On-The-Go Habits Putting Pressure on Ingredient Manufacturers

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During the CAGNY conference in Florida, Food Dive sat down with ingredient manufacturer, Ingredion, to talk about insights into how CPG companies are planning for growth and adapting to changing consumer preferences. The CEO of Ingredion, Jim Zallie, believes that on-the-go consumption habits are the most challenging for the ingredient industry. The lucrative market opportunity is leading new players in the restaurant and retailer industry to compete with well-known CPG brands.

The Grab-and-Go is Stressing Ingredient Companies to Adapt

Jim Zallie told a consumer analyst group that the grab-and-go market, as well as food ordered online, has reached $110 billion globally. In just one year, from 2015 to 2016, the amount of U.S. on-the-go purchases grew by 56%. Zallie told the audience that this is critical to ingredient companies because of the importance of developing high-quality products that deliver the right texture and maintains heat.

Ingredion North American President, Jorgen Kokke says that texture claims on packaging have increased by over 90% in the past five years.

“We can talk about health trends… We can talk about cost and affordability and sustainability, but underneath all of that, [food] always has to taste good and be fun. And that’s where texture comes in. … We say it’s as important as flavor.”

Jorgen Kokke

Pockets of Growth in Functional On-The-Go Foods

Zallie believes there are “pockets of growth in the food anywhere space.” He points to the fresh refrigerated space as a critical example. The freshly prepared food category is generating over $25 billion in sales annually according to the Supermarket Guru. The clean label trend and simple ingredient trend play significant roles in the development of functional on-the-go foods. With 62% of consumers now looking for recognizable ingredients on the label, it’s imperative to use things they understand.

NutriFusion developed the GrandFusion product line for this very reason. We saw the way synthetic vitamins were reading on the label and thought there had to be a better way. With our products, consumers read fruits and vegetables instead of chemicals, so it makes a lot more sense to them. See the graphic below. If you are interested in learning more, visit our R&D page and download the GrandFusion resource kit to get started with product development.