This audio is generated automatically. Please let me know if you have any comments.
Gen Z is reshaping the beverage industry, increasingly creating their own drinks at home thanks to a TikTok trend that aims to emulate cafe baristas and bartenders. Long a staple in the beverage syrup category, Torani is always on the lookout for the next trendy flavor and is keeping an eye on what people are making at home, from nutty coffees to vanilla-flavored energy drinks.
Andrea Ramirez, consumer market insights manager at Torani, has been with the company since 2001 and has observed how beverage consumption trends have changed significantly. Bread and butter previously added flavor to hot coffee drinks, usually accompanied only by cream, sugar, and flavors such as vanilla or caramel. But around 2016, Ramirez noticed a change as iced drinks gained more traction among consumers.
“We’re focused on incorporating more flavors to deliver personalized beverage experiences that drive novelty and excitement,” Ramirez said.
The company sells more than 150 flavored syrups designed for retail and commercial use. for food service Places such as cafes where sugar is designed to be added to drinks to add a unique taste to both drinks and beverages. sugar free kind. Flavors include vanilla, caramel, coconut, raspberry, peanut butter cup, Belgian cookie, macadamia nut, and Irish cream.
Their newest syrup, Dragon Fruit, launched last April, was created in conjunction with a Vietnamese coffee shop in Kansas City. Torani's food scientists noticed the flavor's growing popularity and tested several varieties of the subtly sweet syrup designed for use in flavored waters, cocktails and coffee.
Food service trends The space, equipped with equipment such as Coca-Cola's Freestyle soft drink vending machines, allows people to experiment with new flavors, Ramirez said. In the southwestern United States, particularly Utah, custom soda shops creating “dirty” drinks in flavors like Coke, Sprite, coconut lime, and creamer have also found viral success. Torani With these changes, we've seen a greater variety of flavors emerge.
Torani told Food Dive that annual revenue recently topped $500 million for the first time. The current surge in popularity dates back to the start of the pandemic in 2020, when normally thriving coffee shops and drive-thru restaurants were forced to close.
“Our business really grew because it was a specialty product that allowed consumers to make the same quality cafe drinks at home,” Ramirez said.
Torani Dragonfruit Syrup.
Provided by Torani
meet the moment
According to Ramirez, formulators in the flavor space are always looking for “the next pumpkin spice,” the flavor that dominates the food and beverage industry.
“It’s a short period of time, but the passion of the consumers is very high,” Ramirez said.
Passion for fall-themed flavors led the company to create Kettle Corn Syrup after conducting consumer research.
Part of Torani's approach to new flavor innovations comes from mapping out major news events and understanding how they fit into the zeitgeist. The company's 2022 and 2023 Flavor of the Year syrups, Salted Egg Yolk and Roasted Black Sesame, respectively, are part of Gen Z's take on “instagrammable” experiences, along with boba's growth in Asian-inspired drinks. Born from love.
Torani's 2024 Flavor of the Year, Galaxy Syrup, contains “subtle mineral notes” of raspberry, dark rum and a striking purple color and is designed to be mixed into matcha, energy drinks and cold brew. The company consulted with Dr. Robin T. Garrod, professor of astronomy at the University of Virginia, to model the flavor of the compound Sagittarius B2. Torani said this gives raspberries their unique flavor.
The Galaxy flavor is inspired by this year's April solar eclipse and several space launches scheduled for this year. The company also observed how much young people relate to horoscopes and astrology.
“There are always periodic events, but there are also one-time events, like a solar eclipse. We want to find ways to help provide additional sensory experiences,” Ramirez said. “It’s always fun to predict the next steps and sift through over 100 ideas.”
Energy and functional beverage boom
While companies are always looking for unique, cutting-edge flavors, there's a tectonic shift in the beverage space that Torani hopes will meet demand.
The company expects both energy drinks and functional drinks to continue to surge in the coming years. Citing figures from BevNet Magazine and Circana, Ramirez found that sales of energy drinks have grown 51% since 2021, growing to a value of $21 billion. The sports drinks category has also seen a 49% increase in sales over the past three years, and is now valued at approximately $4 billion.
“There are always periodic events, but there are also one-time events, like a solar eclipse. We want to find ways to help provide additional sensory experiences.”
Andrea Ramirez
Consumer Market Insights Manager at Torani
Two other trends that have become popular among young consumers are pointing to the future direction of the beverage industry. One is the boom in sales of hydration drinks containing electrolytes, from Unilever's Liquid IV packets to Prime soft drinks, and the increased use of reusable water bottles from brands such as Stanley and Owala. .
Major beverage trends are primarily emerging on social media. “WaterTok,” a portmanteau of water and TikTok, is a phenomenon in which influencers combine hydrating powder sticks and flavored syrups with water to create new drink concoctions.
In addition to the retail consumer space, Torani is observing mixology trends emerging in local foodservice locations across the country, which he believes will translate into retail. Some restaurants in Spokane, Washington are making infused sports drinks. In the South, nutrition clubs are selling ‘loaded tea’ made with functional ingredients.
“Customized beverages, which are still in their infancy, will have opportunities to penetrate over the next three to four years, including in the flavored energy drinks category,” Ramirez said.
Despite the appeal of unique flavor combinations, Ramirez said the most popular products are based on traditional pairings designed to add a little flavor to a cup of coffee.
“You want it to be cooler and sexier, but if you look at our best-selling flavors, they are variations of caramel, vanilla and chocolate,” Ramirez said. “But sometimes new innovations come from: food service “It adds a new twist, like salted vanilla.”
