May 13, 2025 – Brands are beginning to unlock the full power of artificial intelligence (AI), moving from infinite capabilities to concrete applications that elevate consumer experiences. This trend is generating opportunities for companies throughout the food and beverage industry. Innova Market Insights research looks at this trend, consumer insights regarding AI, and future opportunities for the F&B brands.
Consumer Insights
Millennials are leading the way in adopting AI and recognizing its value, while many Boomers remain skeptical, indifferent, or unaware. Additionally, there is a notable gap between regions; consumers in less developed countries are significantly more aware of and positive about AI. All generations in these regions are more likely to utilize assistants and appreciate AI’s potential in developing new products.
Brands should actively educate, engage, and build trust with consumers by being transparent about AI’s role in the products they introduce. It is essential to create immersive experiences, spark curiosity, and give consumers a voice. 41% of consumers globally see potential in using AI to develop food and beverage products. Globally, consumers seek plant-based snacks that offer a more natural taste — a concept that has become a mantra among consumers seeking healthier options, and an authentic taste. Younger consumers are particularly eager to explore new flavor profiles, seeking the perfect balance of contrasting flavors.
AI-Powered Personalization in Food and Beverage
Over the past four decades, the food and beverage industry has increasingly focused on marketing personalization, and now AI enables this at scale. Brands are leveraging AI’s creative capabilities to enhance consumer engagement, from customized product labels to personalized video content. The challenge lies in using AI not just for targeting but also for fostering meaningful connections.
To forge stronger relationships with consumers, brands can use AI to personalize communications, tailor advertising, and digitize product experiences. Engaging with AI-savvy consumers can be achieved through meal assistants and product scanners. Notably, 36% of global consumers express interest in using AI assistants for food creation. Therefore, brands should consider AI as a tool for connection, not merely customization.
AI-Generated Novel Flavors
Food and beverage brands can now design exciting new flavors and synthesize unexpected taste combinations by exploring a vast library of ingredients with AI. This technology is revolutionizing ingredient discovery, allowing food scientists to search through seemingly endless flavor and ingredient combinations for innovative ideas, as well as conduct virtual taste tests.
Millennials are at the forefront of recognizing AI’s potential in food and beverage innovation, ranking flavor and taste as the third most significant area for AI impact. Major food and beverage companies like Unilever and PepsiCo utilize AI to create new flavors, yet they rarely acknowledge this technology’s contribution in the market rollout.
AI-Generated Products
There is a 720% year-over-year growth in food and beverage products featuring AI-related claims. 2 in 5 global consumers believe that AI holds significant potential for innovation in food and beverage products. However, adoption of AI-generated food and beverages remains limited, with more than 25% of consumers unaware of their existence. Currently, companies tend to remain silent about products developed by AI, which may raise consumer concerns regarding transparency. Health benefits are prioritized by consumers as the primary focus for AI-powered food and beverage innovations.
AI-Related Product Development and Launches
Mondelez International has made early investments in AI and now integrates it across the organization. To optimize flavors and improve existing products, Mondelez employs machine learning to accelerate the innovation process and explore beyond traditional parameters. AI has been utilized to fine-tune sensory attributes, such as buttery texture, in-mouth saltiness, and vanilla intensity in Mondelez brands like Oreo and Chips Ahoy.
PepsiCo is leveraging generative AI to develop new flavors and shapes that resonate with consumers, such as the Cheetos Crunchy Flamin’ Hot Pickle flavor. In the beverage sector, AI is being harnessed to improve brewing processes. Beck’s Autonomous Beer was one of the first beers created using AI. Currently, the beverage market is leading in providing communication to consumers in the use of AI.
What’s Next in AI Trends in the Food and Beverage Industry?
Going forward, the use of AI in the food and beverage industry will likely focus on several key areas. First, there will be continued advancements in improving texture and mouthfeel, particularly in developing plant-based foods and alternatives for alcoholic beverages. This involves AI simulating the behaviors of various ingredients to enhance product quality.
Consumer adoption of AI applications will likely increase, leading to tools that scan products for potentially harmful ingredients, generate customized recipes, and provide meal planning assistance. AI is also anticipated to play a role in predicting sociocultural trends, consumer preferences, and emerging flavor profiles, giving manufacturers insights to better meet market demands. Additionally, manufacturers, retailers, and suppliers will benefit from exploring AI’s capabilities to discover new ingredients, reduce waste, and promote sustainability.
Food and beverage companies that embrace AI’s potential are positioned to innovate and transform the industry, setting themselves apart in a competitive market.
This article is based on Innova’s Top 10 Trends 2025: #10: Bytes to Bites – Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
