In 2023, the food, beverage, and CPG world has seen some interesting shifts.
Unique ingredients like yaupon, dates, kelp, and avocado oil became popular thanks to grocery giants like Whole Foods. Nostalgic and global flavors, especially sweet and spicy combos, also caught our attention. Some of these were short-lived fads, often driven by social media, gave brands a chance to shine with limited-time offers.
On the trendier side, zero-proof alcohol and no-sugar products have become big as more people focus on health. Plant-based foods are taking over shelves, and functional foods like adaptogen sodas are in demand.
Convenience is still king, with smarter packaging making waves. Major breakthroughs in consumable packaging, vertical farming, and lab-grown meat are setting the stage for the future.
Businesses need to decide when it's worth investing in these trends to stay ahead.
Fads in 2023
#1 - Ingredients
Grocery giant Whole Foods projects that in 2023 more consumers will be looking for products with yaupon (a caffeinated plant), dates, kelp, and avocado oil.
While the demand for these may see an uptick as a result of social awareness, product innovation, and consumer education, it's unlikely these will become staple ingredients outside of niche products in the long-term. But rise the wave while you can, to gain trial and shelf-space.
#2 - Flavors
Global flavors, the entrance of new combinations (sweet & spicy), and some of the nostalgic flavors of our childhood. These fads are quick hits that can induce trial but will likely not become a staple for consumers. If you choose to introduce a fad flavor, make sure to gauge your investment with market research and store testing. Start small and see how the market responds before scaling production. It could be more beneficial to offer it as a seasonal or a limited-edition product.
Trends in 2023
Consumers are smart and educated and increasingly want products that meet their newfound identity and insight. This means, health, function and environmental care is key. Some of the trends that were big in 2022 that will continue to grow in 2023 are:
#1 - Zero-proof alcohol
As more consumers choose sobriety & mindful consumption, this category is skyrocketing. Non-alcoholic beer, spirits & pre-mixed drinks are becoming more commonplace, and as we have seen in the alcohol category, there is a lot of room in the celebration market.
#2 - No sugar
Sugar is the new enemy and there are a lot of new entrants and large companies that want to take advantage of this trend. We're starting to see less "KETO" and more focus on "no sugar or low sugar" as the key claim.
#3 - Plant-based
As consumers become increasingly health-and-environment conscious, and the needs of our planet continue to grow, more prime shelf real estate is being taken over by plant-based alternatives.
#4 - Functional foods
Consumers are continuing to ask their food to do more for them. They’re looking for help sleeping, reducing stress, promoting relaxation & bolstering their gut health through deliciously functional foods, like adaptogen sodas.
#5 - Convenience
Convenience will not get old, however, the 'how' of convenience will continue to be challenged. Consumers want food prep to be easier, on-the-go snacks to be more adventurous, and prepared meals to be more complex, fresher tasting, and affordable compared to the alternatives. The format will also be important with a rise in 'compostable' and 'less plastic' claims.
Breakthroughs in 2023
New technology, bold ideas, and taking risks are leading to some of the breakthroughs we are seeing as we move into 2023:
#1 - Consumable & smart packaging
Consumable or dissolvable packaging made from seaweed instead of plastic is making an entry.
Smart packaging technology with the use of QR codes, Near-Field Chip (NFC), and smart labels are offering brands new ways to improve the product experience and engage with consumers.
#2 - Vertical & regenerative farming
With the conversation on climate change in the forefront of everyone’s minds, regenerative farming is big and it’s changing the way we think about our food, from the ground up. With the potential of regenerative agriculture (and aquaculture) to naturally combat the climate crisis and food sovereignty – this breakthrough will excite consumers for years to come.
#3 - Cellular agriculture
The field of growing animal products directly from cell cultures is in its infancy stage, but it's growing. With the price of food increasing, growing legislation to reduce livestock farming, better resource management including water – lower impact and (one day) lower cost meat options will be high in demand. But we'll need to get the taste right, ensure safety, and make it feel more familiar if it's going to truly take root.
Every organization should take advantage of fads, trends, and breakthroughs within their strategy. Conducting regular consumer research to stay up to date and to evaluate these decisions is critical. There will be both short-term and long-term investments, but the key here is to act and not be left behind.
If you need help in seeing what's next and evaluating courses of action, come talk to us. We'd love to help.