Food makers are taking a fresh look at coffee creamers, eager to benefit from rising demand for products that hadn’t changed much for decades.
Nestlé SA and Danone DANOY 0.84% SA long dominated sales of oil-based creamers in classic flavors such as French vanilla. Now younger coffee drinkers with an affinity for indulgent, customized drinks are stoking demand for new flavors and variety.
Smaller companies are satisfying that demand with creamers made from dairy alternatives including oats and soy. Meanwhile, the biggest brands, Nestlé’s Coffee Mate and Danone’s International Delight, are generating higher sales with new flavors, such as Funfetti cake and Peeps candy.
Sales of liquid coffee creamers rose about 9% last year, according to market-research firm Nielsen, compared with 2% growth across the food industry overall. Creamer sales have risen at a faster pace than total food sales for the past four years, Nielsen said.