As consumer priorities shift, the food and beverage sector is undergoing one of its most dynamic transformations yet. The rise of health-conscious and sustainability-driven choices is reshaping product development, while affordability remains a key concern.
Manufacturers must strike a balance between innovation, cost, convenience and sustainability to meet evolving consumer expectations – but catering to so many varying needs comes with unique challenges.
The rise of non-ultra-processed foods
Once a staple of convenience, ultra-processed foods (UPFs) are losing favour. Consumers are increasingly opting for products with fewer additives and simpler ingredients. Reports indicate that demand for whole, natural foods is on the rise, as shoppers scrutinise labels for artificial preservatives, colourings, and seed oils. For manufacturers, this means reformulating products to meet these expectations while maintaining shelf life and taste integrity.
The protein boom and sugar backlash
Over the past year, protein has been one of the main buzzwords in supermarkets, with labels promoting high-protein content on everything from snack bars to beverages. However, as consumer awareness grows, the focus is shifting to quality over quantity, with an emphasis on natural sources of protein rather than heavily processed alternatives. At the same time, sugar reduction remains a pressing concern. With mounting awareness of excessive sugar intake, brands must innovate with alternative sweeteners and natural reduction techniques without compromising on flavour.
Sustainability under the microscope
Sustainability has become a key driver of purchasing decisions. Ingredient sourcing practices, such as the widespread use of palm oil, are increasingly scrutinised for their environmental and health impacts. Consumers are pushing for greater transparency, and prioritising purchasing from brands that adopt sustainable sourcing and communicate these efforts to the public.
Affordability vs. premiumisation: finding the balance
Economic pressures are reshaping shopping habits. While some consumers seek premium, high-quality products, others prioritise affordability, leading to a rise in budget-conscious buying behaviours. As a result, traditional premium vegetarian and plant-based products are seeing a decline, with many consumers returning to cheaper, mass-produced options. Brands must learn to navigate this divide, offering both accessible and premium choices to cater to diverse consumer segments.
The rise in functional food and beverages
A quarter of consumers are now opting for functional beverages at least weekly, a figure that rises to 30% for the vegan community. These products, which are reinforced with additional vitamins, minerals, probiotics or herbs, are now favoured for their ability to address health concerns or deficits in consumers’ diets. This shift is in line with an increasing focus on health and convenience, trends that should now be at the forefront for manufacturers.
Freshness above everything
Consumers are now buying smaller quantities of food on a more regular basis. They’re almost going back to the way people used to live, where they would buy bread every day or every other day, as opposed to buying a loaf to eat over a one- or two-week period. They are ultimately prioritising buying fresh, preservative-free food.
In tandem, the way consumers shop is also evolving. The weekly grocery haul is giving way to more frequent, smaller shopping trips, particularly in urban areas where convenience is king. This means food brands can benefit from rethinking packaging, portion sizes, and availability to align with this shift.
How manufacturers can stay ahead
To remain competitive in this rapidly evolving landscape, manufacturers must take a proactive approach, and be much quicker to go to market. Ingredient transparency is paramount, with consumers demanding clean labels and minimal processing. Reformulating products to reduce sugar content is also crucial, as health concerns continue to drive purchasing decisions. At the same time, sustainability must be taken into account, requiring ethical sourcing practices and clear communication about environmental efforts.
In response to economic pressures, brands need to strike a careful balance between affordability and quality, ensuring that their offerings appeal to both budget-conscious consumers and those seeking premium products. Additionally, the shift towards fresher food consumption presents an opportunity for innovation, allowing manufactures to explore partially prepared foods that are finished in-store, enhancing freshness while maintaining convenience.
