HERE AT FONTANA FLAVORS WE ARE CONSTANTLY SEARCHING AND CONNECTING THE DOTS BETWEEN CONSUMER INSIGHTS, FOOD INDUSTRY, SOCIAL & ECONOMIC DRIVERS INFLUENCING THE NEXT WAVE OF TRENDS TO WATCH FOR IN 2023 and BEYOND…PRODUCING THE NEXT CRAVEABLE FLAVOR & FOODS CONSUMERS WILL CLAMOR FOR.

LET US LOOK CLOSELY AND SEE WHAT LIES AHEAD…

-FOODBYTES, DATASSENTIAL

FROM A POSSIBLE RECESSION TO TECH TO SUSTAINABILITY, THESE FACTORS WILL IMPACTEVERYTHING IN 2023

•If we’ve learned anything from the past few years, it’s to expect the unexpected. From pandemics to political upheaval, unexpected events are always going to create chaos. In 2023, businesses will have to continue to create nimble organizations that can quickly adapt and react to changes.

•A recession is on everyone’s mind, though economists are still debating whether we’ll escape a recession, enter a recession, or are already in one. According to our data, over half of consumers think we’ll enter a recession in 2023, while 27% think we’re already in one.

•What will a recession mean? Economic inequality means it will look very different from consumer to consumer. Luxury brands and premium products are still reporting record sales, but most consumers are already feeling the strain of high prices.

•Technology will help operators survive. While once there was a fear that tech and robotics would replace workers, the hospitality labor shortfall means many of those workers have moved on to other industries. As margins continue to be squeezed, tech investments will payoff in the long run.

•Sustainability is back. While it never truly went away, consumers gave the industry a pass as it focused on survival during the pandemic. But now consumers want to see brands using sustainable packaging, limiting food waste and/or engaging in upcycling efforts, and generally making positive environmental decisions.

•There’s no one-size-fits-all approach when it comes to health and what consumers want. Instead, it’s all about personalization, as each consumer considers the diet and foods that fit their goals, age, and lifestyle.

•Social media and younger consumers’ desire for novelty means fads have become microtrends, or legitimate trends that have a place in the industry for a short period of time.

•Pickup and delivery across foodservice and retail are here to stay, with adoption levels well above where they were prior to the pandemic for the future. But high prices and fees, plus a sorting out of which brands and options are truly beneficial to consumers, will cause some delivery brands to shrink or close.

•Above all else, innovation is essential. Consumers want new, exciting foods and flavors. One lesson from the 2008 recession: don’t lock yourself into low prices and value meals.

Shifts in consumer behavior that will direct business landscape in the long term. They have across-industry impact and evolve over time. Unlike Micro Trends which typically lasts 3–5 years, Macro Trends is 2X that time.

1. Culinary Adventuring
   • Consumers are continuing to explore cultural diversity. While Mexican, Italian, and Chinese Cuisines dominate the international cuisine. The younger generation, Gen Z is driving the demand for Mediterranean cuisine from North Africa, Balkans
2. Food Tech Boom
   •Demand for plant-based meats and sugar substitutes has increased but are not meeting the expectations of consumers. Demand for simpler and real ingredients from brands on the rise
3. ”Mindful Drinkers”
   •Attributed to cultural dominance of mindfulness, deepening health & wellness understanding and shifting spaces of of consumption and ways of socialization. Gen Z is driving this trend with 24% abstaining from alcohol often and at all when dining out due to health reasons
4. Good For Me…Better For The Environment
   •Consumers demand more than good taste from foods they eat. Consumers have been increasingly concerned about how their food impact the environment…looking for upcycled, zero waste, reduced carbon footprint, and water conservation. Other emerging trends look at farming practices such as regenerative agriculture
5. Comfort Food “All Gussied up”
   •Consumer’s quest for familiar flavors offering comforting escape to nostalgic times of simplicity, family, friends, and loved ones. Opportunities are bound to globalize familiar foods with international flavors giving a more sophisticated focus from harissa, gochujang, miso, chimichurri, ponzu, and more. 75% of global consumers want to discover new flavors
6. Convenience Continues
   •Pandemic restrictions to stay at home had long term effects on consumers eating habits…cooking more often at home, purchasing convenience foods and followed set meal routines. 53% plan on staying with these habits. Emergence of time-saving products, such as meal kits and grab-and-go snacks. Consumers seeking out quality ingredients with chef-inspired foods
7. Clean Label Commoditization
   •Since the start of Covid-19 pandemic, people have become more cautious of their food consumption, giving way to a new era of healthy eating. Consumers have become more aware of health impacts associated with consumption of various artificial or synthetic food ingredients…growing the demand for natural and organic food has followed
8. Blurring Diet Lines
   •Sparked by habits adopted during the pandemic, consumers are tailoring their choice of diet fads to their personal need that best suits their bodies…giving rise to flexitarians, less meat and more plants rather than committing to vegan or vegetarian. Another example is Keto, choosing lower carb over low carb.
9. Permissible Indulgence
   •Consumers continue to snack and what qualifies as a snack continues to evolve. Consumers are seekingout guilt-free food indulgence by qualifying them through quality ingredients and nutritional callouts,that make them feel both decadent and healthy. 69% of consumers want the best of both worlds…asnack balanced with health & taste
10. Growing Your Local Community
    •Millennials and their children and Gen Z is driving local consumption when possible. Due to global supplychain issues, consumers are looking to feel connected through their community
11. Let it “Grains”
    •Oats…one of the healthiest grains on earth, along with the combined power of wholesomeness and affordability, it is no surprise it is ubiquitous, from oat milk to dairy products and even oat protein. Other grain innovation to look for; barley, hemp, pistachio and buckwheat
12. Functionality Collab
    •With macroeconomic issues; inflation, rising food cost and supply chain issues…consumers behavior has shifted to maximize benefits out of their food & beverage choices. Food and Beverage with functional ingredients found to be naturally beneficial or support immunity can be found in new category segment

• We all have our favorite sauces and dips–from a creamy ranch and sweet & spicy BBQ to savory hummus and tangy vinaigrette.
  •Sauces are like accessories of a meal…they’re meant to be swapped out and experimented with….the right sauce can turn your everyday chicken, burger, and fries into a culinary adventure!!!
• Growth in U.S. sauce market can be attributed to increasing popularity of ethnic cuisines
  •Younger population prefer experimenting with new flavors available in different cultural cuisines, such as Chinese, Mexican, Italian, Japanese, Greek, and Indian., further driving the demand for sauces in the country
• Salty, Sweet, and Savory flavors is fail-safe rule when it comes to saucing your meal…however the trend of late is to turn the spice up to 11
  •More consumers are demanding spices, like jalapeño and chipotle, tajin, hot mustard, smoked paprika, fermented chile, gochujang, harissa, schug, sambal, and chili crisp-oil (infused oil with crunchy pieces of Tien Tsin peppers, shallots, garlic, ginger…)
• Finding Natural Goodness
  •Consumers pay attention to the ingredient list, where & how ingredient’s origin and manufactured
• Premium Indulgences
  •Modern sauces need to feature quality ingredients that can be seen, that dial-up the flavor…that provide an immersive experience through a unique flavor explosion that thoroughly dominates the senses (see, smell, taste…and sometime hear)
• Emotional Discoveries
  •Sauce market has opened the door for ethnic sauces that transport tasters across the globe with a virtual magic carpet of culinary immersion
  •Ingredients gaining popularity include Middle Eastern spices, Thai, & Vietnamese

TOP 5 INFLUENTIAL TRENDS IN SAUCES, DRESSINGS, AND DIPS

1. Sweet & Spicy crossover
   •Sweet is the dominating flavor of sauces, but consumer interest for spiciness has risen since the start of Covid… making the pairing a huge success
   •Spicy Honey…15% growth in social discussion over the past year
   •Top performing recipe using spicy honey as a sauce/dressing for chicken dishes…show up over 2k recipes in the US alone, with some recipes having a        70% YoY growth and over 600ksaves…serious consumer interest in spicy honey
2. Tropical mood
   •Citrus and tropical flavors are making a splash
   •Yuzu trend spotlight with 43% YoY growth for yuzu and 92% growth for yuzu paste
3. Botanicals
   •Products that originate from plants such as herbs, roots, flowers, fruits, leaves or seeds.
   •Valued for its medicinal or therapeutic properties, flavor, and/or scent
   •Food as medicine and medicine as food…to paraphrase Hippocrates
4. Niche Health
   •Condiments that allow for customization around functional health are attracting interest, particularly Aioli with claims in immunity, showing 79% YoY in social media
   •Clean eating experience through low-or-no preservatives, processed ingredients, additives, etc….showing 35% more popularity than last year
5. Global Flavors are sweeping the market
   •Thanks to Covid…” kitchen travel” has provided new routes for consumers to explore other cultures as people continue to use their kitchens or restaurants

PRODUCT DEMO-–ON-TREND SAUCE FLAVORS

1. Birria Consomé–Birria flavored beef broth with a touch of roasted beef pan dripping & Roasted Bone Marrow
2. Portuguese Ranch Aioli–Piri Piri flavored garlic mayo with a touch of chicken fat flavor
3. Pomme Frites–ultimate French Fry dipping sauce; Duck Fat & Beef Tallow flavored Garlic Mayo
4. Gochujang Ketchup–Korean inspired ketchup
5. Yuzu Kosho Bang-Bang Aioli–fermented Japanese Yuzu peel and chili peppers flavored creamy mayo-sweet chili sauce
6. Preserved Lemon with Harissa Jam–Moroccan inspired Orange marmalade spiked with preserved lemon & harissa flavors
7. Schmaltz Honey Mustard–Southern Fried Chicken Inspired Sweet Honey Mustard laced with Fried Chicken Fat flavor
8. Chimichurri Aioli–Italy has Garlic Basil Pesto, France its Provencal Pistou, and Argentina has its Chimichurri. Garlic Mayo with Chimichurri flavor
9. Spicy Maple-Honey Bacon BBQ–Elevating the BBQ Sauce game in a whole new level…sweet maple-honey, fermented cayenne flavor, smokey hickory bacon & beef tallow flavored BBQ sauce
10. Smokin’ BBQ Reaper–Carolina Gold…BBQ Competition level flavor. Mustard based BBQ sauce spiked with hickory smoked bacon & roasted bone marrow flavor
11. Fried Garlic-Shallot-Szechuan Peppercorn with Black Vinegar Aioli–Creamy Szechuanese ”Chili Crisp”
12. Maple Tahini Harissa Dressing–A little sweet, a little savory, with a little kick. A Moroccan inspired dressing flavored with tahini & harissa with a touch of maple syrup