Food & Beverage Insider is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Sitemap


Articles from 2018 In May


Chilled RTD coffee accounts for 1 in 5 global coffee launches

Article-Chilled RTD coffee accounts for 1 in 5 global coffee launches

Iced Coffee Market Growth

In the United States, chilled coffee grew at least 10 percent annually between 2013 and 2017. In fact, 56 percent of new ready-to-drink (RTD) coffee launches in the U.S. were cold brew in 2017, up from 38 percent in 2016. U.S. cold-brew retail sales reached an estimated $38 million in 2017, representing a single-year growth of 137 percent.

RTD coffee is also building momentum in China where Mintel forecasts annual growth of 20 percent in the next five years as RTD steals more share from instant coffee. Globally, Japan leads in RTD coffee innovation, accounting for 18 percent of all iced RTD coffee launches in 2017, followed by the U.S. at 13 percent, up from 10 percent in 2016.

Despite the rapid rate of growth of RTD, Europeans remain resistant to the lure of iced coffee. While Spanish consumers are most likely to have tried iced/chilled coffee in Europe, only 10 percent have purchased it either from a store or online. In “coffee purist” countries like France and Italy, iced/chilled coffee sales among all adults is just 3 percent and 4 percent, respectively.

While Europe has been slower to follow the iced coffee boom, there is strong potential among younger drinkers, Mintel noted. Sixty-six percent of 18- to 24-year-old coffee drinkers in the United Kingdom say chilled coffee is a good alternative to sugary drinks, compared to 26 percent of drinkers aged 45+. This echoes what’s happening in the U.S. where younger drinkers, who are less ingrained in the ritual of drinking coffee hot, have driven RTD coffee growth. Some 68% of 18- to 34-year-olds in the United States currently consume single-serve, RTD coffee (in bottles or cans) compared to 43 percent of total U.S. adults.

“Global investment in chilled, RTD coffee has increased as producers target a younger drinker who enjoys the format’s taste, refreshment and indulgence. RTD coffee is proving a better format for innovation than other hot-serve formats and, in 2017, manufacturers continued to push the format’s boundaries,” said Jonny Forsyth, associate director, Mintel Food & Drink. “Cold brew is helping to premiumize the RTD category and is growing fast in the US, albeit less so in other markets. But while new product launches of iced coffee have reached record highs globally, in the U.S., cold brew has emerged as a vibrant growth segment of chilled coffee, and could prove to be the tipping point for take-up of cold coffee in Europe. The key to success lies with the younger generation which has been introduced to chilled coffee in branded coffee shops, which are growing quickly in Europe.”

Market Opportunity

The U.S. is also at the forefront of innovation, accounting for 11 percent of all global coffee launches in 2017, more than double the innovation of its nearest competitors Japan, France and the UK, each accounting for 5 percent of global coffee innovation in 2017.

While the U.S. is the leader in volume sales, North European countries have high per capita consumption of coffee—especially in Finland where consumers drank 7.91 kg per person in 2017, and Norway, where they consumed 6.62 kg.

“The continued growth of US coffee sales demonstrates how even mature markets can expand thanks to innovation. While total roasted coffee sales are flat, consumers are ‘trading up’ from national coffee brands to foodservice and third wave coffee brands,” said Caleb Bryant, senior foodservice analyst (US), Mintel. “RTD coffee remains one of the fastest growing non-alcoholic beverage categories in the U.S. thanks to innovation coming from brands both big and small. Even instant coffee may be due for a renaissance as some brands attempt to take instant coffee into the third wave movement.”

Better-For-You Options

More brands and coffee shops are realizing consumer desire for better-for-you products and rolling out coffee packed with health benefits such as added coconut oil, chia seeds, protein and grass-fed butter. This trend opens the door to capture health-conscious consumers.

In fact, one in six (17 percent) 18- to 34-year-old U.S. male coffee drinkers view added functionality as important when choosing which coffee to drink. In Germany, 41 percent of 16- to 44-year-old coffee drinkers are interested in trying coffee with added protein versus 21 percent of drinkers aged 45 years and older.

What’s more, in 2017, 10 percent of global coffee launches claimed to be organic, up from 8 percent in 2016. This rise was led by the U.S., where organic accounted for 22 percent of all coffee launches in 2017, up from 15 percent in 2016.

“Coffee with added protein is still a relatively unexplored area of global coffee innovation despite Starbucks targeting this space in the U.S. market since 2015. Increasing attention to health and wellness among consumers globally will result in specific opportunities for coffee with added protein, as well as organic coffee, in the next two years. Europe has particular potential given rising interest in high protein diets and the popularity of milky coffee among younger adults,” Forsyth said.

PepsiCo Expands Better-For-You Portfolio with Bare Snacks Acquisition

Article-PepsiCo Expands Better-For-You Portfolio with Bare Snacks Acquisition

Amazon Gobbles Up Whole Foods Market for $13.7 Billion

Upon completion of the deal, Bare Snacks will continue to operate independently from its headquarters in San Francisco with its leadership reporting into Frito-Lay North America, a division of PepsiCo.

Bare Snacks was founded in 2001 by a family-owned organic apple farm in Washington, that began selling packaged baked apple chips in local farmers’ markets. Under its current leadership team, it has expanded steadily to become the leader in apple, banana and coconut snacks. It has recently expanded into vegetable chips and offers the industry’s broadest assortment of baked crunchy fruit and vegetable chips. Bare products are made from simple ingredients that are baked, not fried.  They are Non-GMO Project verified, feature clean labels and are sold online and in natural and conventional retail channels across the United States.

“Bare premium baked fruit and vegetable chips are an exciting expansion of Frito-Lay’s better-for-you snack offerings,” said Vivek Sankaran, president and chief operating officer for Frito-Lay North America. “While we will continue to offer the current Bare Snacks product line, we look forward to working with the Bare Snacks team to deliver new, innovative options, and ultimately expanded distribution, to meet the ever-growing consumer demands for authentic and nutritious snacks.”

Commenting on the deal, PepsiCo Chairman and CEO Indra Nooyi, said: “For nearly a dozen years, PepsiCo has been committed to Performance with Purpose, our vision of making more nutritious products, while also reducing added sugars, salt, and saturated fat. Bare Snacks fits perfectly within that vision. The Bare Snacks leadership team has done an outstanding job building a top-tier organization and a strong brand with authentic roots, and I couldn’t be more excited to welcome Bare Snacks to the PepsiCo family.”

Unboxed: 11 hunger-busting bars and bites

Gallery-Unboxed: 11 hunger-busting bars and bites

Nearly every natural grocery store features a whole aisle devoted just to nutrition bars. Portable and filling, nutrition bars are a quick, relatively cheap way to slay hunger when preparing a meal isn’t an option. (Who among us hasn't rushed out of the house without packing lunch?)

However, the bar category is crowded. In order to stand out on store shelves and attract consumers, brands are experimenting with unique, innovative ingredients that spark curiosity. From moringa to coffee to kombucha (yes, kombucha!), these bars feature unexpected add-ins that have some functional benefits, too.

Food commodities remain steady in April, sugar prices drop

Article-Food commodities remain steady in April, sugar prices drop

Sugar Commodities

The Cereal Price Index averaged 168.5 points in April, 1.7 percent higher than in March and 15.4% above its value in April 2017. The index has followed an upward trend for the fourth consecutive month, with prices of wheat, coarse grains and rice all gaining momentum in recent months. In the case of wheat, weather-related risks, especially in the United States, and robust trade provided support to prices, while expectations of lower plantings in the United States, on the backdrop of drought-reduced production in Argentina, continued to push up international maize prices.

The Vegetable Oil Price Index averaged 154.6 points in April, dropping 1.4% due to developments in palm, soy and sunflower oils markets. International price quotations of palm oil declined on slowing demand growth and prospective seasonal production gains in Southeast Asia. Soy oil values weakened further, reflecting persistently strong crushing levels among key producers. Conversely, sunflower oil prices firmed, fueled by expectations of tightening global export supplies.

The Dairy Price Index averaged 204.1 points in April, up 3.4% from March, representing the third successive month of increase. The index is over 11% above its level in the corresponding month last year. The upward price trend reflects robust import demand for all milk products, combined with market apprehensions regarding export availabilities in New Zealand following a bigger than anticipated decline in its milk output.

The Sugar Price Index averaged nearly 176.6 points in April, down 4.8% from March and as much as 24% lower than its April 2017 value. Continued declines in sugar price quotations since last December are largely a reflection of a supply glut in the sugar market, especially in view of record outputs in Thailand and India. Additional downward pressure stemmed from a depreciation of the Brazilian currency (Real) with respect to the U.S. Dollar, coupled with anticipated government support measures in India and Pakistan geared at boosting sugar exports.

The Meat Price Index averaged 169 points in April, down 0.9% from a slightly revised value for March. At this level, the index is almost equal to its value in April 2017. During the month, bovine and pig meat prices decreased slightly, while those of ovine and poultry meat remained stable. Larger exports from the Americas underpinned the decrease in bovine meat prices, while slackened import demand caused pig meat prices to ease.

Maturing U.S. organic sector grows 6.4 percent in 2017

Article-Maturing U.S. organic sector grows 6.4 percent in 2017

Rawpixel/iStock/Getty Images Plus organic food sales 2017

American consumers in 2017 filled more of their grocery carts with organic, buying everything from organic produce and organic ice cream to organic fresh juices and organic dried beans, according to the Organic Trade Association's 2018 Organic Industry Survey released on Friday.

Organic sales in the U.S. totaled a new record of $49.4 billion in 2017, up 6.4 percent from the previous year and reflecting new sales of nearly $3.5 billion. The organic food market hit $45.2 billion in sales, also breaking through to a new record for an increase of 6.4 percent. Sales of organic non-food products rose by 7.4 percent to $4.2 billion, setting another new benchmark.

The growth rate for organic food sales was below 2016's 9 percent pace and was impacted by markedly slow growth in the big organic dairy and egg category. However, it was well above that of the overall food market, which nudged up 1.1 percent. Organic continued to increase its penetration into the total food market, and now accounts for 5.5 percent of the food sold in retail channels in the U.S.

"Organic has arrived. And everyone is paying attention," said Laura Batcha, CEO and executive director of the Organic Trade Association. "Our survey shows there are now certified organic products in the marketplace representing all stages of the life cycle of a product or a company—from industry veterans to startups that are pioneering leading edge innovation and benefits and getting shelf space for the first time. Consumers love organic, and now we're able to choose organic in practically every aisle in the store."

20 years with growth 15 times over

This year marks the 20th year of the Organic Trade Association's survey. The survey, widely regarded as the most comprehensive look at the retail organic sector in America, first measured organic sales in 1997. That year, organic food sales were pegged at $3.4 billion; 2017's sales of over $45 billion reflect a growth of nearly 15 times. In the last decade alone, the U.S. organic market has more than doubled in size.

The organic sector has thrived since the advent of a strict, comprehensive federal standard for organic and the introduction of the organic seal in the marketplace. In 1990, when the Organic Foods Production Act was signed into law authorizing the U.S. Department of Agriculture's National Organic Program, U.S. organic sales totaled just $1 billion. By 2002, when the final federal organic standards were implemented and the USDA Organic seal was introduced, organic sales had climbed to $8.6 billion. Fast forward to the present, and you see over 24,000 certified organic operations nationwide serving an almost $50 billion market, whose annual growth rate regularly outpaces that of the total food market.

While the growth in organic sales slowed in 2017, some slowdown in what had been an on-fire growth pace was expected. The organic market is maturing and coming of age. New channel and product expansions are becoming more incremental rather than revolutionary. Organic's market performance revealed the maturity or different stages of development of each category in organic food, plateauing in some areas and shifting in others to reflect new trends and challenges.

"The organic food market will see a steadier pace of growth as it matures, but it will continue to surpass the growth rate of the broader food market," noted Batcha. "Demand for organic is flourishing as consumers seek out nutritious and clean food that is good for their health and for the environment. That demand is driving innovation, and there are now so many organic options that we can all eat organic for breakfast, lunch, dinner, snacks and everything in between." 

Produce remains top organic category; organic dairy and eggs challenged

Fruits and vegetables continued to be the largest organic food category, recording $16.5 billion in sales in 2017 on 5.3 percent growth. Fresh produce accounted for 90 percent of organic fruit and vegetable sales. Sales of organic dried beans, along with dried fruits and vegetables, were a standout subsector in the category, increasing by 9 percent and reflecting growing demand for legumes and plant-based products.

The organic dairy and egg category had one of its most challenging years in 2017. While still the second-largest selling organic category, sales of organic dairy and eggs grew just 0.9 percent to $6.5 billion. The slow growth in this key organic category acted as a drag on the growth of the overall industry.

Many producers have entered the organic dairy market over the last several years, attracted by the steady growth of the sector and the high returns for organic products. This new wave of supply, however, hit the market just as demand for organic dairy began to shift to more plant-based offerings, creating a situation of too much of a good thing. The oversupply of organic milk did have a silver lining for other dairy products: organic ice cream sales were up over 9 percent and organic cheese sales rose by almost 8 percent.

The organic egg market faced unique challenges. Pasture-raised eggs, which clearly delineate humane practices such as outdoor access, presented stiff competition for organic eggs in 2017. Consumers perceive organic as requiring a number of humane practices including outdoor access for livestock and poultry. However, the requirements as written within current federal organic standards are unclear and inconsistently applied. The organic industry worked to advance the Organic Livestock and Poultry Practices rule to clarify required practices, but the rule was abruptly withdrawn by the U.S. Department of Agriculture in 2017.

USDA's squelching of this regulation widely supported by the organic sector caused millions of consumers to question the meaning and relevance of the USDA Organic seal as it relates to dairy and egg products. This confusion and uncertainty dampended consumer demand for both organic eggs and organic dairy.

On a tear: Beverages move to No. 3 slot

Consumers are drinking more, but that's not a bad thing. They're drinking more healthy organic beverages, especially fresh juices. Organic beverage sales rose 10.5 percent last year to $5.9 billion, making beverages the third-largest organic category, and a standout area of innovation and adaption of health trends. The driver in beverages was fresh juices for which sales jumped almost 25 percent to $1.2 billion and continued a multiyear double-digit growth streak. Non-dairy organic beverage alternatives in the form of almond, soy, coconut, rice and other blends also gained in popularity in 2017.

Outside of the food aisles: Solid growth and lots of potential 

The organic non-food market grew a solid 7.4 percent in 2017, handily outstripping the 1.9 percent growth in the broader market. In the last 10 years, the size of the organic non-food industry has more than doubled. Organic fiber continues to be the largest and fastest-growing sector in the category—up 11 percent to $1.6 billion—with most of those sales in organic cotton. Organic dietary supplements rose 9 percent as demand increased for whole food or plant-based supplements.

"Consumers don't want to eat just clean food, but they also are demanding transparency, clean ingredients and plant-based products in every aspect of their lives," said Batcha. "The non-food organic market has made great strides, but there is still a vast opportunity for more growth in this sector."

This year's survey was conducted from January 25, 2018, through April 22, 2018, and produced on behalf of the Organic Trade Association by Nutrition Business Journal with 250 companies taking part. Executive summaries of the survey are available to the media upon request. The full report can be purchased; online orders can be placed on this page.

Source: Organic Trade Association

Natural food additives on the rise – digital magazine

White-paper-Natural food additives on the rise – digital magazine

FBI-1200x400-NaturalAdditives-2018.jpg

Register to access this resource

Registering as a member of Food & Beverage Insider will give you free access to premium content including digital magazines, webinars, whitepapers and more.

Food additives meet a variety of needs in product formulation, such as enhancing palatability, replacing fat content, extending shelf life and supporting food safety. The global food additives market is anticipated to rise to US$52 billion by 2020, experiencing a compound annual growth rate (CAGR) of 5.6 percent from 2015. Examples of commonly used food additives—natural and synthetic—include acidulants, anti-caking agents, colors, emulsifiers, enzymes, flavors, hydrocolloids and sweeteners.

Takeaways for Your Business

• Flavor enhancers lead the functional additives segment, followed by sweeteners.
• Beverages lean heavily on additives, but rapid growth is in sauces, dressings, spices and condiments.
• The meat category has made strides replacing artificial additives with natural ingredients and flavors.

Register to access this resource

Registering as a member of Food & Beverage Insider will give you free access to premium content including digital magazines, webinars, whitepapers and more.

Market opportunity for natural meats, poultry – infographic

White-paper-Market opportunity for natural meats, poultry – infographic

Natural Food Additives in Meat

Register to access this resource

Registering as a member of Food & Beverage Insider will give you free access to premium content including digital magazines, webinars, whitepapers and more.

Download this infographic to learn more about what’s driving market growth for natural and organic meat and poultry.

 

Register to access this resource

Registering as a member of Food & Beverage Insider will give you free access to premium content including digital magazines, webinars, whitepapers and more.

Survey: More than one-third of Americans follow a special diet

Article-Survey: More than one-third of Americans follow a special diet

gilaxia/iStock/Getty Images Plus grocery shoppers looking at nutrition label

More than one in three U.S. consumers are following a specific diet or eating pattern, and they are increasingly averse to carbohydrates and sugar, according to the 13th Annual Food and Health Survey, released today by the International Food Information Council (IFIC) Foundation.

Given a list of diets to choose from, or the option to write in a response, 36 percent of Americans reported following a specific eating pattern or diet within the past year, about two-and-a-half times the number (14 percent) from 2017 when it was an open-ended question.

The top eating pattern cited was intermittent fasting (10 percent). Diets considered at least somewhat restrictive of carbohydrates were well-represented, including Paleo (7 percent), low-carb (5 percent), Whole30 (5 percent), high-protein (4 percent), and ketogenic/high-fat (3 percent). Younger consumers (age 18 to 34) were more likely to follow a specific eating pattern or diet than those 35 and above.

More Americans than in previous years blame carbs, and specifically sugars, for weight gain. While sugars continue to be the most cited cause of weight gain (33 percent), carbohydrates ranked second at 25 percent, up from 20 percent in 2017. Both of those numbers are the highest since 2011. Fats (16 percent), protein (3 percent) and “all sources” (17 percent) lagged behind when placing blame.

Cardiovascular health is top desired benefit, but consumers don’t know how to achieve it

Almost all consumers are interested in getting specific health benefits from food or nutrients. However, the top two desired health benefits in 2018 changed places from 2017: This year, 20 percent ranked cardiovascular health as their top desired benefit, followed by weight loss or weight management at 18 percent and energy at 13 percent. In 2017, those numbers were 16 percent, 32 percent and 14 percent respectively.

But consumers don’t know, and remain confused, about how to achieve these desired outcomes; only 38 percent are able to name a food they would seek out to help with their top health concern. Protein was most frequently identified (10 percent), followed by vegetables (7 percent), vitamins and minerals (5 percent) and fruits (4 percent).

“This dietary disconnect—the inability to connect specific foods and nutrients to desired health outcomes—illustrates the need for stronger, clearer, nutrition education based on the best available evidence,” said Joseph Clayton, CEO of the IFIC Foundation.

Eight in 10 (80 percent) consumers said there is a lot of conflicting information about what foods to eat or avoid, a number similar to 2017. Of those people, 59 percent say that conflicting information makes them doubt their food choices—but the data show a troubling disparity among ethnicities, with those who doubt their choices as a result of conflicting information rising to 78 percent of Hispanic consumers.

Organics, “natural” and sustainability grow as priorities

“Food values” continue their growth as a factor in consumers’ decision-making, with organics increasingly popular in purchasing choices. When shopping for foods and beverages, 29 percent buy those labeled “organic,” up from 25 percent in 2017. The increase is even more significant when people eat out: 20 percent said they eat at restaurants with foods and beverages advertised as organic compared to 14 percent last year.

Similarly, 37 percent of shoppers bought foods and beverages billed as “natural,” up from 31 percent in 2017, and 26 percent of consumers ate at restaurants with “natural” food and beverage options compared to 23 percent in 2017.

The importance of sustainability in food production also loomed larger in 2018, with 59 percent of consumers saying it’s important that the foods they purchase and consume be produced in a sustainable way, jumping up from 50 percent in 2017.

Out of those 59 percent who believe sustainability is important, their top two most important individual factors of sustainability increased significantly over 2017: 33 percent in 2018 said reducing pesticides was their top priority, up from 27 percent in 2017, while ensuring an affordable food supply increased to 16 percent in 2018 from 10 percent last year.

Consumers favorable to the familiar, averse to the “artificial”

The key drivers behind consumers’ food and beverage purchases are largely unchanged in 2018. “Taste” still reigns supreme (as it has every year the Food and Health Survey has been conducted), with 81 percent saying it has at least some impact in their buying decisions, followed by familiarity (a new addition in this year’s survey, at 65 percent), price (64 percent), healthfulness (61 percent), convenience (54 percent) and sustainability (39 percent).

Perhaps unsurprisingly in the current communications environment, consumers are averse to artificial ingredients, at least compared to the alternatives. When asked to choose between two versions of the same product—an older one that includes artificial ingredients and a newer version that does not—seven in 10 (69 percent) chose the product with no artificial ingredients, while one-third (32 percent) chose the one containing artificial ingredients.

We also asked those who preferred a product with no artificial ingredients how much they would be willing to pay versus a similar product with artificial ingredients that cost $1.00: 62 percent would pay up to 10 percent more ($1.10) for the product without artificial ingredients; 42 percent would pay up to 50 percent more ($1.50); and 22 percent would pay double the price ($2).Context is also key in how consumers perceive the healthfulness of two products with otherwise identical nutritional content. When asked to identify the healthier of two products with the same Nutrition Facts Panel, 40 percent perceived one labeled “non-GMO” as healthier vs. 15 percent for one with genetically engineered ingredients, and 33 percent believed a product with a shorter ingredient list was healthier than one with more ingredients (15 percent).

But a little of the luster is off the “fresh food” halo from last year, at least compared to frozen foods. A significant change from 2017 was that 41 percent in 2018 perceived a fresh product to be healthier than a frozen one, which dropped from 47 percent last year, while 10 percent (in both 2017 and 2018) believed frozen products were healthier.

Trust in government agencies grows, reliance on multitude of sources for nutrition information

This year and last year, we asked consumers to rate the sources where they often get information about what to eat or avoid, as well as how much they trust those sources.

Among 14 sources listed, government agencies recorded the biggest increases, far and away, in both measures. In 2018, 19 percent of consumers said they often get such information from a government agency, nearly double the 11 percent in 2017, and 38 percent said they trust government agencies as an information source, up from 25 percent in 2017. (One caveat: This year’s question gave specific examples of agencies—USDA, EPA, FDA and CDC—whereas last year’s only mentioned government agencies in general.)

Friends/family members and personal healthcare professionals tied at 30 percent as the most relied-upon sources of information; however, healthcare professionals are far more trusted (66 percent) than friends and family (26 percent).

“Consumers continue to rely heavily on nutrition information sources they admit they don’t trust,” said Alexandra Lewin-Zwerdling, vice president for research and partnerships at the IFIC Foundation. “This may speak to the public confusion we have consistently found on topics of nutrition and food safety.”

In a couple of examples of a generational information gap, Americans age 65 and older were more likely (76 percent) to trust a registered dietitian compared to adults age 35 and younger (65 percent). In addition, when asked which source of information most influenced their opinion on food safety issues, 44 percent of those age 65 and older cited news articles or headlines, while only 16 percent of those age 18 to 34 agreed.

Our dinner plates don’t match “MyPlate”

What Americans believe the experts recommend about which foods should fill an adult’s dinner plate isn’t too far off from the actual guidance from USDA’s “MyPlate.” But when it comes to what we actually eat … well, that’s a different story.

USDA’s MyPlate recommends that our plates are about half fruits and vegetables, with the rest of the plate divided up by grains (half of which should be whole grains) and protein, with dairy represented by a separate circle next to the plate. When consumers were asked which foods they believe experts recommend should fill our plates, they were on the mark with vegetables (30 percent) and fruits (21 percent), while protein (29 percent) and grains (20 percent) made up the balance.

What we really eat diverges from the recommendations, with protein leading the way at 38 percent, followed by vegetables (29 percent), grains (21 percent) and fruits (12 percent). About half (48 percent) said they include dairy often or always; only 2 percent said they never include dairy products.

Methodology

The results are derived from an online survey of 1,009 Americans ages 18 – 80, conducted March 12 to March 26, 2018. Results were weighted to ensure that they are reflective of the American population, as seen in the 2017 Current Population Survey. Specifically, they were weighted by age, education, gender, race/ethnicity and region. The survey was conducted by Greenwald & Associates, using ResearchNow’s consumer panel.

Source: International Food Information Council Foundation

Functional beverage innovation: fringe is in

Article-Functional beverage innovation: fringe is in

Row of Drinks

Consumers demand food and beverage products that deliver a wide range of benefits and address health and wellness needs on the go. In addition to convenience, food movements (i.e., veganism, vegetarianism, paleo, etc.) and sustainability advocates are contributing to the growth of functional food and beverage. Awareness of novel ingredients such as maca, reishi mushrooms and medium-chain triglyceride (MCT) oil is on the rise as consumers turn to foods, as opposed to medications, for health and wellness benefits. Some of these trending ingredients are newly discovered, e.g., mushroom protein, and others are rooted in ancient wisdom and are now being used in novel applications, e.g., matcha. In many cases, the less traditional and less known now has a new consumer appeal. In other words, fringe is in.

Consumer dietary preferences, such as low- or no-meat intake, protein-rich food, or only grass-fed and free-range products, are shaping the types of products that hit the marketplace. In these often nutrient-dense products are brands’ best guesses as to what the next “turmeric” will be.

Cascara: Cascara has been on the radar since Starbucks launched its cascara latte in January 2017. Cascara, an ingredient made from the dried leaves of the skin of the coffee fruit, has potential to grow in popularity, as it aligns with several consumer values. In addition to being associated with health benefits including aiding with gastrointestinal (GI) health, liver health and weight loss, it’s an ingredient that has historically been discarded. One brand, Caskai, a sparkling cascara infusion from Austria, calls out cascara as “one of nature’s true superfoods.” For more on cascara, check out: Lazy Bear TeaSlingshot Coffee Co. and Venice Cold Brew.

Aronia berries: Also known as chokeberries, these are rich in antioxidants, including vitamin C and anthocyanins, and are grown throughout North America. While not present in many beverages on the market, a recent novel use of these berries is in a lemonade.; the brand Poppilu claims it’s “bold on citrus not on sugar.”

With increased scrutiny on high-sugar beverages, brands are looking for ways to add value or a modern twist to grab consumers’ attention. Consumers are willing to look past some sugar content, especially if it’s not added sugar, and the product offers additional benefits beyond hydration. Check out these brands to see how they use aronia berries: So Good So You, ax-water and Karuna.

Cannabidiol (CBD): This cannabis compound, often made into an oil, is non-psychoactive, but is suggested to have other inherent benefits including nausea and pain relief, and reduction of anxiety. According to Forbes, the global market for CBD-derived ingredients is expected to grow by 700 percent to US$2.1 billion by 2020, so we can deduce that more brands will be leveraging this ingredient that only contains trace amounts of THC or none at all. PLNT Water is already using hemp-derived CBD oil, and claims its products offer more than just the benefits associated with CBD. Its waters include other trending botanicals including several that are thought to deliver a variety of health benefits, such as turmeric, ginger, cayenne pepper and chamomile. Other beverage brands with CBD include: HabitCannabinoid Creations and KickBack.

Repurposed Ingredients: One manifestation of sustainability that is occurring more frequently is the repurposing of previously discarded ingredients, or upcycling. In the natural and organic space, one ingredient that has seen a recent surge in popularity is cacao (the unprocessed plant that yields a global favorite, chocolate). Repurposed Pod is looking to introduce cacao juice to consumers. Its website boasts the benefits of cacao: It’s “a good source of magnesium, energizing B vitamins” and it “delivers polyphenol antioxidants.” Its suggestions for this multi-purpose product include using it in green smoothies, making innovative cocktails or as a syrup substitute in recipes. Other brands building their business with upcycled ingredients include SnactThe White Moustache and Misfit Juicery.

Using plant parts that have previously been discarded (cascara, cacao juice, pulp, greens) will continue to be a priority for brand owners because of growing consumer demand for sustainable products and the “waste not” trend. Additionally, the advancement and increased sophistication of supply chains allow for easier access of exotic ingredients, which consumers appreciate not only for the benefits, but also for being able to experience less familiar cultures and cuisines.

With an expected CAGR of 7.8 percent through 2021 for the functional food and beverage market, according to Technavio, there are sure to be winning ingredients to watch out for.

 

Ilana Orlofsky joined Imbibe to help expand the marketing initiatives of the boutique, Chicago-based beverage development company. Since the onset, she found her passion for following market trends, developing product and flavor concepts and conducting ideation sessions. In addition to presenting at national conferences, she has written about many industry topics including beverage trends in retail and food service, functional food and beverages and ingredient trends. Her trend insights and articles can be found in several print and online publications. She has a B.A. from Washington University in St. Louis.