APAC market prefers traditional flavours in alcoholic drinks

Although consumers are seeking innovations and new tastes in food and drinks, when it comes to alcoholic beverages, 53% of consumers in the Asia-Pacific region still prefer traditional flavours. This according to GlobalData’s 2019 Q4 consumer survey.

New flavours are definitely still attractive and continue to make waves in the beverage industry. The survey indicated that about 22% and 21% of APAC consumers prefer unusual and new flavours, respectively.

In the soft drinks industry, consumers seem to be more open to experiment with novel and unusual flavours, which is generally not the case observed in alcoholic beverages and hot drinks categories.

Shagun Sachdeva, Consumer Insights Analyst, says: “Flavour is one of the most prioritised elements for the APAC consumers when it comes to food and drinks shopping. However, manufacturers are watchful of the consumer lifestyle shifts and emerging themes to address cross-category needs of the consumers. Manufacturers are taking sensory experience to a whole new level and the exciting flavours and seasonal offerings will keep the beverage market from stagnating.”

Shagun added: “With rapid expansion of bars, clubs and pubs culture along higher spending on alcoholic beverages, consumers are faced with a myriad of alcoholic beverage options, often leaving them confused and eventually they go for tried-and-tested and preferred ones. However, in the long run, we can expect the trend to change as manufacturers are trying to market their product with better formulation to the right audience to encourage consumption.”

In countries such as Japan, which have more experimental consumers compared to the other countries, consumers stick to more traditional and familiar flavours. As per the GlobalData survey results, 60% of Japanese consumers prefer traditional flavours while 40% go for new and novel ones in alcoholic beverages.

Shagun said: “At the same time, APAC being such a diverse region, not everyone responds to a new innovation launch in the same way, so giving a product appeal on other fronts, such as flavour, is crucial. To appeal to these consumers, a strong and positive sampling experience is critical while promoting new flavours.

“Soft drinks manufacturers need to be mindful of the needs of their health-conscious target audience, who are looking for less sweet and more refreshing formulations. Classic example to quote would be 'Red Bull' launching watermelon flavour energy drink in South Australia made with sugar sourced from sugar beets and Alpine water, combined with the flavours of watermelon.

“However, there is a difference between successfully creating and selling soft drinks as manufacturers need to understand consumers' relationship with various flavours and their colour psychology. Even the cola giants such as Coca-Cola and PepsiCo failed to resonate with consumers.”

GlobalData gives as an example Pepsi Blue which discontinued in some countries in the APAC region. Mountain Dew’s Sangrita Blast with cherry pomegranate flavours did not do well in the market.

Shagun said: “Over the last few years, we have seen some very interesting new product developments across all beverage categories, which implies that brands are not just focused on developing new and more unusual flavours and combinations, but also reinventing classics with novel twists.”