CHICKEN
OR EGG?
Special feature on N. American Foodservice
Where does innovation in foodservice innovation come from?
Words: EJ Sousa
When it comes to innovation in foodservice, there is a symbiotic relationship between consumer and brand. While companies are responsible for driving innovation, to succeed you must always start with the consumer.
In the foodservice industry, particularly in tea and coffee, we’re familiar with the age-old "chicken or egg" dilemma. Do consumer preferences drive the trends, or do companies shape what we crave? The reality is that both have pivotal roles to play, constantly influencing each other in a dynamic dance.
Consumers in foodservice are increasingly health-conscious, demanding products that align with their lifestyles and values. This shift is evident in the rising popularity of herbal and functional teas. For example, products such as herbal, chamomile, and ginger teas are experiencing significant growth due to their health benefits and calming properties [Kerry Knowledge Hub]. Similarly, matcha and other green teas, known for their antioxidant and anti-aging properties, are gaining traction among health-focused consumers [EHL Insights].
In the coffee realm, there has been a notable shift towards quality and convenience. The rise of specialty coffee shops and the demand for single-origin and artisanal coffee reflect consumers' desire for premium experiences. Additionally, ready-to-drink (RTD) coffee products have exploded in popularity, catering to the on-the-go lifestyle that many people lead today.
Consumers in foodservice are increasingly health-conscious, demanding products that align with their lifestyles and values.
Henry Ford famously once said, “If I had asked people what they wanted, they would have said faster horses.” Companies play a crucial role in shaping and responding to consumer demands, often leading the way with innovations that create new market trends. Starbucks, for example, has been instrumental in popularizing new coffee trends, from the pumpkin spice latte to cold brew coffee. These innovations not only meet existing consumer desires, but also spark new cravings and habits.
In the tea industry, companies are leveraging consumer data to introduce products that resonate with current health trends. Ready-to-drink tea options and innovative flavor fusions are becoming more common as companies strive to meet the growing demand for convenience and unique taste experiences [World Tea News].
The interplay between consumers and companies creates a symbiotic relationship. Social media amplifies this effect, allowing trends to spread rapidly and enabling companies to quickly respond with relevant products.
Just as with the chicken and egg, it’s next to impossible to determine who is the key driver of trends in the foodservice industry. Yes, the juggernauts of foodservice can make blue drinks with red popping bubbles go mainstream (Starbucks Summer-Berry Refresher), but remember: without consumers – the people buying, sharing, posting, loving (and sometimes hating) these beverages – none of it would matter. While companies are responsible for driving innovation, you should always start with the consumer.
EJ Sousa
Senior R&D Scientist Emanuel.Sousa@finlays.net
References
Tea Association of the USA. "Tea Fact Sheet." 2021.National Coffee Association. "National Coffee Data Trends 2021." Tea & Coffee Trade Journal. "Coffee and tea have leading roles in 2023 beverage trends." 2023.
