The Big Idea: Amid endless political, humanitarian and climate crises, brand owners have the opportunity to spark joy for their consumers through products that offer a little sip of levity and fun. This trend is already manifesting in the beverage industry, and brands looking to capitalize should be values-led, focus on innovative NPD, and collaborate with like-minded brands outside of the industry. |
Sian Edwards, Director of Strategy and Insights, Finlays
Is the world ‘sparking joy’ right now? Arguably not, with a seemingly endless onslaught of political, climate and humanitarian crises hitting the news every day. And while it’s important to acknowledge these issues – and do what we can to support others – it’s equally vital to find those small moments of fun and levity to push back on the sense of doom.
What does the Little Treat Culture have to do with the beverage industry?
The emergence of ‘Little Treat Culture’ has become a defining trend in the quest for everyday joy, particularly evident in the beverage industry. This cultural movement, characterized by TikTok, revolves around the idea of indulging in small, accessible luxuries that provide quick bursts of happiness. Beverages, ranging from artisanal coffee and speciality tea to fun bubble teas, have become a popular medium for consumers seeking their ‘little treat’, in being typically affordable, widely available, innovative and indulgent.
How is this trend manifesting in the beverage industry?
There are several key developments shaping the ‘new age of fun’ in the beverage industry:
- Demand for premium, elevated experiences, through craft, artisanal and speciality drinks. Consumers are willing to spend a premium on high-quality beverages in their favourite coffee shops or differentiated products in retail as part of their ‘little treat’ routine.
- A surge in seasonal, limited-time-offers and limited-range beverages. This is particularly true in foodservice where 78% of QSR operators are now offering limited-time offers vs. 51% in 2021 [Technomic Beverage Navigator, 2023], capturing consumers through creating a sense of exclusivity and excitement.
- ‘Retro’ flavors. These evoke core memories for consumers and have led to a resurgence of classic tastes such as root beer and cream soda – nostalgic and comforting flavors such as s’mores, as well as fun options inspired by retro candy.
- The influence of social media. Platforms such as TikTok are playing a crucial role in popularizing this trend. Viral videos showing elaborate drink recipes, innovative flavor combinations and visually appealing presentations inspire consumers to experiment. They drive demand for ingredients and tools such as coffee concentrates, frothers, syrups and speciality glassware to replicate coffeeshop style beverages at home.
- Permissible indulgence. The intersection of wellness and ‘little treat’ is driving the rise in ‘permissible indulgence’ – a growing market for beverages that offer both indulgence and health benefits. This includes functional drinks, such as probiotic ‘bubbly tea’ and protein-rich coffee, as well as the more holistic ‘wellbeing’ beverages such as nutrient-rich green tea smoothies.
- Brand love. Brands are responding to this trend by launching new products and marketing campaigns that emphasize the joy and satisfaction of indulging in a small treat. From eye-catching packaging to storytelling that highlights the craftsmanship and care behind each drink, the beverage industry is embracing ‘Little Treat Culture’ as a way to connect with consumers seeking everyday moments of joy.
How to tap into the little treat culture trend for your beverage business
- Ensure your brand is values-led, creating the sense of trust and comfort for consumers to purchase ‘guilt-free’ products that tie into their world view and values, such as ethical sourcing.
- Explore innovative NPD to create a sense of fun for consumers, whether that’s nostalgic flavors, such as s’mores coffee, or adventurous textures like cheese foam bubble tea. Work with suppliers who can provide flavor trends and market insights to support the highly demanding cycle of NPD.
- Look for ways to connect with consumers through your brand – develop an approachable tone of voice, highlight the people behind the brand and create a ‘tribe’ through merchandise.
- Collaborate with like-minded brands to reach a wider consumer base and bring a sense of fun to your products, with the potential added benefit of generating an online buzz – a prime example is the new Twisted Tea Rocket Pop collab.
- Balance your beverage portfolio between ‘little treats’ and ‘everyday purchases’ ranging from indulgent, functional and premium beverages such as creamy iced coffees, through to healthy RTD teas and craft cold brew coffees.
SIAN EDWARDS DISCUSSES ‘LITTLE TREAT CULTURE’
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