Trends we'll be watching in 2024 ? 👀
After a fantastic 2023 (year in review here), we are getting ready for the year to come.
As always at Five Seasons Ventures, we continue to hunt for the next European winners in the F&B category that can demonstrate fast growth, clear focus, and strong impact.
We asked our investment team members what they are most excited about in terms of future trends and investment opportunities. Functional beverages, supplements, weight management to name a few, here is a snapshot of some of the categories that we'll be following with excitement:
Functional Beverages🥤 - Saskia Hoebée, Principal
“The soda industry is massive (>$170bn in 2024) and ripe for disruption, because consumers are demanding better products but are not willing to give up on taste and convenience. Brands like our portfolio company DASH are leading the way on the healthy, no sugar, no sweetener promise. On top of the healthier alternatives I expect to see more functional beverages (think gut health, collagen, clean energy) popping up in Europe, following the success of US category leaders like Olipop. There is increased willingness to pay for beverages in Europe, and functionality justifies fetching a premium prize.”
Supplements 💊 - Niccolo Manzoni, Founding Partner
“Globally, health and wellness are driving the supplement market growth. Increasing awareness of nutrition and preventive healthcare has led consumers to seek out dietary supplements. The industry's growth is fueled by trends such as fitness consciousness, aging populations, and a growing interest in a stronger immune system. In light of the success of brands like AG1, we are always on the lookout for the next European winner. To stand out in a crowded market, a unique factor is needed, whether it's format, business model or formulation; we strongly believe this category is on the rise.”
Weight Management 🏋🏻♀️ - Giancarlo Addario, Principal
“GLP1 drugs are disrupting the food market and consumers’ awareness on the importance of weight management and its positive impact on people’s health is booming. The need for natural solutions to loose weight and to keep a healthy weight, also in combination with pharma therapies will surely see a relevant increase in the coming months.”
Lo/No Alcohol 🍸- Ivan Farneti, Founding Partner
“We have been on the lookout for the breakthrough brand in Lo/No Alcohol drinks for the last 4 years, but we still have not found what we are looking for. We can debate if red meat is good or bad for you, but there is no debate on alcohol. In this still small but nicely growing market, consumers have been looking for a healthier option without the compromise in taste and experience. The problem so far has been the lack of truly outstanding liquids and desirable brands (for non-alc spirits and non-alc wines), and the fast entry in the market of the large incumbents (for non-alc beers). We have seen a couple of true gems, especially in non-mimicking, authentic new drinks, so hopefully 2024 will be the year when we can make that post-investment toast.”
Coffee ☕️ - Andre Purits, Associate
“With the rise of the coffee shop across Europe, and specialty coffee becoming the norm versus a novelty, I expect to see consumers looking for ways to improve their at home coffee consumption experience. I see opportunity for challenger brands to tap into these tailwinds by providing higher quality coffee products, from bean to instant coffee formats, building digital coffee marketplaces to satisfy the needs of the gen-z coffee connoisseur, or through coffee machine innovation (perhaps replacing legacy systems all together with new brewing technologies!), improving the experience, convenience and sustainability of at-home coffee consumption.”
Savory Snacking 🥨 - Lucie Pate, Senior Analyst
“The savory snacking industry is fueled by changing consumer preferences for on-the-go, healthier options. Following the example of Dot's Pretzel and Tyrrells we’re looking for the next big thing, a brand that addresses the health, convenience, and/or indulgence needs of a new generation of snackers. This huge category, recession proof and driven by impulse is still hard to disrupt: dominated by major food players and the retail channel, where promotions and volume rule, very few new businesses have been able to scale and get space on shelves. We expect to see a clear European winner in the space in the future.”
Among other categories that we keep an eye one, if you missed our deep-dive analysis on the breakfast market, No&Lo, please visit our Medium 👉🏻 here.