The
days when an ice-cold cola was enough to quench America’s collective
thirst are over. Functional beverages, energy drinks and specialty tea,
coffee and alcoholic beverages have influenced the market in a major
way, and many of them are now hanging their hats on ethnic flavors and
ingredients. The tropical fruits in your smoothie, the guaraná in your
energy drink and the dulce de leche iced coffee in your grocer’s cooler
are all evidence that ethnic flavors are being integrated, quite
seamlessly, into the U.S. beverage market.
According to the
U.S. Census Bureau, the minority population in the country now tops 100
million, or roughly 30 percent of residents. Combine this with a steady
increase in international travel and heavy exposure to other cultures
and it’s no wonder that Americans are keener to ethnic flavors than
ever before.
Beverage companies are intent on tapping into
the wallets of these highly valuable ethnic populations; they also want
to market these exotic new flavors to the average American consumer,
who is more cultured and fickle than ever. What’s more, much of the
current experimentation with ethnic beverages crosses into established
market trends. This means that when beverage manufacturers discover
ways to infuse ethnic tastes into domestic trends like health and
wellness, they will meet a wider range of consumer demands. All of
these elements are brewing to create the perfect storm for the ethnic
beverage market in the United States.
Appealing to the Minority
(Soon to be the Majority?)
Some
flavor trends establish themselves through mass marketing, which drives
awareness and acceptance. With an ethnic beverage trend, adoption by
mainstream America typically occurs after its popularity is established
within its respective ethnic sub-culture. The Hispanic population—the
largest minority population in the United States—has a clear influence
on all facets of American culture, beverage consumption included.
Traditional Hispanic flavors continue to intrigue beverage companies
intent on catering to this exploding population and capturing sales
from non-Hispanics who have become smitten with flavors like mango,
guava, pineapple and coconut.
While tropical fruit flavors
from Mexico and Latin America have long been popular in the United
States, the Hispanic flavor trend is far from exhausted. Just one
example of a Hispanic beverage that has yet to stake its claim in the
United States is agua fresca, a drink popular in Mexico, Central
America and parts of the Caribbean. Aguas frescas, usually combinations
of fruits or seeds mixed with sugar and water, are becoming
increasingly popular, especially in the form of Horchata (an agua
fresca made with rice) and Tamarindo (made from the seeds of tamarind
trees). As this beverage gains popularity in America, we will begin to
see traditional agua fresca flavors appearing in energy drinks, bottled
teas, and dairy- and soy-based beverages.
It’s a Health Thing
In
addition to relying on ethnic populations to propel new flavors into
the mainstream, beverage companies are discovering that many ethnic
flavors and ingredients lend themselves to existing consumer trends. In
October, Coca-Cola announced the opening of the Coca-Cola Research
Center for Chinese Medicine in Beijing, a move the company called “an
important step in strengthening our innovation pipeline for beverages
that contribute to well-being.” This announcement is part of the larger
trend of companies looking beyond American borders to foster
healthy/functional beverage innovation in the United States. Today, the
most well-known manifestations of this trend are energy drinks, bottled
teas and juices, several of which have borrowed a page from the book of
ancient herbal medicine, incorporating ingredients like ginseng and
guaraná.
It seems the road to health may be paved with
ethnic fruits, vegetables and plant extracts. The functional properties
of these ingredients are taking center stage in terms of health and
wellness, and many of them work extremely well in beverage formulation.
The often-touted benefits of antioxidant-rich “superfruits” like açai
and goji berry include lower cholesterol and increased energy.
Phytochemicals and sterols, naturally occurring chemical compounds in
fruits and vegetables, are the latest ingredients to be thrust into the
spotlight. Tea, a beverage high in phytochemicals, has grown in
popularity in the United States largely based on increased awareness of
its health benefits. While tea has been popular in Asia and parts of
Europe for centuries, the market has just recently established itself
in America, growing from a $1.8 billion industry in 1990 to $6.5
billion in 2006.
The latest health and wellness trend
gaining steam also has foreign origins. Ayurveda, an ancient system of
healthcare rooted largely in herbal medicine and native to India, has
begun to take hold in the United States. In Western culture, Ayurveda
has recently inspired personal care items such as lotions, soaps and
balms. American beverage companies, however, are anxious to capitalize
on the health attributes of the herbs, fruits and vegetables common in
the Ayurvedic lifestyle and are exploring this trend.
Java From Jamaica and Tempranillo
With My Tapas, Please…
Another
established market trend propelling the growth of the ethnic beverage
market is the demand for authenticity. While authentic products give
ethnic populations a sense of comfort, non-ethnic consumers may seek
authenticity because it gives the feeling of sophistication. Perhaps
tied to increased exposure to new experiences and cultures, evidence of
this trend can be seen in several areas. Coffee and coffee-flavored
beverages, for example, are being touted not only for their origin, but
for ethnic-inspired flavors like dulce de leche, canela (Mexican
cinnamon) and spiced chocolate. Recently, these types of indulgent,
often creamy coffee beverages have been making their way from the
barista to the grocer and are appealing to non-ethnic consumers who
equate exotic, imported ingredients with quality and elegance.
The
same marketing principle applies to alcoholic beverages of the ethnic
variety. While many of the ethnic beverage trends mentioned stand
alone, for others, their popularity depends on a pairing with the
appropriate ethnic cuisine. The rise of sake, a Japanese liquor made
from rice, has been in step with the rise in popularity of Japanese
food. The mojito, on the other hand, is going the way of the margarita;
once a cocktail whose popularity relied on that of Hispanic cuisine, it
is now a mainstream drink often enjoyed apart from its traditional
fare. The variety of international wines now available to the consumer
is another element perpetuating the trend of ethnic food and beverage
pairings.
By making it easier for consumers to pair a
cocktail with a certain ethnic cuisine, or encouraging them to
associate their favorite coffee with the region of the bean, beverage
marketers make the consumer feel cultured and sophisticated and meet
the demand for an authentic product.
Endurance of Ethnic
The
profile of the average American taste bud is not what it used to be.
The palate demands something healthy, yet authentic and flavorful;
something sophisticated, yet comfortable and satisfying.
Ethnic-inspired beverages are thriving because they meet these demands
while sating the common desire for new, exciting and stimulating
experiences. As Americans become more accustomed to various ethnic
influences in their diets, beverage companies must continue to seek out
more innovative flavor combinations. Beverage makers have an invaluable
opportunity to combine elements from established trends like health and
wellness with the appeal of ethnic flavor to reach several different
markets. The largely untapped potential of the ethnic beverage market
and the promise of emerging ingredients, from dragon fruit to fejioa,
mean the next great ethnic beverage formulation may be closer than you
think.
Markus Eckert is vice president of technical at
Mastertaste, a global division of Kerry Group that develops and
manufactures flavors and flavor and fragrance bases. Paul Riker is
manager of beverage applications at Mastertaste. Both work at
Mastertaste’s Flavor Division Headquarters in Teterboro, NJ.