Brands, producers and consumers are wrestling with rising costs and greater instabilities within F&B sectors. Value has taken on a whole new meaning to many consumers, not looking at purely cheaper or economical versions but solutions that meet their taste and nutrition values. FoodIngredientsFirst speaks with key ingredient suppliers, who share their thoughts on inflation pressures and the global cost-of-living crisis. 

“Consumers are focused on re-assessing their shopping baskets; they are also more willing to trade down to private label brands vs. entirely changing their desire for proactive nutrition and flavor adventure,” notes Soumya Nair, global consumer research and insights director at Kerry. 

“However, even private label brands are no longer just price-competitive, there are tiers across private label offering now – from the premium that challenges emerging disruptive brands, to private label brands coming into their own identity as a national brand themselves.”

“With over 75% of consumers now reading the ingredient label on food and beverages, the desire for tasty yet functionally forward and nutritious solutions has never been stronger,” states Nair. 

Despite the cost-of-living crisis, consumers more focused on proactive nutrition and healthy aging, flags Kerry.In its study, Functional Forecasting, Kerry found that 83% of functional and fortified consumers like to try new flavors. Still, for more than half of them, nutrition was even more important than taste.

Proactive nutrition in the spotlight 
Despite the cost-of-living crisis, the pandemic has made consumers more focused on proactive nutrition and healthy aging, flags Nair.

“Functional health and proactive nutrition remain strong, evident in the ‘need states’ consumers prioritize today.”

According to David Tetzlaf, director of marketing at Blue California, brands recognize the value of functional ingredients. They are taking better-for-you products to the next level by fortifying foods and beverages with functional ingredients to appeal to consumers. “For example, L-theanine has adaptogen qualities that may help to relieve stress, promote healthy sleep and increase focus,” he says. 

Of course, more consumers are seeking affordable ways to maintain a healthy diet, Tetzlaf reflects.  

“They are exploring functional foods that add value to their diets while indulging. Some may even see functional products as an alternative to purchasing dietary supplements,” he continues. “At the same time, adaptogens are showing up in functional foods to help support the body’s ability to adapt to stress and improve mood.” 

Consumers “redefine value”
The consumer trends ADM has identified for the new year align with several of Innova Market Insights’ predictions. “As we look to 2023, we will see people putting greater emphasis on products that address many shifting factors, from accessibility to tailored and balanced wellness support and conscientious consumption,” explains Brad Schwan, vice president of marketing at ADM. 

“As shoppers redefine what ‘value’ means to them, they’re seeking convenient, affordable options that also help them achieve individual health and wellness goals, including support for physical and mental well-being through exciting culinary discoveries and experiential eating.”

He believes that consumers are using their purchasing power to pressure brands to deliver accessible products while being more transparent about their production methods. 

“Brands that can showcase how they are implementing sustainable agriculture and sourcing practices while ensuring positive treatment for both people and animals will go far with the consumers of tomorrow,” Schwan notes. 

Stretching cost and ingredients 
Consumers are looking to “make their dollar stretch,” so to speak, explains Nair. 

Meanwhile, CP Kelco is also tapping into ingredients that are in short supply, such as starch, or helping reduce cost with alternatives for expensive ingredients like eggs. 

“Nutrava Citrus Fiber is a fiber ingredient that can help manufacturers reduce the use of starch, egg, oil, fruit solids, xanthan gum, locust bean gum, tomato paste and methylcellulose,” says Bruce Hein, senior manager of global market intelligence at CP Kelco. 

Nutrava Citrus Fiber is upcycled from citrus peels, an abundant byproduct of the juice industry, enabling a stable and sustainable supply. “It supports dietary fiber intake and can be listed as citrus fiber on the label,” Hein adds. Functional health continues to be prevalent for both consumers and food manufacturers.

Meanwhile, stabilizers can also enable economical and healthier product options, he flags. “For example, pectin can be added to fruit-flavored drinks to ‘stretch’ the number of premium ingredients, such as fruit juice, and reduce sugar without significantly impacting the product’s mouthfeel.”

Hein believes that pectin is also a good alternative for creating that desired texture in spoonable yogurt while reducing dependency on milk solids (MSNF) that can vary in price. “Pectin is a nature-based ingredient that is easily recognizable to consumers,” he says. 

Another way to help consumers meet nutritional goals more affordably is with shelf-stable foods that can survive long periods on store and home shelves. 

Ambient yogurt is fermented with either dairy or plant protein. “For manufacturers, it can help reduce costs and complications associated with cold chain distribution, as well as less food waste at retail,” comments Hein. 

“For consumers, the long shelf life and convenience of enjoying on-the-go only add to the appeal of this ideal, healthy protein snack with good nutritional value and postbiotics.”

Contrast in generations 
“Generational Push” is Innova Market Insights’ number three trend for 2023. 

While sustainability, healthy aging, proactive nutrition, and taste are significantly more important to all consumer generations than in previous years, their intensity of focus continues to differentiate and characterize an age in contrast to others, reveals Kerry’s Nair. 

“For instance, while sustainability remains important to all consumers, Gen Z consumers associate sustainability strongly with health and nutrition products, ethical sourcing and production practices and community aid, while Baby Boomers associate solving food waste with sustainability.”

Nair believes boomers were more likely to be passive toward sustainability – knowing its importance and relevance. Still, price and a lack of knowledge kept them from actively seeking sustainable alternatives. “While Gen Z were followers, following the path laid by the frontrunner millennials who shape the world of sustainability as it stands today, viewing brands and manufacturers as key in helping Gen Z achieve their sustainability goals,” she explains. 

Concerns about health and planet sustainability mainly drive the increased consumption of plant-based foods.Healthy aging has expanded to Millennials exploring longevity and adding fortified foods to their daily routines. Younger generations are turning to personalized nutrition to address their health goals while proactively seeking foods and beverages for a healthier future and healthy skin, says Tezlaf. 

“Plant-based: Unlocking a New Narrative”
Discussing the plant-based movement and Innova Market Insights’ number four trend for the forthcoming year, Casey McCormick, senior vice president of global innovation at Sweegen, says more consumers are prioritizing their health by cutting out or reducing meat. 

“This accelerated during the pandemic when consumers became motivated to explore new products made with plant-based ingredients.”

According to McCormick, the variety and number of new products are staggering. “But some products don’t always taste good, and many come laden with sugar, a substance linked to various health problems. As products continue to enter an ever-growing market, the ‘plant-based’ label could get a bad name if the products don’t meet consumer taste expectations, or if they contain just as much sugar as any other non-plant-based products,” he details. 

Moreover, consumer demand for plant-based products is moving beyond plant-based meat alternatives and treading into plant-based milks and creamers to plant-based bars, yogurts, and spreads. “The consumer pull is for brands to provide better-for-you options sourced from the earth. This means ingredients with a more natural profile,” McCormick notes. 

He underscores the drivers behind the increased consumption of plant-based milk alternatives are health concerns and planet sustainability.