Brands need to be flexible to the cost-of-living crisis experienced by consumers today, but will still be rewarded for incorporating emerging technology and shoppers’ core values, according to Innova Market Insights’ Top Ten Trends report for 2023.
 
The market research company reports that cost and value for money have become more important to more than half of food and beverage consumers worldwide. Today’s shoppers are choosing lower-cost items and cooking from scratch to save money, but remain determined to sample new experiences, ensure personal wellbeing, and shop sustainably. As a result, there is more pressure on brands and manufacturers to deliver value while meeting wider public expectations.
 
“Redefining value throughout the food and beverage industry will lead in 2023 as consumers seek brands that listen, understand and respond to their core values. They want brands that provide quality, trust and confidence via their product formulations, communications and wider sustainability actions,” said Lu Ann Williams, global insights director at Innova Market Insights.
  
Innova’s top 10 trends for 2023 are: Redefining Value; Affordable Nutrition; Generational Push; Plant Based – Unlocking a New Narrative; Farming the Future; Quick Quality; Devouring Digital; Revenge Spending; Unpuzzle Health; and Positively Imperfect.
 
Redefining Value
 
Brands, innovators, producers, and consumers are wrestling with rising cost and price instability. Brands should have a deep understanding about where consumers draw the line, Innova reports. While price increases and flexible ingredient lists could be short-term options, the company advises that brands should be transparent about this and the benefits their products bring.
 
By being clear about health and sustainability goals, brands can achieve success, as health of the planet remained a top global issue among consumers Innova surveyed, who reported that they’ve reduced food waste and upcycled or recycled more to save money.
 
Affordable Nutrition
 
Over the past year, 62% of consumers reported a noticeable rise in the cost of their food and beverages, Innova reports. They are turning their attention to simple, affordable nutritious goods. Key behaviors include buying in bulk, opting for private labels, cooking from scratch, reducing spending on luxury items, and purchasing fewer items. Consumers are actively looking for affordable ways to maintain a healthy diet, and brands should innovate to extract maximum value from raw materials and the production process.
 
Generational Push
 
Younger consumers raised in the interactive digital world have more spending power – for Gen Z and Millennials, food and brand choices are important signifiers of lifestyle, beliefs, and values. In addition to health as a purchase driver, younger consumers are interested in novel and international flavors. They also are extremely responsive to positive engagement from brands, Innova reports.
 
Plant-based: Unlocking a New Narrative
 
The rapidly rising segment of plant-based foods has hit some inevitable roadblocks, and brands need to refocus on quality and flavor, according to Innova. Rather than mimicking animal-based foods, green gastronomy will allow brands to diversify and expand with culinary creativity and worldwide flavor profiles.
 
Two thirds of respondents to Innova’s global survey expressed desire to try plant-based versions of traditional, local cuisines. In addition to meal-ready offerings, there is scope for expansion into meal kits and recipe combinations. There is also interest in under-used ingredients, which could introduce more variety in flavor and address supply concerns.
 
Farming the Future
 
According to Innova, public curiosity for innovative technologies such as vertical and integrative farming are increasing. Advances in flavor, nutrition, and yield can win consumer support if they are shown to improve quality and sustainability in food production.
 
In addition to consumer interest in where their food is sourced, the welfare of agricultural workers is equally important, with 65% of respondents to Innova’s surveys agreeing they would rather buy fruit and vegetables from farmer’s markets than large stores. Brands need to demonstrate that novel production techniques are benefiting farmers, people, and the planet.
 
“At Innova, we have seen a considerable consumer demand for value redefined throughout the supply chain, with creative and flexible approaches to the use of technology and reducing waste proving pivotal,” said Williams. “With financial concerns a dominating factor, 2023 is a significant year for new developments that answer these growing demands. Based on our consumer and market research, our top trends deliver insights to support brands as they innovate and grow.”
 
On Nov. 9, Williams will present a webinar detailing the insights behind all 10 trends for 2023.