How Consumer Experience Is Shaping Nonalcoholic Beverage Formulation

Just 54% of U.S. adults say they consume alcohol, the lowest percentage in 90 years of Gallup polling. While consumers may be rethinking their relationship with alcohol, many are not giving up the rituals associated with drinking. Instead, some are seeking beverages that align with specific occasions—whether unwinding after work, socializing with friends, or engaging in a broader wellness routine, says Brian Zapp, director of education and insights at Applied Food Sciences (AFS).

For beverage manufacturers, this shift presents both a formulation challenge and an opportunity. Developing the next generation of nonalcoholic functional ready-to-drink (RTD) beverages requires more than simply removing alcohol or adding an ingredient associated with a particular benefit. Product developers may need to think more holistically about the intended consumer experience, including functionality, sensory attributes, and use occasion.

Zapp shares his perspective on how beverage developers can think about consumer expectations, sensory design, and ingredient selection when creating nonalcoholic functional RTD beverages.

Consumers are drinking less alcohol. What are they really looking for in nonalcoholic beverages?

Consumers are not simply asking, “Can you take the alcohol out?” They are asking whether a beverage can still fit the same occasions and routines where alcoholic beverages have traditionally played a role.

That may mean different things for different consumers. Some may be looking for a product positioned around relaxation after a long day. Others may be interested in beverages designed for social occasions, energy, or wellness-focused routines. For beverage developers, that creates an opportunity to think about how a product fits into specific moments of consumption, not just what claim appears on the label.

How should beverage developers rethink functional beverage innovation?

Too many functional beverages are still built like a checklist: energy, focus, calm, beauty, hydration. Those categories remain relevant, but beverage developers may also want to ask a broader question: What kind of experience is this product intended to deliver?

That includes not only ingredient selection, but also use occasion, sensory profile, and how the beverage fits into a consumer’s daily habits or rituals.

What types of ingredients can help?

It depends on the type of experience or use occasion you’re designing for.

For a beverage positioned around relaxation or mental clarity, developers may explore ingredient combinations such as lion’s mane mushroom and L-theanine, depending on the desired product concept and target consumer. AFS provides solutions in clinically studied MycoThrive Lion’s Mane extract and PurTea L-theanine.

For products positioned around social occasions or sustained energy, ingredients such as cordyceps and Panax ginseng may be considered as part of the formulation strategy. These are available through AFS ingredient platforms such as MycoThrive and PurGinseng.

For beverages intended for social rituals or pre-event occasions—such as concerts, sporting events, or other gatherings—naturally caffeinated botanicals may play a role. Amazonian guayusa, paired with green tea–derived caffeine, can be used in formulations designed around alertness and a more occasion-driven experience. AFS offers guayusa through AmaTea Max organic guayusa extract and green tea caffeine through PurTea.

For products positioned around self-care or “beauty-from-within” concepts, some brands are incorporating ingredients that align with those positioning strategies. AFS’s CelluThrive platform includes D-glucarate for cellular detox and acerola-derived vitamin C for formulations targeting that space.

How does sensory design influence the nonalcoholic drinking experience?

Sensory design can meaningfully shape how consumers perceive the beverage experience.

If a premium nonalcoholic RTD beverage delivers an experience similar to a standard sparkling water, it may not align with consumer expectations for a more occasion-driven product. Ingredients that contribute warmth, bitterness, aromatic complexity, or visual depth can help create a more layered and deliberate consumption experience.

We often think about this as chemesthesis—the perception of sensations such as heat, cooling, or tingling. Ingredients such as ginger and turmeric can contribute sensory complexity that helps differentiate a product from conventional refreshment beverages.

For example, ginger extract (as found in AFS’ PurGinger) can contribute aromatic heat and palate impact, while turmeric extract (as found in AFS’ PurTurmeric) may provide bitterness, color, and flavor complexity that support premium product positioning.

What is a common mistake brands make in this space?

Brands sometimes focus heavily on ingredient lists or positioning claims without giving equal attention to the overall consumer experience.

Formulation, flavor, and format all matter, but in the functional and nonalcoholic beverage space, consumers are evaluating whether the overall experience aligns with product expectations.

Strong product concepts are those that thoughtfully connect formulation decisions, sensory experience, and the intended consumer occasion. As the category evolves, aligning product positioning with thoughtful formulation will remain important.

Learn More

Learn more about AFS ingredients for designing nonalcoholic beverages around specific occasions and consumer experiences.

Applied Food Sciences