The beverage market has long been incredibly dynamic and innovative, characterized by a high degree of new product development and strong competition for consumer attention. Recent years have seen a particularly intense flurry of new product development, with whole new sub-segments (e.g., kombucha, kefir) emerging, new claims and ingredients developing, and beverage categories overlapping one another.
To compete in this increasingly saturated marketplace, brands must develop new, on-trend applications. Consumers—especially Millennials—are quite willing to sample new products and appreciate variety in their beverage options. Understanding the consumer landscape and what trends are upcoming is essential.
Here are three emerging trends in beverage formulation to help you identify opportunities for innovation in the beverage market:
1. Plant-Based Protein
Plant-based eating is a major trend across the food industry. While this does not reflect abandonment of meat proteins, it does indicate a pursuit of “clean eating.” For many, that implies a greater reliance on vegetables over animal products and processed carbohydrates.
In the beverage and nutrition segments, plant-based proteins are particularly appealing, as they displace whey (a dairy byproduct) and other less desirable ingredients. Proteins like pea, brown rice, and hemp have boomed in recent years as a component of shakes and dry mix beverages. With consumer interest in this area showing no sign of abating, expect continued development in the plant-based protein space.
2. Fortified Coffee Beverages
Coffee beverages fortified to deliver nutritional claims are a growing category. Consumers have grown familiar with coffee as a functional beverage through wellness brands like Bulletproof Coffee, which adds butter and MCT oil to the beverage to produce a ketogenic effect supporting weight loss. Other consumers are seeking less processed, less sugary energy drink options, and coffee-based beverages fit the bill well.
These beverages add nutrients like protein or herbal ingredients traditionally associated with energy brands, like guarana or ginseng. New brands add highly specialized botanicals like acacia fiber, maca root, and quillaja extract. Expect to see more of these types of beverages as consumers grow more aware of coffee as a clean energy option.
3. Sugar Reduction
The new nutrition label places additional scrutiny on the quantity of sugar in foods and beverages. Diet trends are shifting away from minimizing fat or carbohydrates and toward limiting sugar, and soda taxes have placed special emphasis on the sugar content of beverages in particular. Beverage manufacturers thus need to consider ways to reduce sugar without affecting taste. Many brands are addressing this challenge using flavor modulation technology, which uses flavors to enhance the perception of sweetness even in the absence of additional sugar.
Whether you’re developing new plant-based protein beverages, increasing your coffee’s nutritional profile, or reducing your application’s sugar content, the talented team of flavorists and industry experts at Virginia Dare can help. For formulation assistance or to sample of one of our natural flavors, reach out at 718.788.1776 or [email protected].