What’s trending in F&B? Beverage tech bubbles up functional hydration while star food ingredients shine brighter

20 Dec 2023 --- Edging toward 2024, food industry players are taking note of rising themes setting the stage for product development, recently identified within Innova Market Insights’ Top Ten Food & Drink Trends for 2024. We speak to suppliers ADM, Puratos and ofi, alongside Innova Market Insights, exploring how innovation for next year is already unfolding within functional hydration, plant-based novelties and upcycled snacks. 

“The Innova trend that differs the most compared to previous years is most likely our ninth Top Trend, ‘H2.0.: Quenching the Future.’ This year, the beverage space is getting its own trend. Innova data indicates 10% growth in soft drinks and sports nutrition products that make some type of hydration related claim over the last three years,” Lu Ann Williams, director of innovation at Innova Market Insights, tells Food Ingredients First.

“We notice that innovators are seeking a competitive edge in the ever-important hydration sector, and water is taking a new turn with value-added ingredients. It’s a ‘drinking plus’ movement — tapping into thirst all while providing some kind of added benefit.”

Williams points to innovation “sparking under the sea” with the sparkling drink FUL Water, which provides “detox” water with the environmentally positive ingredient source, spirulina.

“We are also seeing that many big companies like the famous Italian confectionery company, Loacker, are giving a healthy twist to well-known products,” she continues.FUL Water highlights the rise of functional beverage innovation, with its detox water infused with sustainable spirulina (Image credit: FUL Water).

“Loacker recently launched its traditional chocolate waffle cookies with less sugar — creating the ideal mash up between health and indulgence (going in line with our Trend #7 ‘Indulging in Health’).”

Ingredients in the spotlight
Crowned Innova Market Insights’ Top Trend for 2024, “Ingredients: Taking the Spotlight” puts the focus on individual star ingredients that make NPD stand out on shelf. The market researcher’s global data shows that 42% of consumers said that “protein” was the most important ingredient, while main meals featuring mushrooms (or specific mushroom types) as an ingredient grew 12% year-on-year between 2018 and 2023.

“A great example is V Gen’s vegan green curry, which showcases its star ingredient, the lion’s mane mushroom,” Williams highlights.

ADM recognizes that consumers are increasingly examining everyday product labels for health benefits delivered by staples like protein, fiber, electrolytes, vitamins and minerals. “Today’s consumers are expecting their food, beverage and dietary supplement purchases to be functional, as a baseline,” Brad Schwan, vice president of marketing at ADM, tells us.

“Consumers want to see this across categories — whether that be in a carbonated soft drink or spoonable yogurt. Personalized nutrition also continues to be top of mind, with the gut microbiome being a key element to developing tailored solutions.”

Crucial to ADM’s product development are postbiotics and spore-forming probiotics, as they can withstand harsh processing conditions such as high-heat or high-water content. 

“Solutions like our award-winning ES1 (Bifidobacterium longum CECT7347) and BPL1 (Bifidobacterium animalis subsp. lactis CECT8145) postbiotics, along with DE111 (Bacillus subtilis), a spore-forming probiotic, are paving the way for the next frontier of convenient, tailored support in near limitless food, beverage and dietary supplement formats,” says Schwan.

Adding versus subtracting ingredients
While healthy indulgence is considered a panacea for food formulators, it is not always an outcome that’s easy to achieve, as Nanno Palte, group marketing intelligence manager at Puratos, tells us.

“Simply removing undesirable ingredients like fat and sugar is almost impossible without impacting taste or texture, which are the top drivers of choice in bakery, patisserie and chocolate — particularly in indulgent applications,” he notes.

“Puratos is a partner that can help customers with drop-in alternatives that avoid any compromise — like Puraslim, for instance. But sometimes it’s better to think outside the box: instead of replacing, can we add something? This is why we’re seeing demand rising for grains and seeds and our fruit fillings for instance. With ‘more fruit, less of the rest,’ they hit the health indulgence sweet spot.”

“Plant-unique” in focus
According to Palte, meat alternatives remain one of the biggest dietary topics on peoples’ minds, as Puratos’ Taste Tomorrow research reveals.

“Worldwide, 52% of consumers now think plant-based alternatives taste as good as animal-based food products. Our own research has more recently shown a shift even further from reduction and replacement: we’re moving from ‘plant-based’ to ‘plant-unique,’” he tells Food Ingredients First.

“Instead of looking at plants as replacements for animal-derived or animal-based foods, forerunners and trendsetters are proactively looking for distinctly plant-based recipes that celebrate and connect the unique properties of plants.”

Kazoo Snacks released a low water footprint tortilla chip made using 40% upcycled corn germ (Image credit: Kazoo Snacks).“Vegan dishes are now incorporating plant-based ingredients for their own sensorial or taste characteristics, not as a substitution or imitation.”

On this topic, Schwan at ADM notes “intriguing sensorial experiences” are in vogue in plant-based. “This may be seen through plant-forward crumble/shred/ground formats, which are versatile in craveable ready meal food experiences from breakfast to late night snacks.” 

“A trend we’re seeing play out particularly in Europe are upmarket canned meals and regionalized seafood delicacies that may champion the use of plant proteins.”

“These on-trend plant-based developments are also imperative for the alternative protein space to grow and for consumers to see these products not as an ‘all or nothing approach,’ but rather many expanded protein choices that exist to satisfy their needs.”

“The future of protein is not replacement, but rather a variety of plant-based, animal-based and hybrid options, especially as new technologies like precision fermentation and cell cultivation are on the horizon. Further, roughly six in 10 global consumers show interest in trying alternative proteins developed using newer technologies,” he elaborates.

ADM highlights its portfolio of pea protein solutions, which are grown, sourced and produced in North America and Europe. These include the newly launched AccelFlex TS P80 textured pea protein and lower sodium ProFam Pea 572 and 573 protein powders. 

“Plus, as ready meals and meal kits provide new opportunities for plant-based alternative meat offerings, our innovative Arcon HM1 and HM2 functional soy protein concentrates can support the development of highly sought-after whole muscle-like meat offerings because they are tailored for high moisture extrusion,” Schwan adds.

Greening up NPD
Sustainability continues to be a top concern among consumers. We’ve seen over the past three or four years that the health of the planet has overtaken personal well-being as a global concern for consumers. Data from Innova Market Insights suggests a significant 40% annual increase in food and drink products making some sort of responsible water usage claim. 

In line with Innova Market Insights’ second trend, “Nurturing Nature,” brands are increasingly using on-pack labeling to communicate sustainability initiatives. “For example, the US brand, Kazoo Snacks, released a low water footprint tortilla chip made using 40% upcycled corn germ. Not to mention that every bag saves 16 gallons of water, proving to be very much in line with consumers’ concerns to protect nature,” Williams highlights.

“More than 70% of US consumers expect companies to sustainably source ingredients and products, with more than 65% say they’re more likely to purchase products that are sustainably sourced. This report also shows that CPG and retail companies understand the importance and urgency of implementing responsible sourcing initiatives,” says Schwan at ADM.

Loacker recently launched its traditional chocolate waffle cookies with less sugar (Image credit: Loacker).“This sentiment is resonating globally, with 66% of consumers believing that food, beverage and supplement brands should play a more significant role in protecting the planet.”

Meanwhile, Defne Saral, SVP & head of sales EMENA at ofi, tells us that Innova Market Insights’ “Nurturing Nature” trend stands out particularly in light of the New EU Deforestation Regulation obligations coming into effect at the end of 2024, which she says could usher in a “new era of sustainable sourcing by helping create a level playing field” while tackling challenges related to deforestation and carbon emissions.

“Stakeholder collaboration will be key to the regulation’s success but our hope is that the private sector, governments and farmer organizations will come together to innovate in traceability and sustainability,” says Saral.

“ofi is well positioned for these changes, especially given our long-term focus on reducing deforestation in cocoa and coffee smallholder supply chains through promoting agroforestry and advancing sustainability programs. Sharing our learnings and helping our customers go further and faster in their own efforts to tackle deforestation is central to our plans for 2024.”

Meanwhile, Palte at Puratos shares: “We’re making improvements in our own operations, as evidenced by our recent announcement about new packaging (which is becoming 100% recycle-ready) and the opening of our carbon-neutral chocolate factory in Belgium. We’re on track to become carbon-neutral across our operations by 2025.”

Forward food development
In other forecasting analysis, Puratos’ ongoing Taste Tomorrow research identifies viral consumer trends in the bakery, patisserie and chocolate industry, which we term “trend signals.”

“Notably, there’s an ongoing global surge in demand for swicy (sweet and spicy) and sour creations, especially in patisserie and desserts,” Palte highlights. “The recent Barbie craze highlights the importance of staying continuously informed about consumer insights.”

It remains crucial to differentiate between trends that demand swift tactical adjustments and those calling for more substantial portfolio changes, he adds.

“Take the swift adoption of pink icing for example, which presented a prime opportunity for success this year. This is precisely where Taste Tomorrow comes into play. Our research ensures F&B players stay agile, navigating both immediate trends and lasting transformations.”

In predicting the impact of future trends, ofi sees a “huge source of inspiration” in AI-powered insights to craft food and beverage products that “surprise and delight.” 

“For example, we’re exploring how AI tools can complement the real-world expertise of our innovation teams. Our recent AI-supported study predicted a greater fusion of Eastern and Western flavors in confectionery, bakery, beverages and snacks,” Saral tells us.

“Trends take time to evolve and the trends this year really build on our previous trends,” comments Williams at Innova Market Insights. “Our recent research does show that eye-catching, or well-loved ingredients, nature-friendly claims, as well as health benefits, will increasingly inspire higher spending into 2024.”

By Benjamin Ferrer