Dive Brief:
- Beverage Industry’s 2015 New Product Development Outlook Survey found an increasing use of citrus flavors in beverages.
- According to the survey, lemon was the No. 5 top-selling flavor in 2014 and named a high-selling ingredient according to 11% of survey respondents. The survey found in 2014 49% of respondents used orange flavor, ticking up 8% from 2014. Also, 47% used lemon flavor, rising 1%.
- Beverage Industry also reported citrus-flavored beverage launches rose 12% in the past two years, citrus is part of more than 50% of world flavors sold around the world, and more than 25% of new soft drink launches contained citrus or citrus blends last year.
Dive Insight:
Orange, lemon, and lime flavors are the most popular, mainly because of their use in carbonated soft drinks. However, other industry-wide trends, especially health and wellness, support the use of citrus flavors.
Ruby red grapefruit is becoming a more popular flavor in flavored waters, spritzers, and vodkas. Demand for exotic citrus flavors, such as yuzu and bergamot, is also increasing, Minerva Calatayud, strategic marketing director of beverage and sweet flavors at Kerry Inc., told Beverage Industry. Calatayud attributed the rising demand for exotic citrus flavors mostly to millennials.
The citrus flavor industry does face challenges. Orange trees are dying because of a disease called "greening," caused by an Asian aphid. Prices of citrus oils and juice concentrates have increased as the products have become less available. Contributing to price/availability issues is the increase in ingesting citrus in up-and-coming markets. Nevertheless, the citrus flavor market is on an upward trend.