Natural Products Insider

SEP-OCT 2017

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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24 INSIDER September/October 2017 The landscape of the beverage market is changing as consumers begin to shun sugar-laden carbonated soft drinks (CSDs) for beverages they perceive as having healthier halos such as coffees, teas, herbal and energy drinks. The coffee and tea market is growing, with fl avors, ingredients and functionalities appealing to the conscious consumer who craves new fl avors in his or her beverage, but who also desires natural, clean label drinks. Trends such as exotic fl avorings, cold-brew coffees and ready-to-drink (RTD) beverages are making their way into the market and, according to a Mintel study, the top three non-alcoholic beverages (CSDs, juices and dairy milk) have all shown stagnant or declining sales, while energy drinks and coffee experienced strong sales growth of 8.7 percent. With consumer cravings straying from the conventional path, the cold brew market has a large opportunity for growth. Mintel reported 24 percent of consumers drink retail-purchased cold brew coffee, and retail sales reached an estimated $7.9 million in 2015, increasing 339 percent since 2010. But while cold brew sales are up, it is still only a small part in the RTD coffee segment, making up just 0.4 percent of sales estimated in 2015. This leaves signifi cant opportunity for cold brew innovation. Cold Brew Beverages According to Kip Murphy, marketing manager, Virginia Dare, cold brew coffee is popular among consumers because it offers smoother, less acidic fl avors than regular coffee, and its high caffeine level appeals to younger generations. Nesha Zalensy, technical sales manager, Fiberstar, said brewing coffee at a lower temperature helps avoid the development of compounds that cause coffee to turn bitter as it cools, and this helps the coffee maintain fl avor throughout its shelf life. According to Zalensy, manufacturers are adding vegan options to their coffees to provide fl avor as well as the clean label claim consumers desire. Nut-based and non-dairy milks such as almond, coconut and cashew milks are popular and contribute fl avor and creaminess to the beverage. Zalensy said hibiscus and yerba mate are also popular ingredients to add to iced beverages. Fruit Flavorings Fruity fl avors are being added to both hot and cold beverages on the market; however, when it comes to coffee, the coffee fruit itself can provide health benefi ts as well as fl avor. FutureCeuticals offers coffeeberry cascara, coffee fruit granules made from the powerful superfruit itself. "The reintroduction of coffee fruit nutrition back into ground and instant coffee provides a bold fl avor note and unique and benefi cial phytonutrients that are lost during the roasting process," said Andrew Wheeler, the company's director of marketing. He said the company's peer-reviewed dossier demonstrated that the coffee industry was discarding the most unique part of the coffee plant during the coffee roasting process. "The whole coffee fruit is truly the functional powerhouse," Wheeler said, and coffeeberry cascara can be added to coffee and tea to deliver unique phytonutrients and benefi cial antioxidants. Nitro-Infused Coffee According to Lucas Gonzales, strategic marketing partner of coffee and tea at Kerry Ingredients, consumers are interested in nitro-infused coffee, which is generally cold brewed. "The nitrogen bubbles create a frothy, indulgent texture, bringing out the natural sweetness of coffee," Gonzales said. The smooth taste offered by cold brew coffee and the increased perception of sweetness from the nitrogen bubbles allow less sugar, milk and other enhancers to be added to the beverage, reducing the amount of calories, fat and sugar consumed. Nitrogen-infused coffees provide a smoother, foamy texture and create a mouthfeel similar to some craft beers. Mintel found nitro coffees benefi t from retail appeal—more than one in 10 coffee consumers would purchase bottled/ canned nitro coffee, which increases to approximately one in fi ve Millennials. Vanillin Vanilln-based ingredients are becoming popular fl avoring agents for coffees, teas and functional beverages, noted Aparna Parikh, head of marketing at Solvay. "Vanillin provides a creamy texture and smooth mouthfeel, masking offnotes of proteins and natural sweeteners such as stevia, vitamins and omega-3s," she said. Solvay's four vanillin ingredients are mainly genetically modifi ed organism (GMO)-free products, derived from rice bran that provide physicochemical properties. "These products allow manufacturers to make the 'natural' claim, and serve as a replacement for vanilla bean and for addressing the need for more natural ingredients," Parikh said. The coffee and tea market is expanding as consumers avoid sugary soft drinks and desire beverages with positive health benefits. The clean label trend is influencing manufacturers to add not only new flavors, but beneficial functionality to their beverages. A variety of natural ingredients such as vanillin, fruit and juices can be added to coffees and teas to enhance flavor and functionality. Coffee & Tea Market Trends by Kaddie Stephens INSIDER's Take Food & Beverage: Coffee & Tea

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