According to new analysis from Kerry, a global leader in taste and nutrition, consumers are craving festive beverages that offer both nutritional balance and indulgence. Innovation is the key for providers to stand out from the competition.
Recent research by Kerry on the beverage market shows consumers want traditional Christmas flavors, with chocolate, gingerbread, caramel, hazelnut and cinnamon leading the way this year. Meanwhile, operators are exploring ways to do more with less, focusing on key flavors to translate into a variety of new and innovative formats this year.
The new holiday edition of The Art of Taste and Nutrition 2022 examines over 250 Limited Time Offers (LTOs) across 13 European countries. It categorizes the most popular beverage types and flavors while examining future trends and influences around the world. According to the study, these are the top three LTO trends:
- Added value: Consumers now decide wisely where and when they shop outside of the home. LTOs are therefore used as a strategy to differentiate from the competition.
- Indulgence vs. Health: Indulgence is part of the holiday season, but demand for healthier beverages is increasing as consumers seek to combine the tasty with the nutritious.
- Innovations: Farmers are innovating their LTO offering while keeping costs down by launching one or two flavors in different formats.
Daniel Sjogren, Vice President Europe, Foodservice at Kerry Group, comments on the new report: “In a rapidly changing market where inflation is impacting consumer spending power, LTOs need to expand offerings based on the latest consumer demands. At the same time, the cost factor must be considered to keep the beverage innovations accessible to the larger consumer segments. Therefore, in 2023, more reissued classics will dominate LTO offerings, rather than entirely new creative solutions.”
Providers with an offer that combines nutritional balance with delicious taste will win over consumers as sugar content has overtaken fat and salt as the top health concerns of European consumers in the catering industry.
“With a further development of the core offer, taking into account the nutritional value and sugar content, providers can stand out from the competition and convince the customers in the next year. We also expect more redesigned offers with more comprehensive information on sustainability, which is known to increase consumers’ willingness to buy. The market demands better value for money. Our Kerry team of beverage experts work with brand owners to develop sustainable and cost-effective solutions with less sugar. All of this is combined in one delicious drink,” says Sjogren.