With AI and ML growing phenomenally, it is safe to say that the future of food and beverage research and development lies in learning to sift through and analyze data. Spoonshot deploys AI and NLP to establish relationships between unstructured data points.
While dining out is opening up again, the Food and Beverage industry has to contend with severe labor shortages and general paranoia. This has led to a surge in automation and heightened scope to eliminate rote tasks, whether in choosing the dishes, payment options, or even flipping the burgers. This will allow restaurants to focus on mission-critical tasks such as creating new dishes and value-added experiences.
We process data on the properties of various ingredients and understand how they interact with one another to influence the final recipe. Sifting through large volumes of data and deploying our proprietary algorithms allows us to predict trends before they take off. For instance, our food and beverage research shows that carob is all set to make a comeback. We believe it will be the star of coffee innovation, RTD beverages, baked goods, bars, and powders.
Our team works to develop technology capable of providing nuanced knowledge. Based on real-time data, our food industry insights deliver highly relevant and curated intelligence to each of our customers. While generic insights are useful in varying degrees, personalized insights help brands fast-track product innovation and development.
Also Read: Fermented Food Market Analysis
Segmentation of the F&B Market
The various segments within the food and beverage industry are based on selling specific products starting from manufacturing through processing and distribution. The processed food is eventually packed and distributed through various channels for individual and commercial use. These are done by brands that identify as corporations, sole traders, or partnerships. The segments within the F&B industry range from alcoholic beverages to canned goods and bakery products.
We believe beverage research and development, in particular, will be exhibiting exciting innovation. Let’s look at what the food and beverage market research indicate for various segments within the industry.
1. Alcoholic Beverages
This segment consists of the sale of alcoholic beverages by various brands starting from manufacturing to fermentation and production of distilled alcoholic beverages. This includes wine, beer, spirits such as rum, whisky, cognac, etc.
The current beverage market research reveals interest in low and no alcohol drinks rising by 332.6% over the last five years. This is in direct correlation with more people seeking healthier choices.
2. Non-alcoholic Beverages
The non-alcoholic beverage market consists of the sale of beverages without alcohol. These include soft drinks, coffee, tea, soda, etc.
Beverage insights indicate a decline of interest in carbonated soda drinks since 2017 due to their high sugar content. This has led to a decrease in sales volume as consumers switch to juice, tea, coffee, and flavored water. Subsequently, there has been enormous growth in beverage research and development to fulfill evolving customer expectations in the non-alcoholic sector.
The beverage market research indicates that innovation in this sector has led to the inclusion of macro- [protein, fiber] and micro-nutrients [vitamins and minerals], reducing sugar, salt, and portion size, and eliminating artificial additives.
3. Grain Products
Milling flour meal from various sources such as grains or vegetables and making flour mixes or dough is the primary work in this sector. They also mill, clean, and polish rice and manufacture malt from barley, rice, and other grains.
According to Spoonshot’s food and beverage insights, consumer interest in gluten-free foods in the US has increased by 288% since 2012. The gluten-free food market is expected to grow to US$7.41 billion in 2026 at a CAGR of 5.8%. With an increasing awareness of Irritable Bowel Syndrome (IBS) and Celiac disease in conjunction with growing awareness of gluten, we believe there will be a rise in alternative flours, especially for baking. Spoonshot data predicts a 25% growth in interest in millets in the coming year.
We believe with the rising demand for gluten-free products more innovation will help brands achieve the best taste and texture possible.
4. Bakery and Confectionary
This segment, as the name suggests, consists of sales of bakery and confectionery products. Baked goods and pastries must get ahead of the game with the ongoing cancel culture around sugar. The global sugar-free confectionery market is expected to climb to US$ 3.5 billion by 2031 at a steady CAGR of 5.4%
Food and beverage market research demonstrate that allulose, a sugar substitute, will rise in popularity. With the keto diet going strong and allulose being keto-friendly, we predict allulose and sugar reduction technologies to trend into 2021 and beyond.
Also Read: Food Trends & Predictions 2022
5. Dairy Food
According to recent market research, the plant-based food market is expected to grow at a compound annual growth rate of 11.9%, reaching US$74.2 billion by 2027.
With more and more people turning vegan, dairy alternatives are on the rise. Our food and beverage market research indicates that dairy-free desserts made with aquafaba will take center stage in 2021. Nestlé has also announced that it will launch Kit Kat V, a certified vegan candy bar made from 100% sustainable cocoa, with a rice base instead of milk.
With increasing interest and demand for vegan products, business interest in vegan food and drink has grown by 521.5% since 2016. It is projected to grow by 5% throughout 2021.
Conducting Beverage Development Market Research
Prior to releasing a new product; it is crucial to get consumer feedback from a relatively smaller sample size before the official launch.
A data-driven, insightful method to achieve this is by conducting beverage development market research. This approach helps compiles beverage insights based on consumer feedback. This allows brands to make modifications and improvements as required to the new product before its official launch to a national or global audience.
- Figure out the target demographic
- Determine the criteria for screening interested consumers
- Confirm core qualification criteria of pre-qualified participants
- Participants answer questions regarding shelf displays at specific stores
- Participants purchase the product
- Participants taste-test the product and complete a short survey
- Participants complete a final questionnaire after a period of 4-6 weeks
- Following-up with the participants on their preferred communication channel,
The Road Ahead
Research shows the food and beverage industry is expected to grow to US$7.5 trillion by 2023. Food and beverage research and development is expected to accelerate, especially amid the pandemic. With increasing awareness of the link between food and health, consumers are looking for products offering clear health benefits.
We also expect to see higher food transparency, as consumers today want to know where their food comes from and what is in it. This means brands will be required to provide the complete ingredient list, certifications, nutritional information, and details regarding the sourcing.
Spoonshot’s research platform offers customized food and beverage insights, where predictions power opportunities and novel insights are the norm. Get started for free and power innovation through data and nuanced insights.