Future Flavor Trends in Soft Drinks: New opportunities for natural, healthy, and exotic flavors

Future Flavor Trends in Soft Drinks
New opportunities for natural, healthy, and exotic flavors

Flavors from natural ingredients and flavors that provide functional benefits are the two key areas of soft drinks flavor development. New and emerging flavors, as well as the discovery of new benefits from current flavors, are driving sensory innovation and new opportunities in the positioning and promotion of standard or traditional beverages.

Future Flavor Trends in Soft Drinks is a new management report published by Business Insights that provides a comprehensive review of current, new and emerging flavors in the soft drinks sector. This report presents and evaluates the role of flavor and drinks manufacturers in flavor innovation and key flavor trends, and analyzes fast growth flavors in key categories in terms of product launches.

Discover the areas of opportunity in soft drinks flavors and understand how these opportunities fit into larger soft drinks industry trends with this new report...

Key issues examined by this report

• The importance of natural. Loyal users of ‘natural’ products are increasing in both Europe and the US, and this trend is predicted to continue. A substantial number of soft drinks now clearly promote their naturalness by stating something about ‘natural colors and flavors’ on the labelling.
• Health concerns. Drinks have been in the spotlight over the last five years because of the growing strength of evidence of the links between the ingredients in some drinks (such as sugars and acids) and prevalent chronic diseases (such as obesity, diabetes and dental decay). Industry reaction to growing concern over these negative health issues has led to changes in formulations and therefore changes to drink flavors.
• Increased interest in exotic food and drink. Many consumers are becoming more experimental and open to new flavors when choosing and consuming food and drink. The growing popularity of tropical fruits in non-tropical countries and/or regions is an important trend affecting drinks flavors.
• This new report will enable you to
• Quantify and target future growth areas in soft drinks flavors using this report’s global market and statistical data from 2000-2011 and analysis of sales of soft drinks by category in Europe and the US, gym membership and number of tourists visiting key regions.
• Improve the targeting and effectiveness of your NPD strategies with this report’s analysis of top and fast growth flavors in the soft drinks sectors, using ‘Product Launch Analytics’ data of over 54,000 products launched globally between 2005 and 2008.
• Implement the best-practice strategies of leading innovators in the soft drinks flavors market using this report’s analysis of flavor companies including Givaudan, WILD and Symrise.
• Benchmark the opinions of senior industry executives on the soft drinks flavors market over the next five years through an exclusive survey of industry executives carried out by Business Insights.

Table of Contents

• Future Flavor Trends in Soft Drinks

Executive Summary 12

• Market developments and drivers 12
• Top soft drink flavors 13
• Top regional soft drink flavors 14
• The role of soft drink and flavor manufacturers 15
• Key trends in soft drinks flavors 16
• Conclusions 17

Chapter 1 Introduction 20

• What is this report about and what is its scope? 20
• Research methodology 21
• Flavors in drinks defined 21
• Report structure 22

Chapter 2 Market developments and drivers 24

• Summary 24
• Introduction 25
• The industry view 26
• Natural and additive free 27
• Natural is becoming the norm 27
• Natural vs. artificial 28
• Natural products, additives and children 30
• Health concerns and drinks 31
• Obesity and diabetes 31
• Dental decay 34
• Changing consumption patterns linked to health concerns 35
• Diet carbonated drinks 36
• Bottled water 37
• Making drinks healthier through reformulation 38
• Drinks and children’s health 40
• Functional drinks 40
• Growth in market value of functional drinks 40
• Consumer awareness and interest in ‘added-value’ nutrients 41
• Flavor effects of functional ingredients 44
• Flavor strategy and newer functional ingredients 46
• Promoting fruit and vegetable consumption 47
• Campaigns and public opinion 47
• Use of fruit and vegetables in soft drinks 48
• Fruit and innovation in drinks 51
• Newer superfruits 51
• 100% juice trend 51
• A focus on physical fitness and mental performance 52
• The demand for sports and energy drinks 52
• Importance of the sports and energy drinks market 54
• Sports and energy drink formulation and positioning 55
• Increased interest in exotic drinks 57
• Travel and tastes 57
• Tropical fruits 59
• Herbs, spices and botanicals 60
• Tea and coffee trends 61
• The coffee house effect 61
• Growth in RTD tea and coffee 62

Chapter 3 Top soft drink flavors 66

• Summary 66
• Introduction 67
• Soft drinks overall 67
• Top flavors 68
• Fastest growing flavors 69
• Pomegranate 70
• Mango and pineapple 72
• Pear 72
• Fastest decreasing flavors 73
• Lemon 74
• Grapefruit 75
• Emerging Asian flavors 75
• Yuzu 75
• Yumberry 76
• Bottled water 77
• Top flavors 78
• Fastest growing flavors 79
• Mineral waters 79
• Functional fruits - blueberry, pomegranate and açaí 81
• Mint, herbs and spices 82
• Fastest decreasing flavors 84
• The industry view 84
• Carbonated soft drinks 85
• Top flavors 86
• Fastest growing flavors 87
• Orange 87
• Pomegranate and mango 89
• Apple 90
• Fastest decreasing flavors 92
• The industry view 92
• Dairy drinks 93
• Top flavors 94
• Fastest growing flavors 95
• Strawberry 96
• Developments in chocolate 97
• Exotic fruits – pineapple 98
• Fastest decreasing flavors 100
• The industry view 100
• Energy and sports drinks 101
• Top flavors 102
• Fastest growing flavors 103
• Guarana 103
• Lemon lime 105
• Chocolate 106
• Fastest decreasing flavors 106
• The industry view 107
• Fruit and vegetable drinks 108
• Top flavors 108
• Fastest growing flavors 109
• Pomegranate 110
• Exotic flavors – mango and pineapple 110
• Fastest decreasing flavors 112
• The industry view 113
• RTD tea and coffee 114
• Top flavors 114
• Green tea 115
• Coffee 115
• Fastest growing flavors 116
• Premium black tea 116
• White tea 117
• Fruit and tea blends 118
• Fastest decreasing flavors 119
• The industry view 120

Chapter 4 Top regional soft drink flavors 124

• Summary 124
• Introduction 125
• Asia-Pacific 125
• Top and fastest growing flavors 125
• Innovation in Asia-Pacific 128
• Europe 129
• Top and fastest growing flavors 129
• Innovation in Europe 132
• Latin America 133
• Top and fastest growing flavors 133
• Innovation in Latin America 136
• Middle East and Africa 136
• Top and fastest growing flavors 136
• North America 138
• Top and fastest growing flavors 139
• Innovation in North America 141

Chapter 5 The role of soft drink and flavor manufacturers 146

• Summary 146
• Introduction 147
• Innovative brands and companies 147
• The Coca-Cola Company 148
• Flavored colas 148
• Coca-Cola Zero and Diet Coke Sweetened with Splenda 150
• Glacéau 151
• Innocent 151
• Nestlé 153
• RTD coffee and tea 153
• Bottled water/carbonated soft drinks 154
• PowerBar 156
• PepsiCo 157
• Carbonated soft drink flavor innovations 157
• Juices 159
• Gatorade 159
• Innovative flavor development and technologies 161
• Natural flavors 161
• The natural imperative 161
• Production and sourcing 162
• Flavor supplier offerings 163
• Sweeteners 165
• Natural fruit sweeteners 165
• Stevia 166
• Erythritol 168
• Sucralose 169
• Flavor modulation 171
• Nanotechnology 173

Chapter 6 Key trends in soft drinks flavors 176

• Summary 176
• Introduction 177
• Health trends 177
• Natural, pure and organic 178
• Overlapping concepts 180
• Natural moves into the mainstream 181
• Botanical ingredients and ‘natural’ type flavors 182
• High antioxidant flavor trends 183
• Exotic and high antioxidant flavors 185
• Flavors providing functional benefits 187
• Green tea 187
• Newer functional flavor opportunities 188
• Flavors in drinks containing functional ingredients 190
• Soy drinks – functionality and flavor 190
• Flavor of functional yogurt/milk drinks 191
• Flavors trends in drinks claiming to be high in vitamins and minerals 193
• Flavor trends in low or no sugar or calorie drinks 196
• Fruit flavors 196
• Colas 198
• Children’s drinks with low or no sugar or calories 199
• Superfruits 199
• Flavors in drinks promoted on providing energy or vitality 203
• High energy 203
• Vitality 206
• Vegetable and herb trends 208
• Indulgent trends 212
• Fusions and blends 213
• Popular blends of ‘standard’ flavors 213
• Newer ingredients and flavors and interesting fusions 214
• Fusions 214
• Exotic flavors 217
• Fruits are leading the exotic trend 217
• Traditional vs. modern ‘exotic’ fruit concepts 218
• Exotic flavors other than fruit 220
• Varietal and regional flavors and recipes 221
• Varietal raw materials and flavors 221
• Flavors from a named region 223
• Regional recipes and formulations – links to heritage and tradition 224

Chapter 7 Conclusions 228

• Summary 228
• Introduction 229
• Innovation opportunities by category 229
• Functional and unique flavors 230
• Healthy and exotic fruit and vegetable drinks 231
• Energy and sports drinks with ‘vitality’ flavors 232
• Hybrid drinks that cross category boundaries 233
• Opportunities within key trends 234
• Natural 234
• Healthy 235
• Exotic 236
• Opportunities where the natural, healthy and exotic trends overlap 236
• Index 238
• References 240

List of Figures

• Figure 2.1: Drivers influencing flavor trends in drinks 25
• Figure 2.2: The influence of key drivers on demand for new flavors in drinks over the next 5 years 26
• Figure 3.3: Recently launched pomegranate juices and drinks 71
• Figure 3.4: Innovative pear juice drinks 73
• Figure 3.5: Yuzu flavored soft drinks 76
• Figure 3.6: Yumberry variety drinks 77
• Figure 3.7: Mineral water and fruit and/or tea blends 80
• Figure 3.8: Bottled water product launches with ‘superfruit’ type flavors 82
• Figure 3.9: Mint and herbal flavored bottled water launches 83
• Figure 3.10: Recent orange flavored carbonated soft drink launches 88
• Figure 3.11: Pomegranate and mango flavored carbonated soft drink launches 90
• Figure 3.12: Apple flavored carbonated soft drinks 91
• Figure 3.13: Strawberry yogurt drinks 96
• Figure 3.14: ‘Rich’ or ‘creamy’ chocolate milk drinks 97
• Figure 3.15: Pineapple flavored yogurt and soy drinks 99
• Figure 3.16: Sports and energy drink launches with guarana 104
• Figure 3.17: Lemon lime flavored energy and sport drinks 106
• Figure 3.18: New fruit drink launches with mango 111
• Figure 3.19: Black tea drinks specifying tea type 117
• Figure 3.20: Fruit and tea blends 118
• Figure 4.21: Innovative Asia-Pacific soft drinks 128
• Figure 4.22: Floral, fruit, spice, herb and/or vegetable blends 132
• Figure 4.23: Oat drinks with cinnamon flavor 135
• Figure 4.24: Hybrid soft drinks 142
• Figure 5.25: Innovative Coca-Cola flavor blends 149
• Figure 5.26: Nestlé bottled water/soft drink launches with innovative flavors 155
• Figure 5.27: PowerBar Gel 156
• Figure 5.28: Pepsi RAW 158
• Figure 5.29: Carbonated soft drink seasonal flavor launches 158
• Figure 5.30: Gatorade Thirst Quencher Rain 160
• Figure 5.31: Zevia carbonated supplement drink 169
• Figure 5.32: Coca-Cola Powerade 170
• Figure 6.33: Importance of health trends in the drinks industry over the next 5 years 178
• Figure 6.34: Natural, organic and pure soft drink launches 180
• Figure 6.35: Daily’s Pomegranate Mix 182
• Figure 6.36: Açaí flavored drinks claiming to be ‘high in antioxidants’ 186
• Figure 6.37: Drinks containing aloe 189
• Figure 6.38: Flavors (strawberry, berries and pomegranate) in functional dairy and yogurt drinks 192
• Figure 6.39: New products claiming to be high in vitamins and minerals with unique flavor blends 195
• Figure 6.40: Fruit flavors expected to experience growth in usage in drinks over the next 5 years 200
• Figure 6.41: Drinks claiming to contain superfruit blends 202
• Figure 6.42: Die Hard Sports Energy Drink 204
• Figure 6.43: Organic 10/10 Vitality Drink 207
• Figure 6.44: Vegetable and herb flavors expected to experience growth in usage in drinks over the next 5 years 209
• Figure 6.45: Blended vegetable drinks launched in Japan 211
• Figure 6.46: Importance of indulgent trends in the drinks industry over the next 5 years 212
• Figure 6.47: Interesting and novel flavor blends 215
• Figure 6.48: Two styles of ‘exotic’ drinks 219
• Figure 6.49: Exotic flavors expected to experience growth in usage in drinks over the next 5 years 220
• Figure 6.50: Vignette Wine Country Soda 222
• Figure 6.51: Adina Sangri'La, Antioxidant Hibiscus Orange Cooler 225
• Figure 7.52: Opportunity for flavor innovation by soft drinks category 230
• Figure 7.53: Future soft drink flavor opportunities – the overlap of key innovation trends 237

List of Tables

• Table 2.1: Consumers who seek out 'natural' products in Europe and US (m), 2000-2010 27
• Table 2.2: Number of overweight and obese adults (15+ years old), by country (millions), 2002- 2012 32
• Table 2.3: Prevalence of Type 1 & 2 diabetes in the 7 major markets, 2004-2005 33
• Table 2.4: Market value of diet carbonates in Europe and US ($m), 2007-2011 36
• Table 2.5: Market value of bottled water in Europe and US ($m), 2007-2011 37
• Table 2.6: Potential flavor effects of ‘healthier’ soft drink formulations 38
• Table 2.7: Market value of functional drinks in Europe and US ($m), 2007-2011 41
• Table 2.8: Sales of supplements in Europe and US ($m), 2002-2006 42
• Table 2.9: US shopper's awareness and consumption of nutrients that have health boosting credentials 43
• Table 2.10: Common functional ingredients used in drinks and their potential flavor impact 44
• Table 2.11: Consumer responses to various suggestions on how to improve a healthy diet, ranked by average 48
• Table 2.12: Market value of smoothies in Europe and US ($m), 2007-2011 49
• Table 2.13: Market value of vegetable juice in Europe and US ($m), 2007-2011 50
• Table 2.14: Gym members as a proportion of total population, US and Europe (% population), 2000-2010 53
• Table 2.15: Consumer survey: the extent to which Europeans feel they have 'lots of energy' 54
• Table 2.16: Market value of sports and energy drinks in Europe and US ($m), 2007-2011 55
• Table 2.17: The number of visitors (millions) to regions and continents, 2005-2006 57
• Table 2.18: Consumer survey: the propensity of European and US shoppers to embrace new and exotic flavors with greater regularity, by country, 2006 58
• Table 2.19: Market value of RTD tea and coffee in Europe and US ($m), 2007-2011 62
• Table 3.20: Top 20 flavors in new product introductions in 2008, % of all soft drinks launched, 2005-2008 68
• Table 3.21: Top 20 flavors in new product introductions in 2008, % of all bottled waters launched, 2005-2008 78
• Table 3.22: Top 20 flavors in new product introductions in 2008, % of all carbonated soft drinks launched, 2005-2008 86
• Table 3.23: Top 20 flavors in new product introductions in 2008, % of all dairy drinks launched, 2005-2008 94
• Table 3.24: Top 20 flavors in new product introductions in 2008, % of all energy and sports drinks launched, 2005-2008 102
• Table 3.25: Top 20 flavors in new product introductions in 2008, % of all fruit and vegetable drinks launched, 2005-2008 108
• Table 3.26: Top 20 flavors in new product introductions in 2008, % of all RTD tea and coffee drinks launched, 2005-2008 114
• Table 4.27: Top 20 flavors in new product introductions in 2008, % of all drinks launched in Asia- Pacific, 2005-2008 126
• Table 4.28: Top 20 flavors in new product introductions in 2008, % of all drinks launched in Europe, 2005-2008 130
• Table 4.29: Top 20 flavors in new product introductions in 2008, % of all drinks launched in Latin America, 2005-2008 133
• Table 4.30: Top 20 flavors in new product introductions in 2008, % of all drinks launched in the Middle East & Africa, 2005-2008 137
• Table 4.31: Top 20 flavors in new product introductions in 2008, % of all drinks launched in North America, 2005-2008 139
• Table 5.32: Top 10 drinks brands/manufacturers that drive innovation through addition of new flavors 147
• Table 6.33: Top 20 flavors in new product introductions in 2008, % of soft drinks launched that claim to be natural or organic, 2005-2008 179
• Table 6.34: Top 20 flavors in new product introductions in 2008, % of soft drinks launched that claim to be high in antioxidants, 2005-2008 184
• Table 6.35: Top 20 flavors in new product introductions 2008, % of soft drinks launched that claim to be high in vitamins and minerals, 2005-2008 193
• Table 6.36: Top 20 flavors in new product introductions in 2008, % of soft drink launches that claim to contain low or no sugar or calories, 2005-2008 197
• Table 6.37: Top 10 flavors in new product introductions in 2008, % of soft drink launches that claim to be ‘high, instant, quick and boost energy’, 2005-2008 203
• Table 6.38: Top 10 flavors in new product introductions in 2008, % of soft drinks launches that claim to provide ‘vitality’, 2005-2008 206
• Table 6.39: Top 20 flavors in new product introductions in 2008, % of soft drinks launches that claim to be exotic, 2005-2008 218