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Consumers are now enjoying so many new and nourishing foods – and many more that they can look forward to, thanks to new ingredients and processing techniques that drive innovative product development.
Novel foods comprise a strong trend nowadays. New technologies in agriculture, food production and even food handling drive advances in this food category. But evolving consumer requirements are a major factor as well as these influence manufacturers’ response to such market trends and the direction of their R&D.
One such strong trend feeds the popularity of plant-based foods, supply of which has been increasing alongside people’s growing preference for more plant sources in their diet. More are turning to a flexitarian lifestyle, opting to eat less meat and more of plant-based alternative proteins, natural colouring from plants and even vegetable oils. While some allow themselves the occasional meat, they favour fish and seafood more and rely mostly on vegetables, fruits, whole grains, legumes, nuts, seeds, eggs, dairy products herbs and spices. Because of its higher fibre content, a plant-based diet decreases the risks of heart disease, diabetes and even certain cancers. This is why more F&B companies are offering plant-based products. Even coffee companies are broadening their menu options with plant-based alternatives.
Functional foods and drinks, also known as nutraceuticals, have grown in popularity for their health benefits and nutritional value as well. Concerns about overall wellness is pushing functional foods into the centre of conversations even more during the pandemic. Under this category are products that contain vitamins, minerals, probiotics or fibre as wellas vegetables, fruits and grains. Besides preventing or addressing nutrient deficiencies, these functional food and drinks help boost the immune system, protect against disease and promote better overall health.
Organic foods and drinks have likewise gained much traction in recent years, even creating its own industry, despite being priced higher than other food types. Produced similar to the standards of organic farming, organic fresh or processed foods do not use synthetic chemicals, pesticides, fertilisers and genetically modified organisms (GMOs), thereby promoting ecological balance and conserving biodiversity. Typically they are not processed using irradiation, industrial solvents or synthetic food additives. Organic meats, frozen meals and dairy products restrict the use of certain pesticides and fertilisers in the farming and are required to secure organic certificates or labels such as USDA and EU to ensure compliance.
Medical foods are formulated or processed for a specific medical purpose, either to manage the diet of a patient with a certain disease or address nutritional needs that cannot be met through a normal diet. Examples include special infant formulas, formulations for metabolic disorders, oral rehydration products, products for chronic diarrhoea, and special nutritional formulas for patients with specific conditions or diseases such as diabetes.
Hemp-based foods have been around for years, with hemp ingredients widely used in nondairy milk alternatives, cereals, breads, snacks and pasta. Sports nutrition products have picked up on the value of hemp seed, which contains all the essential amino acids, as an alternative source of protein. More manufacturers in Europe, the largest region growing hemp globally, are looking into hemp as a plant- based meat alternative.
Hemp flowers, leaves and all extracts with cannabinoids such as CBD oil, however, need novel foods approval from the European Food Safety Authority (EFSA). But hemp seeds and seed oils do not need NF approval.
One of recent advances and major trends in food technology is cell-based food. Cell-based meat, also known as cultivated meat, cellular agriculture or lab-grown meat, is produced using animal cell culture technology, wherein meat is produced from animal stem cells utilising biotechnology, tissue engineering, molecular biology and synthetic processes. Cell culture technology does not reproduce the animal itself, just a product that resembles traditional meat from an animal. The technology has advanced such that some companies are exploring cell-based meat options as substitute to farmed meat. Hamburgers, for instance, can be produced as cultured meat from animal muscle cells in a lab.
(Chart source: National Food Institute, Thailand)
How will these foods fare on the market?
A study by Thailand’s Krungsri Research forecasts functional foods will account for the bulk of the market, but the category will post the lowest growth rate through 2027 at 2.7% CAGR or USD180.8 billion. In contrast, organic foods are showing the highest growth potential at 16% CAGR and will likely be the most appealing to manufacturers and consumers alike. Plant-based alternative proteins and hemp-based foods have a high growth potential but currently face limited demand. The same small demand, plus high technology and capital barriers, could constrict the cell-based food line. For medical foods, potential high demand is expected even though the current segment is made up of niche sectors.
Thailand’s National Food Institute (NFI) forecasts 5% to 10% growth for functional and medical foods in the next five years, and 15% to 20% growth for organic and plant-based alternatives. Edible insects are projected to have the highest growth rate at 25% to 30% to hit US$1.46 billion by 2027.
Gearing up for the future of global food
NFI sees the global food market being heavily influenced in the years ahead by issues and trends surrounding personal nutrition and health and wellness. With consumers nowadays being more concerned about their health, personal nutrition, in particular for babies and the elderly, is expected to drive demand for food that provides a balanced diet. Medical foods for disease dietary management are also likely to grow in supply. Similarly, emphasis on health and wellness will spur interest in functional foods, natural foods, herbal foods and free-form foods.
Alternative proteins comprise another growing trend for the global food market for the months ahead. Products such as plant-based food, insect-based food, single cell-based and lab-grown meat are forecast to broaden the dietary selection for consumers. Meanwhile, calls for sustainability will boost the adoption of organic food and urge manufacturers and industry players to protect animal welfare, reduce food loss and food waste, and provide eco-friendly packaging.
As more consumers demand food safety and quality, trust will play a key role in ensuring F&B products gain market support, according to NFI. Compliance with Halal and Kosher food requirements and standards and fair trade practices would be crucial even as convenience and ease of use are highly pursued.
F&B manufacturers, including those in the processed sector, would benefit from closely monitoring market developments and trends and preparing to adopt new approaches and technologies. Rising elderly population, for example, would increase demand for healthier, nutritious and more personalised products for their dietary needs.
Food quality and safety concerns would boost preference for local ingredients and production as consumers will appreciate and trust ingredient sources and food management systems they know. The growing market support and resulting sales boost would encourage distribution network expansion even to remote areas, therefore spurring more economic activities for more communities.
As new food technologies gain traction, manufacturers can also explore microbial bioeconomy. They can utilise microorganisms and biotechnology to modify the taste and texture of meat without synthetic substances but delivering unique health values.
Digitalisation is another area that will complement these other technologies. As digitalisation is adopted across industries and companies, more F&B processes and even business-wide operations are expected to go digital. Where implemented, digital food systems now cover food quantity and raw material calculation, waste reduction and logistics management. Nutrition information and traceability are likewise enabled. Automation is seen as the future not only of food production itself but of packaging as well, with AI increasingly adopted across processes.
Amid greater exploration of new technologies, planetary resilience would remain an important core value for the F&B market. Businesses are expected to be more environmentally responsible and adopt processes that reduce greenhouse gas emissions and food waste more efficiently.
References
https://www.healthline.com/nutrition/functional-foods
https://www.britannica.com/topic/organic-food
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5466934/#s1title
https://www.ellethailand.com/starbucks-plant-based-menu/
https://insights.figlobal.com/trends/whats-new-hemp-based-food
https://en.wikipedia.org/wiki/Medical_food
https://poultry.extension.org/tag/cell-based-meat/
