Coffee ingredient innovation: specialty ingredients / emerging flavors inventory

In 2020, the taste of coffee is a constant source of comfort for many consumers. Many people drink a cup of hot coffee to start their day, while others relax with a cup of decaf at the end of the day. The biggest difference in coffee consumption over the past year has been where and how consumers buy their coffee.

K.c. Kuder, marketing specialist at Synergy Flavors Inc, said, "In 2020, home coffee consumption increased dramatically as the epidemic caused cafes and restaurants to close or stay open for limited hours."

Jeremy Macht, senior product and technology manager at Wauconda in Wauconda, Illinois, explained that this shift primarily affects the foodservice coffee extract and concentrate market. The household trend creates opportunities for further expansion of coffee extracts and concentrates into the consumer market.

Stephanie Thornton, coffee marketing manager at Finlays Americas, reports that the company has seen an increase in demand for espresso in the retail market, particularly in 32-ounce and 48-ounce packages.

In addition to these channel shifts, 2020 also presents some supply challenges for the coffee industry. Macht of Synergy Flavors noted that back-to-back hurricanes in the central U.S. last year damaged coffee plants there, and the impact of that damage on prices and supply could be felt in the near future.

Tim Melano, CEO of Triple coffee Co. in San Francisco, noted that labor restrictions related to the COVID-19 outbreak have also affected green coffee supplies. When shipments of green coffee are delayed, buyers of green coffee default, making importers more reluctant to finance coffee imports.

Finding specialty coffees

Despite the recent reduction in supply, consumers continue to show interest in a variety of specialty coffee ingredients, including those with region-specific, non-GMO, Fair Trade and Rain Forest Alliance certification labels. finlays predicts that demand for sustainable and traceable coffee extracts will continue as consumers become more socially conscious.

Melano of Triple Coffee Co. notes that in the current market, many consumers will turn to spending their money on high-end coffee when they can't dine out. This provides beverage manufacturers with more opportunities to offer more indulgent products.

Finlays' Thornton says nitro cold-brew coffee is growing in popularity at retail and restaurant chains, and is even experiencing some innovation in the convenience store channel. She notes, "Nitro cold brew coffee creates a creamy, smooth beverage that tastes enticing without the extra calories."

In addition, consumers are showing interest in healthier, more functional coffees, explains Philip Caputo, marketing and consumer insights manager at Virginia Dare in New York, adding that coffee can be paired with Antioxidants, fiber, turmeric, ginseng, mushrooms, CBD and cannabigerol (CBG), and probiotics to become a new option in the functional and healthy beverage space that meets consumer interests.

The growing interest in oat milk as a dairy alternative has inspired new beverage developments to meet this dietary demand, says Angie Lantman, application manager at Synergy Flavors: "Oat milk pairs well with coffee, and in turn, we're seeing more and more interest in using oat milk instead of traditional dairy products to make ready-to-drink lattes."