Germany Takes Second Lead in Superfood Market Launches

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Consumers all over the world are fueling the growth of superfoods. In new market research released by global agency Mintel, Germany has overtaken Australia and UK regarding the superfood market launches. In the Global New Products Database published by Mintel, it revealed that 9% of new superfood launches in 2017 occurred in Germany.

The UK’s market launches dropped from 9% to 7% from June 2016 until the end of the year. Australia has fallen in third place with only 5% launches since June 2016. While Germany’s love of superfoods has grown, the United States still tops the list. But recent statistics show that the superfood launches in the US fell to 19% this year. This is a far cry lower from last year’s, 25%.

Why Is Germany Shifting to More Superfoods?

According to Katya Witham, senior analyst for Germany at Mintel, noted that the country is moving up in its ranks due to the growing demand of superfoods from consumers. The country is experiencing an increasing number of consumers who are interested in health and wellness.

So, what pushed Germany to have this huge embrace for superfood? The growing aging population and rise of health-related problems have driven the demand for the consumption of healthy superfoods. The country is experiencing health issues like heart disease and obesity. As a result, it is also increasing the health-care costs in the country.

 

Initially, superfood launches in Germany included a simple line of products from quinoa, chia, and amaranth. Recently, there is a growing demand of lesser-known superfoods, and this has led food manufacturers to harness the whole food goodness of other superfood ingredients to boost the quality of their food products.

The Launch of Supergrains

Specifically, Germans are interested in ancient grains such as millet and spelt.  In fact, 30% of German adults aged between 25 and 34 want to consume baked goods that are made from these grains. Also called super grains, spelt and millet appeal to the German market because they are deemed healthier than other grains. These ancient grains have a special place in the German kitchen as people have been using them in a variety of home-baked products over the years.

Today, German food manufacturers have incorporated the supergrains in products like breakfast cereals, energy bars, and snacks to boost the nutritional value of their products. Supergrains contain high amounts of fiber, omega-3 fatty acids, protein, and antioxidants.

The Future of German Superfoods

The agency also forecasted a stable future for superfoods in Germany.  In fact, retail sales of superfoods have amounted to €3.2 billion since 2016. The rising consumption of super grains and other healthy foods will result in a growth of 20% within the next five years.

Inspired by www.mintel.com

Brick-And-Mortar Stores Still Here to Stay Amid Online Grocery Platforms

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In the digital age, people have the luxury of buying whatever they need online. However, there are still many consumers who prefer to shop the traditional way. In a report released by The NPD Group, only 7% of consumers in the United States shop online for their groceries.

The Rise of Online Shopping Platforms

Consumers are not willing to adopt the online grocery shopping platform for various reasons, and one of them is that they want to pick out fresh items by themselves. There remains a significant number of the US population who prefer shopping in brick-and-mortar stores.

 

For instance, Amazon recently purchased the popular grocery chain Whole Foods to extend the online shopping experience of their Amazon Prime members. The acquisition is a big step for online shoppers including young professionals and urban consumers. The NPD Group predicts that online shopping will also expand faster due to the convenience factor appreciated by most shoppers.

In the same study, around 20 million of consumers who are new to online grocery shopping increased their virtual shopping activities, particularly on foods and beverages. The reason for this is that many online groceries offer a variety of unique products that traditional grocery stores do not carry. The diversity of products is another selling point of online grocery stores. But even if this is the case, it is a far cry to the hundreds of millions who still prefer to shop at brick-and-mortar grocery stores.

Why Are Traditional Grocery Stores Still Popular?

So why are brick-and-mortar stores here to stay? While one of the strongest points of online shopping is the convenience, there are still many barriers that they need to address. Aside from the fact that many people want to check and pick out food themselves, many people report the nostalgia that shopping in brick-and-mortar grocery stores provides. Another barrier to shopping for food online is higher costs.

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Most consumers believe that online stores do not maintain high overhead costs so they can offer lower prices. However,  it is the consumers who have to suffer from paying delivery charges or even membership fees. Consumers, in a nutshell, simply want to get their food fresh and now!

What Should Brick & Mortar Grocery Do?

While online grocery stores are becoming popular among the millennials, brick-and-mortar stores are here to stay. But to improve the shopping experience for their customers, they need to step up their strategies. According to Darren Seifer, industry analyst of the NPD Group, B&Ms need to market unique needs of consumers so that they can compete with online groceries that are offering a wider variety of products that brick-and-mortar stores do not usually carry.  By doing so, they can keep up with the pressure of time and the demands of their customers.

Inspired by www.npd.com

Infographic: 7 Trends Disrupting the Food Industry

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Check out these seven trends disrupting the Austrailian and New Zealand food industry in 2017!

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Ingredients and Formats adapts for Healthier, Portable Candy and Snacks

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Snacking is popular among consumers, but with increased health awareness and wellness education, snack companies are now changing their format to adapt to the needs of shoppers. Brands are focused on clean-label snacks, organic, gluten-free, and non-GMO products to meet these new requirements.

Emphasis For Healthy Snacks

With the rise of health-conscious consumers, it is no wonder why snack companies are clamoring to fill this new niche. For instance, aside from using clean labels, companies are designing snacks made from fewer natural ingredients without the use of artificial coloring and flavors.

Consumers are now following different diet restrictions. People who suffer from celiac disease, for example, can now find snacks that are made without the presence of gluten. Other companies have specialized in making healthy snacks without the use of genetically modified ingredients.

Why Focus on Candy Bars and Snacks?

So why are companies focused on making healthy candies and snacks? The smaller serving size is perfect for people who are always on the go. According to Millennial, a US-based research company, consumers are looking for bite-sized snacks that are not only easy to consume but that offer portion control in a re-sealable format. This format is being adopted by food brands like Snickers, Milky Way, and Twix by producing 100 calorie sticks.

 

Aside from the portion sizes, the packaging of candies and snacks is changing. The change in the packaging is aimed at improving the shopping experience for consumers. Candy companies are also focused on changing the ingredient list. For instance, the infamous Mars bar uses gluten-free ingredients such as whole nuts, fruits, and dark chocolate for those who have gluten restrictions.

Better Opportunities for Snacking Companies

The strategies implemented by snack companies have resulted in a huge revenue of $13.7 billion this year, which is a 2.4% increase compared to the previous year. The increase provides real motivation to snack companies when it comes to innovating their products.

Most consumers are actively shopping for healthier food items, so the merchandising of healthy snacks often involve placing the snacks near the produce section. This is to give the consumers the idea that the snacks are healthy. On the other hand, the store that receives a high amount of traffic can also place their snack products on visual shipper displays to provide appealing storage.

The thing is that the snacking industry will be big given a few years’ time as more people demand products that contain healthier ingredients. With the steady increase in revenue as well as popularity, the category of healthy snacks will continue to grow.

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Grocery Stores Carry 40,000 More Items Than They Did in the 1990s

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Grocery stores have been around for a long time. It was only after the post-war era that self-service grocery stores became popular as more people especially women became liberated from domestic duties and started going to work.

Today, grocery stores are big enterprises that provide people whatever their household needs. According to author Michael Ruhlman, the evolution of grocery stores is remarkable. Today, there are more than 38,000 supermarkets across the United States that earn billions of dollars yearly.

The Evolution of Grocery Stores

According to the Food Marketing Institute as well as the US Bureau of Labor Statistics, there is a growing need for grocery stores in the country and this growth is reflected in the rising stock prices of publicly-owned grocery enterprises. Aside from brick-and-mortar stores, grocery stores have also expanded to deliveries to accommodate all types of consumers.

But perhaps the biggest change attributed to the evolution of supermarkets is that modern groceries offer more diversity regarding their products. During the 1990s, there was an average of 7,000 items sold in a grocery store. Now, it has ballooned to over 40,000 items.

The Evolution of Shoppers

Parallel with the development of grocery stores is the evolution of shoppers. Over the past ten years, shoppers’ food preferences have drastically changed. For instance, you would never have been able to find gluten-free food a decade ago. Today, those kinds of products are prevalent and important many people’s diets.

The thing is that the taste and desires of ordinary consumers have also changed through time. It is important to take note that we are now becoming more conscious of our food choices and we tend to read labels more compared to 20 years ago.

Aside from reading food labels, consumers are also opting for organic foods especially if they can afford them. More than 50% of American consumers believe that organic foods are more nutritional than those grown using conventional farming techniques.  To supply the needs of consumers for organic products, many grocery stores also dedicate a section in their store for organic food products.

The Future of Grocery Stores

The future of grocery stores is very predictable. With the rising demand and food preferences of American consumers, grocery stores will get even bigger and will carry more diverse items. But then variety can also have its downsides. Ruhlman believes that too much variety sends consumers the wrong message that they can rely on grocery stores to get instant food instead of learning how to cook their meals from scratch. After all, cooking is an age-old skill everyone must learn, and that ability allows you to control the number of ingredients that you put in your food.

Inspired by www.marketwatch.com

Vitamin Fortification Can Cause Off Flavors in Dairy Milk

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Adding value to food and drinks is a popular trend in the food manufacturing industry. Consumers are demanding food and beverage brands to find ways to improve the nutritional value of their products. In fact, you can see many nutrient fortified products from cereals to soda.

 

The Rise of Value-Added Beverages

This is the reason why there is an increase of probiotic-infused beverages in the market. Examples of probiotic-based drinks that are available to the public include kombucha, flavored yogurts, and even drinking vinegar. But aside from drinks filled with healthy bacteria, another trend is to fortify ordinary drinks with vitamins and minerals. This is the reason why coffee and tea fortified with vitamins have found themselves on many supermarket shelves.

Plant-based milk created from nuts and seeds is also on the rise. These plant-based counterparts are positioned as healthier alternatives to traditional dairy milk.  But for a long time, dairy milk has held on to fortifying milk with vitamins to make it a healthier beverage.

The Problem with Fortified Dairy Milk

The most common vitamins that are added to milk are A and D. In the United States, these vitamins have been added to dairy milk since 1930 to halt the possibility of children developing blindness, cancer, and other vitamin deficiencies. The practice of adding vitamins and minerals to milk has been the standard in making pasteurized milk.

While beverage manufacturers have good intentions in fortifying milk, some consumers are complaining. The vitamin fortification of milk often results to imparting a distinct flavor that consumers mistake for spoilage.

In a study conducted by researchers from the North Carolina State and Cornell University, they found out that water-soluble vitamin concentrates often used in fortifying milk can lead to off flavors. On the other hand, using oil-soluble fortifications often results in no taste difference from unaltered milk. In the same research, test subjects detected a slight difference regarding flavor between enhanced skim milk and unfortified skim milk.

The Implications of The Study

The study revealed that while fortifying milk is a great idea to improve its nutritional value, it is crucial for beverage manufacturers to use the right vitamin concentrates.  Having said this, food manufacturers need to improve their process and invest in solutions that can control the impact of vitamin concentrates on the flavor of the dairy product.  The researchers recommended using less water-soluble vitamins and rely more on oil-soluble vitamins to improve the quality of their milk products.

But this strategy can backfire when it comes to the organic milk niche. Consumers who value natural and unaltered dairy products might find the fortification against their volition, so they opt not to buy them instead. Milk brands need to be clear and transparent about whether their milk is fortified or unfortified. Companies should look for ways to add food based vitamins like GrandFusion. GrandFusion is a concentrated blend of vitamins from fruits and vegetables including vitamins A and D.

Inspired by www.fooddive.com

Small Manufacturers Are Experiencing Large Growth

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Although almost $3 billion in losses took place in U.S. retail during the first quarter because of a shift in the timing of Easter as well as changing consumer preferences, growth is not impossible. Contrary to what the numbers show, a few small food and beverage manufacturers are thriving during an unexpected time. Only five years ago, the largest food and bev manufacturers represented one-third of all dollar sales. However, to date, they account for only 31%, and smaller manufacturers (which exceed $100,000 in sales annually) have gained the two percentage points of market share, valuing at about $2 billion. Currently, nearly 16,000 companies, which make up the smallest manufacturers, are responsible for 19% of dollar sales and are also experiencing over half of the growth (53%).

For Full Article and Results From Nielsen, please visit: http://www.nielsen.com/us/en/insights/news/2017

Transparency is Now Key to Consumer Approval

Research put into the shift of growth in the U.S. retail industry shows that transparency is winning. Small manufacturers place a significant portion of their focus on health as well as the need to provide a transparent environment for consumers. At the same time, they do well to maintain an exceptional price point that retailers love!

Clean Labels Gaining Popularity

A “clean label” refers to a product that does not contain any artificial sweeteners, preservatives, colors, and flavors, as well as antibiotics and hormones in beverage and food categories. These products also typically make marketing label claims on their packaging to entice consumers.

As shown in a worldwide ingredients survey conducted by Nielsen, consumers have a tendency to keep a close eye on the details of products―actually, nearly three-quarters of survey participants said they felt positively toward businesses dedicated to honesty regarding their product sourcing; 68% were willing to spend more money on beverages and food free of ill-favored ingredients; 64% of the diets of consumers forbid specific ingredients. The longing for clean labels stems from the growing desire for company transparency.

 

Clean label products are now responsible for 30% of sales in the market, which has grown by 5.6% over the last five years. Small manufacturers dominate large competitors regarding clean label sales and growth. This past year has shown that small manufacturers sold the most share of clean label products in comparison to their other sales. Small manufacturers led with 40% of their sales coming from clean labels, followed by middle-sized manufacturers at 38%, private-label manufacturers at 27%, and lastly, large manufacturers at 24% of their sales coming from clean label products.

Small manufacturers take the lead in premium price tiers as well. Recently, premium-priced sales made up 44% of small producers’ sales, a significant difference when compared to the premium price of the sale of large manufacturers, recorded at 39% and below.

During the last five years, both medium- and small-sized manufacturers have upped their distribution throughout regions, resulting in a greater amount of space inside stores. Out of the roughly 900 beverage and food items that have been stock on store shelves since 2013, 88% came from medium- and small-sized companies. Retailers are giving small manufacturers an opportunity to sell their products to customers more frequently than ever before.

Increasing Sales with Promotion

Due to a larger variety and connection to real consumer desires, smaller and private manufacturers are finding sales success while also spending less on the promotion of their offerings. Larger corporations, on the other hand, have spent much more money than average on trade promotions. As of April 2017, sales based on advertising are accredited to 40% of large manufacturers’ sales, compared to 27% of small manufacturers’ sales.

 

As the demand for clean label products increases, more and more people will be willing to buy them, whether or not there are promotions. To adapt to the smaller manufacturers taking advantage of this trend, retailers and marketplaces must provide more space in order to account for the consumer demand. The long term success of this trend is still undefined. We will see how large brands respond. The most consistent way to adapt for large companies is through the acquisition of small manufacturers.

Inspired by www.nielsen.com

The World’s First Healthy Alcoholic Beverage

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COCO Cocktail is a healthy alternative to the traditional alcoholic beverage. With many clear benefits, consumers debate whether or not this drink will become a first alcoholic beverage of choice in the market. As stated in a news release, COCO Cocktail contains a noticeably larger nutritional value when set side by side against a top competitor, Pinot Noir. In addition to being created with 70% coconut water, COCO Cocktail also contains SuperFruits (considered to be very beneficial to health and rich with antioxidants), as well as 5.6% ABV from OTS Orange Wine. COCO Cocktail holds minerals and vitamins, both of which derive from non-GMO and all-natural food sources, without containing enriched, artificial, or synthetic ingredients. COCO Cocktail can be purchased in several different retail locations within Ohio, Florida, Indiana, and Texas.

Healthy Alcoholic Beverages in the Market Today

For the longest time, many of the top-branded craft cocktails were created using significant amounts of processed sugars. In this day and age, consumers are not content with their products being highly infused with artificial sweeteners. The young adult sector of today is constantly in search of craft cocktails that are made using high-end ingredients, while at the same time, not packed with sugar. Also, now more than ever, wine and spirit consumption is rising exponentially. Companies are choosing to take advantage of this up and coming market. Healthy Beverages appeals to and attracts the attention of consumers in this market by offering two separate flavors of their vitamin-enhanced, healthy wine.

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Healthy Beverages, LLC Achieves FDA Guidelines to Claim COCO COCKTAIL(TM) #POWER as “The World’s 1st Nutritious Alcoholic Beverage” (PRNewsfoto/Healthy Beverages, LLC)

According to the CEO and co-founder of Healthy Beverages, Franz Tudor, many consumers are looking for clean and natural ingredients. Tudor believes that the removal of artificial and GMO-filled ingredients would certainly not “take the fun away [from the COCO Cocktail].” Tutor states that natural foods possessing benefits to the heart and muscles of the body while also reducing bloating “seems like fun” to him.

Alcoholic Beverage Market

It is predicted that sales for all categories of alcoholic beverages are going to rise as a result of the growing number of consumers experimenting with alcoholic beverages. Whether or not healthy alcoholic beverages are going to be consumed more than their traditional counterpart as time goes on is still up in the air; however, the fact remains that new consumers will be drawn in due to the price as well as the taste of the beverage. Despite this, Healthy Beverages is making a wise decision of appealing to the niche of health-conscious and wine-loving consumers by testing out their new beverage.

Benefits of Healthy Alcohol

Research has already determined that a moderate consumption of red wine is tied in with many advantages such as boosting life expectancy, combating diabetes, heart disease, and several other illnesses. Researchers are nearing the completion of a pill that mirrors the positive effects of alcoholic beverage. However, in the end, some consumers will find difficulty giving up their drink of choice for a healthy alcoholic alternative, regardless of how great the drink is.

Inspired by www.fooddive.com