Although consumers’ stress and anxiety levels remain high, their desire for caffeine has not waned. In fact, the demand for higher caffeine products is actually rising.
As consumers actively seek food and beverages that support their physical and mental wellbeing, from boosting immune systems, enhancing moods, sustaining energy, and reducing stress, the functional/wellness category will continue to experience strong growth. For the tea industry, this is an opportune moment on which to capitalise.
Covid-19 has made consumers look for healthy ways to combat stress, anxiety and depression by way of food and beverage items, with functional coffees being one of the most popular. Coffee brands can appeal to new consumers while differentiating themselves in the increasingly competitive world of functional products.
Attractive across an increasingly wider range of US demographics, RTD coffee counts millennials, in particular, among its largest consumers, but targeting new consumers is also a key opportunity in drawing additional beverage drinkers into the fold.
It is the most diverse generation to date and holds billions in buying power and they are poised to spend even more as they age, Generation Z is the future. Brands across all industries have no choice but to get to know these consumers.