Archive for category: Consumer Packaged Goods

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.

Inspired by www.fooddive.com

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.

Inspired by www.smartbrief.com

Impossible Foods’ Plant Burger Not Impressing FDA So Far

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The company, Impossible Foods, has been working on a plant-based burger that is touted to taste like real beef. According to Impossible Foods Inc. founder, Patrick O. Brown, the plant burger was invented to solve one of the most significant environmental problems on the planet– the production of beef. Made from soybean root and genetically engineered yeast, this burger was created to look, feel, and taste like a real burger without having to raise and kill a cow. The magic ingredient of the plant-based beef is heme–a source of iron that gives the red color to blood. But the company discovered a plant-based heme that offers the Impossible burger its beef taste and mouthfeel.

FDA Not Impressed by Impossible Plant Burger

While the Impossible burger is the most exciting discovery for vegans, vegetarians, and plant-based dieters, the US Food and Drug Administration was hardly impressed by it. The FDA even indicated in their report that the company has not yet met the mark. The discovery of the plant-based heme and using it in food production is something that needs more research on.

But according to Tom Neltner, chemicals policy director for the Environmental Defense Fund, the plant-based heme has many great potential uses. However, it is shrouded in a lot of controversies. Studies have shown that people who consume too much red meat are at risk of colon cancer. As heme makes the meat red, some researchers believe that heme may be the culprit. But with regards to plant-based heme, researchers still need further evidence to find the missing link. But Patrick Brown thinks otherwise. Reports on the possible connection of heme to cancer are rubbish, according to him.

Solution to Beef Addiction

Didn’t you know that 30% of the earth’s land is utilized in the production of beef? Cattle raising requires massive amounts of inputs like water. Brown developed the Impossible burger to tackle the environmental problems related to growing beef. Upon the introduction of the Impossible burger, investors have responded with a lot of enthusiasm. In fact, the company has raised more than $400 million. People who have invested in this product include Bill Gates and Vinod Khosla. Even big enterprises are also pitching in such as Singapore-based Temasek Holdings and Google Ventures.

Having said this, plant meat that tastes almost like real meat is one of the hottest food trends in the market today. It is not only famous among vegans and vegetarians but also flexitarians. In fact, the sales of plant-based meat are expected to grow by 17% annually according to CoBank.

Impossible Foods is Not Giving Up

While the FDA is hardly impressed by the plant burger, Impossible Foods is not giving up. In its recent attempt to satisfy the FDA, the company submitted a report that includes lab studies on rats being fed with large amounts of heme to prove that the plant-based heme is indeed safe for consumption. To date, the FDA is still currently reviewing the safety of the plant burger with heme.  But until proven otherwise, spokeswoman of Impossible Foods Inc., Rachel Conrad, noted that heme is safe to eat.

Inspired by www.bloomberg.com

Study: Consumers Favor the Term “Plant-Based” Over “Vegan”

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The vegan movement is becoming popular as more people are trying to live healthy lives. Vegan food products do not contain any animal products (or by-products). In fact, around 800 companies worldwide have made vegan products and have partnered with organizations such as Vegan Action to market vegan food products.

But while veganism is considered a solid movement, another movement is coming to the forefront – the plant-based diet. While the two terms are often interchanged with one another, the latter has a broader definition ranging from excluding animal-based product to just adding more fresh produce to your diet.

Increasing Number of People Opting for the Plant-Based Diet

In a survey conducted by HealthFocus International, about 17% of consumers in the United States consume predominantly a plant-based diet while 60% say they are cutting back on meat-based products.  And those who are cutting back on meat reveal that they don’t plan to go back to their massive meat-eating habits and would want to make this flexitarian lifestyle permanent.

According to Steven Walton, General Manager of Research at HealthFocus International, the change in consumer preference with regards to consuming more produce is prevalent through a wide variety of demographics. This means that this diet is not only popular among millennials but even the baby boomers and generation Z. Industry leaders can benefit from this information, but they might be too distracted by the many words that have sprung up such as vegetarian, flexitarian, and vegan.

Vegan vs. Plant-Based in Consumer Minds

With this confusion, many consumers prefer a singular term when describing the diet. According to a California-based food consultant, Mattson, more than 80% of people surveyed indicated that they prefer the terms “plant-based” over “vegan” when describing a diet that avoids all types of animal products.

While the term “vegan” is often used, “plant-based” is more flexible and gives consumers the impression that the food tastes better and it more likened to whole foods. Mattson president, Barb Stuckey, noted that that the term “plant-based” is more positive and does not include deprivation or allegiance to a self-defining cause such as environmentalism or animal rights, which veganism is known for. By using the term “plant-based,” any conversation about plant-based food becomes neutral and does not incite any negative reactions from other people including ethical vegans.

Why are People Opting for a Plant-Based Diet?

There are many reasons why many people shift to the plant-based diet. Based on the survey, 3 out of 4 individuals noted that they would like to consume more plant-based foods for health reasons while others opt for this diet to lose weight or contribute something to the environment.

As more consumers are more welcoming to the term “plant-based,” food manufacturers have also caught up. Companies like Good Karma Food launched its non-dairy yogurt and sales have continued to increase 50% yearly. Other companies such as Beyond Meat introduced its plant-based chicken strips and burgers that vegan consumers have embraced with much gusto. Having said this, the popularity of the “plant-based” term has resulted in a new and ever-growing niche.

Inspired by www.fooddive.com

Study Warns Brands to Rethink Clean Label Products

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Clean label products are are the fastest growing market in the food and beverage industry. While this movement is trending, it leaves a lot of gray areas—not only for the food manufacturers but also for the retailers and consumers. Unfortunately, there is no single definition of the word “clean label” even if it has been around for a few years. This has led to a lot of confusion among many people.

A joint study from the Food Marketing Institute and Solutions for Retail Brands called “The Clean Label Phenomenon for Food Retailers: Enhancing Transparency for consumers” is aimed at determining what consumers think about clean labels.

The Definition of Clean Label

So, what are clean label products? The conventional definition indicates that products are made from natural ingredients devoid of artificial additives, preservatives, and flavoring. Other definitions also include food that comes with ultimate authenticity as well as trustworthiness. The thing is that clean label is often interchanged with the word “natural” that is way too far from the truth.  Currently, there is no legal definition of a clean label, and the lack of a precise definition and consistency makes it confusing for everyone.

If you are a follower of the clean label movement, it is crucial to know which foods come with clean labels and which ones do not. While it is apparent among consumers that preservative and additives are not included in the clean label food list, 65% of shoppers are still confused such that they tend to avoid ingredients like sugar and salt actively. People consider GMO foods not to be clean label products.

Problems Involving the Clean Label Movement

Aside from the vague definition of “clean label,” another issue involving this movement is transparency. While consumers want more straightforward ingredient lists, what they want more is greater transparency. Further, different generations of consumers also demand different qualities from clean label products. The differing needs from each generation of consumers also mean that they have differing views on different brand labels. For instance, consumers that prefer free-from-modifications products may view other traditional unaltered products unacceptable.

While there are some problems involved in the clean label movement, food manufacturers and retailers can address these issues by being transparent when it comes to how they interpret the word “clean label.” For some companies, they may view clean labels as non-GMO ingredients while some might focus on how the ingredients are processed.

How to Solve the Problems with Clean Label Products

In fact, European companies are more receptive towards the clean label movement. The food industry in the United States can learn from European companies. To date, only 27% of packaged foods are marketed with a clean label to which private brands make up the most substantial amount of sales. While the sales of products that are packaged as a clean label are still meager in the United States, it will eventually grow as more and more people become more aware and conscious of the foods that they are eating. Hopefully, in the future, clean label products will be better defined so we can all get behind eating better for you foods.

Inspired by www.fooddive.com

Almost Half of Americans Are Willing to Try Cultured Meat

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In the hopes of supplementing the world’s supply of red meat, scientists have been culturing meat in the laboratory. Lab-grown meat is starting to trend as 40% of the American population welcome the idea of consuming it, according to the results of the survey conducted by the company Surveygoo. With the popularity of lab-grown meat, it may be the future of protein-packed food.

Lab-Grown Meat = Clean Meat

Lab-grown meat, also called clean meat, is now a buzzword in both the vegetarian and vegan communities. Vegans and vegetarians avoid eating meat due to the ethical treatment of animals and environmental sustainability. But since lab-grown meat is cultured inside the laboratory and is grown in a unique and sustainable means, 60% of the vegan respondents are willing to try cultured meat.

But what is cultured meat? Cultured meat is real meat grown from cells in laboratory settings. Unlike conventional beliefs, cultured meat cells are not sourced from animals.  When respondents were asked if they are still willing to eat this type of meat if available in meat shops, 20% of the respondents said yes while 38% declined. While the idea of cultured meat is widely accepted, many people are still hesitant to try it.

Why Does Cultured Meat Have a Lot of Potential?

Consumers are questioning their eating habits, and this includes eating meat. Flexitarians are wondering if the consumption of meat is good regarding their health, sustainability, and animal welfare.

 

The doubts surrounding meat consumption has led the cultured meat industry to address these doubts. One of the companies that are exploring this niche is Memphis Meats. It is currently working on cultured meat products that will be sold to high-end restaurants by 2021. The company produced a pound of cultured meat for less than $2,400 last year. Although the cost is still higher compared to conventional animal-sourced meats, experts are working on how to decrease the cost to make it more competitive.

Another company that is taking on with this niche market is Impossible Foods. The company has made plant-based proteins that actually “bleed” just like real red meat. The introduction of the bleeding plant-based burgers has left many people excited about this cultured meat. According to chief strategy officer Nick Halla, people are not tied to meat coming from animals. What they are most concerned about is that it tastes good regardless whether it came from animal or plant sources.

The Effect of Clean Meats

Consumption of cultured meat is gaining traction, and shortly, it is believed that more people will opt for it more than animal-sourced proteins. This will significantly affect traditional animal agriculture. In fact, the U.S. Cattlemen’s Association wants to exclude animal-free protein from the real definition of “meat.” While this campaign was successful in dairy alternatives, it may be challenging to impose such sanctions on plant-based meats. Nevertheless, there should be no competition between the two types of meats as both are equally popular and have their separate markets.

Inspired by www.fooddive.com

Innovative Premix Products for Infants to Grow By 2028

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New market research predicts increasing growth of nutritional food premixes for infants over the next ten years. With more parents wanting to feed their precious babies with only the best infant formula, companies have developed innovative nutritional premixes with nucleotides, organic ingredients, probiotics, and botanicals—aside from the usual ingredients like Vitamin D, DHA, ARA, and iron to name a few.

Infant formulas are food products that are intended to give the right nutrition to babies and infants. When it comes to infant nutrition, premixes play an essential role in formulas. Infant nutrition premixes are customized blends that are intended to improve the overall nutritional value of infant formula.

More Formula Consumption in Near Future

The trend of unique infant formula is growing in developed countries particularly in North America due to the increasing awareness associated with different blends of vitamins, minerals, amino acids, and other fortifications. In fact, North America shares a large regional market for nutritional premixes for infant formula, and it is forecasted that the value of the market will rise to $103 million by the end of 2028.

Powdered infant nutritional premixes are preferred because of their convenience compared to liquid infant mixes.  Aside from convenience, the contamination of powdered premixes is lesser compared with liquid premixes.

Which Ingredients Are Popular in Powdered Premixes for Infants?

 

There are different types of ingredients put into powdered nutritional premixes. But one of the most popular ingredients used is nucleotides. Nucleotides are added widely not only in infant nutrition but even in pharmaceutical nutrition industries.  Premixes containing amino acids such as threonine, lysine, and methionine to name a few are very popular as they are the primary amino acids needed by small children to grow well. Infant nutritional premixes are now becoming more functional as they are designed to help improve bone health, digestion, and immunity of infants.

Infant nutritional premixes are gaining traction and are now competing with the sports nutrition market as one of the industries that use nucleotides, vitamins, and other dietary supplements. Formula producers are looking for more natural premixes from fruits and vegetables to create more attractive packaging.

Key Players in The Market

The company Future Market Insights (FMI) released a report titled “Infant Nutritional Premix Market: Global Industry Analysis (2012-2017) and Opportunity Assessment (2018-2028)” which revealed that there are now a lot of critical players taking a bite of the infant nutritional premix niche. These include Plc, Glanbia, Royal DSM N.V., GmbH & Co, BASF, Watson-Inc., Hexagon Nutritional Pvt. Ltd., Farbest Brands, Vitablend, ADM company, and Jubilant Life Sciences to name a few.

The market for customized infant nutritional premix is becoming popular and is expected to get stronger as more and more people are looking for infant food products that contain more value than the usual conventional baby formula products.

Inspired by thefinancialconsulting.com

Scott Gottlieb’s FDA Will Continue to Push Food Transparency Measures

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With the focus on deregulation by the Trump administration, many food industry experts worried that the newly appointed commissioner of the FDA, Scott Gottlieb, would roll back pending changes to nutrition labels and consumer information. However, at a recent conference, Gottlieb made it clear that the FDA is going to continue to push for food transparency with Nutrition Facts, labeling, and definitions playing a significant role in the agency’s new nutrition innovation strategy.

Improving the Health of Americans Through Food Transparency

At the National Food Policy Conference in Washington, D.C., Gottlieb let everyone know that the nutrition innovation strategy is meant to improve the health of all American regardless of socioeconomic status.

“Our challenge is to help create more healthful choices and foster inovation and competition, and also make these choices more afordable.” – Scott Gottlieb, FDA Commissioner

A study found that 20% of American deaths in 2015 could be attributed to poor dietary factors. Gottlieb made sure to emphasize the importance of research and facts on everything his agency does. He said that clear science-based information is the central pillar of the work we do at the FDA and is essential to helping drive better consumer choices.

Nutrition Facts Labeling Updates

 

Gottlieb indicated that the new Nutrition Facts labeling initiative is of the utmost importance, but he wants to make sure it is right. He wants to roll out the new label with a consumer educational campaign to help the average American better understand how many calories they should be consuming each day.

On top of the new label, he promised to handle the definition of “healthy” and “natural” for labeling. A core definition of “healthy” is critical to help consumers better understand what they are buying. The new definition will consider nutrient content. Consumers also want more clarity on “natural” which has never been defined by the NDA. While Gottlieb did not offer up much on this definition, he did indicate that it will need to be science-based.

Streamlining the Labeling Process for Food Manufacturers

Gottlieb believes the regulatory labeling process is currently too lengthy and time consuming for food manufacturers. He has added to his docked to streamline the labeling process to modern times. He wants it to be easy for consumers to understand the health benefits of a product.

He wants to make it easier for the food companies to clean up their labels. Interestingly, he used vitamins as an example since they typically appear by their chemical name on the ingredient statement. We believe it should stay this way as most of these vitamins do not come from whole food sources and are chemically derived. Our GrandFusion products concentrate these natural vitamins from fruits and vegetables and as a result, allow products to use a much cleaner ingredient statement.

Conclusion on Gottlieb’s Remarks

The FDA is overall in good hands with this Trump appointee. He is committed to pushing forward all of the Obama-era regulations and making decisions on scientific fact. He believes some of the processes in the FDA are archaic and need updating to work faster in today’s environment. It will be interesting to see all the changes that move forward under Scott Gottlieb’s leadership.

Inspired by www.fooddive.com