The food and beverage industry is a massive part of the global economy, and it shows no signs of slowing down. It's an unstoppable force that's constantly growing. To what extent? Warren Buffett, the financial titan, always invests heavily in it — and, according to a Business Insider’s interview, the stock he never sells - no matter what - is Coca-Cola stock, along with Pepsi.
To him, those two companies have a moat that makes them impervious to threats. In recent years, the industry has experienced an incredible growth rate, thanks in part to a growing population, increasing urbanization, and rising incomes in many countries around the world. According to a recent report by Zion Market Research, the global food and beverage market was valued at $5.32 trillion in 2018 and is projected to reach $7.5 trillion by 2025, growing at a CAGR of 5.2% from 2019 to 2025.
This tremendous growth presents both challenges and opportunities for businesses operating in this industry. As the market continues to expand, competition among food and beverage companies is becoming increasingly fierce. To succeed in this space, companies need to stay on top of the latest trends and innovations and be willing to adapt quickly to changing consumer preferences.
As we look ahead to 2023, there are several key trends that are expected to shape the industry. From plant-based foods to sustainable packaging, these trends reflect changing consumer demands and a growing focus on health and sustainability.
The Evolving Food and Beverage Industry Landscape
The growth of the food and beverage industry presents a significant opportunity for businesses. With a global population of over 7 billion people, there is a massive and evolving demand for food and beverages around the world. By staying ahead of the curve and embracing the latest trends and innovations, companies can tap into this demand and grow their market share in a rapidly expanding industry.
As today's consumers become more health and environmentally conscious, they demand more from their product makers and brands. They want to feel as if change, a brighter, better tomorrow, not just for their home planet but for their mental and physical well-being, is in their control. These are emotional connectors that bind them to a brand. And with them, new and exciting fads are born into existence.
This desire has led to the emergence of new trends and the evolution of existing ones.
Trends are a reflection of changing consumer demands and preferences. They emerge in response to shifts in the industry, the economy, and society as a whole. They are critical to how a company links up with its followers and consumers.
By following these trends, businesses can stay ahead of the curve and remain relevant to their customers.
Latest Food and Beverage Trends
Plant-Based and Alternative Proteins
According to a recent survey conducted by The Vegan Society, there are an estimated 600,000 vegans in Great Britain alone. It's clear that veganism is becoming an increasingly popular lifestyle choice, with more and more people choosing to adopt a plant-based diet for ethical, environmental, and health reasons. In fact, according to a report by GlobalData, the number of people following a vegan diet in the United States alone increased by a staggering 600% between 2014 and 2017 — and that’s the extreme faction of vegetarians.
There are 3 times as many vegetarians as there are vegans. It’s a huge market pool of consumers. With more people adopting plant-based diets, there is a growing demand for plant-based and alternative protein sources. This trend is expected to continue in 2023, with more food manufacturers launching new plant-based products. Meat is out and beets are in — that’s the general consensus.
Sustainability
Consumers are increasingly concerned about the environmental impact of the food and beverage industry – making sustainability a huge 2023 food and beverage trend. This has led to a growing demand for sustainable packaging, zero-waste initiatives, and more sustainable farming practices. To what extent? A recent uproar occurred in a well-known supermarket chain in the US. Why?
They had boxed up oranges in clear plastic bins of oranges — in individual packaging. Oranges? One of the few fruits that already comes with organic protective packaging.
Global Flavors and Fusion Cuisine
As the world becomes more connected, consumers are embracing new and exciting flavors from around the globe. Fusion cuisine, which combines different culinary traditions, is also becoming increasingly popular — and Instagram foodies and influencers are pushing the trend into overdrive.
Transparency on the Food Supply Chain
Consumers want to know where their food comes from and how it is produced. This has led to a growing demand for transparency in the food supply chain, from farm to table — in recognizable and easy-to-understand labels. Not just when it comes to what goes into making their foods, at an ingredient level, but also what type of workers and laborers the company is employing.
Mental Performance Nutrition Demand
Mental health is becoming an increasingly important topic, and consumers are looking for foods that can boost their cognitive function and mood. Health is the new IT and consumers are adopting the best standards in every aspect of their lives.
Minimalistic Product Communication
Consumers are looking for simplicity and transparency in product communication. Brands are responding by simplifying their messaging and packaging — by understanding that key change, when it comes to packaging, companies can boost their brand recognition and cut back on certain costs.
Mindful Eating
One of the biggest food and beverage trends is that consumers are becoming more health-conscious, and there is a growing focus on mindful eating and mental wellness. This includes a focus on foods that can promote a healthy gut microbiome and reduce inflammation — and it’s an all-encompassing trend because consumers are becoming more focused on the provenance and the “how” of their foods. Who cultivated it, why, and under what circumstances?
The Demand for Non-Alcoholic Drinks
With more people choosing to drink less alcohol, there is a growing demand for non-alcoholic drinks. This includes everything from mocktails to alcohol-free beer and wine.
More Robot Kitchen Assistants
As technology advances, there is a growing demand for robot kitchen assistants that can help with everything from meal prep to cooking.
Rise of Connected Kitchens
Smart appliances and connected kitchens are becoming increasingly popular, with consumers looking for ways to streamline their cooking and meal planning — looking to make their lives easier and more manageable. Just like when the microwave became popular due to its convenience, today's technology continues to evolve to meet consumer demands for efficiency.
The Popularity of Fermented Drinks
Fermented drinks, such as kombucha and kefir, are becoming increasingly popular as consumers look for drinks that are both healthy and flavorful. Craft beers also have a huge market share in today’s consumer trends — as well as craft gin.
Increasing Popularity of Mushrooms
Mushrooms are being hailed as the next superfood, with studies showing that they have a range of health benefits, including immune-boosting properties. More and more companies are employing them, particularly to make vegan burgers or other such items. In most cases, replacing soybeans with these fantastic fungi.
Vertical Farming
Vertical farming, which involves growing crops in stacked layers, is becoming increasingly popular as a way to produce more food in less space. This has become a huge trend in countries such as Japan and China. And it’s not just a corporate craze but a private one as well, with more individuals investing in this rather interesting 2023 food and beverage trend.
Staying Up to Date with Current Trends in the Food and Beverage Industry
Staying relevant in the fast-paced world of today is challenging — the food and beverage industry is evolving rapidly at breakneck speed and leaving behind a lot of those that don’t change with the trends. Currently, the motto is “Adapt or die.” Understanding the latest trends can help businesses maintain their competitive edge.
In 2023, the food and beverage industry is expected to be shaped by a range of trends that reflect the growing consumer focus on health and sustainability — these two pillars are essential to understanding the new mindset. These trends are driven by an increased awareness of food's impact on personal health and the environment. Consumers are more conscious about the food they consume and its impact on their health and the planet.
Businesses that prioritize health and sustainability are likely to appeal to a growing customer base. The trend towards plant-based diets is expected to continue to grow in popularity, with more consumers seeking out vegan and vegetarian options. Plus, the use of organic and locally sourced ingredients is also expected to be a key trend in the food and beverage industry in 2023.