Search for a Better Mood: Health Beverages Thriving in the Nordics

Delivery

This report comes in PPT.

Key Findings

The soft drinks industry in the Nordic region saw an increase during the pandemic, the biggest share of the volume growth coming from the wellness segment.

COVID-19 pushed soft drinks consumption to retail, which saw a strong increase during the pandemic, particularly in the wellness segment. Although the biggest volume growth is connected to the increase in reduced sugar carbonates, functionality plays a vital role in keeping up consumers’ interest.

Nordic consumers’ needs are focused around stimulation and energy boosting. On the other hand, herbal or natural products have kept their role in people’s nutrition particularly when seeking better immunity.

Stimulation and caffeine have been at the core of Nordic consumers’ needs over the 5-year review period. Functional energy drinks with high caffeine content are popular when doing sports due to the energising effect and high protein amount. Furthermore, people are looking for an extra energy boost in a cold and dark region. On the other hand, people trust the power of superfoods and natural remedies and beverages containing ginger and turmeric for example have become popular when consumers are seeking to bolster immune support.

The current consumer drivers behind functional beverages are social media, frequent new product launches and number of flavours, along with sugar-free content and moderate price increases.

Health and functional beverage companies are able to create brand loyalty in social media and reach the desired consumers at a cheaper cost. Flavour and taste are important consumer preferences for Gen Z and indeed this is one of the drivers across functional drinks. Whereas sugar-free is a key component in functional drinks, some consumers are looking for products without artificial sweeteners. Functional beverages have seen a moderate price increase at a lower rate compared to the average inflation rate giving the products resiliance.

As the post-COVID-19 period has been highly turbulent with geo-political tensions and financial downturn, products with calming properties are in increasing demand, albeit growing from a low base.

The ongoing war in Ukraine, together with the worsening of eurozone economies, has had a detrimental impact on Nordic consumers. People are feeling anxious and stressed and it seems that they are looking for greater calm rather than a boost. Hence, we can see more new products being launched with relaxing claims. Brain health is another emerging trend that uses research and scientific claims to support their marketing.