Pet Food is Starting to Look a lot Like Human Food

The evolution of pet food has come a long way. Gone are the days when pet foods were made from mystery meat and tons of synthetic ingredients. Today, many Americans are feeding their pets with foods that humans also eat. Many pet parents opt for pet foods that are marketed as non-GMO, organic, grass-fed, and other healthy monikers. These types of pet foods including grass-fed beef for dogs and high protein organic beef are especially growing in the market.

The trend of pet foods – particularly high-end pet foods – is becoming closer to that of human food. It is essential to take note this overlap. For instance, pet foods now contain whole berries and other ingredients that humans would often snack on. Don Tomala, president of Matrix Partners, a pet-product manufacturer, noted that the current trend in pet food is to humanize the products.

But more than put healthy ingredients, most pet owners are also very particular with the branding and packaging of pet foods. Gone are the days when pet owners would choose a dog food with a colorful caricature of pets. Today, they will likely pick products that display real dogs that seriously look healthy – similar to the packaging found in products sold at natural retailers like Whole Foods.

Pet Food Humanification Reflects Pet Owners’ Preferences

But the humanification of pet food reflects the preference of the pet owners themselves for healthy food. Moreover, many pet owners treat their pets as their children instead of animals thus they want only the best for their pets. The popularity of the term “fur babies” is a clear example that pet owners are already treating their pets just like humans and so they want only what’s best for their “babies.” In the past five years, researchers have noted that many pet owners are looking for pet foods that they would also buy themselves.  This trend is affecting food manufacturing companies as many have introduced their own lines of pet food. The exciting part is that any trend that you can see in consumer food can also be applied to pet food.

Increased Revenue

Tomala noted that American pet owners were spending around $18 billion on pet food in 2009. Sales have grown to $30 billion since last year. This outpaces the rate of pet ownership and means that people are spending more on pet food than they did ten years ago. Many food manufacturing companies have benefited from this trend. San Diego-based company Honest Kitchen uses human-grade ingredients to make their pet food. However, it is not only human-grade ingredients that they use but they also strictly follow all human food regulations. This is to ensure that pet foods are not only safe but also effective.

Inspired by www.theatlantic.com

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Pet Market is Facing Same Challenges as Big Food

Makers of pet foods are hoping new pets can compensate for a recent dip in sales. High-end pet foods made with more expensive ingredients make up a large portion of the market share for the animal food market. Treats and snacks for cats and dogs are also bought more frequently than foods. The high influx of new products adds stress to the pet market as prices are being driven down. The pet market is now facing much of the same issues as big food in the human market.

Between 2006 and 2010, a 30% rise in spending on pet food occurred. Young adults were providing their pets with grain-free kibble and wild caught tuna before focusing on other aspects such as purchasing a home or having a child. Many of these people treat their pets as if they are their first child!

Stats Fur The Pet Food Market

In contrast, pet food spending per home only increased by 5% from 2010 to 2017. The same buyers from years prior are now shifting their focus onto obtaining a house or having a child. These achievements are both costly and can show why spending on pet food has lowered. Analysts believe that sales on pet food will continue to increase in years to come—albeit slowly at around 3% per year, as the next generation continues to get pets.

Large corporations including Nestlé, General Mills Inc., and J.M. Smucker Co. have all recently acquired new pet food brands. Nestlé reallocated $320 million in the creation of a brand-new factory to produce U.S. pet food. Mars Inc. also invested over $7 billion to 800 different animal hospitals, as well as animal day-care centers and veterinary laboratories.

2017 experienced the introduction of over 4,500 different new pet food-related products, which equated to a 45% increase in new products found in 2016. These products were mainly high-end, which grew profits up for companies. The average cost for pet food is up to $2.55 a pound as opposed to $1.71 in 2011.

In April, Blue Buffalo pet food was acquired by General Mills in a deal costing $8 billion. This resulted in a greater influx of premium pet food products to grocery channels and other large retailers. General Mills experienced growth of 9% whereas their human brands like Yoplait and Hamburger Helper experienced a 2% dip in sales.

Although sales have been down for large brands such as Kibbles ‘n Bits and Gravy Train, Smuckers is still confident in the growth opportunities within the pet market. Many remain hopeful as the pet population experiences much faster growth than the human population, resulting in a need for more and more food.

While the big name and high-end pet foods may experience slight dips from time to time, many signs indicate the opportunities for growth within this market. How is the human market adapting to these similar changes?

Inspired by www.wsj.com

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Petco to Stop Selling Pet Products with Artificial Ingredients

Petco, one of the largest pet food retailers, has stated that they are no longer going to sell cat and dog food made with artificial ingredients. They have since announced that any items made with artificial flavors, preservatives, or colors will be pulled from their shelves. This came as a shock for many people who are used to buying pet food products with artificial ingredients, but it was not surprising to the millions of pet consumers demanding clean label ingredients for their furry friends.

New CEO, New Policies

This in part came about after the new CEO Ron Coughlin came into his new position back in June of 2018. He brought about this change to remind consumers what Petco’s primary objective is as a company.

They chose to do this based on their commitment to the wellbeing of pets. Petco wants for owners to treat their pets as family, and this includes the way that they eat. Beginning in the new year, over 50 different artificial ingredients will no longer be allowed in Petco’s stores. Petco wishes to have all artificially made products removed from their shelves before May of 2019.

Although this may seem like a substantial financial risk for the company, Petco’s CEO has since stated that it was the right thing to do. Their goal is to positively impact the lives of the animals we call our pets. This is more important than the potential financial blow that may follow after this move.

These changes will impact large companies such as Cat Chow and Pedigree. Petco has since stated that they are working with these companies to have them change the way they create their products and make the switch to a more natural alternative.

The only exception would be two specially branded cat foods meant to assist cats with a rare health issue. In some cases, there is not yet a natural alternative to the artificially made ingredient, which explains why it will be allowed to stay on shelves.

Petco is Leading the Way

This is a significant move on Petco’s part as other pet food retailers will probably begin to follow suit. It is safe to assume that companies that produce pet foods will also start to adopt new means of production that exclude artificial ingredients. This change will most likely negatively impact companies who have been producing artificial ingredients.

Petco maintains over 1,500 different locations and employs over 20,000 people. Their company has been known to put the wellbeing of animals over their desire for profit. In 2010, Petco launched a National Pet Food Bank to allow financially struggling owners to keep their pets and feed them properly.

Petco is a retailer that strives to continue serving animals and owners alike, with their primary goal of delivering positive experiences for pets and owners. This company has continued to serve the pet loving community for over 50 years.

This decision to pull artificial ingredients directly reflects their vision of healthier, happier pets across the world. Be expectant to see Petco continue to pursue changes that directly influence the pet food market, and that will ultimately ensure that more animals can live long, happy, healthy lives as our faithful companions.

Inspired by fortune.com

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Fruit Powder Industry Expected to Grow to $23.96 Billion by 2025

Fruits contain concentrated amounts of plant-based vitamins and minerals. They also contain high amounts of fiber and antioxidants. Consumption of fruits is beneficial to the body but not everyone loves eating them. People also have to consume a lot of fruits to get the health benefits that your body needs. This is where fruit powders come in. The fruit powder industry is expected to grow to $23.96 billion by 2015 according to Hexa Research. Fruit powders have a positive outlook specifically in the nutraceutical industry as many consumers are looking for ways to supplement their nutrition using natural food products.

Rising Awareness to Healthy Food Ingredients

There is a rising awareness for consuming healthy food ingredients. Fruit powders contain important micronutrients such as vitamins and minerals. They also contain high amounts of amino acids. Aside from the rising awareness of healthy food ingredients, fast-paced lifestyles have also inclined people to opt for convenience without sacrificing the nutritional content of their food. This grab-n-go mentality is fueling the demand for fruit powder worldwide.

fruits vegetables fruit powder vitamins minerals plant-based ingredientsPreventive Healthcare Is Another Driving Force

Another driving force of the nutraceuticals industry is healthcare. Organizations are developing measures for preventing cancer and other chronic diseases. Fruit powders contain high amounts of antioxidants that have been proven to help reduce the risk of cancer progression. It is no wonder why those in the healthcare industry are also using fruit powders to develop products for preventive health care.

Studies show that the intake of more fruits and vegetables can help prevent gastrointestinal tract cancer. According to the World Health Organization (WHO), low intake of fruits can increase the risk of stomach cancer by 30%. In fact, inadequate intake of fruits and vegetables resulted in 5.2 million deaths around the world in 2013 alone.

Large Companies Are Following Suit

The increasing demand of fruit powders from the nutraceutical industry is propelling this particular sector. This is expected to drive even large companies to use fruit powders or extracts to improve their product line. For instance, companies such as Unilever are improving their image by developing product lines such as the Replenish Shampoo and Trireme Botanique Nourish – both containing coconut extracts. Fruit powders are not only popular in the food industry but also in the cosmetic industry.

Other large CPG companies are looking at fruit powders to add back the vitamins and minerals typically lost in processing. NutriFusion fruit powders and vegetable powders are some of the most robust in the industry. With NutriFusion fruit powders, brands can add 50% daily value of 6 different vitamins from fruits with only 225mg of powder. Check out the NutriFusion R&D kit to learn more.

Global Implication for Fruit Powder

Consumers are becoming more aware of their health and this is evident in their preference for simple food ingredients such as fruit powders. This trend is not only popular in the United States but also in other countries. In Europe alone,  the reported revenue for the fruit powder industry exceeded $3 billion in 2017. Fruit powder demand has formed micro-industries such as the probiotics and superfoods. Aside from the European market, the fruit powder industry is also expected to grow in the Asia-Pacific region with an expected track of 8.4% annually particularly in countries like China, Vietnam, Thailand, and India. Hex research believes supportive government policies can boost the production and growth of this industry over the long term.

Inspired by www.prnewswire.com

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Greater Food Brand Loyalty is Linked to Food Transparency

According to a retail food study, consumers showed a higher incidence of brand loyalty to food products that generate a deeper connection via transparency. As much as 75% of shoppers are more than ready to switch brands when confronted with a product that has a more detailed label. The new study shows that shoppers are getting more demanding when it comes to food transparency.

Inside the Report

The report was developed by the Food Marketing Institute (FMI) with the purpose of outlining how shoppers define transparency and how it influences their food buying behavior. The report is known as The Transparency Imperative. According to the CMO, “We titled this report The Transparency Imperative because as we executed the research to bring the key findings of our 2016 studies current, we see clearly that transparency is only becoming more important to consumers.”

The paper looks deeply into the behavior and attitude within shoppers who are health-conscious as well as those who are digitally-active. It also looks into the response of consumers across different ages.

Targeting these varied consumer demographics, the study offers various and needed steps that brands should look into to further show their commitment to transparency; to track the ever-changing scenario of consumer preferences; to meet the ever-increasing expectations of food-buyers; to comprehend the exact needs of essential groups of buyers; and to transmit data over and beyond the list of ingredients.

The Results Show Brand Loyalty for Transparent Brands

 

As much as 86% of the correspondents agree that food retailers and manufacturers that provide a gateway to easily look-up their products’ ingredients definitions are easy to understand and complete—would lead to greater trust from them.

Further, a staggering 80% commented that they would definitely be more loyal to a brand that offers a significant amount of data on their products, more than what’s usually contained in the product label.

Lastly, more than half of the correspondents, 54% to be exact, would pay more for products with this included information.

Defining Transparency

According to Generation X and Baby Boomers, transparency is directly linked to nutritional information, ingredient descriptions, and a complete list of ingredients. Millennials, on the other hand, have a more detailed expectation when it came to transparency. Aside from what the older generations have listed, they are more likely to focus on fair trade and labor practices, animal welfare, descriptions of ingredient usage data, claims and certifications as well as allergen information.

Health-Conscious Shoppers Committed to Transparency

As much as half of the households in America have an individual who follows a health-related diet. Making these households more likely to put a significant importance on transparency. In fact, as much as 89% of shoppers are more likely not to buy a food product when the label is not sufficient to meet their needs.

Further, households that have children have an increased tendency to lean toward transparency. As much as 87% of these households use their smartphone while grocery shopping to check product information while in store.

All these findings point to advocating transparency by food brands can lead to better consumer relationships, brand loyalty and profits. Natural food brands should look for simple ingredients that help create a transparent, clean label. Learn more about GrandFusion fruit and vegetable powders to add real vitamins and minerals to your products.

Fruit Powders and Vegetable Powders Are Versatile for CPG Brands

With growing demands from consumers for clean label products, the popularity of fruit powders and vegetable powders has skyrocketed. While fruit and vegetable powders have been used for a long time in baked goods, the movement of clean labeling and eating has revolutionized the use of these powders and extended their use to many other categories.

Recent trends of food focus on more than just taste and color as many consumers are looking for products that have functional benefits and clean labels. Fruit and vegetable powders fit the bill as they can easily be incorporated in labels and they give the consumers the impression that the product is more natural and healthier than the conventional products.

Today, many food manufacturers have incorporated fruit and vegetable powders in making their products. They are not only used in making healthier versions of donuts, muffins, and cookies but virtually many types of products including pasta, cereals, and so much more. Powdered produce is way better than fillers as they increase the nutrient content of food. GrandFusion powders especially set products apart from the crowd. The NutriFusion technology enables companies to add a small amount of fruit and veggie powder (225mg) and add 50% daily value of 12 different vitamins at the same time. Let’s take a closer look at the benefits of fruit powders and vegetable powders.

The Benefits of Fruit Powders and Vegetable Powders

There are so many benefits of using fruit and vegetable powders. Several studies indicate that it can boost overall health. In the 2016 study conducted by researchers from the University of Cincinnati Academic Health Center, adults who consume powdered blueberry showed better signs of cognitive performance. Researchers noted that consumption of such powders can help reduce the risk of Alzheimer’s disease.

Other studies noted that fruit powders contain rich amounts of polyphenols that can help maintain good heart and cognitive functions. What makes powdered produce powerful is that they are denser compared to whole foods thus the concentration of nutrients is larger. Imagine that one teaspoon of powdered spinach may be equivalent to several cups of raw spinach. So, if you use two or more teaspoons, you do the math.

The Need for Nutrient-Dense Food is High

 

There is a growing desire especially among the younger consumers for foods that are loaded with high amounts of nutrients and minerals. In a recent report released by market research company Mintel entitled “Snacking Motivations and Attitudes US 2015,” it is more likely that younger consumers prefer snacks with added nutritional value such as fiber and protein content compared to the elderly consumers.

Powdered produce also contains high amounts of antioxidants and fiber content. In fact, one can get more fiber and antioxidants with a few tablespoons of powdered produce compared to eating a whole cup of fruits and vegetables. Moreover, they also contain high amounts of natural sugar thereby omitting the need for more free sweeteners.

Inspired by www.bakingbusiness.com

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Nielsen: Private Label Sales Grew 3X Faster Than National Brands

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In a recent report released by Nielsen and cited by Food Navigator, private label sales surpassed the sales of national brands. Private labels are manufactured by one company under another company’s brand or private label. Also called OEM products, they can add margin to stores as well as provide more credibility to shoppers.

The Benefits of Private Labels

Whether it is a bottle of orange juice or a bottle of ketchup, today’s shoppers are comfortable with private labels, which they also called “generic” brands.  There are a lot of benefits to using private labels. Private skip the big brand name, so there is no added cost which allows vendors to add cost or value to their product in other areas to make it more reliable. It is also a solid strategy for retailers as it can reduce competition in different categories.

The Growth of Private Label Sales

 

The Nielsen report has shows that private labels have experienced a complete reversal regarding its growth, sales, and popularity. In fact, future projections indicate that there will be continued growth for such products and that the market share could hit 25.7% by 2027. This translates to an 8% growth rate over the next ten years.

The popularity of private labels has resulted in retailers like Lidl, Aldi, and Trader Joe’s to earn more revenue and build customer loyalty. In fact, such retail companies have emphasized these products in their online and brick and mortar stores with much success.

National Brands Vs. Private Labels

Big food manufacturers are watching this trend with alarm. And even the brands that remain strong and unsurpassed by private label products are still watching with keen eyes and ready to react. Most national brands are working on convincing shoppers that national brands have been tried and tested and worth the extra cost. But in reality, market experts noted that longtime legacy brands could get an extra boost especially if they continue to innovate and do not rest on their laurels.

While the private label brands are not yet posing too much threat to national brands, there is still a possibility that it can happen. If national brands cannot keep up with the private labels, the market scene in the United States will look more like in Europe where private label commands more loyalty from consumers.  In fact, in the UK, private labels hold 45% of the market share within the grocery sector. The reason why private labels are popular in Europe is that they provide more value for the money and that they offer more choices to shoppers.

Private labels will be huge in the following years. If private labels keep up with the changes as well as offer more value and choices to shoppers, they can ride the current trend for a long time to come.

Inspired by www.fooddive.com

Sales of Pet Food Growing Faster Than Packaged Human Food Sales

Pet manufacturers have been racking up the sales from their pet foods over the past few years. They have been doing so well that they are now growing faster than packaged human food sales. The video above digs into a little more detail on just how quickly pet food sales are growing.

The latest acquisition in the pet food space shows how big pet food brands can be. General Mills recently acquired Blue Buffalo for $8 billion. Mars also purchased VCA pet care provider in 2017 for $9 billion to go with their purchase of IAMs for $3 billion 2014.

So Why so Much Capital Investment in Pet Food?

The $30.6 billion U.S. pet food market is expected to grow by 2.3% over the next five years compared to 1% in packaged human food. The fast-growing pet food market is not slowing down anytime soon, and investors want to grab profits while the industry is hot.

NutriFusion Adds Plant-Based Vitamins & Minerals to Premium Pet Food

Why does NutriFusion care about the pet food market? We developed a patent-pending method for stabilizing the naturally occurring vitamins in fruits and veggies. Premium pet food manufacturers are in love with our product because now they don’t have to add synthetic supplements to their fantastic products. With our grandfusion blends, you can dial in the exact amount you need without losing large percentages in the production process. Interested in learning more? Download our GrandFusion for Pet Resource kit today!