New kids’ food and beverages may feature colorful cartoon characters. Yet make no mistake, this category requires some serious attention to key trends. In the US, Innova Market Insights finds a proliferation of new “clean label” kids products with reduced levels of sugar and salt. Likewise, many new offerings tout the addition of prebiotics, probiotics and other for better-for-you functional ingredients.
It’s no surprise that parents play a significant role. In a household, parents typically make food and beverage purchases, plan meals, and set the atmosphere for trying new foods. Innova’s consumer research shows that parents create an environment for experimenting with foods and beverages and are interested in bringing exciting flavors into the family food environment. At the same time, parents prioritize naturalness and pay close attention to natural ingredients when purchasing products for their children.
Parents care about health and wellness for their children, and their purchasing patterns drive innovation toward healthier children’s food and beverage products. We see growth in numerous categories in children’s products that are positioned as healthy and better-for-you, including dairy alternatives as well as new items in the sweet and savory bakery, and confectionery categories.
Kids Trends, Tastes
Several key trends shape the dynamic market for children's food and beverage products. Not surprisingly, confectionery is a strong category, with sweets holding a beloved place in the hearts and stomachs of US children. Dairy-based drinks are a notable subcategory, while plant-based alternative drinks are emerging in an expanded range of flavors. Additionally, we are monitoring the emergence of adult-friendly messaging and on-pack designs that appeal to both adults and kids.
Innova tracks trending flavors as part of new food and beverage product introductions and their features. We see strength in enduring classic flavors such as chocolate and strawberry in sweet categories; and cheese in savory categories. However, as children and their palates become more adventurous, there’s growing demand for unique and sophisticated flavors and combinations.
Sour flavors, which are well-established especially in kids’ confectionery, are waning. Meanwhile tropical flavors as well as watermelon, peach, and apricot are on the rise. Products that change flavor are generating excitement and gaining share among households with kids. Another growth area involves the migration of adult-friendly flavors—including caramel, dark chocolate, coffee, and tea—into children's products. This broadens a product’s appeal to more than one generation in a household.
Healthy Growing Bodies
Innova is tracking the growing presence of probiotics, prebiotics, and postbiotics in a growing variety of foods and beverages for children, including baby milk and products for toddlers and older children. Today’s focus on gut health is built on a better understanding of the roles played by a healthy gut and its microbiome in proper digestion, nutrient absorption, immune system development, and overall well-being.
Parents recognize the value of digestive health. These gains in awareness and knowledge help drive demand for products that support a healthy gut, especially for young children. The Innova Health & Nutrition Survey 2023 lists gut and digestive health among the top five desired health and wellness benefits in food and beverage products.
Probiotic strains are defined by the International Scientific Association for Probiotics and Prebiotics (ISAPP) as “live microorganisms that, when administered in adequate amounts, confer a health benefit on the host.” Added probiotics are gaining prominence in several children's food and beverage categories, led by dairy plus baby and toddler formula, drinks, and food. The incorporation of probiotic ingredients in baby and toddler product launches increased during the pandemic as a strategy for boosting immunity and has remained elevated. Suppliers increasingly are cultivating specialty strains that benefit digestive health along with immune health and other types of health support.
Prebiotics, according to ISAPP, are “substrates that are selectively utilized by host microorganisms conferring a health benefit.” In products for babies and toddlers, especially formula and milk, prebiotics tend to be soluble fiber ingredients that support gut health and development of the immune system.
Common prebiotic additives to children’s products include inulin, a soluble fiber found in chicory root and select plants; oligofructose, also derived from chicory root, related to inulin, and often added to baby formula and cereal bars; polydextrose, a synthetic fiber that provides prebiotic benefits and enhances texture in bars and bakery products; galacto-oligosaccharide (GOS), a human milk oligosaccharide (HMO) that supports infant gut health; and 2'-Fucosyllactose (2'-FL), an HMO with benefits for gut health and immune system development.
Postbiotics are the newest “-biotic” ingredient to gain use in children's food and beverage launches. ISAPP notes that postbiotics are a “preparation of inanimate microorganisms and/or their components that confers a health benefit on the host.” Postbiotics gradually are gaining shelf space for children with a sensitive GI tract or who cannot tolerate the live microorganisms in probiotics.
Ingredient “-biotics” are widely used in several categories. Probiotics have a long history in cultured dairy products and also are common in cultured dairy alternatives. We see the addition of prebiotic ingredients in cereal bars positioned as a nutritious and wholesome breakfast for children. In this instance, prebiotic ingredients replace sugar and fat and also contribute fiber and sweetness.
Manufacturers are charged with the task of creating products for children that are both appealing and healthy. Dairy alternatives such as spoonable non-dairy yogurt may feature almond milk ingredients that are perceived as healthy. New bakery products for kids are diversifying away from sweet heading toward more savory profiles with higher nutrition and flavors and ingredients like cheese and vegetables. Some new snack bars even incorporate hidden vegetables to enhance nutritional value stealthily. Ready meals and side dishes for children increasingly reflect adult concepts, which tend to be healthier than classic kid-friendly products. Transparency in labeling and content can help win over parents.
In the future, personalized health and nutrition approaches could usher in new products that address specific health conditions in children, such as obesity, pre-diabetes, and allergies, along with gut health.
Clean Label Appeal
Consumers want greater overall transparency with clear and concise information about ingredients and their sourcing. Nearly half of North American survey participants say that clean labels have at least some influence on their buying decisions for children's food and beverages. This drives availability of clean label products, which are an important element of a health strategy for kids.
Overall, more and more products are touting freedom from additives. In a recent survey, more than one in five North American consumers, including parents, reported actively avoiding additives and preservatives. Their desire for products that are free of additives and preservatives is helping fuel the decline in use by manufacturers of additives and preservatives. Consumers with children also prioritize less processing and simplified ingredient lists and messaging. Not surprisingly, parents are highly interested in natural and organic products and ingredients for their children.
Innova is monitoring changing consumer perceptions about the environment. Growing awareness of sustainability and environmental issues supports clean labeling as a way to demonstrate support of the environment. Consumers surveyed report a growing preference for naturalness and products labeled "natural" or "organic." North America is second only to Europe in penetration of organic claims, especially in baby food. Interestingly, North America is the global leader in non-GMO claims and this also is trending on nearly all baby food launches.
Despite the impact of cost of living on consumer purchasing behaviors, a growing number of North American consumers value clean products and say that they are willing to pay more for clean label products for their children.
Looking into specific categories, we see the deepest penetration of clean label claims in product launches for children. Meat substitutes, cereals, and soups are among the other leading categories.
Marketing, Market Forecast
Manufacturers are using marketing strategies that appeal to both children and their parents. On-pack messaging calls out natural features and health benefits for the benefit of parents while it uses themes that appeal to kids. Front-of-pack cartoon characters are common. Watch for overlap between education and entertainment in the form of kid-friendly storytelling about products and guidance about nutrition and healthy eating habits.
The food and beverage landscape in children’s products is dynamic and evolving. Going forward, Innova expects heightened interest in and focus on health and wellness benefits for children. The challenge for manufacturers will be to pair health with excitement and innovation while emphasizing clean label features. New product launches need to appeal to kids and gain the approval of their parents.
