NPD in action: Natural Flavors

Standing out in the confectionery aisle can be challenging for brands, with so many appealing and colorful choices already available. Many adventurous launches are observed to get the consumer's attention that combines unconventional flavors or an element of surprise. 

The beverage category continues to innovate along the lines of health and well-being. Claims like no additives/preservatives and no added sugar are mainstream, and a noteworthy rise in soft drinks with  prebiotics health claims is reflected by an average annual growth of +34% (Global, CAGR 2016-2020). In terms of flavors, citrus flavors are trending, accounting for 25% of global soft drinks launches in 2020.

Health and clean label remain key consumer drivers for innovation within the dairy industry, with gluten free and no additives/preservatives spotted as the top claims among dairy products (Global, 2020). High/source of protein and lactose free claims are also increasingly applied globally.

Plant-forward innovation is still high on the agenda, with an enduring challenge to deliver more “transparent” meat and dairy alternatives. Consumers are also looking for an extra level of sophistication; innovation is moving beyond established categories to new ones such as ready meals, confectionery, soft drinks and so on.

Consumers are seeking products that support their active lifestyle; Sports Nutrition is hence a growing market. Although the global Sports Nutrition category was led by Sports Powders in 2020, innovation is also seen in spreads, drinks, porridge and even coffee with sport enhancing claims. Vegan and Keto claims are also gaining ground within Sports Nutrition.

For many consumers, ice cream and desserts are for moments of indulgence. The traditional way to boost the experience of indulgence - with innovative flavors and textures - is still a popular strategy for many brands. Beyond pure, lavish indulgence, an intensified focus on health continues to boost product development for moments of ‘guilt-free indulgence’.