Natural Extracts Transforming Future Food & Beverage Innovation

The Future of Natural Extracts in Food & Beverage Innovation

The global food and beverage industry is shifting more deeply into natural ingredient innovation, and natural extracts are becoming one of the strongest pillars of that movement. As consumer expectations evolve towards cleaner formulations, authentic taste, and transparent sourcing, ingredient suppliers around the globe are ramping up their investments into next-generation extract technologies. Natural extracts, which have previously been 'premium' solutions, are now impacting strategies for reformulating products from beverages, to dairy, snacks, bakery, and even nutrition categories.

During 2024-2025, major companies like ADM, Givaudan, Kerry Group, IFF, and Symrise rushed natural extract development pipelines to satisfy new technical, regulatory and sustainability obligations from manufacturers. While these organizations shift their extraction capabilities, their actions offer broader signals about how natural extracts will impact the next decade in food and beverage innovation.

Growing Demand for Clean-Label and Authentic Taste Experiences

The clean-label trend is still one of the strongest motivators for manufacturers to replace artificial flavoring with natural extracts. In fact, numerous industry studies were conducted in 2023 and found that more than 65% of consumers globally preferred naturally flavored products, particularly in beverages, dairy applications, and functional foods.

As a response to this consumer demand, ADM launched additional “TasteSpark” natural extracts in May 2024, which included botanicals, spices, and fruit extracts designed for low-sugar formulations in beverages and for emerging plant-based dairy products. ADM teams observed a growing number of beverage producers replacing artificial flavorings with natural citrus and berry extracts without compromising on flavor delivery.

Advanced Extraction Technologies Reshape Product Capabilities

New extraction technologies boost opportunities for food and beverage companies. Traditional solvent-based extraction is being replaced with more modern technologies that are better able to yield purer and greater quantity extract while improving control over the sensory output.

For instance, firms like Kerry Group have invested in supercritical CO₂ extraction that generates "clean" extracts of spices and botanicals with no residual solvent. These extracts exhibit enhanced organoleptic performance in heat-sensitive beverage systems and bakery fillings than traditional extracts.

Firms have also been developing enzymatic extraction and fermentation enhancement of the natural concentration of aroma molecules in citrus or tropical fruit extracts. These new generation extracts allow, beverage companies to reduce dosage levels and still produce a strong flavor power, while offering cost savings and improved flavor quality.

Through these types of technological development, extraction technology is becoming a source of competitive advantage and will enable companies to develop tailored solutions for low-alcohol beverages, plant-based dairy, or nutrient-enriched snack products.

Sustainability Becomes a Central Driver for Extract Development

Sustainability has transformed from a tertiary factor to a key motivator of sourcing decisions and product formulations. There is a stronger desire from manufacturers for extracts from regenerative agriculture systems, lower demonstrated carbon footprints for production, and traceable supply chains.

Symrise has grown its sustainable botanical sourcing program in Madagascar, India, and Latin America to incorporate regenerative farming for spices, herbs, and various citrus. 2024 reporting revealed that regenerative farms under its partnership model showed more consistent yields and soil degradation, assuring a reliable supply of botanical raw materials for natural extracts.

At the same time, Givaudan advanced its “Sourcing4Good” program with detailed carbon-impact transparency built into its natural extract offerings. B2B clients in beverages and confectionery increasingly request environmental scoring data to support their ESG disclosures, making such data a core part of product negotiations.

Functional Extracts Expand Across Nutritional and Wellness Categories

The wellness trend is bringing natural extracts into new functional uses. With consumers seeking both flavor and health in beverages and snacks, companies are now developing multifunctional extracts with nutritional and sensory benefits.

Kerry, for example, has expanded its portfolio of botanical wellness extracts, which includes ginger, turmeric, and a variety of adaptogenic herbs, reflecting the growing interest in immune-support and anti-inflammatory claims. The extracts are being developed for RTD (ready-to-drink) beverages, functional shots, and active-nutrition products.

IFF Health has been working on high-potency extracts of polyphenols for antioxidant-rich beverages and powdered supplement mixes that can be added to water. The development of these extracts is in response to the growing demand for natural plant-based health enhancers rather than synthetic actives.

R&D Collaboration and Traceability Tools Shape Future Product Strategy

The future of the natural extracts category is also influenced by digital transformation and closer supplier–manufacturer collaboration. Major companies have started integrating digital traceability, blockchain records, and AI-enhanced quality monitoring across extract supply chains.

ofi expanded its digital tracking tools to give beverage and snack manufacturers real-time insights into origin, farming conditions, and sustainability scores for spices and botanicals used in extract production. These data-based layers are becoming important for brands that need to communicate “farm-to-bottle” or “seed-to-sip” transparency.

Ingredient suppliers are partnering directly with beverage makers, dairy producers, and confectionery brands to co-create extracts that solve sensory issues, such as reducing sugar, masking flavor, or balancing bitterness. R&D teams are counting on natural extracts not only for flavor enhancement, but as a functional component that is core to development.

For deeper insights on emerging extract technologies and market developments, explore the Global Vanilla and Vanillin Market

Natural Extracts Set the Foundation for the Next Wave of F&B Innovation

Natural extracts are increasingly becoming a key contributor to how food and beverage products may be developed in the future. From new extraction methods to regenerative sourcing models to wellness-inspired formulations, the natural extract market is transforming into an ever more strategic element of product development.

As ingredient companies around the world embrace sustainability, supply chain stability, and genuine taste experiences, this means that natural extracts will play an even larger role in the next 10 years of innovation. For B2B manufacturers, the time is right to seize new opportunities to make innovative products that are differentiating, clean, and intended for the future, supported by new extraction technologies and streamlined sourcing ecosystems.