Beverages: Beverage giants Pepsi and Coke wade into the 'dirty soda' movement

Why it is the topic trending:

• Growth of "Craft Beverage" Movement: The popularity of customizable and unique beverages, often referred to as "dirty soda," is rapidly increasing, driven by consumer demand for more personalized and exciting drink options.

• Success of Emerging Brands: The significant sales growth of brands like Sodalicious and Swig, which popularized the "dirty soda" concept, demonstrates the market viability and consumer appeal of this trend.

• Entry of Major Chains: Larger restaurant chains like Taco Bell (Live Mas Cafe) and McDonald's (CosMc's) are recognizing the potential and either launching or testing beverage-focused concepts, further validating the trend.

• Gen Z Appeal: Customizable and visually appealing drinks resonate strongly with Gen Z consumers due to their "treat culture" and their preference for shareable, non-alcoholic beverages that look good on social media.

• Profitability for Restaurants: Beverages, especially premium-priced and customizable options, tend to have higher profit margins for restaurants, making this trend economically attractive.

• Historical Context & Revival: The article notes that "dirty sodas" have roots in old-fashioned soda fountains, and Gen Z has amplified this trend, indicating a revival and modern adaptation of a classic concept.

Overview:

Beverage giants Pepsi and Coca-Cola are actively participating in the burgeoning "dirty soda" movement by showcasing their own versions of customized soft drinks at the National Restaurant Show. Pepsi introduced "Drips by Pepsi," a pop-up concept serving enhanced versions of its beverages, while Coca-Cola presented a variety of "mixologist" creations using its products. Both companies aim to capitalize on the growing consumer preference for unique and personalized non-alcoholic drinks, driven particularly by Gen Z's tastes and social media trends.

Detailed Findings:

• Pepsi's "Drips by Pepsi": Showcased innovative concoctions like Lipton Mango Horchatas with strawberry boba, Starry Zero Sugar Berry Basil with basil seeds, and Pepsi Zero Sugar Forever S’mores featuring coconut, lime, s’mores ingredients, and whipped cream. Pepsi launched "Drips" as a pop-up in NYC in September with nine core drinks and is considering a potential restaurant concept.

• Coca-Cola's Mixology: Offered a rotation of 15 "mixologist" beverages, including an orange Fanta cream soda with soft-serve. Coke's strategy focuses on helping restaurants develop their own beverage limited-time offers (LTOs) and is launching new pumpable syrups in orange Fanta and Barq’s Root Beer flavors for this purpose.

Key Takeaway:

Major beverage corporations are recognizing and responding to the increasing consumer demand for customized and flavorful non-alcoholic drinks, particularly among Gen Z, by introducing their own versions of "dirty sodas" and providing resources for restaurants to tap into this profitable trend.

Main Trend: The Rise of Personalized and Experiential Beverages

Description of the Trend:

The Rise of Personalized and Experiential Beverages signifies a growing consumer preference for drinks that offer customization, unique flavor combinations, and a sense of novelty or experience beyond traditional mass-produced options. This trend is driven by a desire for self-expression, the influence of social media showcasing visually appealing and unique creations, and a general shift towards valuing personalized and engaging consumption experiences.

What is Consumer Motivation:

Consumer motivation stems from:

• Desire for Individuality: Customizing drinks allows consumers to create something unique to their tastes and preferences.

• Seeking Novelty and Excitement: "Dirty sodas" offer flavor combinations that are different and more exciting than standard soft drinks.

• Social Media Appeal: Visually appealing and unusual beverages are highly shareable on social media platforms, driving a desire for aesthetically pleasing drinks.

• Treat Culture: These often indulgent and flavorful drinks fit into the "treat culture," where consumers seek small pleasures and rewards throughout the day.

• Non-Alcoholic Social Options: For younger consumers or those opting for non-alcoholic choices, "dirty sodas" provide a fun and flavorful alternative for social occasions.

What is Driving Trend:

The trend is driven by:

• Influence of Social Media: Platforms like TikTok and Instagram showcase "dirty soda" creations, driving awareness and interest among consumers.

• Emergence of Specialized Beverage Concepts: The success of brands like Sodalicious and Swig has demonstrated the market demand and provided a blueprint for this trend.

• Demand for Customization: Consumers across various product categories are increasingly seeking personalized options, and beverages are no exception.

• Flavor Innovation: The willingness of consumers to experiment with new and unique flavor combinations is fueling the creativity in "dirty soda" concoctions.

• Restaurant Profitability: The higher profit margins associated with customized beverages incentivize restaurants to embrace this trend.

What is Motivation Beyond the Trend:

Beyond the immediate appeal of flavor and customization, the motivation taps into a broader consumer desire for:

• Self-Expression: Creating a unique drink is a form of personal expression and allows consumers to showcase their individual tastes.

• Elevated Everyday Experiences: Even a simple beverage can be elevated into a more special and enjoyable experience through customization.

• Community and Discovery: Sharing and discovering new "dirty soda" combinations can foster a sense of community and shared experience.

Description of Consumers Article is Referring To:

The article primarily refers to:

• Age: Notably Gen Z (born roughly between the mid-1990s and the early 2010s) are highlighted as a key demographic amplifying this trend. The appeal also likely extends to younger Millennials who appreciate customization and unique flavor profiles.

• Gender: No specific gender is emphasized; the appeal of customized beverages is likely broad across genders.

• Income: The affordability of soft drinks and mix-ins suggests that this trend appeals to a wide range of income levels, but it may be particularly popular among those with disposable income for "treat" purchases.

• Lifestyle: Consumers who are digitally engaged, active on social media, and interested in food and beverage trends are likely early adopters and drivers of this trend. They often seek out unique and shareable experiences.

• Category Article is Referring Shopping Preferences: Consumers who frequent beverage-focused establishments, fast-food restaurants, and potentially convenience stores with soda fountains and flavor add-ins. They are likely open to experimenting with new beverage options.

• Are they low, occasional or frequent category shoppers: Likely occasional to frequent category shoppers for non-alcoholic beverages. Gen Z, in particular, may be frequent purchasers of soft drinks and customized beverages as a social and individual treat.

• General Shopping Preferences - How They Shop: These consumers are likely influenced by social media trends, online recommendations, and visual appeal. They may value convenience and the ability to personalize their purchases. They might also be drawn to brands that offer opportunities for creativity and self-expression through their products.

Conclusions:

Pepsi and Coca-Cola's entry into the "dirty soda" movement signifies the mainstream recognition of a significant shift in consumer preferences towards personalized and experiential beverages. Driven by the tastes and online behaviors of Gen Z, this trend presents a valuable opportunity for beverage companies and restaurants to innovate, enhance profitability, and connect with consumers on a more individual and engaging level.

Implications for Brands:

• Embrace Customization: Brands should explore ways to offer consumers more control over their beverage choices through customizable options, flavor add-ins, and build-your-own concepts.

• Focus on Flavor Innovation: Investing in unique and appealing flavor combinations beyond traditional offerings is crucial to capture consumer interest.

• Leverage Social Media Visibility: Create visually appealing beverages and encourage user-generated content to capitalize on the power of social media for trend amplification.

• Consider Beverage-Focused Concepts: Brands might explore launching or expanding into specialized beverage concepts that cater to the demand for customized drinks.

• Provide Resources for Restaurants: For beverage suppliers, offering syrups, mix-ins, and recipes to restaurant partners can facilitate their adoption of this trend.

Implication for Society:

• Increased Consumption of Sugar/Sweeteners: The "dirty soda" trend often involves adding sugary syrups and other sweet components to already sweet beverages, potentially raising concerns about public health and sugar intake.

• Influence of Social Media on Dietary Habits: The visual appeal and social media popularity of these drinks can influence consumer choices and potentially normalize the consumption of high-sugar beverages.

• Evolution of Beverage Culture: The trend reflects an evolving beverage culture where personalization and unique experiences are increasingly valued over traditional options.

Implications for Consumers:

• Greater Variety and Choice: Consumers gain access to a wider range of flavorful and customized beverage options.

• Increased Opportunities for Self-Expression: Customizing drinks allows consumers to express their individual tastes and preferences.

• Potential for Higher Costs: Premium ingredients and specialized preparation might lead to higher prices for customized beverages.

• Health Considerations: Consumers should be mindful of the added sugars and calories in many "dirty soda" concoctions.

Implication for Future:

The "dirty soda" trend is likely to continue to grow and evolve. Expect to see more innovative flavor combinations, the integration of healthier customization options (e.g., natural sweeteners, lower-sugar syrups), and potentially the use of technology to facilitate even more personalized beverage creations. Major beverage companies will likely continue to invest in this space, either through their own concepts or by empowering restaurants to tap into the trend.

Consumer Trend: Hyper-Personalized Consumption

Detailed Description: Consumers increasingly expect products and services to be tailored to their individual needs, preferences, and tastes. This trend extends beyond just functional customization to encompass emotional and experiential personalization, allowing individuals to express their identity through their choices.

Consumer Sub Trend: DIY Indulgence

Detailed Description: Consumers are enjoying the act of creating their own indulgent treats and beverages, often inspired by online trends and recipes. This allows for both creativity and control over ingredients and flavor profiles, aligning with the desire for personalized experiences.

Big Social Trend: The Rise of the Creator Economy

Detailed Description: Individuals are increasingly empowered to create and share content, including food and beverage creations, online. This contributes to the rapid spread of trends like "dirty soda" as consumers share their own recipes and experiences.

Worldwide Social Trend: Globalization of Food and Beverage Trends: While the article focuses on the US market, the underlying drivers of customization and social media influence are global, suggesting that similar trends could emerge or are already present in other regions, potentially adapted to local tastes.

Social Drive: Desire for Self-Expression and Individuality: In a world of mass-produced goods, consumers seek opportunities to express their unique identities and preferences through their consumption choices.

Learnings for Brands to Use in 2025 (bullets, detailed description):

• Invest in Flexible Platforms: Develop platforms or product lines that allow for easy customization and personalization by consumers, whether in-store or at home.

• Embrace Flavor Experimentation: Be open to offering a wider and more adventurous range of flavors and ingredients that cater to diverse and evolving consumer palates.

• Facilitate Social Sharing: Design visually appealing products and experiences that encourage consumers to share their creations and experiences on social media.

• Monitor Emerging Online Trends: Pay close attention to social media platforms and online communities to identify burgeoning trends like "dirty soda" early on.

• Collaborate with Consumers: Consider involving consumers in the development of new flavors or customization options to foster a sense of co-creation and ownership.

Strategy Recommendations for Brands to Follow in 2025 (bullets, detail description):

• Develop Customizable Product Lines: Introduce product lines that allow consumers to easily mix and match flavors, add ingredients, or adjust components to their liking.

• Create Digital Tools for Personalization: Utilize apps or online platforms to enable consumers to design their own beverages or food items virtually and then order them.

• Partner with Influencers and Creators: Collaborate with food and beverage influencers on social media to showcase customization possibilities and inspire consumer creativity.

• Offer In-Store Customization Stations: For retail and restaurant settings, consider implementing stations where consumers can personalize their purchases with a variety of add-ins and flavors.

• Gather Data on Consumer Preferences: Utilize data analytics to track popular flavor combinations and customization trends to inform future product development and offerings.

Final Sentence (key concept) describing main trend from article (which is a summary of all trends specified):

The "dirty soda" movement, embraced by Pepsi and Coke, underscores the powerful consumer demand for personalized and experiential beverages driven by individual expression and the influence of social media.

What brands & companies should do in 2025 to benefit from trend and how to do it:

In 2025, brands and companies should actively participate in the personalized beverage trend by:

• Conducting market research to understand evolving flavor preferences and customization desires within their target audiences.

• Investing in research and development to create innovative flavor syrups, mix-ins, and beverage bases that lend themselves well to customization.

• Developing user-friendly digital interfaces or in-store systems that empower consumers to easily create their own personalized drink combinations.

• Launching marketing campaigns that highlight the possibilities for customization and encourage consumers to experiment with different flavor profiles and creations.

• Partnering with beverage-focused restaurants and cafes to supply them with the ingredients and knowledge needed to effectively offer "dirty soda" style options to their customers.

Final Note:

• Core Trend: Demand for Personalization: Consumers increasingly expect and value products and experiences that can be tailored to their individual tastes.

• Core Strategy: Empowering Consumer Creativity: Providing the tools and ingredients for consumers to personalize products and express their individuality.

• Core Industry Trend: The Evolution of Beverage Consumption: The beverage industry is shifting from standardized offerings to more dynamic and customizable options.

• Core Consumer Motivation: Seeking Individuality and Novelty: Consumers are motivated by the desire to create something unique and experience new and exciting flavor combinations.

• Final Conclusion: The "dirty soda" phenomenon is a clear indicator that brands in the beverage and food service industries must prioritize personalization and cater to the growing consumer desire for unique and self-expressive consumption experiences to remain relevant and competitive in 2025 and beyond.

Core Trend Detailed: Demand for Personalization

• Description: The core trend of the "dirty soda" movement is the increasing consumer demand for personalization across product categories, with a significant emphasis on food and beverage. Consumers no longer want generic, mass-produced options; instead, they seek products and experiences that can be tailored to their individual tastes, preferences, and even their moods. This desire for customization reflects a broader societal shift towards valuing individuality, self-expression, and control over consumption experiences.

• Key Characteristics of the Trend (summary):

  • Customization as a Norm: Personalization is becoming an expectation rather than a novelty, with consumers expecting options to tailor products to their specific needs.

  • Emphasis on Individuality: Consumers use personalized products as a way to express their unique identities and preferences.

  • Increased Engagement: The ability to customize often leads to higher levels of engagement and satisfaction with a product or service.

  • Willingness to Pay More: Consumers are often willing to pay a premium for products that offer a high degree of personalization.

  • Technology as an Enabler: Technology plays a crucial role in facilitating personalization, from online customization tools to in-store mixing stations.

• Market and Cultural Signals Supporting the Trend (summary):

  • Growth of DIY Culture: The popularity of do-it-yourself trends across various areas, including food and beverages, indicates a desire for personal creation and control.

  • Success of Build-Your-Own Concepts: Restaurants and retail concepts that allow customers to build their own meals, salads, or even beverages have seen significant success.

  • Influence of Social Media: Platforms like TikTok and Instagram showcase personalized creations, inspiring others to seek out similar experiences.

  • Demand for Unique Experiences: Consumers are increasingly valuing unique and memorable experiences over standardized products.

  • Advancements in Manufacturing and Technology: Flexible manufacturing processes and digital platforms enable brands to offer a wider range of customizable options.

• How the Trend Is Changing Consumer Behavior (summary):

  • Active Participation in Product Creation: Consumers are moving from passive recipients to active participants in the creation of their desired products.

  • Greater Experimentation: The desire for personalization encourages consumers to experiment with different flavors and combinations.

  • Increased Loyalty: Brands that successfully offer meaningful personalization can foster stronger customer loyalty.

  • Higher Expectations: Consumers are developing higher expectations for brands to offer options that cater to their individual needs.

  • Shift in Purchase Drivers: Personal taste and the ability to customize are becoming increasingly important purchase drivers alongside price and convenience.

• Implications Across the Ecosystem (summary):

  • For Brands and CPGs: Brands need to adapt their product development and marketing strategies to offer more customizable options. This may involve creating modular products, providing a wider range of flavors or components, and developing digital tools for personalization.

  • For Retailers: Retailers can create value by offering in-store customization stations or partnering with brands that provide personalized products. This can enhance the shopping experience and drive traffic.

  • For Consumers: Consumers benefit from having more control over their purchases and the ability to obtain products that better meet their individual preferences. This can lead to increased satisfaction and a stronger connection with the brands they choose.

• Strategic Forecast: The demand for personalization is expected to intensify across all industries in the coming years. Advancements in technology will further enable sophisticated levels of customization, from personalized nutrition based on individual health data to tailored experiences based on consumer preferences. Brands that invest in understanding and meeting the evolving needs for personalization will be best positioned for long-term success. The "dirty soda" movement is an early indicator of this broader shift, and its continued growth suggests a strong appetite for individually tailored beverages.

• Final Thought: In an era defined by individuality, the demand for personalization is no longer a niche trend but a fundamental expectation shaping consumer behavior and forcing brands to rethink how they create and deliver value. The "dirty soda" phenomenon perfectly illustrates this shift in the beverage industry, highlighting the power of allowing consumers to create something uniquely their own.

Source: https://www.foodservicedirector.com/food-beverage-trends/beverage-giants-pepsi-and-coke-wade-into-the-dirty-soda-movement