In our second installment of Trendlets, find out how three of the food and beverage industry’s biggest trends are shaping up consumer preferences and with that, product development.
Based on data supplied by consumer research company GWI, the firm’s Shauna Moran, insights lead at GWI, summarized how global flavor trends; sugar, salt and fat reduction efforts, and premiumization each offer opportunities for food and beverage innovation.
Global flavors
People are increasingly drawn to drinks that combine bold flavors, health benefits, and visual appeal – and international options serve up all three. Since early 2023, matcha and bubble tea have seen sharp growth – a 19% and 26% rise in consumers drinking them, respectively. This reflects a shift in beverage culture, particularly among Gen Z, towards novelty and ‘functional’ indulgence (something that tastes and feels good for you).
Around six in 10 Gen Z say they enjoy trying drinks with interesting new flavors like tamarind or hibiscus, as well as healthy ingredients.
This helps explain oat milk’s growing popularity: its mild, creamy taste is the perfect base for experimental drinks.
International drinks also look good. Layered and photogenic cups play perfectly into younger consumers’ social media habits. It’s no surprise, then, that more coffee drinkers are opting for iced lattes and frappés over time, which are often infused with colorful ingredients like chai or ube.
The next wave of beverages is global, and brands that tap into cross-cultural flavors and tell creative stories will ultimately shape what we sip going forward.
Sugar, salt, and fat reduction
Food priorities are gravitating around realistic, feel-good health goals and stepping away from restriction.
More consumers now value foods that are high in protein or contain probiotics, while interest in low-sodium and fat-free options has stagnated or declined over time.
Sugar is the exception: there’s been a 21% rise in people saying they have a low-sugar diet since early 2023. Unlike salt and fat – which are naturally present in everyday foods – sugar is closely tied to ultra-processed products like soft drinks and cereals. That makes it easier for us to see sugar as something ‘added’ or ‘unnecessary.’
Instead, consumers are looking for options that feel wholesome and closer to nature, with many buying organic dairy products (48%) and dry foods like flour or rice (32%).
Across Europe and America, vegan diets are falling out of favor. Like traditional diet products, many plant-based alternatives are highly processed, and awareness around that has been growing.
Better-for-you choices seem to be about upgrading essentials and making familiar yet meaningful swaps, rather than overhauling diets. Opportunity therefore lies in purifying the basics – cutting the clutter, showing where food comes from, and making staples feel premium.
As some consumers tighten their budgets, others are looking to spend more intentionally: choosing quality over quantity and treating themselves to products that boost their mood.
We are seeing the ‘lipstick effect’ bubble over into glasses. Since 2022, there’s been a 20% rise in people buying champagne, with more saying uniqueness (+15%) and the ability to signal status (+35%) influence what they drink at home.
But not all premium shoppers are affluent: low earners are more likely than mid earners to say they buy premium products regularly, often as a way to make the most of what they have.
And despite having less purchasing power than older generations, Millennials are the most likely to fall into this group, driven by a mix of self-care and deliberate spending.
When it comes to winning them over, premium buyers are loyal to brands that invite them in, make them smile, and offer a sense of exclusivity – leaving room for innovation through limited-edition collaborations, artisanal formats, and packaging that feels special yet approachable.
