Product Innovation in Food and Beverage

April 2025

This report utilises Euromonitor International’s new Passport Innovation platform to explore new product launches across Food and Beverage categories. The report features new brand and sub-brand launches and their attributes across Packaged Food, Soft Drinks, Hot Drinks and Pet Care industries. Three key innovation trends are identified for each of the industries, with product examples from large global e-commerce retailers launched over the last 12 months.

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Key findings

Innovation in Soft Drinks

Soft drinks brands are catering to health-conscious consumers and demand for added value. Key innovation areas include functional benefits, natural ingredients, bold flavours and new formats. Opportunities lie beyond energy and hydration benefits, especially in mood-enhancing and relaxation drinks. Creative flavour extensions, co-branded partnerships, and convenient powder concentrate formats offering varied functional benefits present strong potential.

Innovation in Hot Drinks

In hot drinks, functionality remains a key driver of innovation, with opportunities in digestive health, mental wellbeing, and energy. Brands should prioritise cold consumption occasions by developing products that taste great when chilled, particularly to appeal to Gen Z. As consumers increasingly seek affordable indulgences, brands are encouraged to adopt branding that positions their products as enjoyable, everyday luxuries.

Innovation in Packaged Food

Packaged food innovation is rebounding, led by demand for functional, better-for-you products. Consumers are placing greater emphasis on benefits such as gut and brain health, immune support, and weight management, while also showing strong interest in bold, culturally inspired flavours and unique textures. As private labels expand with affordable, nutritious offerings, brands must balance functionality, sensory appeal, and affordability to stay competitive.

Innovation in Pet Care

Pet food innovation is being shaped by premiumisation and pet humanization. Functionality remains key, with brands increasingly offering targeted solutions for pets’ physical, emotional, and behavioural wellbeing. Aligning sustainability claims with health positioning might further boost consumer trust and perceived value. A deeper understanding of pet need states will support more tailored offerings, enhancing product positioning and differentiation.

 

Why read this report?
Key findings
Better a lignment with evolving consumer preferences - a key focus for F&B Innovation
Tracking product longevity across adjacent industries and categories to inform NPD
Soft drinks NPD overview: New launches accelerate but cost-of-living challenges persist
Leading suppliers’ NPD: Flavour and format exploration
Top three innovation trends in soft drinks in 2025
Key attributes: Zero sugar and functional performance products remain growth drivers
NPD highlights: Botanicals and plant-based ingredients to address new need states
NPD highlights: Powder mixes in hydration and digestive health
NPD highlights: Cleaner labels and new flavours in energy drinks
Recommendations: How to win
Hot drinks NPD overview: Decline in new launches and expanding category boundaries
Leading suppliers’ NPD: Addressing demand for ex c i ting flavours and convenience
Top three innovation trends in hot drinks in 2025
Key attributes: Mental health positioning takes the lead in health claims
The resilience of wellness spending reinforces new product launches: Coffee
The resilience of wellness spending reinforces new product launches: Tea
NPD highlights: Cold brew for consumer desiring flexibility in their beverage choices
NPD highlights: Meeting demand for convenience with adaptive cross-category formats
Recommendations: How to win
Packaged food NPD overview: Innovation rebounds but affordability pressures remain
Leading suppliers’ NPD: Innovation with localisation, tailored flavours and partnerships
Top three innovation trends in packaged food in 2025
Key attributes: Health positionings centre around fibre , protein and reduced sugar
NPD highlights: Better-for-you options
NPD highlights: Plant-based nutrition for mindful snacking
NPD highlights: Spicy and novel flavours in salty snacks
NPD highlights: M igration of local flavours and indulgence in sweet treats
NPD highlights: Private label advances affordable upgrades
Recommendations: How to win
Pet care NPD overview : Innovation fuelled by pet humanisation and premiumisation
Leading suppliers’ NPD: Growing focus on cats and nutritional therapy
Top three innovation trends in pet care in 2025
Key attributes: New product positioning leverages specific health benefits and clean formulations
NPD highlights: Targeting pet health through need states
NPD highlights: From premium products to a premiumised appeal
NPD highlights: Sustainability as a value driver
Recommendations: How to win
Passport Innovation: What's covered?
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