Emerging Flavors in Food: Exotic, botanical and spicy influences, and future opportunities

Flavor is an integral part of how humans interact with and experience the world around them. Flavor is linked to our survival instinct and taste stimuli allowed the earliest humans to identify and select the most beneficial nutrients and avoid the poisonous ones. New research suggests that our experience of taste is programmed into our genes, and is influenced by factors as diverse as gender, ethnicity, upbringing, weight, and perception of color.
The flavor sector spans multiple industries globally; from food and beverage manufacturers to chemistry, biotechnology, genetic engineering, and horticulture. Current and emerging trends in taste and flavor are resulting in new challenges and new opportunities for the industry. This report will identify, evaluate, and demonstrate these trends, and outline some of the key ensuing market opportunities. .

Key features of this report

•  Identifies the macro drivers that are shaping trends in the food industry and the tastes and flavors that are emerging as a result.
•  Analyses the top and fastest growing flavors in 2009 across a range of food sectors,
•  and the most popular product claims in each category.
•  Provides a detailed industry perspective by outlining the regulatory and scientific developments impacting the flavor industry.
•  Evaluates the key innovations in food flavoring and explores the leading scientific discoveries, company developments, and NPD.
•  Assesses how macro trends and key industry issues will shape the future development of food and drinks flavors.

Scope of this report

•  Identify the most popular flavors by category and sub-category and gain insight into the future potential of these flavors.
•  Evaluate growth opportunities within food and drinks flavors and identify the emerging consumer segments and their market potential.
•  Understanding the main challenges facing the food and drinks flavors industry, and establish how to gain competitive advantage.
•  Gain insight into the latest scientific and technological and innovations driving the flavors industry.

Key Market Issues

•  Significant demographic shifts are impacting consumers’ food preferences and an aging population is driving the growth of functional foods and bold flavors.
•  Immigration and travel are contributing to an increased interest in exotic foods including Latin American cuisines such as Mexican and Peruvian;
•  Health and wellness is one of the most important trends in food flavoring and is driving innovation. Taste replacement technology is at the forefront of flavor development, and industry players are collaborating to produce healthy applications;
•  Health and ethical concerns are converging and ‘natural’ claims are losing consumer value due to their ubiquity;
•  Media and technology is impacting flavor development by increasing access to information. Food bloggers can influence the popularity and growth of flavors and manufacturers are able to track consumer preferences more effectively;

Key findings from this report

•  Dairy is a key category for flavor innovation, and had the most significant flavor movements in 2009
•  The dairy sector is primarily dominated by stable and consistently popular sweet flavors, particularly classic fruits. Milk and yogurt products had the most innovation in terms of new flavors and chocolate was the highest occurring flavor in desserts.
•  Chocolate and fruit are the most popular confectionery flavors and exotic fruits continue to grow. Botanical and flower flavors are also on the increase, appearing in more new products in 2009 compared to 2008.
•  Traditional flavors dominate the bakery and cereals sector, although coconut and ginger are gaining popularity.
•  Chocolate declined as a snack flavor, while ethnic and experimental flavors appeared in more new products. Spicy flavors grew in importance in potato chips, and more healthy alternatives were launched in 2009.

Key questions answered

•  What are the key global macro-economic and social drivers affecting food flavors in 2009?
•  What flavor trends and opportunities are emerging from macro drivers?
•  What are the top food flavors and product claims in each market sector in 2008-2009?
•  Which flavors are growing in popularity, and which are declining?
•  What are the emerging scientific and technological developments that are having the biggest impact on the industry

Emerging Flavors in Food

Executive summary

Introduction

Macro drivers and developments

Top flavor trends by sector

Industry analysis

Conclusions

Chapter 1 Introduction

Summary

Introduction

Research methodology

Definition of flavor

Report structure

Chapter 2 Macro drivers and developments

Summary

Introduction

Demographic changes

The influence of an aging populations is growing

Age plays a vital role in taste preferences

Consumer trends

Migration and tourism introduce Latino and Asian flavors

Immigration patterns are shifting

Southern Asia is the most popular new tourist destination

Consumer trends

Economic pressures continue

Trading down does not always mean lower quality

Consumer trends

Media and technology are broadening the scope of flavor influence

Increased access to information

Media influences

Technology developments

Consumer trends

Health and ethical concerns converge

Removing, replacing, and refining flavor

Flavor replacement and enhancement

Flavor modification

Flavor and function

Cross-demographic appeal

Superfruits

Sourcing and sustainability

Sales of natural foods have nearly doubled since 2005

Ethical sourcing is a growing influence on food sales

Ethical and health claims are converging

Summary and conclusion

Market maturity is driving the need for flavor innovation

Accurate consumer profiling is vital for effective product positioning

Chapter 3 Flavor trends by sector

Summary

Introduction

Methodology

Geographic scope

Cross-sector summary

Bakery and cereals

Top and fast growth flavors

New Product Development (NPD) roundup

Breakfast cereals remain traditional

Product claims in bakery and cereal products

Confectionery

Top and growth flavors

New flavors are emerging

NPD roundup

Exotic fruits and pepper combine with chocolate

Botanical flavors represent innovation in sugar confectionery

Mint flavors expand

Product claims in confectionery

Dairy

Top and growth flavors

NPD roundup

Fruit flavors reign in milk-derived products

Plain and simple is preferred in cheese products

Chocolate flavors are the most popular in new dessert products

Product claims in dairy products

Snacks

Top and growth flavors

NPD roundup

Potato chips flavors vary in popularity by region

Snacks offer healthy alternatives

Wide flavor array for nuts and seeds snack products

Product claims in snack products

Chapter 4 Industry analysis

Summary

Introduction

Industry overview

Key industry trends

Transparency and regulation

Europe is in the process of introducing standardized labeling laws

The US is facing calls for more rigorous labeling regulation

Economic impact

Volatile cocoa prices

Disintegrating bee colonies

Dairy flavor extension

Downsizing is leading to collaboration

A focus on emerging markets

Health and wellness

Developing healthy applications has encouraged industry collaboration

Taste replacement technologies are driving innovations in health food

Natural flavors, sourcing, and sustainability

Clean label requirements drive innovation in ‘natural’ flavorings

The ubiquity of “natural” flavors has devalued the claim

Regulatory clarification is needed

Sustainable business practices are increasing

Chapter 5 Conclusions

Key trends in food flavors

Economic and demographic pressures

Travel and media influence

Health and sustainability

Opportunities and challenges

Index

References

List of Figures

Figure 2.1: Factors driving the demand for new food flavors

Figure 2.2: Principal factors influencing taste perception

Figure 2.3: Recessionary impact on market structure

Figure 2.4: Trading down in a recession

Figure 2.5: Growth in discounter share of European grocery market value, 2003-2008

Figure 2.6: Percentage of obese adults by country (%), 2004-2009

Figure 2.7: Percentage of obese adults by region (%), 2008-2012

Figure 2.8: Example of the use of nanomaterials in food

Figure 2.9: Source and sustainability factors influencing product choice

Figure 2.10: Key flavor trends emerging from macro drivers

Figure 3.11: Top five flavors in products launched by sector, 2009

Figure 3.12: Top five product claims on products launched by sector, 2009

Figure 3.13: Top 10 flavors in breakfast cereals launched (%), 2009

Figure 3.14: Top 10 flavors in sugar confectionery products launched (%), 2009

Figure 3.15: Top 10 flavors in milk derived-products launched (%), 2009

Figure 3.16: Top 10 flavors in cheese products launched (%), 2009

Figure 4.17: Potential benefits and concerns of stevia usage, 2009

List of Tables

Table 2.1: Consumers aged 55 and over by region

Table 2.2: Inflows of foreign population by nationality (thousands), 2000-2007

Table 2.3: Functional food and drinks sales ($m), 2007-2012

Table 2.4: Natural food and drinks market by category ($m), 2000-2010

Table 2.5: Global sales of fair trade products (€), 2007-2009

Table 3.6: Top 20 flavors in bakery and cereal products launched (%), 2009

Table 3.7: Top five flavors in bakery and cereal products launched (%), 2005-2009

Table 3.8: Flavor groups in bakery and cereal products launched (%), 2008-2009

Table 3.9: Fruit flavors in bakery and cereals products launched (%), 2008-2009

Table 3.10: Top 20 claims in bakery and cereals (%), 2008-2009

Table 3.11: Top 20 flavors in confectionery products launched (%), 2006-2009

Table 3.12: Flavor categories in confectionery products launched (%), 2008-2009

Table 3.13: Dessert and candy flavors in confectionery product launches (%), 2008-2009

Table 3.14: Top 20 fastest growing flavors in confectionery products launched (% change), 2008- 2009

Table 3.15: Top 20 fastest growing flavors in confectionery products launched (change in rank position) 2008-2009

Table 3.16: Top 20 claims on confectionery products launched (%), 2009

Table 3.17: Top 20 flavors in dairy products launched (%), 2009

Table 3.18: Flavor categories in dairy products launched (%), 2008-2009

Table 3.19: Top 20 fastest growing flavors in dairy products launched (change in rank position), 2008-2009

Table 3.20: Top 20 claims on dairy products launched (%), 2009

Table 3.21: Top 20 fastest growing claims in dairy products launched (change in rank position), 2008-2009

Table 3.22: Top 20 flavors in snack products launched (%), 2009

Table 3.23: Flavor categories in snack products launched (%), 2008-2009

Table 3.24: Spicy/ethnic flavors in snack products launched (%), 2008-2009

Table 3.25: Top 20 fastest growing flavors in snack products launched (% growth change), 2008- 2009

Table 3.26: Top 20 claims on snack products launched (%), 2009

Table 4.27: Top 10 flavor and fragrance companies, 2008