PacMoore recently released an interesting infographic on the differences between organic and non-GMO labels. Most consumers, as well as food brands, struggle to understand what is the difference. The certification and verification process is much different. Check out PacMoore’s infographic to learn more!
Inspired by https://www.pacmoore.com/organic-versus-non-gmo-labels/
Reading Time: 2 minutes
Comax Flavors introduced survey last summer to better understand consumer perceptions around plant-based dairy alternatives. Comax surveyed 1,000 adults in the United States last July that said they used plant-based dairy products at least three days a week.
This question about purchase behavior was at the center of Comax’s survey. They found that for most (48%) consumers, the flavor was the top reason why the purchased the plant-based alternatives. The most frustrating takeaway for the dairy industry was that 36% of consumers bought plant-based dairy products because of the perceived health benefits. Dairy industry veterans are annoyed because they believe that cow’s milk is nutritionally superior.
The survey also took a look at health and wellness as well as animal welfare to understand better why the rapid growth in plant-based dairy products. They found that the younger generations (millennials and Gen Z) were more concerned and influenced by animal welfare. As a result, they are purchasing more plant-based products all around.
Non-dairy milk sales have soared over 61% in the past five years to an estimated market size of $2.11 billion in 2017. In that same period, regular dairy milk sales have dropped by 15% to $16.12 billion in 2017.
The dairy industry is not going down without a fight and is pursuing a variety of options to challenge the new plant-based dairy alternatives. They are taking plant-based beverages to court over the word “milk” much like how Unilever challenged Just Mayo over the use of “Mayo” in the name. It will be interesting to see how this plays out.
The dairy industry is also trying to diversify with innovative products including carbonated or fizzy milk products. The new products have a longer shelf life than traditional milk which hits on one of the plant-based dairy’s competitive advantages.
Plant-based dairy products are not going anywhere anytime soon. It’s interesting to see why consumers are buying them and it turns out the flavor is the significant factor. The dairy industry will have their hands full trying to slow down this plant-based boom.
Inspired by www.fooddive.com
Reading Time: 3 minutes
Consumers approach wellness in a holistic view these days. They prefer foods that come are organic and GMO-free, and other clean label cues. This trend is taking over drinks as well as more consumers want functional and healthy beverages.
Innova Market Insights, a Netherlands-based company, noted that many consumers are now becoming savvy when it comes to buying their favorite drinks. In 2016, a trend regarding the rising consumption of functional beverages rose to 27.2% from 12.6% in 2012. This means that more people opt for drinks that are fortified with vitamins and minerals or those that contain high amounts of protein for muscle buildup. These drinks are touted for their health benefits. The result is many companies in the US and UK are shifting their focus to healthy beverages to supply the growing demands of the market.
Aside from functional beverages, there is also a growing trend called “lighter enjoyment” where consumers are opting for alcoholic drinks that have lighter alcohol content and more flavor and texture to reap the benefits of the alcoholic beverage without the need to be intoxicated.
Today’s shoppers are taking health and other wellness-related matters into their own hands, and this has created a niche within the beverage industry to meet the growing demand. There is an increasing number of consumers who are following healthy routines such as training and exercising, so they need a drink to support their lifestyle.
So why are many people turning to healthy foods and beverages instead of medicine? People who are not getting their desired results from traditional medicine are trying out health and wellness products. The trend here is an opportunity for companies to innovate their products into functional food and beverages.
This is where personalization of products comes in as people have different preferences when it comes to their health and wellness. For instance, people who follow specific diets tend to avoid specific ingredients in their beverages. So the traditional, one-size-fits-all approach to creating drinks is no longer a reliable concept for manufacturers.
Many shoppers are making more focused and informed buying decisions. They are very mindful of the types of products that they buy. Aside from the kinds of ingredients, the “why,” as well as the “how” behind the product, is an essential factor in the decision making process of today’s shoppers. This adds another layer of complexity to the food and beverage industry to develop products that will appeal to more educated customers.
Beverages attribute to more than $11 billion in global sales, and these highly competitive functional drinks are slowly creeping up to make up a quarter of the market. In fact, functional and healthy beverages made $3.1 billion in sales last year, and the projections seem to grow more by the year.
Inspired by www.bevindustry.com
Reading Time: 2 minutes
Daymon, global consumer retail, and private label brand agency, recently published its first Private Brand Intelligence Report. In the report, Daymon analyzes how retail brands and private label brands are competing based on proprietary survey data, category research, and expert insights.
Daymon’s analysis found some interesting insights for private label brands and some dangerous ones for national brands. The agency found that 81% of shoppers buy private label brands on every or almost every shopping trip. 85% of consumers in the study indicated that they trust store brands as much as their national counterparts. On top of these shopper stats, private label brand sales are up 4% over national brands in the past 12 months.
Daymon CEO, Jim Holbrook, believes that this is a “renaissance period” for store brands. He attributes this growth in private label to the way retailers are creating one-of-a-kind brands that national competitors are even having a time emulating. Grocery discounters like Aldi and Lidl are causing turmoil for traditional retailers because of their low cost, organic private label brands. The report concludes that the majority of shoppers (60%) want retailers to create more private brands in the fresh products category. Consumers can expect retailers to listen and start competing more aggressively in this category over the next 36 months.
The Private Label Manufacturer’s Association reports that store brands make up 17% of all grocery sales with a market size of $150 billion. Retailers like Aldi and Target have changed the way consumers think about private label. They now often recognize these store brands with quality and trust. National products are finding it tougher and tougher to compete with lower cost alternatives that are built on transparency and trust.
However, the private label market is facing some inside challenges. Brandless, San Francisco-based e-commerce startup, offers 115 “brandless” private label brands for the same price. For only $36, consumers can get free shipping all year on all orders.
As private label gets more competitive, it’s imperative for retailers to get savvy and compete even more. Simple ingredients and clean label products will be a win-win for store brands. Download our GrandFusion R&D Resource Kit to learn more about how our products can help you stand out from the crowd.
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What can we expect for the year 2018? What do you think the food and beverage industry will bring to our dining tables this year? You may have a lot of questions, but one thing is for sure, delicious and healthy improvements are in the forecast. Concentric, a leading marketing and branding agency, curated the top seven food and beverage industry predictions for 2018. Let’s take a look!
Is it “Instagrammable?” If it is, then most likely the food or beverage product will be shared by thousands, if not millions, of people on social media. Free and instant exposure—and this makes it a good selling point for manufacturers. Concentric expects to see an upsurge of carefully organized breakfast bowls that may be too appealing to destroy. And of course, brands would delve into the heightened aesthetics of their packaging.
Small, frequent feedings have been a slogan of a lot of diets which has led to the rise in snacking. Shoppers’ search for light snacks has been in full swing for the past few years. This year will be a bit different with food manufacturers rolling out “light” snacks and drinks, instead of the outdated and overpowering flavors. Food and drink producers are now geared for lighter tasting options like floral enhanced waters, less sweetness, less alcohol, and lighter ABVs as a whole.
More and more US consumers are embracing various ethnic flavors. As the American palate becomes more and more accustomed to International dishes, newer flavors are being introduced in the market. Think in the lines of za’atar, harissa, tahini, falafel, and pita to name a few.
While this trend is nothing new, the innovation and technology behind this growth are evolving. The direction of going plant-based is growing by leaps and bounds with introductions like plant-based egg substitutes and veggie burgers. Also, think of foods in the lines of jackfruit and zoodle pasta dishes.
A lot of diets debuted in the past few years totally eliminated processed foods in the diet. So, this may not be new but naturally-processed foods will be a big hit in 2018. We are slowly evolving into the mindset of “less is more.” And this is the niche where smaller companies can explore and seize opportunities by being able to deliver naturally-processed, no-preservative, and higher quality food.
We’ve heard a lot of phrases like farm-to-fork, farm-to-plate, sustainable sourcing, local sourcing, fair coursing, etc.—all these means sourcing and sustainability practices. The food industry is reducing their footprint while making food fresher longer and saving money. It is seen that the food industry is looking into kelp and seaweed for a more nutrient rich and sustainable food option.
This has been an age-old fight between consumers and producers, but it is seen that in 2018 food manufacturers are more than ever going to strive harder for brand and food transparency or else risk losing their market. 2018’s consumer is more probing and meticulous when it comes to their food than ever.
2018 is going to be an important year for the food and beverage industry. Many of the new products and reformulations have been in the works over the past 18 months and their launches will be critical. Be on the lookout for products utilizing multiple trends mentioned above to attract consumers. A variety of products with GrandFusion launching in 2018 will pair plant-based and light snacking trends together. These superfood snacks will pack a nutritional punch from GrandFusion’s plant-based vitamins without impacting the flavor or texture. Interested in learning more? Download our GrandFusion R&D Resource Kit.
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Researchers at Utah State University conducted a three-month study testing different merchandising strategies at convenience stores to determine if you could improve better-for-you snack sales. Their study found that placing fresh fruit and other healthy snack options near the checkout area plus promoting their beneficial attributes increased sales on many of these items. Another study developed by the National Association of Convenience Stores (NACS) found that better-for-you snack sales increased by 34% when merchandised next to traditional snacks.
Point of purchase displays near checkouts hosting a variety of healthy options from clean label granola bars to whole fruits and vegetables saw the most success in the Utah State study. Food manufacturers have spent much time in R&D to reformulate snacks and create packaging that speaks to the health benefits, but they are losing momentum in retail. Placement and callout need to be improved to showcase why these snacks are so much better for you than traditional ones.
“Both the healthy checkout and better-for-you planogram tests showed that low-cost tactics can be implemented at convenience stores to grow sales of healthier foods. What works in some stores may not work across all stores, but the success of these tests clearly shows that convenience stores can be a destination of choice for better-for-you items.”
Carolyn Schnare, Director of Strategic Initiatives at NACS
Retailers have to buy into the health-focused movement to see the real benefits. It can be a win-win for retailers and food brands as the clean label movement continues to pick up steam.
The better for you planogram study tracked by NACS looked at four low-calorie snacks in a few convenience stores. They found that integrating these products in with fan favorites on the endcaps of aisles significantly boosted the sales. Veggie chips sales were up 119% during the study! Better for you sales and GrandFusion is a crucial ingredient helping snack foods making powerful health claims on their packaging. Our powdered blend of fruits and vegetables stabilizes and concentrates the natural vitamins and minerals so that you can quickly add super nutrition without impacting flavor or texture of your end product. Let NutriFusion help you take your healthy snack to the next level!
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Big CPG companies have been focusing on growth through acquisitions the past few years. They see small brands as an opportunity to tap into a growing customer segment that they currently have little access to. However, the transition from a small brand into the big company structure can lose the “craft,” and “authentic” feel that makes those brands so successful. 2018 is the year when mergers and acquisitions teams will evolve and apply tactics that ensure the small brand keeps its quality and authentic feel.
M&A teams are finally noticing that some of the small brand’s most loyal consumers see these deals as the brand “selling out to the man.” These loyal customers matter, because are typically the people that helped the company grow so fast. It is important for big CPG companies to keep brands “local” and maintain the product’s integrity after an acquisition. M&A Teams are focused on the following to keep small brands authentic feel:
Risks in M&A exist for both the buyers and sellers. The small brands fear that the large company will ignore their mission and vision in pursuit of profits, and big companies fear they will never recoup a return on their investment. The M&A teams are telling both parties to focus on maintaining the look and feel of the brand. Keep the price the same, keep the packaging the same, keep the ingredients the same, at least for a little while. The bottom line here is if it ain’t broke, don’t fix it.
Inspired by www.fooddive.com
Reading Time: 2 minutes
The Center for Food Integrity (CFI) released a new study, A Dangerous Food Disconnect: When Consumers Hold You Responsible But Don’t Trust You, that looks at some damaging statistics on the food system. First and foremost, the study revealed that 33% of consumers do not trust the food system, which is down from 47% in 2017. This is alarming and further supports the movement by food companies to be more transparent and create products with simple ingredients.
The new CFI study is important because it showcases the disconnect between what consumers think and what food companies across the industry are actively doing to ease their concerns. On the list of most trusted sources for food safety information, food companies ranked dead last with food regulators taking 8th on the list, and farmers ranking 3rd on the list. Surprisingly, family and physicians ranked as the most trusted sources of food safety information.
Roxi Beck, Director of the CFI, believes food companies have to further their mission of product transparency. She suggests inviting consumers to the farms and manufacturing facilities to build more trust. She also suggests large CPG companies be wary of touting their large size and global scale as it often viewed as a warning sign to consumers today. The small brands are taking advantage of this and winning big time.
Multiple food companies and suppliers in the food system are looking at new blockchain technology to lead the transparency effort. Companies like Cargill have tested blockchain to allow consumers to trace their Thanksgiving Turkey back to the farm it was raised on. This is a step in the right direction.
Other companies are looking for ways to better tell their brand stories to lead transparency efforts. Marketing teams across food brands are selling this hard up the ladder because they know how important trust is to purchase decisions and long-term brand loyalty. The bottom line will grow as food companies and their brand focus on building more trust with consumers.
Inspired by www.fooddive.com
