Company Insights, Flavor Insights
2 tornados, 3 Days, 20,000 attendees, 70+ represented countries, hundreds of exhibitors, and an infinite number of conversations later, our Jogue team left Chicago with a mind full of inspiration and a stomach full of innovative new product samples hitting the market this year.
Even though we were busy catching up with our customers at Booth #3602 while IFT FIRST was in full swing, we made it a priority to get to the venue early each day to explore and note observations on trends so we can help add the most value to our customers for the months ahead. Speaking with industry experts and observing themes in the types of products being displayed led us to come up with the following insights covered in this post. If you didn’t get to attend this year, we’re bringing the highlights of 2024 IFT FIRST to you!
Local Bakeries Going CPG
Thanks to the soaring success of packaged baked goods for companies like Mrs. Fields, Crumbl, and Nothing Bundt Cakes, local bakeries seem to be jumping on the train as well. Consumers are constantly looking for small businesses to support. In fact, 47% of small businesses reported having a significant number of new customers at the end of 2023 and that number is expected to increase1.!
Regional bakeries are boasting bold packaging, natural ingredients, and fun flavors that large companies may struggle to execute. These types of products are sure to intrigue the Gen Z demographic as they come to hold more purchasing power in the industry.
Low Sugar, Bold Spice
Sugar reduction was another umbrella theme we noticed on the IFT floor this year. From allulose innovations to monk fruit to stevia-based sweets, the low sugar movement was in full effect this year! However, we did notice that erythritol was less present in many sugar replacement products displayed- likely due to the recent 2023 research paper that linked this sweetener to an increased cardiovascular disease risk.
Our favorite low-sugar innovations were no-sugar-added, allulose-based ice cream inclusions and several protein bars and shakes formulated with allulose. 78% of U.S. consumers find the “Better for You” movement in the Food & Beverage Industry appealing4. . Therefore, we think it’s important to not only help make these products more widely available, but also more delicious by encouraging the use of natural flavors and pure extracts!
Bold, spicy flavors have also proved that they are here to stay this year based on the vast array of novel chili usages and processing techniques we observed on the exhibition floor! We wrote about this trend on January 1, 2024, predicting exactly what we saw. Various types of fermented chili pastes, freeze dried ground chili varieties, and interesting, sweet-and-spicy (“swicy”) flavor applications validated our early predictions on this flavor trend this year. A few of our favorite samples we picked up included chipotle infused almonds, falafel veggie bites with harissa aioli, and spicy red curry peanut popcorn.
Sustainability
Sustainable ingredients and processing methods are still at the top of consumers’ minds heading into next year. We were pleased to see that the demand for environmentally friendly food & beverage options was reflected at the IFT FIRST event in a big way!
After seeing the new Regenerative Organic Certified label multiple times across the exhibit hall, it was clear that this more stringent label will likely replace the traditional USDA Organic certification in the future. The Regenerative Organic Certified label uses the USDA Organic certification requirements as a baseline while also upholding strict standards for soil health, animal welfare, and social justice.
If you’re a tea drinker, you would have been as thrilled as we were to discover Westrock Coffee’s new Coffee Leaf Tea. Coffee leaves are typically discarded but contain as many antioxidants as green tea leaves! This new beverage features this upcycled ingredient to create a delicate, perfectly balanced tea. Although it was delicious in its raw form, elevating this beverage with peach, passionfruit, or blueberry flavor would take it to a whole new level!
Functional & Fiber
Finally, we would be remiss not to mention the 2 F’s: Functional and Fiber. These types of products made up a vast majority of the show this year. Ashwagandha has been on the rise for the past 5 years, but this food ingredient was around every corner of the exhibit hall this year. One of our Jogue sample beverages, the Strawberry Guava Splash with Lemon Balm & Ashwagandha, even featured it! Other functional ingredients we observed included chaga, lion’s mane, & freeze-dried superfood powders.
Novel types of fiber seemed to be a huge trend at the 2024 IFT FIRST event as well. Following the gut health movement, consumer demand for high-fiber foods has grown significantly in recent years. A recent Mintel report found that 86% of consumers seek convenient, high fiber foods and beverages4. . Enhanced technology around incorporating fiber seamlessly into CPG products is a promising new frontier for the “Better for You” movement mentioned earlier. A few standouts in this category include a waffle made with bamboo fiber, cereal made with various types of pulse flours, and sugar-free chocolate coated puffed chickpea bites.
Come See Us Next Year!
We already have our booth reserved for 2025 IFT FIRST in Chicago! Make sure to come to our full-service team of flavor experts for your next custom, made-to-order flavor solution.
Can’t wait that long?
Contact us through the “Contact Us” form on our website OR email sales@jogue.com today!
References:
1. https://fitsmallbusiness.com/small-business-statistics/
2. https://www.foodnavigator-usa.com/Article/2024/01/02/2024-trends-to-watch-from-functional-foods-and-clean-label-to-value-hunting-and-increased-use-of-ai-to-drive-promotions-and-efficiencies
3. https://www.foodbeverageinsider.com/fiber/fiber-maintains-popularity-through-the-years
Company Insights, Flavor Insights
Dramatic headlines aside, chocoholics across the world are refusing to give up beloved chocolate flavored products. However, if the global cocoa supply continues to drop at the rate that it has been since January, chocolate may become a rare commodity in the Food & Beverage Industry as prices skyrocket. We’re giving you the latest insights on the cocoa market so you can make the best decisions regarding your chocolate flavored products in the months to come.
Origin of the Issue
Most of the world’s supply of cocoa beans comes from West Africa, with a moderate quantity also sourced from Brazil, Ecuador, and Indonesia. In fact, approximately two-thirds of the world’s cocoa production occurs in the West African nations of Ghana and Ivory Coast. Since the beginning of the year, this region has experienced disruptive weather patterns amplified by climate change and rising freight costs. A CNBC article reports that the El Nino weather phenomenon observed in West Africa this year may result in drought-like conditions that may permanently affect the yield of cocoa beans able to be produced there1.
Cocoa harvests occur only twice per year, with the “main harvest” occurring from October to March. Since it rained more than usual in Western Africa for the last few months of 2023, several plant pathogens- such as black pod disease & swollen shoot virus- were able to spread between farms more easily. Additionally, a powerful cyclone ravaged Brazil right before harvest season last year. These factors alone already threatened the overall cocoa output this year and further exasperated the global cocoa supply crisis we are currently witnessing.
Additional root causes of the cocoa crisis include the global fertilizer shortage and economic paranoia that stems from the 2022 war in Ukraine. Because cocoa is a crop that requires a significant amount of fertilizer to grow commercially, the reduced amount of fertilizer being exported greatly impacted the overall yield of existing cocoa trees before unexpected weather had an impact. Europe is also the world’s leading importer of cocoa beans. When analysts started to predict that the cost of oil, coal, and gas would spike due to the Russian invasion, chocolate makers began placing fewer orders for cocoa out of financial fear4. As soon as fear subsided, there was a boom in demand for cocoa again, but with a more limited supply than ever before.
How to Navigate the Changing Cocoa Market
As a result of the changing weather patterns and shipping challenges, the price of cocoa has spiked by more than $2,000 per metric ton since January, reaching a record high of over $7,000 according to data released by Bloomberg on March 12 and as shown in the figure below5. Since cacao trees take years to mature enough to produce cocoa beans, these high prices aren’t expected to return to baseline anytime soon. Paul Davis, President of the European Cocoa Association, estimates that it may be another 1.5 to 3 years before chocolate producers can relax again.
Source: McKeany-Flavell
While passing the cost on to consumers is one option to navigate the ominous climate of the cocoa market, it is important to consider other strategies to keep your chocolate flavored food or beverage product in line with competitors.
- Diversification: Companies should consider diversifying their sources of cocoa to different regions of the world to mitigate the risk of supply disruptions from unfavorable weather pattern changes.
- Sustainability initiatives: Engage in cocoa farmers that have sustainability initiatives in place to ensure that the long-term viability of cocoa crops is being supported.
- Market Analysis: Staying up to date on cocoa market reports every month can help companies plan accordingly and re-evaluate where costs could be reduced in other ingredients.
- Innovation: Supplement 100% real cocoa with a chocolate flavor or extract to enhance the rich, decadent profile of your chocolate product while using less of the actual commodity.
We proudly use fair-trade, organic cocoa beans to create our robust, perfectly sweet and nutty chocolate flavors and extracts. Reach out to us today for more information on our premium chocolate flavors and how Jogue can help you cut soaring cocoa costs while retaining flavor.
Resources:
1. https://www.cnbc.com/2024/02/08/cocoa-prices-surge-to-all-time-highs-as-bad-weather-hurts-west-africa-crop-yield.html
2. https://markets.businessinsider.com/news/commodities/chocolate-west-africa-cocoa-beans-supply-crunch-prices-suppliers-commodities-2024-2
3. McKeany-Flavell. “Cocoa and Chocolate Monthly Update”. 2024, Feb.
4. https://time.com/6291600/cocoa-chocolate-high-price-russia/
5. https://www.bloomberg.com/news/articles/2024-03-12/cocoa-rises-above-7-000-a-ton-for-first-time-in-new-york
Company Insights, Flavor Insights, Recipe Highlight
Chai Spice Mini Cupcakes
The warm spices of chai tea paired with a sweet, vanilla-frosted cupcake is the perfect treat to bake for cold winter months. Made with carefully crafted natural flavors and premium pure Madagascar vanilla extract, these mini cupcakes are sure to become a household favorite!
How To Make Chai Spice Mini Cupcakes:
Step 1: Preheat the oven to 325F. Line a mini muffin tin with cupcake liners and set aside. Combine the flour, baking powder, and salt in a small mixing bowl. Sift well and set aside.
Step 2: In a separate mixing bowl, combine the butter and sugar. Beat on a high speed until fluffy in texture, about 2 minutes. Add the egg, olive oil, Jogue Chai Spice Flavor, and Jogue Vanilla Extract to the butter mixture. Beat well for about one minute. While the electric mixer is set to a low speed, carefully add in the flour mixture and half & half until just combined.
Step 3: Fill each cupcake liner with batter until they are about ¾ full. Bake until a toothpick comes out clean, about 15 minutes
Step 4: Let the cupcakes cool completely before frosting. Garnish with a dash of cinnamon & enjoy!
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