FlavorSum has released part one of their two-part series on food and beverage predictions for 2023 last week. They focused on the trending consumer habits and market trends in store for next year with next week’s segment featuring a spotlight on flavor and taste trends.

2022 was a year filled with a complex set of worries, both old and new. In addition to now-familiar concerns like COVID, health, and climate change, geopolitical conflicts and rising inflation have added to the heightened sense of unpredictability.

Trend Hunter predicts 2023 will be a period of “incremental chaos” as people make up for time lost during the pandemic and competitors reveal new products. During continued uncertainty, brands have opportunities to offer food and beverage choices that help people find their footing, support mental health, and reach lifestyle and sustainability goals.

Using Food To Nourish Mind And Body

More of us are experiencing anxiety (the body’s response to stress) in our daily lives. This “anxiety culture” is more than fear associated with developing issues according to Michael Schapira, Ph.D., adjunct professor of philosophy at Saint Joseph’s University, Philadelphia. Schapira notes that anxiety culture “has become characteristic of our dealing with the increasing problems and undefined solutions of a rapidly changing world.”

How can food play a role in alleviating anxiety? Global consumers are turning to food and beverage choices to improve their mental and emotional well-being. We can expect to see a continued focus on stress relief and mood-boosting ingredients across nearly all food and beverage categories. Other health-related benefits like brain health, gut health, and immune support will also be important.

Stand Out Statistics

• In the US, almost half of consumers (49%) experienced stress in the 12 months, while nearly two-fifths (38%) dealt with anxiety (Mintel).
• Nutritional benefits are a top five driver for consumers when it comes to food (Innova).
• Brain health is outpacing overall active claims in food and beverage, growing at 12% CAGR ending in Q1 2022 vs 4% for other active health claims (Innova).

Mood-Boosting Botanicals

With 36% of consumers believing functional food and beverages can improve or enhance mood (Innova), interest in mood-boosting botanicals like mushrooms and hemp is rising. Ashwagandha is currently the most frequent botanical in mood-boosting positionings, lion’s mane is the top functional mushroom, and saffron remains the fastest growing herb or spice (Innova).

Other botanicals to watch:

• Bacopa for memory and anxiety support (+95.6% CAGR over the last five years)
• Maca for anxiety, stress, and depression support (+74.6%)
• Lemon balm for sleep, anxiety, and appetite support (+73.4%)

Functional Beverages

According to Precedence Research, the $129.3 billion global functional beverages market could grow at an 8.94% CAGR from 2022 to 2030. And interest is rising. According to a FlavorSum proprietary study, 56% of US adults are looking for purposeful beverages.

We expect to see more fermented drink options like kombucha and kefir on store shelves. Brand Essence research predicts kombucha sales will deliver a 15% CAGR, surpassing $2 billion in North America by 2027. Technavio estimates North American kefir sales will reach almost $900 million by 2026 on a growth rate of almost 8% compounded annually.

People are learning more about the gut-brain axis, and we anticipate brands will provide education supporting health claims like gut health, immune support, and improved vitamin and mineral absorption.Global Consciousness

Awareness of global issues is expanding, and more people are making conscious food and beverage choices.. Whether selecting a plant-based option or looking for upcycled ingredients, shoppers will continue looking for foods and beverages that align with their sustainability and environmental goals.

Stand Out Statistics

• 70% of U.S. teens say that their sustainable actions can make a difference, while 56% worry about climate change (Mintel).
• 56% of adults in Canada consider food waste when purchasing food and drink in stores (Mintel).
• About 90% of plant-based food consumers aren’t vegetarian or vegan (NPD Group).

Inflation Awareness

Unfortunately, inflation is expected to stay above the Federal Reserve’s goal of 2% in 2023. As rising prices take their toll on household finances, shoppers will look for ways to economize their grocery budgets. According to Mintel, saving strategies will include finding value through bundling and deals (52%), reduced dining-out (39%), choosing store brands (36%), store switching (31%), and brand changes (17%).

New Formats

Forbes recently reported that 79% of Americans prefer personalized service that helps them feel seen, heard, and valued. Brands are responding with tactics like social media feeds based on hobbies and interests, meal delivery kits with weekly options, and personal styling services. People are also tailoring food and drink choices to fit their habits and goals, seeking a custom eating experience in and out of home. New formats like low or no alcohol beverages and inclusions like CBD can fill this desire for customization.

Stand Out Statistics

• 58% of global consumers are drinking more non-alcoholic and low-ABV cocktails than a year ago (2022 Bacardi Cocktail Trends Report).
• No- and low-alcohol volume will grow by 8% CAGR between 2021 and 2025, compared to regular alcohol volume growth of 0.7% CAGR during that same period (IWSR Drinks Market Analysis).
• The CBD category is forecasted to reach $23.6 billion by 2025 (Grand View Research).

Low/No Alcohol

The idea of “mindful consumption” takes inspiration from popular mental health and wellness practices. Innova reports that one-third of consumers aged 18-25 are now saying that they never consume alcohol. We expect the moderation trend will continue as people prioritize mental health and clarity and as the quality of low or no-alcohol choices improves.

CBD Drinks

Some people are exploring how CBD can help in their daily lives by reducing stress and pain or promoting sleep. Beverages fit well with the CBD category because of their versatility and portability. The U.S. CBD drinks market is expected to grow by 65% in 2023 and reach a value of around $657 million as more brands enter the market and states approve the ingredient (BevNet). Canada’s current regulatory environment limits purchase of cannabis-infused beverages to five cans per purchase, but brands are anticipating an easing of the limit in 2023. As more products become available, continued education and transparency will be important for building trust and brand loyalty.