Demand for naturally flavored products, functional benefits and twists on nostalgic — or “neostalgic” — tastes are spurring food and beverage innovation at a time when Gen Z is beginning to make more household buying decisions.
The global natural and organic flavor products market is expected to grow from $9.99 billion in 2024 to $17.39 billion in 2034, growing by a 5.7% CAGR, according to Fact.MR data. The demand for natural flavor is driven by clean-label trends and consumer concerns about food additives, Fact.MR added.
“With consumers so driven by health and wellness, coupled with younger generations focused on sustainability, it is no surprise that we are seeing an uptick in the demand for natural flavors. Consumers typically perceive natural to be associated with better-for-you and the planet,” said Justin Kozlowski, VP and GM of flavors commercial for Bell Flavors & Fragrances.
Flavors and colors in focus: From emerging consumer demand to new manufacturing strategies
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Demographics shift drive flavor changes
Shifting shopper demographics are playing out across the food and beverage industry while younger consumers balance their demand for flavorful foods and value, Kozlowski explained. Conversely, Gen X and Boomer consumers prioritize quality and reliability in their products and connection with their brands, Bell shared in its Spark Trends report.
“Each generation brings its own distinct approach formed from their preferences, values and expectations, and in doing so, they shift attitudes, challenge traditions and reflect evolving needs. These changes are not just trends — they are a reflection of how consumer experiences are constantly being redefined,” he elaborated.
Gen Z and Alpha are “driving flavor trends toward daring and unique experiences, favoring adventurous tastes that reflect their diverse backgrounds,” and seeking “fusion combinations that tell a story,” Kozlowski explained. Additionally, they want “modern twists on nostalgic flavors” and care about sustainability and plant-based options, he added.
Millennial shoppers prioritize convenience and efficiency, but Gen Z and Alpha care about sustainably sourced and functional ingredients and seek products that can improve their health and well-being, Kozlowski explained.
‘The comfort of familiar tastes with exciting new ingredients’
Younger consumers' preference for nostalgic flavors with a twist gave life to the “Neostalgia” trend that reimagines “flavors that blend the comfort of familiar tastes with exciting new ingredients,” Kozlowski elaborated.
Neostalgia flavors include fruit punch, maraschino liqueur or orange cream beverages; charred turkey skin, maple and pork BBQ in savory foods; and banana split, fruity cereal and marshmallow for sweet treats, Kozlowski elaborated.
Orange cream continues to remain a popular flavor in the functional beverage category with fiber-infused soda brand Poppi offering the flavor, and competitor Olipop releasing a limited-time offering of the flavor in 2021. Additionally, the kombucha brand Health-Ade released an orange creamsicle last summer.
The salty and fatty pork rind – which taps into consumer demand for unique texture and protein – is seeing a better-for-you revamp and BBQ flavors. For instance, Texas-based snack brand Epic offers BBQ seasoned pork rinds that contain less than one gram of carbs per 0.5-ounce serving.
Consumers ‘take a step back from the busyness of life’
Functional foods and beverages are tapping into younger consumer demands for mood-boosting and -relaxing benefits.
“Flavor innovation continues to open the door for consumers to explore ways they can take a step back from the busyness of life through food and beverage, and by trying flavors that play to their taste preferences – it makes the experience personal. We are seeing flavors and ingredients with associations to states of calm and relaxation as well as stress relief in a variety of products, ranging from sparkling water to mochi bites, even sipping broth and French toast,” Kozlowski said.
IFIC found in its 2024 Food and Healthy survey of more than 3,000 consumers aged 18-80 years that 40% of Gen Z consumers wanted foods with energy benefits, 34% sought products to improve sleep and 32% to promote mental health.
Snack bar brands like Mosh and Mood Bars are addressing the need for functionality on the go with their snack bars designed to support brain health and lift moods. Additionally, The Functional Chocolate company is appealing to the youngest consumers with its recently launched FunCho Kids range that blends functional botanicals with dark chocolate.
