CHICAGO– You’ve had a long day at work. You’re tired. You just want to go home, put your feet up and crack open a nice cold … soda.

While much of the after-work crowd is still walking to the back of your convenience store to the beer cave, some, including many millennials, are choosing carbonated soft drinks because they are perceived as a semi-healthy and viable replacement for alcohol beverages.

A growing number of consumers see new value in CSDs—particularly natural, craft varieties, according to new research from Chicago-based Mintel.

Increased craft consumption is due in part to its appeal to consumers turning away from regular CSDs, but it’s also driven by those looking for alternatives to alcohol beverages, Mintel said in the report “Carbonated Soft Drinks: Spotlight on Natural/Craft U.S. 2015.”

Paced by craft CSDs, nearly three in five (57%) consumers agree that craft sodas allow them to enjoy a unique type of nonalcohol beverage, with two-thirds (66%) of millennials in agreement.

“Craft carbonated soft drinks have the potential to pique interests similar to the craft-beer segment, offering consumers artisanal beverages that often support local communities and provide a complete taste experience through premium ingredients, unique flavors and small-batch quality,” said Elizabeth Sisel, beverage analyst for Mintel. “Similar to the progression of craft beer, consumers are veering away from big brands and seeking smaller brewers that are perceived as more authentic.”

From a mealtime perspective, almost half of craft-soda drinkers (49%) are interested in sodas that pair with meals and 42% are interested in creative flavors, Mintel found.

Craft brands tend to feature ingredients in more natural forms, to position their products as a better-for-you option, Sisel said: “Craft and natural sodas also provide new flavor experiences, including blends of fruits, spices and herbs, while hitting naturally sweetened and premium ingredient trends.”

While positive health perceptions are on the side of craft and natural soda, manufacturers need to justify high prices and build awareness to grow sales, Sisel said.

The craft-soda trend is a timely development as traditional CSDs face mounting negative health perceptions from Americans. Craft and natural options are showing promise among the most active soft-drink consumers.

While Mintel’s research shows two-thirds (66%) of U.S. adults do not drink craft sodas, 44% of noncraft drinkers are interested in trying these alternatives.

From a c-store standpoint, providing these offerings presents opportunities in both packaged and dispensed options. Concerning the latter, the Jones Soda Cane Sugar Fountain Soda program was launched earlier this year in response to consumer demand for premium fountain offerings. The custom-designed program offers a variety of classic Jones Soda flavors, including its signature Berry Lemonade and Orange & Cream flavors.

Other stats embedded in Mintel’s CSD research:

• Of Americans who consume or are interested in craft soda, 54% indicate that natural or real ingredients are important to them, including 50% of parents;
• Another third (34%) of adults are interested in seeing CSDs with added benefits, such as protein, vitamins or minerals;
• As consumers start families, 70% of parents agree craft sodas allow them to enjoy a unique type of nonalcohol beverage (vs. 50% of nonparents);
• Among noncraft drinkers, one quarter (26%) said they are unfamiliar with craft-soda brands or craft-soda flavors (23%), or just do not know what craft soda is (22%);
• More than half of all consumers (55%) agree natural and craft options are too expensive to purchase on a regular basis.

“While the carbonated-soft-drink category is facing consumer perception challenges, opportunities exist to strengthen brand trust, authenticity and experience through trending natural and craft segments,” Sisel said.

The suppliers of these brands are tasked with justifying higher prices and increasing familiarity through better exposure. “The predominant negative attributes of craft soda could be curbed in time as more products enter the market and pricing evens out,” she said.