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Ingredient innovation could give iced coffee a healthy boost
3 Oct 2018Iced coffee is the fastest growing segment of the coffee category, and there is huge potential for ingredients with added health benefits to further drive its growth.
Roasted coffee is still the largest segment, but iced coffee accounted for one in five new coffee launches worldwide in 2017, up from 16% a year earlier, according to market research from Mintel. It says younger European consumers are particularly interested in added benefits from iced coffee, but this is a largely untapped market. In Germany, for example, 41% of consumers aged 18-44 are interested in trying chilled coffee with added protein, compared to 21% of those aged 45 and over.
Starbucks launched an added protein coffee in the US in 2015, but few brands have followed, despite growing consumer interest in health and wellness, and high protein diets in particular. What is more, many younger Europeans are interested in alternatives to sugary soft drinks, and Mintel found two-thirds (66%) of UK consumers aged 18-24 considered iced coffee a better option.
Apart from protein, other ingredients turning up in ready-to-drink coffee include antioxidants, probiotics and ‘superfood’ ingredients like coconut oil, grass-fed butter and chia seeds. Chilled coffee may prove to be a better format for innovation in general, even though innovation in healthy ingredients takes place in the hot coffee segment too.
Until recently, hot coffee was considered unsuitable for probiotics, for example, as bacteria tend to be sensitive to heat. But probiotic specialist Ganeden developed an ingredient for US coffee manufacturer Tipton Mills that withstands high temperatures, and the company now uses the probiotic ingredient in all its products, including chilled coffee and high protein shakes and smoothies.
However, the chilled coffee market holds particular appeal for younger consumers who like the format, and who are looking for a balance between refreshment and indulgence. In Europe, this depends on the country, and Mintel found German and UK consumers were more open to iced coffee than French and Italian consumers. The market researcher suggests the key to success for chilled coffee makers in Europe could be to target these younger consumers who have been introduced to iced coffee in branded coffee shops.
Young Europeans also tend to be more health conscious than older consumers, raising further opportunities for product developers, and rising interest in non-dairy milk alternatives and organic foods and drinks could also drive sales in the segment.
Meanwhile, in sports nutrition, there has been a recent craze for stirring collagen into hot coffee for a protein boost after exercise. Iced coffee with added protein – in the form of collagen or otherwise – could help answer this demand. The do-it-yourself option combines the benefits of caffeine and protein, but the sports nutrition segment may also be open to a more refreshing option.
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