In addition to traditional recipes, the industry also has room for completely new concepts and product innovations. The key trends in the beverage business are primarily products with reduced sugar content and lower calories. We already have such products in our offer. It is worth mentioning the Kubuś brand, for which for years we have been introducing all new products without added sugar. An increasingly noticeable trend is production based on natural and plant-based ingredients, which are perceived as healthier and more innovative. Third are products that combine different categories, such as juice plus water or drink plus tea. Drinks with plant extracts are also on the horizon.
A large part of our consumption is built on human mobility, so the juice and beverage part, as well as all mobility-related categories, which are usually products in small packages, have suffered the most. Consumers got used to spending time at home. Back then, they mainly bought drinks in large packs. This is still the case today, despite the fact that we have become accustomed to the idea of the coronavirus and despite the - at least partial - return of consumer optimism. Concepts carrying a certain health and immunity function were well received.
One of the challenges is also the dynamic increase in production and distribution costs. Prices of raw materials and packaging are rising, as are labour costs. The situation on the energy and fuel market is extremely turbulent. This translates into higher product prices in the beverage industry, which in turn may herald a reduction in consumption
We also face major challenges in implementing EU environmental directives, including the requirement that from 2025 all plastic bottles must be made of a minimum of 25% recycled material, and from 2030 of 30%. Manufacturers will not be able to meet this unless an effective deposit system is established in Poland. We saw the draft law only this week.
Magdalena Rohde-Krempa
General Manager of Business Unit Beverages and Member of the Maspex Group Management
Changing consumer behaviour during a pandemic
During the pandemic, consumers relied mainly on trusted brands and consumption mainly at home. They paid more attention to the safety of products - how they were packaged and what preservation processes were used, which incidentally is contrary to the freshness of the product. The ecological trend has also accelerated. Consumers are opting for products that are healthy (e.g. 100% juices, with added value and with a condensed dose of body-strengthening ingredients) and safe - for individual consumption at once. The demand for ready meals has increased. All these are habits developed in the pandemic and I think they will stay with us for longer. As a producer, we have to be flexible, we have to adapt to the needs of consumers and keep up with them, sometimes anticipate them and even create trends. We are a company that tries to be close to the consumer.
It is difficult to assess whether certain changes (e.g. in the distribution model, customers' shopping habits) that occurred during the pandemic will stay with us permanently, because we have not yet fully returned to normal functioning. We do not know whether the pandemic will soon enter the phase of extinction or not, but remote working, online shopping, virtual business meetings, and other activities taking place via the network are already our everyday life. The pandemic has only accelerated something that seemed like a matter of time - namely, the implementation of tools to support remote activities. It also showed how important automation and robotisation are, as well as efficient process management, not only in production plants, but in every sphere of economy.
Technology to support internal company processes
The innovation market is following global trends. Innovations in the Polish FMCG sector focus not only on creating and improving products, but also on new processing and production technologies, better water- and energy-efficient processes, new ways of reaching customers and displaying goods. Packaging-related innovations that are in line with current eco-trends also remain an important area. Manufacturers are increasingly using biodegradable packaging and paying more attention to recycling. However, the most important trends are automation and digitalisation in all areas, which have a real positive impact on costs and company processes..
ESG impact on the industry
Trends related to widely understood sustainable development, i.e. environmentally friendly investments, technological and product innovations, social actions, development of the working environment or cooperation with the local and business communities have ceased to be something to be desired and have become something to be had in order to conduct business in a responsible manner. This approach is enshrined in our mission and vision, which we consistently pursue. ESG activities are no longer an element of marketing strategy, but a commercial reality. Increasingly, sustainability issues come up in negotiations between our partners, where aspects such as environmental audits, carbon footprint and green economy topics are discussed.
Consumer loyalty
The pandemic exposed the attachment of customers to brands and this is the most relevant example of loyalty. They tended to choose the brands they knew well and trusted, which proved important in the face of the uncertainty caused by the pandemic. Crisis situations verify both relationships and attitudes, and so the pandemic showed the real power of brands, for which consumers made even greater demands. In the beverage category, brands such as Tymbark and Kubuś became the most popular choices - even though consumers had the same product choice as before.
