverages experienced solid current value growth in 2021, following a negligible decline in 2020. These performances were due to trends in the two categories that dominate FF beverages – FF energy drinks and FF sports drinks.
Although accounting for a far smaller share of sales, FF hot drinks also performed well during 2021, predominately due to the success of FF fruit/herbal teas, which are promoted as herbal/traditional medicinal teas. The COVID-19 pandemic and associated lockdowns have been a stressful experience for Australians, with many of them turning to herbal/traditional medicinal teas to help them get through.
Outside of energy drinks and sports drinks, other niche FF soft drinks categories also performed well in 2021. FF nectars boomed, predominately due to the success of new brands.
The growth of FF energy drinks in the aftermath of the pandemic is expected to continue, although be slower than the spike experienced during the lockdowns. With consumers no longer in lockdown, and with alternative activities available to them, gaming will no longer be the primary leisure activity for a significant cohort of young people, and the consumption of energy drinks associated with gaming will also subside.
Once the COVID-19 pandemic is over and gyms reopen, Australians will once again be able to exercise, and growth will therefore return to FF sports drinks. Even those Australians who did not exercise regularly prior to the pandemic are likely to embrace more strenuous physical activity, to burn off the extra weight they gained during lockdowns.
As Australian consumers continue to work from home in the aftermath of the pandemic, FF fruit/herbal tea will maintain an important role in the lifestyles of many, as there are more opportunities to drink tea when working at home than is the case in most office workplaces. As Australia opens up again and its citizens become more active, other tea consumption opportunities will also be revived.
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This category includes fortified/functional beverages. When identifying fortified/functional products, we focus on products to which health ingredients or/and nutrients have been added as well as brands that are positioned to deliver a certain functionality. To be included here the enhancement has to be highlighted in the label or hold a health claim/nutritional claim. Fortified/functional food and beverages provide health benefits beyond their nutritional value and/or the level of added ingredients wouldn’t normally be found in that product. To merit inclusion in this category, the defining criterion here is that the product must have been actively fortified/enhanced during production. As such, inherently healthy products such as 100% fruit/vegetable juices are only included under "fortified/functional" if additional health ingredients (e.g. calcium, omega-3) have been added. To be included, the health benefit needs to form part of positioning/marketing of the product.See All of Our Definitions
This report originates from Passport, our Fortified/Functional Beverages research and analysis database.
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