Food and beverage industry (1)

Food and Beverage Industry Trends: May 2025

From Gut Health to Climate Action: What’s Driving New Food and Beverage Launches

June 13, 2025 – Innova Market Insights analyzes ongoing food and beverage trends for May 2025, linking them to three of our Top Trends for 2025: Trend #4: Flourish from Within, Trend #5: Rethinking Plants, and Trend #6: Climate Adaptation. We explore trends within plant-based ingredients, the juice market, the future of convenience packaging, and more.

Natural Functional Plant-based Ingredients

Food trends show that plant-based products are becoming increasingly popular and accessible as the impacts of climate change intensify. Consumers are now seeking nature-derived plant-based functional ingredients to improve health and wellness. While plant-based claims on new products were initially used to distinguish them from animal-based options, they are now establishing their own identity. In fact, 55% of consumers globally believe that plant-based products should stand alone and not merely serve as alternatives.

The Functional Chocolate Company has launched plant-based, dairy-free Sleepy Chocolate Sweet Slumber, an ethically sourced dark chocolate bar made with 60% cacao and flavored with blueberry and lavender. This chocolate offers functional wellness benefits by incorporating melatonin, calming chamomile, and magnesium to promote a restful night’s sleep.

Added Fiber for Gut Health

The growing awareness of supporting the microbiome is bringing fiber into the spotlight as a key ingredient. The primary reason consumers seek functional foods is to boost their digestive system and gut health. In response, the food and beverage industry has introduced a wider range of functional products across various categories.

This food trend is reflected in two main components: first, companies are incorporating functional ingredients, such as fiber, into products that typically lack high fiber content: second, more brands are emphasizing the functional benefits of products in categories where gut health-supporting ingredients are already included.

For example, Nature’s Path has launched three fiber-rich Oaty Bites snacks for children aged 4 years and older under its Love Child Organics brand. These gluten-free snacks contain oats and chia seeds, offering both soluble and insoluble fiber to support digestive health by promoting regularity and nurturing beneficial gut bacteria.

Fermentation for Probiotics

Korean kimchi, sauerkraut, and similar fermented and pickled condiments are witnessing significant growth, with a CAGR of 14% from 2020 to 2024 and a remarkable 23% year-over-year increase projected in 2024. A notable example is the Pickle Party product line from Edible Garden, a company that specializes in controlled environment agriculture for herbs, lettuce, and various greens. This recent expansion features four varieties: Sauerkraut, Spicy Kraut, Whole Half Sour Cucumbers, and Whole Sour Cucumbers. These locally produced products, developed in collaboration with Hermann Pickle Company, are rich in fiber and probiotics that support gut health and contain antioxidants.

Gut health has become one of the most widely recognized health benefits, driving growth in the functional beverage sector, with kombucha standing out as the leading example. Key claims include prebiotics, probiotics, and fiber content.

Food and beverage industry May 2025

Overcoming Sugar Concerns in Juices

Beverage trends reveal that consumer tastes are shifting away from sugary drinks, with nearly half of consumers globally actively limiting their sugar intake. Five years ago, sugar reduction ranked eighth among factors influencing juice purchasing decisions, but it now stands at second place.

Many brands are reformulating their juice, nectar, and flavored still drinks to reduce sugar content. Products claiming no, low, reduced, or no added sugar have increased by a 3% CAGR from 2020 to 2024, contrasting with a declining 1% CAGR for total juices. Sugar-reduced launches accounted for over one-quarter of new juice products for the first time in 2024.

Pomegreat Pomegranate juice drink contains no added sugar and sweetens the tart juice with sucralose. Coca-Cola’s Amita Free beverage line offers significantly fewer calories than similar sugary fruit drinks. The Greek juice brand reformulated and relaunched this line to enhance its competitiveness in the functional beverage market. For sweetness, Amita Free products use the natural sugars from fruit along with three sweeteners: sucralose, acesulfame-K, and steviol glycoside from stevia, rather than added sugars.

Consumer Awareness of Climate Change

Consumer awareness of climate change is increasing, along with openness to solutions such as regenerative farming, agroforestry, and climate-resilient crops. This shift is impacting purchasing and consumption behaviors regarding products known to contribute to climate change. For instance, although overall meat and poultry consumption has increased, nearly one-quarter of consumers who reduced their intake did so due to environmental or ethical concerns. In contrast, consumption of meat substitutes surged, with more than one-quarter of those who consumed more doing so for ecological or ethical reasons. A similar pattern is seen with dairy products and their alternatives.

In response to this demand, brands are stepping up their efforts to promote sustainable choices. For example, the Brazilian Certified B Corporation, Nude, encourages consumers to consider their environmental impact. They offer low-carbon products, including the Nude Barista Vanilla Oat Drink and Nude Chocolate Oat Drink. Each product has its low carbon footprint clearly indicated on its FSC-certified (Forest Stewardship Council) packaging: 0.54kg and 0.58kg CO2e/kg (carbon dioxide equivalent per kilogram), respectively. Additionally, this carbon-neutral company offsets 100% of its packaging through social projects.

Chocolate’s Impact on Climate

The annual spring “chocolate holidays” of Valentine’s Day and Easter bring chocolate hearts, bunnies, and eggs to retail shelves. In recent years, these occasions have sparked media coverage regarding chocolate’s relationship with cocoa and palm butter, as well as their impact on climate change. Consumers are aware that one consequence could be rising prices in certain categories. When surveyed about their responses to potential price increases, chocolate had the highest percentage of consumers reporting that they would stop buying it or purchase less compared to other categories studied.

Earlier this year, Ritter Sport introduced its limited edition TikTok sensation, the Ritter Sport Pistachio chocolate bar. Ritter Sport has been recognized as one of the most sustainable companies by the Chocolate Scorecard, which evaluates companies against six performance standards, from traceability and transparency to climate action and deforestation efforts, as well as support for agroforestry. Over the past four years, Ritter has improved its standing in five of these six areas.

The Rise of Convenient and Portable Food Packaging

Consumers are increasingly seeking convenience due to growing global urbanization, return-to-office mandates, and more socially active lives in the post-COVID era. They desire quick and effortless access to food and drinks, particularly during busy mornings, for meal prep, and for family meals. In response, manufacturers are innovating packaging solutions that minimize frustration and save time during meal preparation.

Pouches have become a key format, featuring easy-to-tear openings, airtight resealable closures, and drip-free spouts. These pouches hold liquids, powders, solids, and semi-solids, making them suitable for a variety of products, from baby food and coffee to soups and snacks. An example of this trend is the Woolworths Food Free Range Spicy Tomato Chicken Drumstick Fillets, released in a 600g plastic standing pouch, available in South Africa.

Food and beverage trends show that cups are also gaining popularity due to their on-the-go advantages, extending beyond traditional beverage use. This format can be used for everything from drinks to desserts, snacks, and even fruits and vegetables. While single-serve cup packaging is predominantly seen in coffee and tea products, manufacturers occasionally use it for other beverages like milk and wine. For instance, Weibao Food Company’s Lychee Flavored Milk Drink in China is packaged in a 520g plastic cup with a shelf life of 10 months at room temperature. Additionally, grocery retailer Rewe recently launched Penny To Go Bableves (Beans Soup) in Hungary, available in a 320g plastic microwaveable heat-and-eat cup.

Spicy Flavors

Around 1 in 4 Millennials and Gen Z like to take their own hot sauce when eating out. To cater to this food trend, 5-hour ENERGY has launched Energizing Hot Sauce, a collaboration with West-Mex icon Taco John’s, featuring a caffeinated Mango Habanero flavor. This sauce comes in a portable format, making it an ideal on-the-go companion for any saucy occasion.

Athenos, the leading brand in feta cheese, and Tajín, the top-selling chili-lime seasoning, have teamed up to launch: Athenos Tajín Feta Cheese. This product fuses the creamy, tangy flavor of Athenos Feta with the zesty kick of Tajín Clásico Chile Lime Seasoning, delivering a bold flavor experience. The collaboration between Athenos and Tajín exemplifies how two beloved brands can join forces to create something extraordinary.

Insights-Backed Confectionery Innovations

Mars showcased an array of products at the recent Sweets and Snacks Expo, including Starburst, M&M’s, Skittles, and Snickers. Ferrero North America also presented its offerings, with its Tic Tac Dr Pepper aligning with Innova’s Wildly Inventive trend. Hershey’s introduced a chocolate bar with caramel, while Bazooka Brands announced two new candy products. Additionally, American Licorice Company unveiled several innovations, including a new brand aimed at a younger audience.

Within the Mars portfolio, various new products respond to evolving consumer preferences, ranging from the demand for healthier options to Gen Z’s interest in adventurous textures and formats, alongside chocolate’s persistent popularity during seasonal events. Mars presented some of its latest innovations, including:

Starburst Goodies: These new gummies are plant-based with 4g of sugar per serving and are an excellent source of fiber, hence the name Goodies. Crafted with real fruit juice, Starburst Goodies are the sweet treat you’ve been waiting for.

M&M’s Peanut Butter & Jelly: The newest addition to the M&M’s Peanut Butter lineup features berry-flavored, bite-sized chocolate treats with a smooth peanut butter center, reminiscent of the classic PB&J sandwich experience.

Subscribe to Innova Insights E-Magazine

This article is based on the latest issue of our e-magazine, Innova Insights, which is published 10 times a year. It reports on the newest innovation case studies, marketing strategies, and trends.

Regular features include “Innova’s Top Ten Trends in Practice,” highlighting the latest launches that align with these trends, and showcasing recently published Innova reports and infographics. Additionally, the e-magazine covers trending new products that were launched in the previous month.

 

This article is based on Innova’s Insights: May 2025 Edition report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more

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