February 2023 Newsletter
How Generational Habits Shift Food and Beverage Trends
As any parent, child, or grandparent will confirm, different generations have different needs and wants from food and beverage. From Generation Alpha to Generation Z to Boomers and everyone in between, age groups have unique needs. Younger generations may seek thrills, excitement, and intrigue from the products they consume. Older generations focus more on health and longevity.
Kids under seven usually like flavors that are natural, simple, and easy to understand. Classic flavors like vanilla, chocolate, and strawberry and flavor combinations like peach blueberry are kid-friendly tastes (Natural Product Insider).
Only 31% of US adults aged 18-25 ‘tend to stick to food they know they will like’, vs 40% of Millennials and 52% of Baby Boomers (Mintel).
49% of U.S. Baby Boomers wish they could redo past choices that have negatively impacted their health (Mintel).
Join us as we explore these unique details about different generations and the ways your brand can create connections with consumers of all ages.
Creating Lasting Connections with Gen Z through Food and Beverage
Has your food or beverage brand established a relationship with Generation Z? Younger people (ages 10-25) represent 24% of the population and their buying power is climbing. And while the generation is a complex group, they still have commonalities that brands can lean on for messaging.
A recent survey executed by Stanford University describes a typical Gen Z’er as “a self-driver who deeply cares about others, strives for a diverse community, is highly collaborative and social, values flexibility, relevance, authenticity and non-hierarchical leadership, and, while dismayed about inherited issues like climate change, has a pragmatic attitude about the work that has to be done to address those issues.”
Our insights team explored the different ways brands can create connections with the diverse GenZ generation, including:
- Comfort food redefined
- Creating focus
- On-the-go strategy
- Going (and staying) viral
Building Baby Boomer Brand Loyalty In Food And Beverage
Did you know that baby boomers are the second-largest population group in the U.S.? Aged 58 to 76, Boomers have enormous buying power as the wealthiest generation. According to Deloitte, they control about 70% of disposable income. With buying strength and high levels of interest in foods to sustain well-being, older generations are essential consumers for many food and beverage brands.
Check out our recent blog post to understand what boomers are looking for from food and beverage products. You’ll learn about trends and generational desires such as:
- Healthful options
- Support for health aging
- Classic tastes with a twist
- Cost conscious options
Innovation Investigation: Creative Flavors and Formats in Alcoholic Beverages
Like many food and beverage categories, the alcoholic beverage segment offers people many tried-and-true favorites. Classic tastes and formats like margaritas, martinis, and whiskey sours will always be popular, but brewers and distillers continue creating innovative concoctions to intrigue and excite consumers. In our recent blog post, you’ll learn about recently launched flavors and formats in alcoholic beverages and emerging interest in health and wellness, everyday pleasures, and affordable luxury.
Supply Chain Corner
Inflation Status Update
According to a recent Food Dive article, food inflation was up 11.3% from January 2022 through January 2023, with volatility expected to continue in the near future. Andy Harig at the Food Industry Association notes that “price increases are ‘not resetting as quickly, or as uniformly, as consumers would like.’”
Despite the ripple effects of inflation, Food Dive shares three promising indicators that the supply chain is beginning to correct, and the market will slowly follow. Kayla Bruun, an economic analyst at Morning Consult, summarizes the signals as follows:
- Loosening conditions based on grocery purchase data
- Fewer product shortages
- Easier access to supply
The chart below shows a slowing in inflation for major food groups, highlighting how prices have shifted from January 2022 to January 2023 and December 2023 respectively.
FDA Amends Standard of Identity for Yogurt
On December 14, 2022, the Food and Drug Administration (FDA) revised specific provisions in the final rule for the standard of identity for yogurt. Standards of Identity (SOI) began in 1939, outlining details such as necessary and optional components in specific foods, as well as preferred methods for production or formulation. While the system allows for flexibility, the fundamental goal is to create consistency and standardization across key food offerings.
The recent changes to the SOI for yogurt primarily impact the use of sweeteners and vitamin D fortification:
- All safe and suitable sweeteners, including non-nutritive sweeteners, are now allowed in yogurt.
- The minimum optional fortification of vitamin D in yogurt is now 10% of the daily value.
The new guidance went into effect on January 17, 2023, with a compliance date of January 1, 2024.
Stay Informed with FlavorSum Discover
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FlavorSum Team News
Celebrating our Growing Team
Helping you reach your food and beverage development goals is a priority at FlavorSum, where our team commits to doing what’s right for your brand every day. We’re expanding our bench strength and welcoming the following team members to FlavorSum:
- John M. – Production
- Kevin T. – Production
Visit our Careers page to learn about new opportunities on the FlavorSum team
How would you rate our insights?
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