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Eighth Annual NIE New Ingredient Awards Call for Entries

Ingredients for Food & Beverages

Ingredients for Food & Beverages

by Mike Straus | June 1, 2025

NIE examines the latest ingredient advancements for food and beverage applications.

Food and beverage applications for nutraceutical ingredients are on the rise as consumers seek out more convenient ways to incorporate functional ingredients into their diets. Millennials and Generation Z in particular, are leading demand for these products, with functional beverages replacing alcohol for many of them.1 Gut health specifically has taken center stage for these consumers, with probiotic and fiber-rich drinks like Poppi and OLIPOP taking off among younger adults. Functional foods, meanwhile, are capitalizing on consumer concerns around protein consumption, mood support and gut health.2 As functional foods and beverages continue their meteoric rise, ingredient suppliers for these applications are developing more effective and efficient ways to deliver the nutritional benefits of various ingredients—without compromising on safety. Here are just some of the emerging trends in food and beverage ingredients in 2025.

Food and Beverage Ingredients Get Smarter

Food and beverage ingredients are increasingly becoming more functional, more sustainable, cleaner and more plant-based. Philip Caputo, marketing & consumer insights manager for Virginia Dare (Carteret, NJ), explained that consumers are increasingly becoming more intentional about what they put in their bodies—and they’re going well beyond simply reading ingredient labels in order to stay healthy.

“Consumers are now researching what ingredients are, what they do, and where they come from,” he said. “In the nutraceutical space, that’s often driven by a desire for clinical research to back up health claims, but the same level of scrutiny is increasingly being applied to food and beverage products, even when clinical evidence isn’t expected.”

Caputo explained that consumers still expect transparency around where ingredients come from, how they’re made, and what values they represent—even in food and beverage applications. To meet these rising expectations, he said that food and beverage brands are leaning more heavily into claims around sustainability, clean label and ethical sourcing. Third-party certifications, such as organic or fair-trade certifications, also play a critical role in validating product claims and reinforcing consumer trust.

Blake Johnson, chief executive officer of American Aronia Accelerator (California), said there’s a growing demand for functional, plant-based, sustainably sourced ingredients. Aronia, in particular, has moved into the mainstream due to its dense concentration of polyphenols and anthocyanins, which consumers increasingly seek out for immune support. Furthermore, Johnson said, new extraction technologies are enabling manufacturers to create more stable, concentrated and bioavailable ingredients that seamlessly fit into a wide range of food and beverage formulations.

“One of the most exciting shifts is the focus on bioavailability,” Johnson explained. “At A3Aronia, we’ve worked with partners to refine drying and extraction processes that preserve the natural matrix of the fruit, ensuring the efficacy of its health-boosting compounds isn’t lost from field to shelf. The industry is moving beyond just adding superfoods for label appeal—now, it’s about scientifically validated doses and delivery systems that actually work.”

Several other factors are impacting food and beverage ingredients as well. Jack Helm, account manager at ACI Group in the United Kingdom, explained that three global factors are contributing to a growing landscape for the food, beverage and dietary supplement sectors. Firstly, consumers are increasingly focused on their health. Second, consumers are demanding convenience. And third, the rise of precision nutrition is leading shoppers to look for smarter, more efficient ways to meet their nutritional needs.

“In this new foodscape, consumers now have access to detailed insights about their well-being, and this is impacting how they assess and engage with nutritional products,” Helm said. “Accessing this data can be a powerful incentive for brands when considering new products in an increasingly competitive space.”

Helm said that one of the most substantial challenges facing the food and beverage sector is legacy systems where brands must sort through a mountain of paperwork and emails to ensure all certification and food safety systems are in place. That’s why ensuring a smooth supply chain, he said, is critical.

Helm pointed to the gluten-free category as one example of consumers’ demand for healthy products reshaping the industry. While gluten-free was previously a niche category, it is gaining mainstream appeal. Part of this growth, Helm said, can be attributed to the fact that gluten-free products can now offer the same taste, texture and nutritional profile of traditional baked goods.

“This is possible due to the use of new and innovative gluten-free ingredients such as the Synevo GR1 gluten replacer, which was launched in 2024,” Helm explained. “This exclusive hydroxypropyl methylcellulose formula eliminates the need to stock multiple products, and offers improved process stability while eliminating irregular crumb, often a hallmark of gluten alternatives.”

Helm said that protein alternatives are also seeing robust growth. While high-protein formulations can often tip the balance in favor of health, he said, alternative proteins are creating formulation challenges that can impact texture, resulting in a powdery mouthfeel and a strange aftertaste. As a result, product innovation in protein alternatives is critical.

“We’re also seeing the boundaries between food, beverage and supplement continuing to blur,” Helm said. “This is creating opportunities to develop new formats and reformulate existing ones using scientifically validated bioactive ingredients. In particular, botanicals are under scrutiny and gaining attention in new product development, not only for wellness benefits, but for their ability to enhance flavor and have a positive impact on sensory experiences.”

Helm pointed to ingredients like turmeric, olive extract and ginger root as examples of this trend; all of these ingredients are finding their way into mainstream snacks and drinks, while other ingredients, like bergamot citrus, are being explored for their cardiovascular benefits.

Food and beverage ingredients are also becoming smarter. Alicia Kasch, vice president of Ribus (Sparks, NV), said that “science-backed” has been the biggest buzzword at trade shows over the past year. Brands are demanding to see the why behind the what, she explained, and that’s forcing suppliers to back up claims with data.

Safety Takes Center Stage

Ingredient safety has always been a top priority for suppliers and brands, but it’s now more important than ever before. Johnson said that safety and traceability have now become non-negotiable.

“One of the things we’re proud of at A3Aronia is how we’ve helped growers and manufacturers establish strong quality control and testing frameworks—from field cultivation to final product,” Johnson noted. “Also, with increased traceability in organic certifications, the food and beverage industry is more transparent and safer than ever.”

Caputo explained that food and beverage manufacturers are continuing to invest in enhanced safety systems. Hazard Analysis and Critical Control Points (HACCP) protocols, he said, are a big part of this process, as the HACCP certification is a globally recognized system for identifying, evaluating and controlling food safety hazards.

“At Virginia Dare, our manufacturing processes are fully HACCP-compliant and supported by comprehensive quality assurance systems,” said Caputo. “Our new, state-of-the-art facility features robust testing and traceability measures, helping us deliver safe, consistent and high-quality flavor and extract solutions to our partners. These investments are part of our dedication to producing ingredients that meet the highest standards for safety, quality and transparency.”

Helm explained that ingredient suppliers are a critical link in the supply chain, and suppliers must lead the way in embracing global food safety standards, enhancing supply chain traceability, and refining in-house logistics to get vetted and traceable products to the industry.

“Food safety is inherently complex and subject to numerous challenges,” Helm said, “from biological hazards like salmonella and listeria, to chemical contaminants, such as pesticides and heavy metals, to physical hazards like glass or metal fragments in a batch. Additional issues like cross-contamination, a fluctuating cold chain and food fraud and adulteration can further complicate food safety.”

Helm noted that these challenges underscore the need for comprehensive food safety measures throughout the entire supply chain, from the raw ingredient to the final packaged product on the store shelf. He said that adhering to international standards like ISO 22000 is fundamental in managing food safety risks.

“In addition, emphasizing hazard analysis and critical control points will ensure that ingredients and products are safe throughout the supply chain,” Helm explained. “This is only possible by implementing robust control measures and proactively identifying and managing potential hazards. End-to-end traceability using advanced tech such as IoT (Internet of Things) sensors and cloud-based ERP systems can provide real-time visibility across the supply chain, facilitating quick identification and recall of contaminated products.”

Kasch noted that many manufacturers are continuing to put safety and quality first in the wake of the COVID-19 pandemic. While the pandemic effectively broke supply chains, she said, manufacturers have since adjusted over the past five years. Now that the supply chain has been strengthened, formulators have choices as to who they get their ingredients from. Kasch said that finished-product brands should ask for the documentation to prove that ingredients are what manufacturers say they are, which GMPs (good manufacturing practices) are being followed, and whether certifications are legitimate.

Ingredient quality has also come into focus for consumers. According to Innova Market Insights, 58 percent of consumers make ingredient quality a priority when selecting food and beverage products for purchase.3 Consumers are more discerning than ever before, and they care that they’re getting a safe, high-quality product.

Formulators Get More Sophisticated

Food and beverage formulations are becoming increasingly sophisticated, with more science going into these products than ever before. Johnson said that consumers are savvier than ever before, which is why it’s essential to choose ingredients with proven health benefits and transparent sourcing. Brands need to understand each ingredient’s story and science, Johnson noted.

Furthermore, formulators need to consider a variety of other factors when selecting ingredients for food and beverage applications. Helm said that finished-product manufacturers should keep in mind that shoppers are looking for products with simple, recognizable ingredients that meet trends for health and wellness. Minimally processed ingredients can enhance product appeal and result in a shorter ingredient label. Furthermore, highlighting key ingredients on the front of the pack can help attract health-conscious shoppers.

“Incorporating ingredients that offer health benefits, such as adaptogens, prebiotics and plant-based proteins, can meet the growing demand for functional foods,” he explained. “These components can support various health aspects, including digestion, immunity and mental well-being. Exploring bold and unconventional flavor combinations, including global and regional ingredients, can also differentiate products in a competitive market.”

Helm noted that sourcing ingredients in a sustainable manner can help to enhance a brand’s reputation, as can using upcycled ingredients. Finally, Helm said, brands cannot compromise on staying on top of the latest regulatory and health guidelines.

Caputo said that modern consumers are more informed than ever—they’re reading labels, researching ingredients and making purchasing decisions based on everything from perceived health benefits to sourcing stories. As a result, the formulation process is more complex today than in the past, and that complexity is creating a greater need for more strategic and market insights.

“When selecting ingredients or formulating new products, it’s important to look beyond just functionality,” he explained. “The right supplier should offer technical expertise, market insights and a proven track record of bringing new and innovative products to life. Certifications can also add important value and credibility to your label, but only if they’re backed by transparent sourcing and robust documentation.”

Caputo cautioned, however, that certifications are only good as long as the brand can keep them. Having a supplier that can obtain—and keep—specialized credentials is key to the success of those narratives.

Kasch noted that manufacturers should ask suppliers for full documentation around ingredients. While some details are proprietary, she said, lab results aren’t.

“Ask for clarification on testing methods,” she urged. “Make sure you have a tight supply chain that cares about the details and is willing to share what they can. You’ll also want to make sure you know your source. Especially with everything that is changing daily with tariffs, you’ll want to know where your products come from and try to anticipate supply chain issues or delays. We know that they will happen, but if you can anticipate what, where and when, it will help minimize expensive last-minute surprises.”

Food and Beverage Applications Rise

Food and beverage applications are rapidly growing as a result of consumer demand for more convenient nutritional products. Consumers are increasingly seeking out products that not only provide specific health benefits but also taste great. From the bakery aisle to snacks and drinks, functional foods and beverages are capitalizing on demand for mood support, gut health and protein fortification, providing consumers with easier ways to meet their daily nutritional requirements. As demand for these products rises, experts say the demand for clinical evidence is growing. As a result, ingredients for food and beverages are becoming smarter, cleaner, more sustainable and more plant-based. Bioavailability has also come into sharp focus as a priority for ingredient suppliers, as has safety. Brands are looking for suppliers that can provide them with smart, safe, specialized ingredients with proven credentials. Furthermore, traceability has come into sharp focus, as brands are seeking out more documentation around ingredients than ever before. Even beyond traceability, brands are demanding to see documentation around the scientific validity of ingredients—and they’re asking for the proprietary data to back up claims. As functional foods and beverages continue to expand, expect more opportunities for functional ingredients to arise. NIE

References:

1 Cording J. “The rise of functional beverages among Millennials and Gen Z.” Forbes. Published online April 13, 2025.

2 Mellentin J. “Key trends in functional foods for 2025.” Nutraceuticals World. Published online October 7, 2024.

3 Miller S. “Top 10 food industry trends in 2025.” Grande Custom Ingredients Group. Published online December 3, 2024.

For More Information:

ACI Group, https://acigroup.biz
American Aronia Accelerator, https://a3aronia.com
Ribus, https://ribus.com
Virginia Dare, www.virginiadare.com

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