Non-Conventional Caffeinated Drinks: Innovative Alternatives for Caffeine Fix

Published on 11 Jul, 2023

In today's fast-paced world, coffee and tea continue to be staple beverages for people worldwide. However, with growing innovation in production, beverage manufactures are offering caffeinated alternatives such as ready-to-drink tea/coffee and energy drinks in varied flavors, functional blends and low caffeine which has altered consumer preferences.

Tea and coffee are considered the most consumed beverages in the world after water. Caffeine is a stimulant known to cause instant spike in energy levels and mindfulness. Hence, it is consumed by billions of people daily.

The Global Caffeinated Drinks Market is expected to reach USD 310 Billion by 2025 with a growth rate of 6.8% from 2022 to2025. The main reason is high awareness of the fact that caffeine increases strength and metabolism if consumed in adequate amounts. Another reason for rising demand is growing income levels and standard of living in developing countries is presumed to boost demand for caffeinated drinks. Although, currently tea and coffee are the most popular beverages, innovative caffeinated beverages that are healthy, have unique flavors, are chemically caffeinated or plant-based and served either hot or cold depending upon the consumer liking are emerging.

Traditional Caffeinated Beverages

Here are some traditional caffeinated drinks with caffeine content per 240 ml (1 cup) as defined below:

  • Coffee (102–200 mg)
  • Black/Milk Tea (40–120 mg)
  • Energy Drinks (50–160 mg)
  • Ready-to-Drink (RTD) Tea & Coffee (40–60 mg)
  • Decaf (3–12 mg)
  • Soft Drinks (2–7 mg)

New Variants of Caffeinated Beverages

Hectic lifestyles and rising urbanization have led to consumers preferring caffeinated beverages that require minimal to no preparation. As a result, beverage manufacturers have been launching innovative, flavored, and functional beverages, mentioned below, to meet the consumer’s desires of health and wellness.

  • Tea:
    • Single-estate pure leaf teas and functional botanical blends are the two RTD teas in high demand. Consumers perceive tea as a healthy beverage and connect with transparency, authenticity, and history of the drink.
    • Flavored/iced tea is another RTD trend that is gaining popularity as added flavor in the beverage gives consumers the feeling of sweetness. Honey green tea, berry hibiscus herbal tea, original green tea, Moroccan mint tea, and peach oolong tea are some trending flavors in the RTD tea market.
    • Demand for probiotic tea induced with adaptogenic blends herbs using maca, ashwagandha, moringa, and mushrooms is rising.
    • Matcha tea is a type of green tea made from Camellia sinensis and is widely popular in China and Japan. It is a labor-intensive beverage which involves tarping and shading the tea fields. While Matcha tea has more caffeine (75–180 mg) than conventional green tea (30 – 40mg), it provides many health benefits such as low heart-disease risk, relaxation, weight loss, and alertness.
    • Demand for niche teas such as Kombucha (fermented drink made with tea, yeast, and bacteria, 15 mg caffeine) and Yerba Mate (made from dried yerba mate leaves, 2–7 mg caffeine) as they are supposed to be beneficial in improving gut health, digestion, stress relief, blood pressure management, and immunity.
  • Coffee:
    • Sealed bottled or canned cold brew that can be picked up on the go is a rising trend in the caffeine beverage industry. Innovation in packaging technology and convenience of consumption of packaged foods has been driving the growth. Key trends, such as higher protein, lower sugar content, localized flavors, and fortifications with minerals, vitamins, and good fats like Omega-3 fatty acids, have been on high demand for RTD coffees. Large corporations, such as Starbucks and Nestle, teamed up to introduce iconic Starbucks Frappuccino and Starbucks double shots in RTD format.
    • Consumers have also shown interest in indulgently flavored RTD coffees that would include regional flavors, seasonal/tropical fruits, and blends with spices such as turmeric and spirulina.
    • Sparkling coffees are gaining traction in the market, especially amongst the millennials as they seek healthy alternatives to soft drinks and other sweetened carbonated beverages without compromising on flavor and texture of carbonation. Sparkling espresso tonics with bright and tart fruit flavors, such as grapefruit, blood orange, and cranberry, are popular in this segment.
    • An interesting find, mushroom coffee is made by combining coffee beans with medicinal mushrooms. While retaining the taste of regular coffee, this drink has less caffeine. It is available in a powdered form and contains enhanced flavors such as cinnamon, sea salt, cacao, turmeric, or Medium-chain triglycerides (MCT) oil. These mushrooms are linked to several benefits such as promoting immunity, brain health, and heart health.
  • Energy drinks:
    • Beverages that contain high levels of caffeine combined with stimulant properties namely taurine, guarana, and herbal substances. Its market is currently valued at USD 23 Bn and is projected to grow exponentially to reach 33 Bn by 2028. The growth is driven by innovation through distinctive flavors and targeted functionalities – stress relief, enhanced cognitive function, or boosted immunity and color graphics.
    • The flavor industry has introduced innovative technologies like enhancers and flavor modifiers, targeted at amplifying taste characteristics. Red bull in March 2023 launched cranberry-, lime- and blueberry-flavored energy drinks to cater to growing demand for more natural sweeteners.
    • Plant-based energy drinks contain superfoods ingredients and healthy adaptogenic herbs that provide natural boost of energy as opposed to regular energy drinks that rely on synthetic caffeine, artificial ingredients and added sugar which can create jitters and even a heavy crash. Moreover, the urge to consume natural and clean label products led to producers focusing on making high-fiber and gluten-free drinks using plant-based ingredients.
    • Energy drink brands have expanded their product portfolio through the launch of low- or zero-sugar options to tap the sports drink market. These results in the development of natural energy drinks that not only minimize sugar content but also taste delicious.

Conclusion

The caffeinated beverage market is abuzz with innovation as more people are gradually opting for drinks with moderate amounts of caffeine for a healthy lifestyle. Some options that contain less sugar, while still providing a caffeine kick, help consumers enjoy the benefits of increased energy without compromising their health. Furthermore, the introduction of various flavors and functional benefits contributed to the growing appeal of these beverages. As a result, the market for non-conventional caffeinated drinks is poised for significant growth in the coming years, as more people embrace their convenience, taste, and other attributes.