Nielsen Reports Significant Growth for Healthy Snack Category in 2017

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We have posted on this subject a number of times over the past two years, and yet again more reports are pointing to growth in the healthy snack category. Nielsen released its study of the snacking category in 2017 and found that it has increased to $33 billion in the United States. They also found that annual household spending on snacks increased to $133, which is around a 1.1% increase from 2016.

Analysis: Snack Category from 2013 to 2016

Nielsen also analyzed the individual snacking categories from 2013 to 2016. They found that every individual category saw an increase in sales. Bars (health, meal replacement, performance, weight management, and granola) experienced the largest growth of any snacking category with an increase of $633 million over that time period.  Jerky and cookies/crackers followed in at second and third to round out the top 3 snacking categories. Another interesting stat was dairy accounted for almost a quarter of all snacking dollars with 22% of sales. It’s fascinating to see how the “other” category is experiencing large growth as new innovations peak consumers’ interest.

Healthy Snack Category Leads the Way

Growth is happening in both traditional and healthy snack categories. However, products with specific health claims saw the largest increase in sales. Snacks with non-GMO claims have seen 18.2% growth in dollar sales over the past 5 years. A close second was for products free from artificial colors and flavors at 16.2%. To truly understand this growth, the average snack product has seen only 1.2% increase in sales over the same time period.

 

It’s a no-brainer to start creating healthy snacks that can be distributed across all retail channels. Manufacturers are seeing significant growth in sales that are fueling product breadth expansion and new innovations. Our GrandFusion product line is an easy way to take your snack to the next level. With GrandFusion, you are able to add vitamins and minerals from fruits and vegetables without impacting the flavor or texture of the end product. You are able to make impressive claims around nutritional equivalent servings of fruits and vegetables as well as source claims for the vitamins. Interested in learning more? Visit your respective industry above.

Inspired by www.fooddive.com

Functional Ingredients and Label Claims Continue to Lure Consumers

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According to the latest numbers from Packaged Facts market research, 49% of all U.S. consumers buy nutritional bars, beverages, or both. Food and beverage products using functional ingredients with functions like nutritional support, weight loss, increased energy, and meal replacement were included in their analysis. However, energy drinks, sports drinks, milkshakes, granola bars, and snack bars with no nutritional purpose were excluded from their analysis. The Packaged Facts’ National Online Survey consisted of 2,000 U.S. consumers aged 18 and over.

Convenience is Key to Category Growth

Brands have been positioning their nutritional drinks and bars as convenient, healthy, on-the-go options for the busy American. As a result, sales have skyrocketed over the past five years. The market has hit $8.8 billion in 2016 with an annual growth rate of 9.5% over the past five years. Packaged Facts predicts a bullish future for the two categories with combined sales reaching $13.1 billion by 2021.

Younger generations are key purchasers with highest use rates. Many of the Millennials and Gen-Xers see being busy as a “badge of honor” so these products are essential to maintaining a healthy lifestyle. Packaged Facts found that 57% of all U.S. consumers are drinking nutritional beverages as a meal replacement.

Functional Ingredients: Superfoods and Protein

 

Functional ingredients are booming, and nutritional drinks and bars are using them to enter the market with a unique value proposition. The barriers to entry are low, but gaining significant market share is a different story. High protein content is expected from consumers at this point with 72% saying they look for that feature when purchasing nutritional drinks.

Some nutritional bars and drinks are turning to innovative superfood solutions to increase nutrient support claims. Brands are using products like GrandFusion to enhance their bars and drinks with natural vitamins from up to twelve fruits and vegetables without impacting flavor or texture. Interested in learning more? Click your industry in the navigation and learn more about how GrandFusion could benefit your products.

Inspired by www.nutraingredients-usa.com

The CDC Says Only 1 in 10 Adults Eat Enough Fruits or Vegetables

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The Center for Disease Control released new research in November 2017 detailing the issues with adult fruit and vegetable consumption in 2015. The new study found that just 1 in 10 adults meet the U.S federal recommendations for fruits and vegetables. Depending on age and sex, the national guidelines recommend adults to eat at least 1.5 to 2 cups per day of fruit and 2 to 3 cups per day of vegetables.

A Closer Look at CDC Research

An average of only 9 percent of U.S. adults met the intake recommendations for vegetables in 2015; ranging from 6 percent in West Virginia to 12 percent in Alaska. An average of only 12 percent met their intake recommendations for fruit in 2015; ranging from 7 percent in West Virginia to 16 percent in Washington D.C. The overall results pointed to an alarming trend that consumption was lower among men, younger adults, and adults living in poverty.

“This report highlights that very few Americans eat the recommended amount of fruits and vegetables every day, putting them at risk for chronic diseases like diabetes and heart disease. As a result, we’re missing out on the essential vitamins, minerals, and fiber that fruits and vegetables provide.”

Seung Hee Lee Kwan, Ph.D
CDC’s Division of Nutrition, Physical Activity, and Obesity

Barriers to Increased Consumption of Fruits and Veggies

The CDC has indicated again as it has revealed in previous studies that there are significant barriers to consumption. They have found that high cost, limited availability, limited access, and perceived lack of cooking and preparation time are the top barriers stopping people from eating more. How can we can we fix these issues?

Strategies to Increase Consumption of Fruits and Vegetables

my plate usda cdc fruits and vegetables nutrifusionIt’s understood that consuming fruits and veggies is critical to reducing your risk of chronic diseases like heart disease, type 2 diabetes, cancer, and obesity. The CDC developed a guide with strategies to increase the consumption of fruits and vegetables. Here are a few:

  1. Start or expand farm to institution programs in childcare, schools, hospitals, and workplaces
  2. Improve access to retail stores and markets that sell high-quality fruits and veggies
  3. Ensure access to fruits and vegetables in cafeterias and other foodservice venues in worksites, hospitals, and universities

GrandFusion is Key to More Fruits and Vegetables in Your Processed Foods

NutriFusion has worked hard to create a nutrient-dense fruit and vegetable powder that stabilized and concentrates the natural vitamins and minerals. This is incredibly important to processed food manufacturers and brands. You are now able to add the nutritional equivalent to 2 servings of fruits and vegetables with pinky nail’s worth of powder. Interested in learning more about how GrandFusion can make your products healthier with essential micronutrients? Visit your industry-specific page to learn more.

 

Branded Produce Now Represents 38.5% of Total Produce Sales

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Nielsen recently released a report that showcased the growth happening in the produce aisle. According to their report, branded produce dollar share grew by 7.7% between 2012 and 2016. Based on this kind of growth, it should be no surprise that branded produce is ripe for more sales.

Consumers are Choosing Branded Produce Over Their Non-Branded Equivalents

In just the last year, branded produce sales grew by 8% with unbranded equivalents’ sales decreasing by 8.6%. Consumers are not attracted to produce brands like traditional brands instead they emphasize the information that brands share on packaging like organic, non-GMO, vitamins, etc.

The branded produce snacks market has started to take off with items like hummus and carrots, guacamole cups, pre-made salads, etc. The category now represents $1.1 billion in sales with branded options controlling 72% of the market share.

Dole Partners With Disney to Sell to Kids

Everyone wants kids to eat healthier, but it is still the biggest challenge for parents and food manufacturers. Dole partnered with Disney to feature famous characters from Frozen, Star Wars, and more on their point of purchase displays and packaging. This has helped Dole sell healthier snacks to parents because their kids are putting the products in the cart.

Branding the Future of Fruits and Vegetables

Branded fruits and veggies have plenty of room to grow over the next ten years as more people engage in healthier lifestyles. Don’t expect a huge advertising spending spree from these brands, but look out for new packaging, labeling, and social media efforts to resonate with younger millennial shoppers.

Inspired by www.nielsen.com

Food Scientists Say Clean Labels Have Trade-Offs in Food Safety

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To no surprise, two food safety and nutrition professors at Iowa State University believe there are significant trade-offs in cost and food safety for clean labels. The clean label is one of the most significant trends hitting the food and beverage industry. While there is no clear-cut definition, it is understood that clean label products do not contain additives or preservatives and typically have easy to read ingredients.

Why do Clean Labels Present Issues in Food Safety?

The two food scientists believe that not all food additives and preservatives are bad. Many of those hard-to-pronounce names are used to guard against pathogens and spoiling. While market demand is driving food companies to get rid of these additives, the scientists believe there should be a measured consideration for keeping some of these ingredients. The professors mentioned taking nitrates out of Hotdogs and deli meat as an example since their presence can help prevent clostridium botulinum bacteria.

Professors Ruth MacDonald, Ph.D. and Ruth Litchfield, Ph.D. believes that social media can take a lot of the blame for this hysteria around additives and preservatives. They insist consumers not to believe everything they read on social media and to take a deep dive into any research mentioned in posts.

clean label food safety consumers

How are Clean Labels Costing us More?

Label-readers have become fascinated with the “no high fructose corn syrup”  claim, but they are not looking closely at one is being replaced to sweeten the product. Many times companies are using tapioca syrup which is made from cassava, and typically more expensive. The professors say that the industry is developing all of these “cleaner” syrups like beet syrup, etc. and they are all sugar. They are no better than high-fructose corn syrup.

There seems to be a clear issue with what consumers expect and the reality of ingredients. Consumers want ingredients they understand, they want them cheap, they want them nutritious, they want them safe, and they want them to be beneficial. However, it is almost an impossible feat for food scientists. Consumers are more willing to accept technology in other aspects of their life but have now wholly shifted when it comes to food. It will be interesting to see how this all plays out as consumers become more educated about the science of food.

Inspired by www.fooddive.com

Infographic: How Much Food Do Humans Waste?

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It’s a sad subject, but something that we need to talk about. An estimated 1/3 of the world’s food is wasted throughout the food supply from farm to kitchen. Below is an infographic published by InvestmentZen that details some of the most shocking facts about food waste in today’s society.

food waste ugly fruits ugly vegetables food supply nutrifusion

Brussels Sprouts and Collard Greens Looking to Dethrone King Kale

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Packaged Facts recently released a new report, “Fresh Produce: U.S. Market Trends and Opportunities.” From 2011 to 2016, consumption of kale grew by 4.6% to a total of 200 million pounds a year. However, the new report says that Brussels sprouts and collard greens are gaining ground on the king of leafy vegetables.

How will they grow past the king of leafy greens?

 

Packaged Facts predicts that consumption of Brussels sprouts and collard greens will increase by 10.1% over the next five years. They will have to follow some of kale’s superfood factors to overtake the lead in fresh produce.

Kale’s availability, versatility, and cultural significance made it the must-have superfood of the past five years according to David Sax, author of “The Tastemakers.” From an availability standpoint, kale has a long growing season, because it can be grown in a variety of climates throughout the year. From a versatility standpoint, it can be eaten raw or cooked. And finally, when looking at its cultural significance, it is being used by a variety of restaurants and food manufacturers making it a household name. The leafy green became a symbol of the health food movement, which will make it very difficult to beat.

 

Not so soon…

While the research is pointing to these growing vegetables to dethrone kale as the king of fresh produce, don’t fall for it so quick. It has a much more favored position than brussels sprouts and collard greens. It will be interesting to see how food companies put kale and other vegetables as ingredients into their finished products.

Inspired by www.fooddive.com

Better-For-You Snacks on the Rise as the Rest of the Category Levels Off

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Convenience Store News is reporting that despite all the news stories about growth in the snacks category, it appears things are finally starting to slow down. Based on IRI data, midyear sales dropped in subcategories such as popcorn, snack bars, and pretzels. Kristen Hamby of Mclane had this to say about the recent sales data in snacking.

There are a couple of segments within salty that are flatlining, such as nuts, which is surprising due to the healthy halo that surrounds them, telling us that these consumers may have transferred over to a different segment looking for other means of attributes such as protein. – Kristen Hamby

However, industry trend spotters are not discouraged and believe healthy innovations launching this year will push new growth.

The Healthy Snacking Category is Still Very Much Alive and Well

Susan Viamari, VP of Thought Leadership at IRI, believes snacking is still a huge opportunity for brands. She sees the better-for-you options as the biggest opportunity for C-Stores. New products with functional benefits like vitamins, proteins, and other valuable nutrition are catching consumers’ attention. As you can see below, snack products like jerky and sweet snacks saw the biggest growth over the past 24 weeks ending June 11, 2017.

 

 

How will companies rebound? Will better-for-you snacks take over the aisle? We look forward to looking at the year-end numbers and seeing how healthy snacks benefit from consumer trends.

Inspired by www.cspdailynews.com