Special Report: The Supplier View - 2017 Food Trends

03 Jan 2017 --- Clean label is the new standard and 2016 was full of announcements around reformulation strategies, specifically sugar and sodium reduction. Last year, Mars announced that it will remove all artificial colors from its human food products as part of a commitment to meet evolving consumer preferences. By expanding the scope of the effort to its entire human food portfolio, Mars says it is making a commitment of significant depth and breadth. 

But we have gone beyond clean label alone, as consumer demand for authenticity and transparency is fueled by the demand for clear label launches. This marketing term, coined by Innova Market Insights in 2014, has been jumped upon by the industry and has been an iconic description ever since. 

Lu Ann Williams, Director of Innovation at Innova Market Insight, told FoodIngredientsFirst: “The running theme through our trends list is naturalness and clean label, which has now pretty much become the standard.” 

“It has become somewhat of a running theme through our trends forecasts in recent years. In 2008, ‘Go Natural’ led our trends list, and since then the theme has featured each year in different forms, such as ‘Processed is Out’ in 2011, ‘From Clean to Clear Label’ in 2015 and ‘Organic Growth for Clear Label’ in 2016. This year, clean & clear is a theme weaving throughout the entire list,” explains Williams. 

The trend is already leading to challenges on the supply side, with difficulty in sourcing enough natural products to deal with the surge in demand. Suppliers are already having to look beyond their base and grow in diverse regions of the world. This will be one of the key issues for the food industry going forward and present a future challenge should the ongoing trend to clean & clear label continue for years to come.

Innova Market Insights tipped “Clean Supreme” as the top trend to watch out for in 2017. Growing calls for transparency throughout the supply chain are taking clean & clear label to a new and supreme level. This comes as the inherent benefits of plant-based products are being actively marketed to a more health conscious consumer. The demand for total transparency now incorporates the entire supply chain, as a clean label positioning becomes more holistic. 

Looking forward into 2017, FoodIngredientsFirst explores the food industry trends to watch for the coming year. What will be the key consumer trends driving the food industry in 2017 and how are they impacting supplier R&D development? Key suppliers offer their thoughts on key food industry trends to watch. 

Phil a’Becket, Tic Gums Market Research Analyst certainly agrees that the demand for clean label is not slowing down. He explains:  “There are several trends that will continue through 2017 particularly clean label and the overall sensory experience. With the shift to clean label, formulators are removing ingredients which can also impact important textural attributes in their applications. Many find they are unable to clearly define these textural changes and are challenged to understand the complete functionality of the ingredients they are replacing. When considering the textural needs of the consumer, manufacturers must look towards new technologies to balance clean label demands with their own formulation objectives.”

“TIC Gums has developed a lexicon of terms called the Food Texture Terminology, as a way to standardize texture descriptions. This enables us to work closely with formulators, streamline the process and formulate accordingly. To help manufacturers navigate through the available clean label hydrocolloids, TIC Gums has developed a clean label chart to explain their source and status such as organic compliant, non-GMO and retailer-approved. Additionally, TIC Gums has also established an internal definition of ‘natural.’ However, we are finding that the term is often replaced with more specific terms such as ‘GMO-free,’ ‘100% organic’ and ‘made with organic.’ We can work with manufacturers’ exact specifications and help them determine the texture and stability solution that best fits their needs,” he says. 

“Reformulating foods to achieve a clean label claim can present technical and formulation challenges,” notes Ellis Brouns, Rousselot Global Marketing Manager. “To overcome these challenges, formulators should partner with experienced suppliers and used thoroughly-tested ingredients, such as gelatin or hydrolyzed gelatin, proven to offer multiple functional and nutritional benefits while complying to the requirements of clean label claims.” 

Director of International Sales and Marketing, GNT Group, Paul Collins spoke to FoodIngredientsFirst: “With clean and clear label, it is really important that it is not just surface deep and that it actually flows through the entire supply chain. It is important that it is a really robust proposition for the consumer and not something that has unexpected or undesirable elements which would cause adverse consumer reaction.”

“At GNT we process our coloring foods in a very natural way and use water as the process media. We are not using organic solvents, because while they would not appear on the label necessarily, they would also not fit within consumer sentiment. You see very many finished products, including household names, where they disclose their supply chain and topics like sustainability, the environment and GMO-free all need to be taken care of. For us, one of our platforms is “full control of the supply chain,” which is fundamentally important in ensuring authenticity and traceability to ensure that the supply chain is secure,” explains Collins, “So that links to the topic of the “power of plants.” What we see is a number of functionalities being plant derived and of course we are currently specialized in the area of colors. But there are also plant proteins and many flavors that are plant derived and I’m sure there are texturants and antioxidants available in nature, in well-known plants; it is just a matter of exploiting those in an intelligent way,” he says. 

“That’s exactly where we focus our attention and when I refer to our innovation pipeline, these are the areas that we are interested in. This is about using the functionality that nature provides in plants, but within the constraints that those plants are safe and edible.” 

What about the challenges of meeting the future demand as resources become ever more finite? “Supporting growth is also supply chain driven,” confirms Collins. “It means availability of the raw material and organizing the agriculture. You absolutely need to have a plan in place to grow more carrots, pumpkin, elderberry, spirulina or whatsoever. You need to have some foresight on the market, as this is huge financial commitment to be able to grow materials required for the years ahead, while obviously taking care of the environment and sustainability in doing so. We are coping extremely well and don’t see any limitations that will hinder us in the coming period, but supply and demand can quickly get out of balance if there is an escalation in demand.”

“We see a healthy increase in demand at this stage. Of course if you have the raw material, you need the processing capacity and capability and we have invested heavily in that, this is a critical element of the supply chain,” he adds, “This year we will make a further step in establishing a further spirulina processing facility in Mierlo, The Netherlands.”

The majority of consumers are actively making healthier eating choices wherever possible. However, when it comes to manufacturing healthy products, it is not as simple as it sounds - reducing fat and sugar contents in products can affect texture, mouthfeel and flavor, making it critically important for manufacturers to use alternatives that provide some, or if not all, of the key functional properties without affecting the taste. 

Sugar will continue to come under fire in 2017, although it remains the key ingredient delivering the sweetness and great taste that consumers are looking for. “Sweeter Balance” is tipped as trend 3 for 2017 by Innova Market Insights. The quest to combine taste and health is driving NPD, as the industry faces the challenge of balancing public demand to reduce added sugars and create indulgent experiences, while at the same time presenting clean label products.

The addition of ProTake (hydrolyzed gelatin) can act as a replacement to improve texture and flavor, while serving as a bulking agent due to its excellent water retention properties. Brouns explains: “In our applications lab, we have developed several prototype recipes using ProTake. For example, Fruit Pulp Gummies that have 12 per cent less sugar than traditional gummies and an increased protein content. Fruit pulp has been used as the sole source of flavor and color.”

While the health benefits of reduced sugar formulations are inarguable, decreased sugar content is detrimental to the overall taste experience for the consumer, according to Maria Christodoulou, IFF Marketing Manager Dairy – Flavors EAME. She explains: “Reformulation results in a general lack of sweetness, reduced mouthfeel, and ‘flat’ aromatic expressions. IFF technologies optimize overall taste perception by not only addressing these critical factors, but offering solutions that elevate overall product performance. Consumer expectations for a clean, pleasant taste are delivered with IFF technologies that can work in synergy with natural sweeteners to mask off-notes and suppress lingering sweetness.”

“Increased formulation costs resulting from a rise in sugar pricing and increased sugar taxes can be mitigated with alternative technologies,” says Christodoulou. “Taste differentiation is possible with the inclusion of a sensory signature that goes beyond traditional flavor profile attributes and can be utilized across an entire product range.”

“Propelling performance of low calorie and low sugar products is a key strategic priority for IFF and is supported with proprietary R&D activities that combine both natural product research and taste receptor research. Resulting solutions offer a range of tools to optimize the taste of low sugar or low calorie products: from ready-to-use flexible solutions, to “whole recipe” approaches,” Christodoulou explains.  

As plant-based milks, meat alternatives and vegan offerings rapidly moved into the mainstream, consumers are looking for innovative options to take the inherent benefits of plants into their daily lives. Even dairy companies are now leveraging the functional and technical benefits of plants in new product development, driving more variety and excitement into their category. Innova Market Insights has reported CAGR of +63% for new product launches with a plant-based claim from 2011-2015. “Disruptive Green” is listed as Trend 2 in Innova Market Insights Top Ten Trends for 2017.

Sabrina Marnet, Product Manager for Cosucra believes the trend towards more vegetarian/flexitarian options runs in parallel with the rise of alternative proteins. “People are slowly becoming aware of the importance of reducing meat consumption, for ethical, environmental or health reasons,” she states. “This is matched with increasing innovation in the areas of meat and dairy alternatives, both from a qualitative and quantitative point of view. At the same time, the sales of alternative proteins, in particular pea proteins, have increased dramatically in the last 5 years.” 

According to Marnet, that is why Cosucra are expanding its pea protein production capacity. “Our Innovation Lab has also developed several vegan or vegetarian recipes that include Pisane pea protein isolate in order to assist our partners in their innovation process,” she adds.  

Molly Spence, Director for North America at the Almond Board of California, agrees that the significant growth in consumers’ preference for vegetarian and flexitarian options is undeniable. “From on-the-go snacking to fine dining, and everything in between, plant-based proteins are taking center stage in 2017 and setting a new standard with products that are nut, legume, and pulse-based. When it comes to plant-based and flexitarian recipe development – almonds – in their many forms, offer a plethora of options and this is great news for us at the Almond Board. What’s more, almonds also check the boxes when it comes to consumer demands for gluten-free, GMO-free, cholesterol-free and dairy-free options,” she says.

It is clear to see that suppliers are raising the bar for 2017, and we can expect even further innovation and developments in the ever changing food industry. One trend which is expected to remain in trends reports for at least the next few years is the need for clean label, Innova Market Insights Top Trend for 2017 is “Clean Supreme”, which will certainly be the heart of the supplier innovation into the coming year, with “Distruptive Green” and “Sweeter Balance” running closely behind. 

Innova Market Insights Top Ten Trends can be seen here. 

by Elizabeth Kenward