NPD in action: Algae Ingredients

The dairy category continues to evolve with a variety of innovations ranging from flavor to health and well-being. A noteworthy rise in dairy with a no added sugar claim is observed globally (+24% CAGR 2016-2020). Meanwhile, dairy innovation continues to cater to consumer convenience, playing with packaging and new marketing opportunities.

Botanical ingredient usage in food and beverage launches is diversifying across categories. Sauces and Seasonings continues to be the top category with the highest number of botanical ingredient applications in 2020. With an average annual growth of +16% (Global, CAGR 2016 to 2020), Sports Nutrition is the fastest-growing category for botanicals.

Consumers are seeking products that are aligned with their specific diet and lifestyle needs. Manufacturers in the snack industry respond to this by providing alternative products matching these needs. An example is the +113% average annual growth of products with “keto” claims within the snack category (Global, CAGR 2018-2020).

Natural food preservatives are gaining great interest in the food and beverage industry due to their natural antimicrobial activity. Food and beverages with natural preservatives have witnessed an average annual growth of +20% these past five years (Global, CAGR 2016-2020). Watch out for fast-growing ingredients, including Swiss chard powder, fermented sugar, acerola powder, citrus extract and cultured dextrose.

Food waste remains a global concern. As food companies invest in sustainability by creating value from by-products, global food and beverage products with upcycled ingredients are increasing with an average annual growth of +54% from 2016 to 2020. Upcycled ingredients such as chicken, apple, carrot, banana, onion, tomato and garlic are showing rapid growth (Global, CAGR 2016-2020).

Consumers are increasingly looking for healthier and more ethical options with regard to their snacking habits. Industry is delivering plant-based alternatives of existing snacks to satisfy consumer demand for guilt-free indulgence. New product launches from the snacks category featuring a plant-based claim are soaring with an annual average growth of +65% (Global, CAGR 2018-2020).