News & Insights

Something to Sip On: A Look into The Rapid Innovation and Growth of the Beverage Category

By Jim Furrer and Haley Silvers

A Round of Pineapple Cardamom Drinks…

It’s quite possible this time next year, the drink in your hand will be a pineapple-based beverage, elevated with trending flavors such as garlic or cardamom. At this year’s National Restaurant Association Show in Chicago, pineapple was proliferating the convention floors and when that happens, brands take notice. Esoteric flavor combinations in drinks are no longer an outlier, they are increasingly becoming table stakes for brands looking to stay ahead of the curve and remain front and center in the consideration set for target consumers.

Let’s take a look at how brands are innovating the beverage space to give consumers a gulp of what they want:

The “Wait What?” Factor

The next evolution of drinks is often bubbling under the surface. The popularity of “Swicy” (sweet & spicy) has become a hot topic. According to Datassential, a global leader in food and beverage intelligence, Swicy menu items grew 38% since 2022, with anything featuring hot honey expected to outpace all other flavor profiles over the next few years. Take a look at Starbucks recent drinks menu announcement and you will see the word spicy a whopping twenty-four times. If swicy wasn’t out there enough for you, dirty soda might do the trick. A combination of soda and cream that first went viral in 2022 led to a collaboration from Dr. Pepper and Coffee Mate to create a Dirty Soda creamer to add to your beverages earlier this year. Moreover, Swig, the self-proclaimed “home of the dirty soda” has experienced tremendous growth due to the beverage’s viral moment. In 2021, the Midwest-based chain had 47 locations, and now, they’re projecting a pipeline of nearly 500 new locations.

Usher In the Fruits and Florals

For the spice averse, the floral pull of lavender is quite possibly where your consumption focus may be these days. The growth of floral-centric beverages has increased by more than 5% percent over the past 5 years, leading The New York Times to call lavender spring’s answer to the eternally popular Pumpkin Spice category. And the growth of floral flavors is coupled with the growth of fruit flavors. The fast-growing cafe, Blank Street’s spring menu included a Cherry Cold Brew and their newly launched summer menu is also fruit-forward with watermelon and mango passionfruit takes on the ever-popular matcha.

Functional For the Win

Prioritizing health and wellness is a never-ending goal for many consumers and with the functional beverage category expected to reach $339.6 billion by 2030 globally, it’s a priority for brands now too. Just look at the better-for-you soda company Poppi whose prebiotic beverages have taken the market by storm – the type of storm that causes a 148% revenue increase in one year alone. Trend experts at the Hartman Group have also identified the stress-reducing and cognitive function-balancing supplements, adaptogens and nootropics as a fast-growing category – especially among the sober and sober-curious, helping beverages like De Soi and Ghia rise to popularity. QSR brands are making strides in the functional space too. This past spring, RF|Binder client OAKBERRY partnered with wellness brand KAPOWDER to introduce the Hyaluronic Hero Smoothie, focused on hydrating your skin. With research from Hartman Group and IFIC’s 2023 Food & Health Survey indicating that more and more consumers are seeking beverages that emphasize focus and productivity, and support mood, sleep, and stress reduction, the category is on a path for major growth.

Flavor evolution and innovation can come in different shapes and sizes and as beverage brands continue to develop cutting edge flavor combinations and inspired riffs on the classics, one thing is for certain – you still must deliver on taste. With data showing that 76% of consumers love trying new experiences and are driven by exploration, it’s imperative that the development of fun, functional or creative beverages that are also delicious is ingrained into your brand.


At RF|Binder, we have both expertise and passion across the food and beverage category. We are true partners with you at every step of the process and hope to be the first to try your take on the next flavor innovation, which just might be Pineapple Cardamom. We’d love to discuss how to execute a successful launch that will keep consumers eagerly awaiting the next sip. Get in touch!

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