F&B industry rolls out healthier options as young consumers sour on sugar, alcohol and caffeine

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F&B industry rolls out healthier options as young consumers sour on sugar, alcohol and caffeine

Sweet Milk Coffee, a new menu from Starbucks [STARBUCKS KOREA]

Sweet Milk Coffee, a new menu from Starbucks [STARBUCKS KOREA]

 
Sugar, alcohol and caffeine are falling out of favor with younger consumers, and the food and beverage industry is racing to keep up.
 
From low-sugar snacks to lighter alcoholic drinks and decaffeinated coffee, companies are rapidly expanding their wellness-focused offerings as health-conscious habits reshape how people eat and drink. What once seemed like a niche preference is now emerging as a lasting shift, prompting brands to rethink their product portfolios.
 

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Sales of low-sugar, zero-sugar and low-calorie products have posted double-digit growth each year over the past three years, according to BGF Retail, which runs convenience store chain CU. The number of such products has also expanded more than fourfold, from around 100 items in 2022 to over 400 last year.
 
The shift is particularly visible in alcoholic beverages. Drinks with less than five percent alcohol by volume, such as highballs, are gaining traction. Highball sales surged 190.1 percent over the same period.
 
That rise comes even as overall alcohol consumption declines. Total alcohol shipments fell from about 4.07 million kiloliters (1,075 million gallons) in 2015 to 3.15 million kiloliters in 2024, a drop of 22.6 percent, according to the National Tax Service.
 
“More consumers, especially younger ones, are paying closer attention to their health, leading to an expansion of lower-intensity products across categories such as snacks and alcoholic beverages,” said Lee Su-yeon, merchandiser of the Home Meal Replacement team at BGF Retail. “With sales of these products continuing to grow in convenience stores, we plan to focus product development on this category.”
 
Snacks are displayed at the Yangjae branch of Hanaro Mart in Seocho District, southern Seoul, on March 19. [NEWS1]

Snacks are displayed at the Yangjae branch of Hanaro Mart in Seocho District, southern Seoul, on March 19. [NEWS1]

 
The shift toward more health-conscious consumption patterns is also reshaping the coffee and food industries. Imports of decaffeinated coffee beans surpassed 10,000 tons for the first time last year, reaching 10,040 tons — up 43 percent from the previous year, according to the Korea Agro-Fisheries & Food Trade Corporation.
 
Cumulative sales of decaffeinated coffee exceeded 20 0 million cups as of February, according to Starbucks Korea. Among Starbucks Rewards members who purchased decaffeinated coffee last year, 60 percent were in their 20s and 30s. To keep up with the customer demand, Starbucks Korea has expanded its lineup of ground coffee products to include decaffeinated beans since November last year.
 
Food companies are following suit. Binggrae, a food and beverage brand known for its ice cream, recently launched a low-sugar, decaffeinated version of its long-running coffee-flavored ice cream, “Summer Crush,” first introduced in 1989.
 
Paris Baguette, a bakery chain operated by SPC, is also expanding its health-focused lineup. The company recently broadened “Paran Label” — its health bread brand launched in February last year — with five new low-sugar bread products and introduced a low-sugar matcha cake containing less than 5 grams of sugar per 100 grams (approximately 3.5 ounces).
 
“We are planning on diversifying our products to target health-focused consumers,” a Paris Baguette source said.
 
Industry experts say the surge in lower-sugar, lower-alcohol and decaffeinated products reflects more than a passing trend.
 
“Consumers are becoming more focused on self-care, while negative perceptions of products high in sugar, alcohol, and caffeine are also growing,” Lee Jong-woo, a professor at the Department of Global Distribution and Marketing at Namseoul University, said. “The food and beverage industry will need to pursue structural innovation by overhauling its core product lineup in the long term."


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]
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