The new year is rapidly approaching, as evidenced by the influx of food and beverage trend reports in our inboxes. Today, we’re examining Nestlé’s forecast for 2025, which outlines how shifting consumer preferences could influence product innovation trends in the coming year.
Nestlé highlighted four categories including the return of nostalgia, better-for-you goods with functional benefits, the “fourth wave of coffee,” and the expansion of existing brands into new formats. Here’s a look at what’s to come:
The rise of “New-stalgia”: We’re going back to the future! F&B consumers are seeking products that help them escape and reflect on simpler times, according to Nestlé, which believes new brands will team up with legacy products to tap familiar flavors, comforting classics, and childhood favorites while reinventing the “old” with a fresh twist.
- Earlier this year, Mountain Dew unveiled a refreshed visual identity that leans into its origins in the foothills of the Tennessee mountains while placing a new emphasis on “energizing refreshment” and togetherness.
Feel Good, Functional Beverages: Since the pandemic, consumers have increasingly taken their health into their own hands. In particular, Gen Z has embraced wellness as “anything that makes you feel good,” which has pushed the generation to be large proponents of a growing category.
- Prebiotic, gut-friendly soda has been bubbling over with popularity this year, from Olipop’s burgeoning sports partnerships to the launch of Health-Ade’s SunSip brand. And, with the recent launch of Walmart’s new “Modern Soda” category, it looks like the soda health halo is here to stay.
Accessible Experimentation (Coffee At Home): The beverage world has been flooded with endless opportunities for customization over the past few years, especially in the form of coffee, boba, and “dirty soda” shops. Consumers are now taking this trend into their own homes and rebelling against the purist brews of the past. According to Nestlé’s research, 51% of U.S. coffee consumers own or are interested in syrups and additives for their coffee.
- Brands are taking note – International Delight and Silk launched retail cold foam products this year and Jordan’s Skinny Mixes has added new holiday-themed syrups to its product portfolio. Beyond customization we’ve seen a revival of instant coffee with the launch of Diamond Brew as well as the continued expansion of Barista milk products for at-home use.
Fan Favorite Brands Expand to New Formats: Consumers now expect beverage experiences that are distinctive, personalized, and reflective of who they are, per Nestlé’s report. The brands that are currently winning (and will continue to win) in the crowded space are re-imagining beloved products in new aisles, formats, and occasions.
- One of the best examples of this trend is the move of legacy sports drink brands into the powdered category, including Gatorade’s new Hydration Booster.