Innova Market Insights Show 62% Increase in Plant-Based Product Claims

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There is a growing interest among the consumers not only for healthier products but also those that are sourced from ethical and sustainable methods. This is the reason plant-based products and ingredients are increasing in popularity and growth. Today, there are so many companies that are dedicated to producing plant-based products to cater to this growing market niche and it will not be long until this trend takes on the mainstream competition.

Plant-Based Ingredients Are Rising in Popularity

According to the report released by Innova Market Insights, plant-based product claims have increased by 62% globally with an estimated sales forecast of $4.2 billion in the United States. Plant-based products include platforms like active botanicals, plant-proteins, non-dairy milk, seasonings, sweeteners, food coloring, and so much more.

 

One example that shows how popular the plant-based foods market is the non-dairy products industry. According to Lu Ann Williams, Director of Innovation at Innova Market Insight, the availability and promotion of plant-based alternatives to dairy products such as yogurt, ice cream, and milk have helped drive the industry. In fact, global sales of non-dairy milk are higher by 8% since last year and have earned $16.3 billion in global sales.

The Growth of Non-Dairy Milk Products

It is estimated that plant-based milk products will double its growth within the next five years. With this fact, there are many companies that are venturing into non-dairy milk products category. Successful companies that have ventured into non-dairy milk products include Spoonable. The company makes non-dairy yogurt and it saw a growth of 48% during the 2013-2017 market period.

While some non-dairy milk products are successful, some have stable yet minimal growth. For instance, a non-dairy alternative such as plant-based cheese and creams only save minimal growth of 0.5% in 2012 to 1.5% in 2017. The probable reason for yogurt having more sales is because it is touted as a healthy product. Many companies are researching sources of non-dairy milk alternatives and aside from your usual oats and almonds, plant-based milk and milk products are now made from hazelnuts, walnuts, cashews, macadamias, coconut, flaxseed, and hemp.

Plant-Based Product Claims Grow in Meat Category

There is a growing interest when it comes to plant-based eating and it is reflected in the development of alternatives from the meat industry. Plant-based meats used today are made from soy, grains, and vegetables. Companies like Valess and Quorn were the pioneers of the plant-based meat industry. Today, other companies have sprung up such as Beyond Meat and Impossible Burger that have produced plant-based meat that tastes and bleeds like real meat.

There are many reasons why people gravitate towards plant-based ingredients these days. The pull towards plant-based diets such as flexitarianism, vegetarianism, and veganism might be the most important factor that contributed to such a shift in food preferences. In fact, the same market study noted that four in ten or 40% of consumers in the United States have increased their consumption of meat and dairy alternatives since last year.

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FDA Approves 8 Ingredients for Fiber Claims

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Food manufacturers today boost their products by adding fiber to make them healthier. Fiber is not only found in bread but even in ice cream, brownies, candies, and gummies. For instance, a small bag of Smart Sweet gummy bears contains 28 grams of fiber so that you can get a whole day’s fiber requirement from your favorite sweet.

Fortifying food with fiber is the recent hype among food manufacturers, and the US Food and Drug Administration is supporting the bandwagon by finally approving ingredients that can boost the fiber content of different products. This initiative stemmed after the 2016 rule that indicated that added fiber does not only add the non-digestible carb content on food, but it provides overall health benefits.

Approved Fiber Claims

Today there are eight (8) ingredients approved by the FDA, and these include alginate, arabinoxylan, inulin and inulin-type fructans, galactooligosaccharide, high amylose starch, resistant dextrin/maltodextrin, and polydextrose. While there are the only eight on the list,  the FDA mentioned that it is planning to add other dietary fibers as long as scientific evidence proves that they provide additional health benefits.

Many food manufacturers are ecstatic with the decision of the FDA since it gives their new products the green light. Companies like General Mills and Activa have developed products that include fiber in them. For instance, General Mill’s Fiber One line of products contains inulin and inulin-type fructans. Other brands that contain inulin fiber include Frutafit from Sensus America, Oliggo-Fiber from Cargill, and Orafti from Beneo.

Health Benefits of Fiber

Speaking of health benefits, consumption of fiber can help stabilize both blood sugar and cholesterol levels. It can also help lower the blood pressure and promote good bowel movements. The presence of fiber in the intestinal tract can increase the efficiency of the body for mineral absorption. But more importantly, fiber can also aid in weight loss as it increases the satiety level for a long time.

Consumption of at least 15 grams of fiber daily can help prevent the onset of Type 2 diabetes and colon cancer. But in reality, so many people don’t even come close to the recommended minimum daily amount of 28 grams.

The Dark Side

The effects of putting fiber into food have done most companies good regarding marketing their products. Many consumers believe that food containing fiber is healthier. But this also presents a problem. According to Bonnie Liebman, director of nutrition from the Center for Science in the Public Interest, this might confuse people regarding which foods are truly healthy. For instance, they might opt for a brownie with added fiber over peach because they choose for convenience over real nutrition.

Because of this, it is essential for food manufacturers to explain what type of fiber they are using on their products as well as the kinds of health benefits that consumers can get from them. That way, people will be able to compare the benefits to naturally fiber-rich foods like fruits, vegetables, and whole grains. They can also impose upon the consumers to not be too indulgent on their products and that natural fibers occurring in fruits and vegetables should be prioritized.

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Organic Sales Are Still Growing!

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The sales of organic fruits and vegetables were estimated to be at $5.5 billion in 2016. According to the Organic Trade Association, this value was up by 5% over the previous years. The organization also noted that more than half of American households bought organic produce in the earlier years and that the millennials are the driving force of the sales, primarily since their purchasing powers have increased.

Millennials as The Driving Force of Organic Sales

Brian Vertrees, director of business development of Naturipe Farms LLC, noted that the sales of organic berries are up in retail stores. In fact, the sale of organic berries is the second-largest in the organic produce industry.

The growth category of organic products has not reached a plateau yet as millennials are demanding more organic products. According to Chris Glynn from Tanimura & Antle Inc., young adults are the primary drivers of the trend. As the new group becomes parents, the need for healthy food becomes their main priority.

The growth of organic produce is also driving the sales of different categories within the produce department as more consumers are not only demanding organic products but are also looking for affordable products with functional benefits. Eating organic is more than a trend and a marketing tool, it has become a way of life for many people particularly those who are looking for ways to eat healthily and sustainably.

The Shift in The Market

 

Consumers want to buy fresh produce that is grown in safe and sustainable methods. The growth of organic sales is a key indicator that this trend is here to stay. Many food manufacturers and industry players have expanded their line of organic products to increase their market reach.

Organic produce and products are changing the industry. Even farmers have increased their production of organic fruits by getting certified for their next harvest season. For instance, there is an increase in the production in the state of Washington in the past years; seemingly everyone is jumping on the organic bandwagon

The Future of Organics

There are many benefits of consuming organic foods. The sensitivity of consumers towards the food that they eat and how it affects their health is the reason why the organic market is widely embraced by everyone. Although many industry experts have forecasted that the organic industry will plateau, it has not happened yet and will likely not happen anytime soon. As more and more young individuals opt for healthier options more than the cost and convenience, food growers, manufacturers, and even retail stores will continue to meet the demands of the consumers. The trend will always be up as long as the younger demographics continue to buy into a healthy lifestyle.

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NutriFusion Fruit and Vegetable Powders Nutritional Claims FDA

Fruit Powders and Vegetable Powders Are Versatile for CPG Brands

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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.

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NutriFusion Fruit and Vegetable Powders Nutritional Claims FDA

Watching The Moving Target On Consumer Preferences

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For several years already,  consumer preferences have placed importance on their health and wellness. In the recent American Bankers’ Association annual convention, Todd Hale noted that while people want healthy foods, they also want to indulge. Fortunately, there is a growing trend of healthy indulgent categories. For instance, favorite comfort foods such as pies and other specialty desserts have experienced growth according to Nielsen data.

Retailers Take Advantage of the Desire for Freshness

There is an increasing desire for consumers to eat sweet goods that are fresh. Most consumers prefer fresher products, and this fact is used as an advantage by retailers. Food manufacturers use specialized packaging on cakes, cookies, and donuts. Moreover, they also place these products around the store so that consumers can easily access them and not just go to the center store anymore to get them. Another strategy that retailers do is to use technology such as television screens to showcase their indulgent offerings.

Retailers know that consumers who are not afraid to indulge are likely to gravitate towards eating healthy. Jones-Barber from Dawn’s Bakers Truth noted that with the changing trend of people wanting to eat healthily, it is the role of food manufacturers and retail companies to deliver products that are healthy and also satisfies the indulgence of consumers.

Today’s Consumer Preferences Driven by Transparency and Truth

Aside from eating healthy, consumers also demand transparency and truth. This is the reason why many food manufacturers including Kroger are now jumping on the bandwagon for organic brands that come with clean labels. Consumers are now opting for food products wherein they know what they are made from or where they come from.

To date, there is a multitude of food manufacturers that create products with clean labels. Health-conscious individuals are also leaning towards products with a clean label because they are deemed healthier as they don’t contain preservatives, additives, and synthetic color and flavor.

Health and Wellness is a Moving Target

While it is easy to say that food manufacturers should focus on creating healthy products, it is often considered by food manufacturers as a moving target. The thing is that the term “health and wellness” can mean different things to different consumers.

Food manufacturers still need to define what their consumers think about “health and wellness.” Consumer feedback is essential for food manufacturing and retailers to address the needs of their consumers. This is the reason why there are so many products like trans-fat-free, sugar-free, and other ingredients that make a particular product more appealing to health-conscious consumers.

The ever-changing preferences of consumers make food manufacturers adapt to the ever-changing needs thus creating a wave of food trends along the way and demanding innovation from food manufacturers. And because it is a moving target, it can move quickly to new challenges and trends are created now and then.

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NutriFusion Fruit and Vegetable Powders Nutritional Claims FDA

Consumers Going All In On Allergy Free Foods

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Over the past 20 years, there has been an increase in the number of people who suffer from food allergies. The increasing number of individuals with food allergies is one of the top reasons why most people develop specialized diets with preference to clean eating and non-GMO foods.

With consumers suffering from food allergies, more people want access to allergy free foods. In the 2004 passage of the Food Allergen Labeling and Consumer Protection Act, all food manufacturers in the United States are required to label their products with ingredients that may contain top allergens such as dairy, soy, gluten, peanuts, eggs, tree nuts, fish, and shellfish. This is the reason why you will see these ingredients in the label list in plain language. Thus, if the product contains “soy lecithin,” it should still indicate “Soy” on the package.

Allergy Free Food is on the Rise

Katherine Allmandinger, manager of strategic insight for Nielsen’s health and wellness practice, noted that there is a growth of allergy free foods in the market today. About 46% of consumers say that the allergy free claims of food manufacturers influence their purchase decisions.

In fact, there are two types of consumers who buy allergy free products–the worriers and wonderers. While worriers have medical bases to avoid a particular kind of ingredient due to adverse reactions, this only reflects a low percentage of the actual consumers who want allergy-free foods.

It is essential to take note that average consumers are not necessarily looking for allergy-friendly foods because they suffer from specific allergic reactions. Instead, they look for these foods because they want to cut out on too much dairy or they want to jump in on the bandwagon of eating healthy.

How Food Manufacturers Make Allergy-Free Products

Before the popularity of allergy-free foods, people only ate naturally allergy-free food. For instance, Enjoy Life, a food company in the United States, has been making allergen-free products for over a decade. Their factories were some of the first to have no cross-contamination with other products.

 

On the other hand, other food manufacturers are developing products that use alternative yet non-allergen ingredients. For instance, snack company Quinn uses sorghum instead of other gluten-containing grains to create their products. They also tested other ancient grains to be able to develop allergy-free products for their customers.

Allergy-Free Foods are a Trendy Niche in the Market

As food allergies continue to rise all over the world, the allergy-free food trend will likely flourish as more and more people want food products that are healthier. In fact, there are many noticeable booths and shops that showcase allergen-free options. Moreover, many food manufacturers are innovating their products so that they are not only healthy but that they also pass the taste test.

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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.

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Consumers of All Generations Are Loving Plant-Based Foods

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In a report released by survey company Datassentials, it revealed that many Americans are shifting towards plant-based foods because of the benefits to the body. In fact, most people are increasing their intake of fresh fruits and vegetables more than ever.

There are many reasons why consumers are shifting towards a new diet regimen, and the reasons vary across demographics. For instance, 44% of the Generation Z consumers change to plant-based foods as they enjoy the taste of fruits and vegetables while 21% of millennial consumers opt for plant-based products to show support to the local farmers.  It is essential to take note that while consuming plant-based products come with a lot of functional benefits, many consumers are uncertain about the role of plant-based foods. In fact, fewer can identify the attributes of the specific plant-based foods that they are consuming.

Big Companies Are Jumping on The Bandwagon

Having said this, consumers who opt for the plant-based diet usually count on seeds, nuts, legumes, and whole grains as part of their pantry staples. But aside from these food items, consumers also eat more fruits and vegetables.

The increasing consumption of fresh produce and plant-based products has resulted in sales growth for big companies. Around 30% of the consumers limiting their use of meat (flexitarians or pescatarians) or avoiding meat (vegan or vegetarians) have been attracted to the new plant-based meat alternatives in the market. Even big corporations have embraced this trend. Companies like Starbucks, for example, have released its line of nut milk-based beverages while TGI Fridays have stepped into the plant-based territory by using Beyond Meat’s meatless burger to create most of their plant-based dishes.

How Other Companies Can Leverage on The Trend of Plant-Based Foods

While big companies are joining the trend in releasing products made from plant-based ingredients, smaller enterprises are a bit skeptical. However, food manufacturers can leverage the trend and attract more consumers by incorporating global flavors to make their food more interesting. Using bold flavors and ethnic recipes can also attract consumers. On the other hand, avoiding alienating descriptions such as putting on the label “vegan” or “vegetarian” will also help promote the product.

In fact, 85% of consumers agree that plant-based foods are fulfilling and as delicious as animal protein-based products. But more than mimicking animal protein, consumers are also drawn to colorful produce thanks to the promotion of smoothies and fruit bowls on social media. The thing is that social media plays a critical role in promoting plant-based foods, especially among millennials.

With the increasing number of consumers opting for plant-based foods, it is no wonder why many companies are embracing this niche thus the sale is likely to increase in the years to follow. The only challenge here is to give further knowledge to consumers so that they will be encouraged to eat more plant-based foods not only for their health but also for the environment.

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