Healthy drinks: an untapped market

A new study has found that 27 per cent of consumers would pay nearly double the price for ‘healthy’ drinks that contain low/no sugar, natural/no additives, or vitamins and minerals when dining out.

The research, conducted by the University of South Australia, Flinders University and the University of Otago, surveyed more than 1000 consumers from Australia and NZ.

Researchers found that younger consumers (aged 18-24 years) were more likely than older diners to be interested in healthy drinks. And that those who ate out more often, were more willing to pay a larger premium for the privilege.

Untapped market

It’s a welcome finding for a sector that’s been hit hard by the pandemic, but it’s also a step in the right direction in terms of public health, says lead researcher UniSA’s Associate Professor Rob Hallak.

“As Covid-19 restrictions ease, many people are re-embracing the cafe lifestyle. But hand in hand with increased patronage, comes a long-standing criticism that the sector provides food and drinks that are too high in fat, salt, and sugar,” Assoc Prof Hallak says.

“While nutritional content in foods has gradually improved over the years, drinks that are high in sugar and calories are still prevalent in the restaurant and café sector.

“Our research shows that there’s a relatively untapped market of younger, health-conscious consumers, particularly in relation to drinks.

Demand should drive innovation

By tackling the beverage ‘health dollar’, the sector would not only benefit from the profits, says Assoc Prof Hallak, but also demonstrate proactive support for Australia’s new National Obesity Strategy announced earlier this year.

Associate Professor Ilke Onur from Flinders University says evidence of strong consumer demand should drive innovation and product development.

“Our study highlights the need for a collaborative effort among government, beverage manufacturers, and the hospitality sector in increasing the variety and supply of healthy product options,” he says.

“By developing new products that are healthy, taste good, and reasonably priced, the take-away and dine-in restaurants could reinvigorate the sector.”

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