NPD in action: Algae Ingredients

Prepared meals continue to grow as the stay-at-home lifestyles prompted by COVID-19 demand for more convenient home cooking. Global launch activity is driven by trends in plant-based, better-for-you, clean label and environmental sustainability of the product and packaging.

Consumers seek to reduce consumption of certain ingredients that they perceive to have negative effects on their health or the health of the planet. The industry responds by including ‘free from’ claims to tailor food products to these consumer needs. ‘Free from’ products typically include prominent ‘free from’ claims on front of pack.

Vanilla remains a classic ingredient in the categories confectionery, bakery, and desserts and ice cream. New flavor combinations including vanilla are being explored in other categories, such as Alcoholic Beverages, Baby & Toddlers, Soft Drinks, Spreads, and Snacks. Alcoholic Beverages is the fastest-growing category for vanilla flavor with an average annual growth of +17% (Global, CAGR 2016-2020).

High fiber foods and beverages are known for their health benefits related to digestive health and immune health. Fiber is being added to a broad range of foods and beverages, making these health benefits more accessible to consumers. Products with a fiber claim often also feature digestive health claims and immune health claims.

Consumers are increasingly concerned for their own health and are consequently reducing unhealthy nutrients. Salt reduction is still a top priority for consumers and the food and beverage industry. Therefore, low and reduced sodium claims have prime front label mentions. The top two market categories for salt-related claims globally are sauces & seasonings and snacks (2020).

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.