Why are beverages upgrading to e-commerce?
It’s not a surprise how many food and beverage (F&B) brands have been popping up online as of late. It seems as though you can’t enter any place that serves sustenance without being reminded that it’s also available via an app, browser or delivery service. But how and why is the F&B industry turning away from the traditional brick-and-mortar? And what does this mysterious online landscape offer that they don’t?
For the purpose of this blog, we’re solely going to focus on beverages and brands within this sector.
Like any other retail sector, it was inevitable that F&B brands would slowly move their way into digital. And in the past 5 years or so, we’ve seen an influx of flavoured waters, milk alternatives and energy drinks fill both digital and physical shelves. Not only are they on e-commerce but their digital presence has taken dominance. Whereas the online stock used to be seen as a subsidiary of the times and changing behaviours, we’ve reached a point where many of these drinks are known for their digital-selves. Reputation now plays a huge role in the production and popularity of perishables, thanks to a more-susceptible and constantly-online target audience. The only reason why household beverages like Coke or Sprite can avoid altering presentations like this is because of their pre-existing popularity.
This moreso has to do with what the brand stands for and who is at the heart of the campaign or brand itself. All tieing into how the consumer wants to be perceived by their peers and society as a whole.
If you look at the current trends overall on socials, you’ll see there’s more emphasis on wellness and eating healthy. This has arisen due to many factors, such as:
- Covid and lockdown
- Sugar tax in the UK
- Increase risk of diabetes and other health issues
- Gen Z influence on TikTok
- Sustainability and the lack of plastic waste
So which beverage brands are doing well over e-commerce?
Well before we look at who, let’s look at what type of beverages, as we understand previously, health and wellness have increased in popularity over recent years. So what does that mean? Has water become the new trending drink? Well yes and no…
As people have become more health aware, especially after the pandemic, many popular brands have popped up with a plethora of health benefits, think Vitamin C, B6, B12, collagen and antioxidants. There’s also been further interest in flavoured water options and zero sugar options that replace our classic fizzy drinks.
Influencers and content creators have also taken the F&B market by storm too, by creating and also sponsoring many e-commerce Energy Drinks. Pewdiepie, KSI and Logan Paul are some to name a few with their drinks, GFuel and Prime Hydration. This has normalised beverages on e-commerce for younger more impressionable consumers, slowly changing their behaviours to become more online-focused.
And why are they skipping brick and mortar, moving straight to e-commerce?
Well first, there’s immense opportunity in the F&B industry, with the product itself being (as you’ve guessed it) food and beverages. It’s a basic need, so demand will always be there. This makes it more appealing for start-ups as there’s less risk. Added with the fact that a drink can only cost a few pounds, it’s appealing to consumers, making it a win-win for everyone.
So why are we just going straight to e-commerce? Well, like any industry and the current state of the world, there’s no surprise when brands resort to online solutions. It’s more cost-effective, less risky and has the potential to drive UGC and word of mouth on platforms. Ecommerce already has 2.14 billion digital buyers, with F&B sales valued at 25.3B this year and is estimated to be 29.3B in 2025. It’s also worth noting that the most prominent demographic purchasing F&B from online retailers were 45–54-year-olds in 2020.
Predictions of the F&B industry
As we know this industry is to never leave and only gets bigger and bigger, it leaves us thinking what’s next to trend. From what we’re seeing on social media currently though? It’s the rise of CBD or drinks that induces relaxation. You know, definitely, because we’re all not dying of stress, right? … Right?!
What do you think?
