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Beyond the cup: Coffee & tea flavors

Nov 2018

There is ample space for innovation and differentiation using tea and coffee flavors in the food and beverage market. We see tea and coffee flavors cropping up in several categories beyond hot drinks, including ice cream, sweet biscuits and beer. A focus on indulgence is likely to be a key focus in the foreseeable future.

1. Wild Ophelia Chocolate Coffee Bites Sea Salt Caramel Latte 41% Milk Chocolate (US)
Nestle Kitkat Wafer Fingers In Green Tea Confectionery (Vietnam).
3. Hampton Cup O Cookies Assorted (Indonesia)
4. Master Gao Jasmine Tea Lager Beer (China)
5. Glendee Coconut Chips: Roasted Coffee (Thailand)
6. Haagen Dazs Story Time Alices Tea Ice Cream With Cookies (Japan)
7. Nova Choc Oh Late Sugar Free Premium Dark Chocolate With Espresso (South Africa)
8. True Fruits Matcha, Ginger, Kale, Pear, Spinach, Banana And Apple Green Smoothie (Austria)
9. Kaldi Coffee Financier (Japan)
10. Mildura Mocha Cream Filled Cookies (Malaysia)

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Wild Ophelia Chocolate Coffee Bites Sea Salt Caramel Latte 41% Milk Chocolate (US). Individually wrapped 41 percent milk chocolate with creamy sea salt caramel latte coffee chocolate center. Gluten-free. Non GMO. Crafted with high brew coffee. 10 percent net profit benefits female entrepreneurs. Wild Ophelia is the spirited younger sister of Vosges Haut-Chocolat. Made with 100 percent renewable energy. 

Consumers are constantly seeking healthier living – mentally and physically, even if they must cut down on spending due to inflation. Naturalness is increasingly important, which is why fruity flavors remain popular whereas floral, herbaceous, and spices flavors are becoming more frequently used in both food and beverage. Incorporating complex and unique flavors is also trending and especially attracting younger generations.  
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Food and beverage launches with free-from claims are growing with an +5% annual compound growth from the year 2018 to 2022. Almost half of the launches (46%) in the year 2022 featured gluten-free claims, but palm oil-free claims show the fastest annual growth +19% from the year 2018 to 2022.  
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Confectionery category launches are experiencing +2% compound annual growth from the year 2018 to 2022. The most launched confectionery subcategory in 2022 was chocolate blocks. The plant-based claim is the fastest-growing positioning for confectionery with an annual growth of +75% (2018-2022, CAGR). The prebiotic claim is also on a fast growth path. Strawberry & hazelnut top the confectionery launches in 2022, while blood orange is one of the fastest growing emerging flavors for sweets. 
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According to Innova Market Insights’ Top Trends 2023 on beverages, “Redefining Value” leads the list, focusing on how consumers are willing to pay more for what they value most, despite rising inflation. Consumers would still compromise for brands that respond to their core values, which can be functional ingredients, sustainability, ethical causes, etc. Other key trends expected to influence the beverage industry are “Generational Push”, “Revenge Spending”, and “Unpuzzle Health”.
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Innova Market Insights spots that new farming systems are improving quality and sustainability, leading to renewed consumer interest in food sources. New product launches show brands are emphasizing the use of upcycled, organic and sustainably farmed ingredients on product labels.
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Food and beverage product launches with clean labels are gaining ground and have an annual global growth of +2% (CAGR, 2018-2022). The leading subcategory with the most launches with clean label claims is soups and sauces, but meat substitutes is the fastest growing subcategory. No Additives/Preservatives is the leading top claim for products with clean labels.
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