NPD in action: Algae Ingredients

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.

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.