Trends Shaping Beverage Packaging Design

Consumers Are Seeking Added Functionality and Lifestyle Benefits

By Moira Stein, Insights & Strategy at Berlin Packaging

The U.S. non-alcoholic beverage category saw volume sales decline slightly in 2023 as cautious consumers limited their spending on discretionary products, including soft drinks. As people look for affordable options and improved value, the share of private label products is growing. Beverage brands must ensure both affordability and premiumization to appeal to consumers looking for high quality at a good price.

Bottled water has been the leading driver for category growth, while energy and sports drinks have gained popularity among consumers looking for added functionality and lifestyle benefits. As economic, environmental, and health concerns continue to impact non-alcoholic beverage categories, companies can leverage the latest trends in their product and packaging development to help stand out from the competition.

Redefining Hydration

GlobalData listed Hydration 2.0 as a top trend in non-alcoholic beverages, noting that hydration is moving beyond typical sports drinks/occasions to focus on additional need states, including staying hydrated throughout the day, fending off illness, and weight management. Social media is playing a role in this trend, with #watertok helping TikTokkers looking for ways to increase their water intake with recipes and product information.

Increased focus on health and wellness is changing how consumers stay hydrated, driving interest in products beyond plain water. Innovation within enhanced waters has been on the rise over the past several years. Brands are diversifying their portfolios to include water beverages with added ingredients like vitamins and minerals, water mixers, and water syrups.

New hydration products allow for unique packaging shapes and new formats. For instance, Stur water enhancers use a custom bottle that is overtly fruit-inspired. The bottle shape mirrors the canted orientation of the Stur logotype and leaf device, balancing a valved dispensing closure at a tilt. Overcoming the processing challenges of an off-center neck was well worth the extra engineering efforts, as the result is a package that stands out immediately from a field of competitors in the increasingly crowded water enhancer space.

New hydration products allow for unique packaging shapes and new formats. Image courtesy of Berlin Packaging.

Sugar Reduction

Health-conscious consumers want to reduce their sugar intake and are purchasing low/no sugar beverages. Last year saw the largest volume declines in categories perceived high in sugar, including carbonates, juices, and still drinks. Within the energy and sports drinks categories, low-sugar products were the fastest-growing segments in 2023. Sugar has always been considered an indicator of a product’s “healthiness,” and brands are exploring alternative ways of adding sweetness, including natural flavors and elevated flavor combinations.

Package design can help highlight a product’s health credentials. Clean label design with uncluttered graphics and minimal type can communicate a better-for-you beverage with better ingredients. A recent Journal of Marketing study found that “When consumers have a health goal, they are more likely to pay for a product with simple packaging. This is because simple packaging conveys that the product contains few ingredients and high product purity—attributes that tend to be associated with healthy products.” Transparent nutritional information reassures consumers that they can feel good about what they’re drinking and builds brand trust.

Category Crossover

Over the last several years there has been a continuous rise in multi-functional beverages that combine physical, emotional and mental health benefits. As consumers demand multi-functionality, the lines between beverage categories are blurring. Energy drinks, for example, are now facing competition from carbonated soft drinks, RTD coffee, and sparkling waters touting energy-boosting ingredients.

For example, Gatorade recently launched its first energy-first sports drink. Celsius has found success by combining energy benefits with a health-friendly positioning. There is also a growing number of beauty-boosting drinks that combine nutritional and aesthetic benefits. Beverage brands are using ingredients such as collagen or biotin and positioning products to help improve hair, skin, and nail health.

With beverage categories overlapping, package design becomes increasingly important to prevent consumer confusion. Color, sub-branding, benefit claims, and other design elements can help differentiate between products, quickly communicate functional benefits, and improve shoppability.

Brands are exploring more eco-friendly plastic packaging solutions. Image courtesy of Berlin Packaging.

Plastic Optimization

Rigid plastics account for more than half of American soft drinks packaging; however, consumer demand for sustainability and government regulations around single-use plastic will impact the use of PET over the coming years. According to a GlobalData survey, more than one in three consumers say how ethical/environmentally friendly/socially responsible a product is always or often influences their purchase decision. This is especially true among younger consumers who are concerned about the environment and often willing to pay more for sustainable products.

Beyond consumer demand, many states have passed plastic packaging legislation. For example, California’s Plastic Minimum Law AB793 requires plastic beverage bottles from beverage manufacturers sold in the state to contain at least 25% post-consumer recycled (PCR) plastic by 2025 and 50% PCR by 2030. It also requires beverage manufacturers to annually report virgin plastic and PCR plastic usage by pounds and resin type.

In addition to using PCR plastic, brands are exploring other eco-friendly plastic packaging solutions. For example, The Coca-Cola Company prototyped a 100% plant-based plastic bottle and transitioned their Sprite bottle from green to clear for improved circularity. Partnering with a packaging supplier who understands all the sustainable options available as well as the latest legislation is increasingly important.

About the Author

Moira Stein has spent 20+ years working in brand marketing, with a focus on strategy and design. For the past five years, she has helped Berlin Packaging’s customers leverage consumer and category insights to develop strategic package design solutions that create impact and drive sales. Moira has experience across a variety of sectors, including food & beverage, personal care and home care. Her clients have included large CPG companies like SC Johnson, Kraft, and ConAgra Foods, as well as small distilleries, wineries, and start-ups.  Learn more at https://www.berlinpackaging.com.