Top Ten Trends for 2022

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Top Ten Trends for 2022 2021

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INNOVA MARKET INSIGHTS

doing my part

building trust

transparency triumphs

Trend 1. Shared Planet

Joint responsibility: Trust and transparency are key to building a product life story that stands up to scrutiny

“Health of the planet” is now the top global issue for consumers

2020

“Which of these global issues concern you the most?”

2021

1.

Health of the population

1.

Health of the planet

2.

Health of the planet

2.

Health of the population

Trust and transparency are key to help consumers make responsible choices

France, Jun 2021

United States, Jul 2021

United Kingdom, Sep 2021

Sources: Innova Database Innova Lifestyles & Attitudes Survey 2020 and 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China and Indonesia) 3 INNOVA MARKET INSIGHTS

Building trust with a more tangible communication strategy

55%

“There are too many environmental labels, so I don’t know what to look out for”

of consumers globally

Connecting with consumers

Redefining communication

Measures for comparability

+93% “By eating the new meat from The Vegetarian Butcher (instead of animal meat), you save animals and make a positive contribution to the environment. To develop this Impact Meter, we have worked with data from reliable research.”

“I prefer one label that captures the complete impact on the environment over multiple labels”

64%

of consumers globally agree or strongly agree

Year-over-Year growth of on-pack carbon emission communication (Global, Q4-2019/Q3-2020 vs. Q4-2020/Q3-2021)

No Carbon Whole Milk Brazil, Jul 2021

Sources: Innova Database, The Vegetarian Butcher, Etiquettable Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 4 INNOVA MARKET INSIGHTS

pace setter

the adventurous consumer

changing taste expectations

Trend 2. Plant-Based: The Canvas for Innovation

Nutrition and sustainability play a bigger role as brands refine the next generation of plant-based foods 2019

2020

2021

2022

The Plant Kingdom

The Plant-Based Revolution

Plant-Forward

Plant-Based: The Canvas for Innovation

“For what reasons would you consider plant-based alternatives?”

2020

2021

1

IT IS HEALTHIER

IT IS HEALTHIER

1

2

IT BRINGS VARIETY TO MY DIET

IT IS BETTER FOR THE PLANET

2

3

IT IS BETTER FOR THE PLANET

IT BRINGS VARIETY TO MY DIET

3

4

IT TASTES BETTER

IT REPRESENTS MY VALUES & BELIEFS

4

Environmental sustainability across regions “The new protein line reinforces its commitment to promote a sustainable ecosystem that treats the planet, animals, and us right”

United States, Jun 2021

Hong Kong (China), Jun 2021

Sources: Innova Database, Omnifoods Innova Trends Survey 2020 and 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China and Indonesia) 5 INNOVA MARKET INSIGHTS

Consumers are looking for quality alternatives to meat, dairy and more Increasing need for plant-based food optimization

132% in 3 +93%

…consumers globally would not consider buying 100% plant-based alternatives

“because of poor taste and texture”

Mimicking or competing? From tech to table Aqua Cultured Foods has developed the first whole-muscle cut sushi-quality seafood alternatives created using microbial fermentation.

…growth in food & beverage launches* with a plant-based and a premium & indulgent claim (Global, Nov 2019 – Oct 2020 vs. Nov 2020 – Oct 2021)

13 Sep 2021

United States, Sep 21

“Roquette expands plantbased gastronomy reach with new French protein center” Sources: Innova Database, Food Ingredients First, Aqua Cultured Foods Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 6 INNOVA MARKET INSIGHTS Note: *excl. sports nutrition and baby & toddler products

celebrating tech

the future now

consumer conversations

Trend 3. Tech to Table

Technological advances have created serious innovation opportunities for the entire food and beverage industry

2 in 5 consumers globally

Speeding up commercialization

“Europe’s cell-based movement serves up cultured seafood as players race to lower production costs”

“I am more open to new technologies now that I have seen where it has brought plant-based innovation” Protein derived from air

Measuring health

The wearable sensor to track glucose levels to provide instant feedback on food choices.

14 Sep 2021 Sources: Innova Database, Food Ingredients First, Solar Foods, Veri Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 7 INNOVA MARKET INSIGHTS

Opening up to new technologies through consumer conversations Benefit-driven communication boosts cell-based potential

“I believe that cellbased technologies can be the future of the food industry”

“Leonardo DiCaprio investing in Mosa Meat and Aleph Farms predicted to advance cultivated meat”

23 Sep 2021

“Leo brings a proven track record as an investor and advisor to companies working tirelessly to combat the effects of climate change in order to protect our planet.

His long-standing commitment to environmental causes makes him highly influential”

Cultivated beef is projected to reduce

1 in 2

Climate impact by

Air pollution by

Water usage by

Land usage by

consumers globally

-92%

-93%

-78%

-95%

Sources: Mosa Meat, Food Ingredients First Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 8 INNOVA MARKET INSIGHTS

evolving food landscape

at-home gastronomy

catering to social needs

Trend 4. Shifting Occasions

The pandemic reshaped existing eating occasions and helped form new ones

Out-of-home Leveraging technology to create “safer” OOH eating environment

22 Sep 2021

Enhancing at-home experiences with restaurant branded products available globally

Retail

1 in 2

New Zealand

Japan

Netherlands

United States

Food Service

Brand collaborations as new consumer-retail channels

PepsiCo unveils touchless menu technology as an alternative to traditional touchscreen kiosks, recently trailed in KFC Poland

consumers globally want to try out new delivery concepts (e.g., drone delivery, <5min delivery, Gorillas delivery).

At-home

Sources: Innova Database, Food Ingredients First, Starbucks Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 9 INNOVA MARKET INSIGHTS

Seeking elevated eating experiences top of mind for consumers Extending the ultimate sushi experience to homes

Kappa Sushi restaurant chain rents out sushi conveyor belt to select diners for at-home use Jul 2021

It’s time to socialize again…

60% of consumers globally say

“I expect companies/brands/restaurants to expand on services that enhance social interactions”

Retail re-launch chat desks

Source: Jumbo, Netherlands

Socializing still optional

Buy a round when you’re not around. When you can’t join your friends at the bar, HADOM lets you send them drinks.

Sources: Innova Database, Kappa Sushi, Jumbo, Hadom Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 10 INNOVA MARKET INSIGHTS

joining the conversation

consumer co-creation

entrepreneurial mindset

Trend 5. Voice of the Consumer

Consumers are calling the shots and expecting more engagement from brands

“A company should listen to consumers more when developing products, flavors or strategies”

“Menu for change”: EIT Food targets healthy food access for Gen Z in latest program

26 Jul 2021

Joining the conversation

3 in 4 consumers globally

“The FutureFoodMakers will embody the role of a sustainable food activist; gaining access to the food sector to drive positive change and help design a food system they understand and feel connected to.”

Sources: Innova Database, Food Ingredients First, EIT Food Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 11 INNOVA MARKET INSIGHTS

Consumers are demanding control and brands are granting it Consumer conversations

Consumers in control

Taika (415) 212 7711 Matcha Latte

Cadbury Dairy Milk – VOTE TO KEEP ME

United States, Aug 2021

United Kingdom, May 2021

Turning backlash into conversation

Using consumer criticism as a conversation starter that allows education and interaction

Sources: Innova Database, Taika, Beneath the Surface 12

INNOVA MARKET INSIGHTS

know your gut

interconnected health

exploring ingredients

Trend 6. Gut Glory

The microbiome has the potential to be a game changer in how consumers manage their health

“Gut health is key to achieving holistic wellbeing”

“To what extent do you think are the following physical health aspects influenced by gut health?”

1. Immune Health 2. Energy Levels 3. Sleeping Better

2 in 3 consumers globally

4. Mood UK, Sep 2021

Sources: Innova Database, Superloaf Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 13 INNOVA MARKET INSIGHTS

Future will center around understanding the full potential of ingredients Bubble size: number of food and beverage launches* with a gut health claim and selected ingredient (Global, 2021YTD)

80% How effective do you think the following ingredients 75% related to gut health are?

EFFECTIVENESS

% of consumers saying ‘somewhat’ or ‘very’ effective

Figure | Consumer familiarity vs. attitude toward effectiveness of ingredient types for gut health

Fiber

70% Probiotics

65% 60%

MAINSTREAM

55%

50%

WATCH LIST 45% 40% 20%

Postbiotics 25%

30%

35%

40%

45%

50%

How familiar are you with the following ingredients related to gut60% health?

55%

65%

% of consumers saying ‘very’ or ‘extremely’ familiar

FAMILIARITY Sources: Innova Database Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 14 INNOVA MARKET INSIGHTS Notes: 2021YTD = Jan 2021 – Oct 2021 *excluding baby & toddler products

trust and transparency

sourced from

community conscious

Trend 7. Back to the Roots

Consumers increasingly value the functionality, freshness and authenticity of local food Freshness, flavor & function amid pandemic “Grown Locally, Harvested Daily, Delivered Fresh”

“When buying food/drinks, what factors have become more important to you over the past 12 months?”

2020

+9ppt

2021

34%

Freshness

43%

+7ppt

Flavor

36%

43%

+2ppt

31%

Nutritional Benefit

29%

United States, Sep 2021

“If you have bought/sourced more local produce in the past 12 months, to what extent do you expect to continue after the pandemic?”

Much less

“A modern take on traditional Mexican tepache”

Much more % of consumers globally

United States (Import from Mexico), Mar 2021

Sources: Innova Database (ppt = percentage point) Innova Lifestyles & Attitudes Survey 2020 and 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China and Indonesia*) 15 INNOVA MARKET INSIGHTS Note: *Canada (2021 survey only) excluded for consistent comparison with 2020 insights

“Back to the Roots” strategies: what’s next on the shelves?

A growing consumer taste for…

Community Conscious

Fresh Comfort Food

Local brand for products sourced from* CharenteMaritime (17), France

Frozen pie, Unbaked

Naturally Functional

Elix: Barry Callebaut breaks into nutraceuticals with EFSAbacked cacaofruit drink

Plarre’s Bakehouse Pie Society Artisanal Slow Cooked Greek Lamb Pies with Lemon and Fetta Mash

Australia, Oct 2021

15 Oct 2021

Since Oct 2020 Sources: Innova Database, + de 17 dans nos assiettes, Pie Society, Nutrition Insight *Local/seasonal products with at least ¾ of ingredients sourced from Charente-Maritime

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INNOVA MARKET INSIGHTS

hungry for experiences

taste testing

food as entertainment

Trend 8. Amplified Experiences

Accelerated by the pandemic, consumers are hungry for new food and beverage experiences

More than

1 in 2

consumers globally say: “post COVID-19, I want to be more adventurous with my food and beverage choices”

Setting your taste buds free from lockdown

After Hard Seltzers, other categories are turning hard Coors expands their products beyond hard seltzers with Coors Seltzer's Orange Cream Pop ice cream

“Australians love to travel but going abroad has been difficult in the pandemic. Magnum is helping to satisfy the Aussie travel bug with these new flavors inspired by Amsterdam, Tahiti and New York.” Australia, Sep 2021

The King of Beers meets the UK’s best-tasting popcorn brand to launch the official Budweiser Popcorn

Sources: Innova Database, Magnum, Coors, Joe & Seph’s Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 17 INNOVA MARKET INSIGHTS

Celebratory moods are spurring exciting and wacky NPD Consumers globally say…

“I would like to see more technological collaborations to create indulgent flavors, texture, and/or format combinations.”

“I want to taste/try out new products, but only if I am familiar with the brand.”

Sep 2021

Cup Noodle is celebrating their 50-year anniversary with Cup Noodle Soda. Four of their most popular and bestselling flavors—original, seafood, curry and chili tomato— have been turned into fizzy beverages.

United States, Sep 2021

United States, Oct 2021

Sources: Innova Database, Cup Noodle, Food Ingredients First Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 18 INNOVA MARKET INSIGHTS

finding value in waste

storytelling opportunity

moving mainstream

Trend 9. Upcycling Redefined

Ingredients that were once considered waste are being given a new lease on life in the circular economy “A product that contains upcycled ingredients is more appealing to me than other products”

“Industry’s first upcycling food label targets over 255 product certifications in 2021” 04 May 2021

1

Upcycled Food Association (UFA) is rolling out the “world’s first mark certifying upcycled food”

21 Sep 2021

35%

of consumers globally

“Upcycled beauty start-up Honestly It’s repurposes waste ingredients amid rising circular beauty trend”

The “My Addiction” Foaming Scrub Powder is made of 50% upcycled coffee grounds

Sources: Innova Innova Database, Food Ingredients First, Personal Care Insights Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 19 INNOVA MARKET INSIGHTS

Different entities join hands to address global food waste issues +62%

…average annual growth in food & beverage launches with a food waste/upcycling claim (Global, CAGR Q4 2016 – Q3 2017 to Q4 2020 – Q3 2021)

“If you prefer upcycled ingredients, what makes them better in quality?” (Top 3 reasons) 1. Sustainability

India, Sep 2021

2. Healthiness/Nutritious

Canada, Sep 2021

Creating future food from waste, a circular approach Researchers produce meat analogs using organic waste recycling of by-product, Okara

17 Sep 2021

3. Freshness

United States, Sep 2021

“Meat analogs are the future food. Both business and science will have to reconsider the effect of using secondary raw materials, and it will benefit all the parties by reducing costs and saving resources.

Science is the key to an efficient shift.”- KTU Food Institute

Sources: Innova Database, Food Ingredients First Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 20 INNOVA MARKET INSIGHTS

lifestyle driven

personal expression

reflects my values

Trend 10. My Food, My Brand

Food choices are now signals of entire lifestyles as personal values intertwine with purchasing decisions Personal and social values are becoming increasingly important in assessing the value of food & beverages

“How important do you think these values are when it comes to your diet?”

Humanitarianism

Inclusivity

Diversity

62% 56% 53%

Germany, Sep 2021

United Kingdom, Sep 2021

United Kingdom, Mar 2021

From Targeting consumers by adapting to consumption related preferences To Targeting consumers by reflecting their beliefs and values

Sources: Innova Database Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 21 INNOVA MARKET INSIGHTS

Health redefined: The importance of values, identity and self-love “I care about positive body type awareness on social media”

47%

of consumers globally

“Nutritious cereal? General Mills launches “Good is Good Enough” campaign to redefine healthy eating”

18 Aug 2021

Starburst #DoYou puts a spotlight on self-love and challenges consumers to treat themselves instead of restrict themselves

Sources: Innova Database, Nutrition Insight, Starburst Innova Trends Survey 2021 (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China, Indonesia and Canada) 22 INNOVA MARKET INSIGHTS

Trends are interconnected…

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…and develop over time

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