Frozen food trend on the up, says Packaged Facts

www.foodnavigator-usa.com
By Caroline Scott-Thomas, 23-Dec-2010
 
"The frozen foods industry in the United States has boomed over the past few years – and growth in the sector looks set to continue in 2011, according to a new report from Packaged Facts."

The market research organization said that the frozen food sector has enjoyed a period of unprecedented growth, as consumers are eating at home more often and manufacturers have innovated with healthier options that also tap into demand for convenience. Packaged Facts’ “Frozen Foods in the U.S., 3rd Edition” report found that from 2006-2010 sales of frozen foods rose 22 percent, or about $10bn, to reach a total value of $56bn in 2010.

Publisher of Packaged Facts Don Montuori said: "A lingering effect of the recession is that consumers are eating at home more. This trend has had a positive impact on the frozen foods market, as consumers turn to the freezer aisles to supplement more expensive fresh produce and meats. Additionally, microwaveable frozen products provide a quick and easy lunch-at-work for those looking to avoid pricey lunches out."

In addition, the report says that the economy is no longer holding back frozen food innovation. After two years of declines, the number of new frozen food and beverage product introductions reached a new high in 2010, increasing 21 percent on the previous year, to 728, more than in pre-recession 2007. The market researcher said this is “a sign that economic conditions are no longer discouraging frozen food marketers from bringing new products to the market.”

While frozen dinners and entrees continued to sell well in 2010, sales of frozen appetizers and snacks are flat, and the frozen juice category is in free-fall, the report said.

“Canned, bottled and frozen juices have all experienced losses in the millions as consumers turn to beverage options with less sugar, or to functional beverages such as energy drinks and enhanced waters,” according to the market researcher.

Packaged Facts predicts that the frozen food and beverage sector will reach $70bn in retail sales by 2015, up 25 percent on 2010.

For further information, please visit: http://www.packagedfacts.com/Frozen-Foods-Edition-2511637/.

The Writing Gourmet: Psst Santa! Chocolate is Still the Craze Everywhere

The Writing Gourmet: Psst Santa! Chocolate is Still the Craze Everywhere
By Cal Orey,
The Writing Gourmet

I can remember that when I was a little girl chocolate was a part of holidays in suburbia, where I grew up. Once Christmas rolled around, through the New Year's holiday, chocolate cake, chocolate pudding, and homemade fudge were rich treats that everyone in the family couldn't resist.

Four more days to Christmas...And if you're wondering what gift to get for you know who, chocolate may be just the perfect thing. According to consumer companies, it's the dark healthy stuff that is making the news for the future chocolate makers and chocolatiers.

Here, take a look at some sobering facts, straight from my book The Healing Powers of Chocolate (Kensington, 2010)--that'll show you that chocolate is still the crazy during the best and worst of economic times:

* Research company Packaged Facts claiming in a past report that the U.S. market for chocolate was primed for growth from $16 billion to $18 billion in 2011.

* Mintel, a leading global supplier of consumer products, believes the sweet tooth does not seem to be linked to the economic downturn. Mintel projects Americans will continue indulging in innovative dark and premium chocolates.

* The international market for chocolate has skyrocketed in Asia, where chocolate is a modestly priced and available Western luxury that attracts the middle-class folks.

* More than 6 of 10 Americans are loyal to a particular brand of chocolate, but many are trying new brands.

* What's more, nearly 4 out of 10 Americans eat chocolate at least a few times per week.

* Fifty-four percent of Americans said they eat chocolate because they like it, while 4 percent eat chocolate for health reasons.

* Chocolate is American's favorite flavor.

* Chocolate was a favorite comfort food during the Depression in the 1930s.

So, these days come with challenges for many people due to the sluggish economy due to the Great Recession. But the chocolate craze, whether you bake a batch of fudge or buy a box of premium chocolates or gourmet chocolate bar, continues on as a tradition.

A very furry Christmas

By Eve Mitchell
Contra Costa Times

Posted: 12/17/2010 04:16:39 PM PST

Updated: 12/19/2010 03:39:01 PM PST

Just like a typical 3-year-old, Benny will be showered with gifts come Christmas morning. He will show his appreciation with cries of happiness -- and a lot of tail-wagging.

"He'll get plenty of toys. He's well-liked," said his adoring owner, Fran Tarr, 83, of Rossmoor, after picking up Benny, a Shih Tzu, from his grooming appointment at the Petco store in Walnut Creek last week. "The family will buy him toys. And I've got two at home that I haven't given him. He's like a little kid."

One of those holiday gifts will be from Tarr's neighbor Barbara McKenzie.

Walnut Creek resident Hirsh Morton and his dog, Toshi, visit with Santa Claus recently at Pet Food Express in Walnut Creek. (DAN ROSENSTRAUCH/STAFF )

"I think I'll get this little tiger," said McKenzie, 82, of the squeaky toy she purchased for Benny.
Tarr and McKenzie are doing what many holiday shoppers are doing: buying holiday gifts for the furry and not-so-furry.

A survey of pet owners showed that 51 percent of dog owners and 43 percent of cat owners purchased a Christmas present for their animals in 2008, the last year for which data is available from the American Pet Products Association, a trade industry group.

Cats and dogs are not the only pets with something under the tree. About 32 percent of owners of small animals bought their pets holiday gifts, while 31 percent of bird owners, 18 percent of horse owners, 9 percent of reptile owners and 6 parent of fish owners bought their pets holiday gifts, the survey said.
While pets can receive gifts, animal advocates do not recommend buying a pet as a holiday gift for a human. They say too many uncertainties are involved when giving a pet as holiday gift.

The association estimates that Americans will spend $47.74 billion during 2010 on pet food, supplies, veterinary care and buying pets, along with services such as grooming, boarding and pet sitting -- a projected 4.9 percent increase from 2009. (The association does not provide data for holiday gift spending.)
The pet market tends to be recession-resistant, said David Lummis, a senior pet market analyst for Packaged Facts, a division of MarketResearch.com.

Still, Lummis is projecting an overall growth rate of 4 percent in 2010 on U.S. spending for pet products and services, or down from a pre-recession growth rate that was close to 6 percent.
While he does not formally track holiday sales of pet gifts as a component of the pet market, he does expect such sales to be brisk this year.

"It's a good climate in the pet market right now for it to be a good holiday season," he said. "There is pent-up demand. The pet market is largely comprised of above-average income consumers who are more likely to bounce back more quickly from the recession, and also to just generally be less devastated by it."

The survey found that in terms of overall gift giving, dogs receive more gifts than cats do. Eighty percent of dog owners surveyed said they buy presents for their canines, spending an average of $45 throughout 2008 to purchase five gifts. Compare that to 61 percent of cat owners who said they spent an average of $24 throughout 2008 to purchase four gifts for their felines.

"People spend a lot more on dogs than on cats," said Michael Levy, president and founder of Oakland-based Pet Food Express, a chain of 35 pet food and supply stores in Northern California. Dog toys also tend to cost more than those for cats.

"Cat toys are relatively inexpensive. With dog toys, you have more of a range," he said.

One of the most popular gifts this year buy for pets are heated beds, he said. So are puzzle toys, which are designed to hide food or a treat and require the pet to open the toy before eating. Such toys can help dogs deal with separation anxiety, he said. Water fountains are popular gifts for both dogs and cats, he added.

"Northern California tends to be the most sophisticated market for pet products in general in the United States. Pets are truly way more like family than in any other place. "... If you ask people about their pet, they don't stop talking."

People are still talking about the recession, which economists say started in December 2007 and officially ended in June 2009. The poor economy has made some changes in the types of pet gifts that people are buying.

"I think they are buying somewhat more practical (gifts) where perhaps before they buying a lot of fanciful-type stuff, whether it was clothing boutique-type stuff, fancy collars or leashes or maybe that extra-special toy," said Lane Nemeth, founder and chief executive officer of Concord-based Petlane.com, a website that, among other things, sells pet products.

She is also seeing a trend of people buying holiday presents for the pets of relatives and friends, much in the way that McKenzie bought a gift for Tarr's dog.

"People will love you to do death if you bring something for their pet. We are a pet-centric country," she said.
Levy, of Pet Food Express, also is seeing that trend in his stores.

"There are pet grandparents," he said. "Definitely, gift card sales are way up at this time of year."

Choosing a gift for someone's pet also can be an alternative to trying to figure out what to buy for that person, especially if he or she is the type that has everything, Nemeth said.

"So many of us, especially the boomers, we don't want more stuff. So give us something for our pets, and we are happy," she said.

Functional, Fortified and Inherently Healthy Foods and Beverages in the U.S., 4th Edition : Packaged Facts

Functional foods—defined here as food and beverage products that offer a distinct health advantage beyond basic nutrition by including specific ingredients whose therapeutic benefits provide a primary market positioning—continue as a key food industry driver due to greatly ramped up product development and marketing.

Although the economic recession may prohibit some consumers from purchasing higher-priced specialty items, functional foods can actually save consumers money in the short term by pumping up basic food items with ingredients shoppers would otherwise have to get in the form of more expensive nutritional supplements.

Additionally, whereas in the past consumers were primarily reactive, trying to treat health problems after they arise, today they are more proactive, focusing on overall “wellness” and turning grocery aisles into hunting grounds for healthful, functional foods to prevent illness and chronic conditions.

This fully updated fourth-edition Packaged Facts report examines the U.S. market for functional foods and beverages from all angles while providing insight into key international markets, identifying global trends in new product introductions by geographic region and company and exploring developing markets poised for growth. For the U.S. market, it presents retail sales breakouts of food and beverage categories with a strong functional tilt, from yogurt to food/snack bars to cranberry juice; examines market drivers and trends; and maps out the overall competitive situation. Trends in new product introductions are examined in depth, based on data from Datamonitor’s Product Launch Analytics, as are trends in functional ingredients and condition-specific product thrusts.

The report also profiles major marketers, including Groupe Danone, Kellogg Co., Kraft Foods, Nestlé SA, PepsiCo and Nature’s Path Organic.

An exclusive feature of Functional, Fortified and Inherently Healthy Foods and Beverages in the U.S., 4th Edition is custom survey data from Packaged Facts’ February 2009 online poll of 2,600 U.S. adults, which was conducted to measure purchasing patterns, attitudes and demographics specific to functional foods and beverages. Drilling down to the marketer and brand level, the analysis also relies on consumer survey data from Experian Simmons’ Fall 2008 National Consumer Study, and on Information Resources, Inc. InfoScan Review data charting product sales in mass-market channels.

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Mmm, Chocolate

Seemingly recession-proof, chocolate’s appeal continues to evolve with the times.

By Joanna Cosgrove, Nutraceuticals World, Published December 9, 2010

“Over the last decade chocolate makers have been responding to consumers’ drive to live healthier lifestyles,” commented Packaged Facts’ Curtis Vreeland, a seasoned chocolate industry analyst and author of the report. “Their efforts have brought us portion-controlled packaging, sugar-free sweets, heart-healthy dark chocolate and fortified confections of unbelievable variety and veracity. This trend should continue, as healthier confectionery offers consumers an irresistible package: health and wellness, plus indulgence and a convenient serving modality.”
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Hispanic Food and Beverages in the U.S.: Market and Consumer Trends in Latino Cuisine

With Hispanic foods and beverages achieving such prominence, it’s no wonder that sales were close to $7 billion in 2009, according to the latest market study from Packaged Facts. "Our analytical market review of the Hispanic food and beverage market anticipates continued aggressive growth through 2014," notes Packaged Facts publisher Don Montuori. "Sales will top $9.5 billion in 2014." Packaged Facts' Hispanic Food and Beverages in the U.S.: Market and Consumer Trends in Latino Cuisine details how the expanding appetite for Hispanic food and drink among non-Hispanic Americans combined with the rapid increase in the Hispanic population is driving sales of Mainstream Mexican products along with Authentic Hispanic and Nuevo Latino foods. Hispanic Food and Beverages in the U.S. key components include: Expanding distribution methods Which retail outlets are gaining marketshare Eight product categories driving growth The rise of the “foodie” and other key trends Top product categories Growing Hispanic Population and Growing Taste for Hispanic Foods Competitor profiles, both in the manufacturing and foodservice In addition to covering packaged products sold through retail, Hispanic Food and Beverages in the U.S.: Market and Consumer Trends in Latino Cuisine includes qualitative and quantitative information on foodservice sales through channels such as fast-food outlets, sit-down restaurants, mobile units, etc. More »

Tea and Ready-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and Consumer Trends

Findings from Packaged Facts' market study on Tea and Ready-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and Consumer Trends confirm that marketers are hot on exotic flavored teas, tea and fruit infusions, and higher quality loose tea bags at the forefront of innovations in both the retail and foodservice arenas. Packaged Facts predicts the 5 product trends that will drive the tea market are as follows: “Upscale” Tops Marketing Claim in 2008 & 2009 -With consumers still tightening their monetary belts post recession, products that can offer the experience of “luxury on a budget” resonate. Health Appeals Reign Supreme -Marketers looking to optimize shelf presence while introducing fewer products are adding products that promise value-added benefits such as, antioxidants and vitamins. Green Tea Still Seeing Plenty of Action -Consumer interest in green tea is at an all-time high, with green tea showing up as the top tea“flavor” both at retail (cited by 43% of consumers) and in the foodservice channel (16%), according to Packaged Facts’ proprietary data. The Superfruit Surge -Exotic superfruit flavors, such as blueberry, cranberry and pomegranate, are gaining ground in the tea category. Açai and goji berry tea flavors are also on the rise! Fast-Food Chains Increase Tea Offerings -Consumers are enjoying the new iced tea offerings by fast-food chains, with Subway, Jack in the Box, and Jamba Juice all adding iced tea options to their beverage menu. Tea and Ready-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and Consumer Trends examines the U.S. market for tea across the retail and foodservice spectrum, including ready-to-drink (RTD) tea, leaf (bagged and loose) tea, and instant tea. Following an introductory chapter documenting tea types, packaging trends, “the ethics of tea,” and global market trends, the report segments and quantifies the market by channel and product type, providing historical sales figures and projections through 2014. The report also examines market drivers and trends and thoroughly maps out the competitive situation to the marketer and brand share level, profiling brands including: Arizona RTD Tea Bigelow Tea Celestial Seasonings Honest Tea Lipton Starbucks Tazo Tea More | View Table of Contents

The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education : Packaged Facts

With restaurant foodservice sales generally under pressure, education foodservice sales remain a bright spot: Packaged Facts forecasts education foodservice sales at primary, secondary, and postsecondary schools will reach $41.15 billion in 2010, up 2.5% from 2009, according to The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education.

We view federal food programs and student loans as revenue bulwarks that have helped soften the recessionary blow on educational foodservice, as they have helped shield it from swoons in discretionary spending. In response to the children’s obesity crisis and propelled by First Lady Michelle Obama’s Let’s Move campaign, we believe that K-12 foodservice will continue to receive significant attention—and funding—beyond the Obama administration’s first term. The wild card concerns state and local revenue: With property tax revenue declining steeply and with many budgets facing significant revenue shortfalls, primary and secondary schools are in a real fight for local and state budgetary dollars.

Within the next five years, nutritional change will continue to aggressively evolve, as policy makers ready their revisions to school meal nutritional guidelines. We believe these changes are widespread and significant enough that they will ripple out of schools and into the home, helping to reshape how consumers interact with food.

As for today’s college students, the children of the Restaurant Age expect more than ever from their foodservice programs. But with more families in economic straits and lower college enrollment rates ahead, college foodservice programs will need to compete more aggressively to grow revenue.

The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education provides the insight industry participants need to understand today’s evolving educational foodservice market, by mapping key trends and policies shaping the K-12 and university sales growth and by profiling a range of school district programs, college foodservice programs, and educational foodservice contractors.

Packaged Facts forecasts educational foodservice to grow 2.7% in 2011 and 2.9% in 2012, with slightly higher estimates for college foodservice than for K-12 foodservice.

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Ethnic Hair, Beauty and Cosmetics Products in the U.S.

Ethnic Hair, Beauty and Cosmetics Products in the U.S. Ethnic haircare, makeup, and skincare products are a vibrant $2.7 billion business that reflects the upscaling of the parent HBC market. In 2010, African-American, Asian, Hispanic, and other folks of color already account for over a third of U.S. population; as of 2013, their spending power will have surpassed $4.2 trillion. Marketers are now offering premium-to-high-end beauty and grooming regimens sold through pop-prestige outlets such as Sephora, as well as through TV home shopping networks. More information: Price/Info   |   Table of Contents   |   Place an Order Weight Management Trends in the U.S. With 68% of U.S. adults overweight or obese, the opportunity for companies to provide a better solution to the nation’s obesity epidemic continues to grow. Mass-market sales of weight control powders, liquids, and OTC drugs claimed $1.2 billion in sales in 2009. Health and Beauty marketers entering this market or looking to expand their current offerings will be interested to see the competitive strategies of key players, new product and ingredient trends, and marketing and advertising positioning, all within the context of the medical, social, economic, and psychographic drivers of consumer behavior. More information: Price/Info   |   Table of Contents   |   Place an Order Millennials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults There are a number of differences between Gen-Y consumers and their older counterparts with respect to the use of personal-care products. Assessing which products - from dental floss to hair conditioner - resonate with this cohort could spell success for personal care marketers during the recession. The report continues with a forecast of the growth of the buying power of Gen-Y consumers through 2015 and a detailed demographic profile of the Gen-Y population. Inside you'll also find extensive analyses on how Gen-Y consumers manage and spend money. More information: Price/Info   |   Table of Contents   |   Place an Order

Chocolate treats add to Christmas cheer

U.S. sales of chocolate keep booming, driven by studies touting the health benefits and growing consumer interest in organic and fair-trade products. Total U.S. chocolate sales are expected to soar to $18 billion annually by 2011, up from $16 billion in 2006, with organic and dark chocolate representing the fastest-growing segment, according to Packaged Facts, a national food-research firm.

When baking with chocolate, Grove recommends using dark chocolate, which is richer and not as sweet-tasting as lighter varieties, and high-quality cocoa powder. Also, select chocolate with care.

"Pick a chocolate with the flavor nuances you like best, from caramel to chile, and one that fits the particular treat you are baking," he said.

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Read more: http://www.azcentral.com/style/hfe/food/articles/2010/12/08/20101208chocolate-christmas-baking-cookies.html##ixzz17d4no6iU
Chocolate treats add to Christmas cheer
-The Arizona Republic (Phoenix)

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The Future of Pet Insurance in North America

The North American market for pet health insurance has never been more competitive. During the past five years the number of established players has doubled, and all of the companies now in the market appear to be on solid ground. Where is this market headed? How will companies incorporating distinct trends now impact the industry in the next five years? Furthermore, what business strategies will maximize their bottom line?

Presentation authored and read by David Lummis, Senior Pet Market Analyst, Packaged Facts

New Research: Dinner Trends in the U.S. Foodservice Market

Packaged Facts estimates that dinner daypart restaurant sales dropped 5% to $174 billion in 2009, and is forecasted to drop another 3% in 2010. But all is not lost, Packaged Facts research indicates a spending renaissance is already underway. By combining investment-grade industry analysis with key trend analysis, Dinner Trends in the U.S. Foodservice Market not only helps foodservice industry participants address challenges unique to the dinner daypart but also helps participants contour their strategies to meet consumers’ evolving needs. By providing insight on the dinnergoer’s decision-making process, this report provides direction on how and why the consumer decides on a specific restaurant from which to obtain dinner, and how and why that consumer decides what to order from the menu. Selection factors are analyzed according to the following categories: convenience; dinner menu items; meal cost thresholds; dine-in and takeout partner; menu positioning and advertising; health positioning; and bundled offers. More Information>> Research Features: “Share of stomach” restaurant dinner sales analysis, which includes 5-year sales trends for the fast food/quick-service restaurant and full-service restaurant segments, with forecasts for 2010 and 2011. Guest traffic frequency analysis of leading dinner-centric restaurant brands, giving a directional perspective on current sales trends. Trended analysis of demographic dinner daypart expenditures, including 4-year sales historical sales trends and spending according to key demographics, such as age, income, region, and race/ethnicity. Thorough psychographic analysis of Budgeters, Alcohol Indulgers and Healthy Eaters, key psychographic groups shaping the dinner daypart. The report also conducts trend analysis on key dinner-centric restaurant brands, including menu strategies and new menu item introductions, core users; snacking tendencies; food, diet and health attitudes; as well as trends sales metrics. We focus on recession-driven responses and menu strategies taking the brands into 2011. Coverage extends to fast food/QSR, coffeehouse, smoothie shop, ice cream shop, family restaurant, casual restaurant, and fine dining restaurant segments; as well as prepared foods segments at convenience stores/gas stations and grocery stores/supermarkets. More Information>>

Dinner Trends in the U.S. Foodservice Market is part of Packaged Facts' new Foodservice Market Insights collection. Additional titles include: Lunch Trends in the U.S. Foodservice Market Dinner Trends in the U.S. Foodservice Market Breakfast Trends in the U.S. Foodservice Market Snack and Dessert Trends in the U.S. Foodservice Market Prepared Food and Ready-to-Eat Foods at Retail: The New Competition to Foodservice The U.S. Foodservice Landscape 2010: Restaurant Industry and Consumer Trends, Momentum and Migration The insights you need, all in one collective series from Packaged Facts. Download our Foodservice Market Insights brochure and get the full details on data methodology, foodservice consumer perspective and analysis, and more. View the brochure See sample pages

"Students are 60% more likely than average to have dinner foodservice at a grocery store/supermarket & 40% more likely to have dinner at a convenience store/gas station." - Dinner Trends in Foodservice Market Study

Breakfast Trends: Fierce competition sparks innovation

Think a restaurant breakfast is just an Egg McMuffin consumed mid-commute? Think again. Breakfast is being reinvented chefs and industry innovators, many of whom are interested in offering an alternative to the typical diner or quick-serve-restaurant morning meal. Though the majority of breakfast business is done on the go, these trendsetters are still making an impact, serving upgraded breakfast sandwiches and mixing organic ingredients and global flavors into the most important meal of the day.

Fact is, breakfast isn’t just hot: it’s cold, eaten in the form of whole grain cereal and customized granola; it’s gourmet, made into elaborate artisan breakfast sandwiches; it’s a beverage, served all day in the guise of salad with poached eggs and bacon or dessert waffles. Breakfast is so much more than it used to be—and it’s more popular than ever in foodservice, despite the economic downturn.

Fierce competition in every sector for the breakfast dollar is pushing innovation in today’s breakfast foods, along with a number of key drivers exemplified in the report’s trend profiles:


Artisan Breakfast: These traditional breakfast dishes are made by hand, using the freshest ingredients and incorporating global flavor twists.

Third Wave Coffee: Coffee enthusiasts are going beyond espresso to reinvent this ancient caffeinated beverage, creating a superlative cup of Joe that’s brewed with care from only the best beans.

New Whole Grains: As consumers are looking for gluten-free alternatives and better-tasting, healthful breakfast options, whole grain cereals and breakfast pastry are diversifying beyond whole wheat.
Waffles Gone Wild: Waffles can be used as a carrier or simply solo, and are taking on new savory and sweet forms everywhere from fine dining to street food.
Breakfast Pizza: America’s favorite savory pie gets a breakfast twist, topped with ingredients such as eggs, bacon--and even fruit!
Eggs All Day: Eggs are a flexible protein that can be healthful or decadent, down-home or gourmet, and they’re being adapted for all dayparts by magazines for home cooks.
Breakfast in a Bowl: Breakfast foods ranging from the savory to the sweet, combined together in a bowl for a portable, convenient, one-size-fits-all breakfast.

MORE>>

Frozen food manuf. find themselves in spot during the recession

Marketers of frozen convenience food have found themselves caught between a rock and a hard place during the economic downturn. Though fresh convenience food has gained through positioning that casts it as a less expensive alternative to restaurant food during a time of recession, frozen convenience food is frequently viewed as a more expensive, less fresh alternative to cooking from scratch at home. The frozen food categories that have been able to grow substantially in this environment are therefore the ones that have been able to elude this paradigm.

Specifically, the mammoth frozen pizza category and the spunky hand-held breakfast category have both found a way to go head-to-head with restaurants; and the prepared vegetable category has been able to triumph on the freshness front via the development of steaming techniques. According to Packaged Facts, these three categories have led the way sales-wise, enabling an otherwise ambivalent market for frozen convenience foods to grow by a modest 2.0% in 2010 to reach sales of $16.8 billion. Packaged Facts expects that marketers in other categories will soon adopt similar strategies, driving sales of fresh convenience foods up another 10% by 2015, to $18.6 billion.

Frozen Convenience Foods in the U.S. : Packaged Facts

Breakfast Trends: Culinary Trend Mapping Report Think a restaurant breakfast is just an Egg McMuffin consumed mid-commute? Think again. Breakfast is being reinvented chefs and industry innovators, many of whom are interested in offering an alternative to the typical diner or quick-serve-restaurant morning meal. Though the majority of breakfast business is done on the go, these trendsetters are still making an impact, serving upgraded breakfast sandwiches and mixing organic ingredients and global flavors into the most important meal of the day. Fact is, breakfast isn’t just hot: it’s cold, eaten in the form of whole grain cereal and customized granola; it’s gourmet, made into elaborate artisan breakfast sandwiches; it’s a beverage, served all day in the guise of salad with poached eggs and bacon or dessert waffles. Breakfast is so much more than it used to be—and it’s more popular than ever in foodservice, despite the economic downturn. Fierce competition in every sector for the breakfast dollar is pushing innovation in today’s breakfast foods, along with a number of key drivers exemplified in the report’s trend profiles: Artisan Breakfast: These traditional breakfast dishes are made by hand, using the freshest ingredients and incorporating global flavor twists. Third Wave Coffee: Coffee enthusiasts are going beyond espresso to reinvent this ancient caffeinated beverage, creating a superlative cup of Joe that’s brewed with care from only the best beans. New Whole Grains: As consumers are looking for gluten-free alternatives and better-tasting, healthful breakfast options, whole grain cereals and breakfast pastry are diversifying beyond whole wheat. Waffles Gone Wild: Waffles can be used as a carrier or simply solo, and are taking on new savory and sweet forms everywhere from fine dining to street food. Breakfast Pizza: America’s favorite savory pie gets a breakfast twist, topped with ingredients such as eggs, bacon--and even fruit! Eggs All Day: Eggs are a flexible protein that can be healthful or decadent, down-home or gourmet, and they’re being adapted for all dayparts by magazines for home cooks. Breakfast in a Bowl: Breakfast foods ranging from the savory to the sweet, combined together in a bowl for a portable, convenient, one-size-fits-all breakfast. More | View Table of Contents

Going-Gluten-Free

Rapidly growing bases of consumers and retailers have gluten on their minds.

With more consumers being diagnosed with celiac disease—which causes problems in digesting gluten, a protein found in wheat and common in such foods as bread, crackers and pasta—a greater array of suppliers and retailers are developing and marketing gluten-free products.

While still a relatively small sector, the gluten-free market is rapidly expanding. Packaged Facts, a Rockville, Md.-based research firm, estimates 2009 gluten-free retail food and beverage sales at $1.73 billion, up 11 percent from 2008.

While the recession is slowing the sector’s annual growth rate—which ranged from 25 to 30 percent from 2005 to 2008 and is projected to reach 9 percent in 2010—the sector is expected to rebound, Package Facts notes.

Indeed, Ed Weiss, Packaged Facts senior market analyst, predicts the growth rate will jump to 16 percent in 2011 and 20 percent in 2012, with sales totaling $2.6 billion.

“There still are a lot of undiagnosed people with celiac disease who will find out they need gluten-free products,” he says.

Other factors that will drive demand is the medically unproven belief by some consumers that a gluten-free diet will help relieve other medical conditions, such as autism, irritated bowel syndrome and multiple sclerosis, Weiss states.

“The demand for gluten-free foods is consumer driven,” he says. “The initial marketers were shoppers with celiac disease who could not find gluten-free products in stores and started developing the items themselves.”


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Starting An Online Pet Business

by genesower on Wednesday, November 3rd, 2010

Is Now A Good Time To Sell Pet Products Online?

Natural Pets World asked David his thoughts about starting an ecommerce pet business in a down economy and he offered these insightful thoughts in this 90-second excerpt:
View

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FUTURE LOOKS BRIGHT FOR NATURAL/ORGANIC CATEGORY

In a recent poll conducted by Packaged Facts, they reported that 62% of dog owners and 56% of cat owners purchased natural/organic pet products in the last three months, with 16% of dog or cat owners purchasing organic food within the same period. Moreover, nearly half of pet owners would buy more natural/organic pet products if they were more widely available and almost two-thirds would do so if they were more affordable.

Indulge your hunger for knowledge at Weight Management 2010 - the virtual conference and expo

Indulge your hunger for knowledge at Weight Management 2010 - the virtual conference and expo

FoodNavigator-USA.com will host the first virtual conference and expo dedicated to weight management, showcasing the latest trends and strategies in weight management for the food, beverage and dietary supplements industries.

The live one-day event called Weight Management 2010 Virtual Conference and Expo will be taking place on Thursday November 4. The conference will cover key topics from high-profile industry personalities from Nestlé, Unilever, The Federal Trade Commission, Packaged Facts, New York University, Université Catholique de Louvain and University of Sussex.

Organized in association with NutraIngredients-USA.com, the virtual event allows visitors to network, attend conferences, and visit suppliers online – without having to book flights or hotels.

Virtual versions of trade shows and conferences are becoming increasingly popular as marketing budgets come under pressure in the recession and IT companies develop new and improved platforms for online events.

Networking

Cost saving is not the only attraction of the virtual format. Visitors to Weight Management 2010 can easily navigate their way around the virtual floor and can network simply with both visitors and suppliers through forums at stands, and using a chat facility.

In addition to networking, attendees of the show can come to stands in the virtual exhibition hall to pick up product brochures, technical papers and case studies, and tune in to videos. The select group of suppliers showcasing their very latest ingredient and formulation innovations include: DSM, Roquette, Sensus, National Starch, Pharmachem, Bio-Serae, Cognis, Frutarom, Nutrition21, OmniActive, P.L. Thomas and Tate & Lyle.

Conference line-up

The program will start with an overview of the weight management sector, from Don Montouri, publisher of Packaged Facts, with special focus on dietary programs to achieve weight management, from Atkins to GI and Weight Watchers.

The African-American Market in the U.S., 8th Edition With a population of 40 million and buying power approaching $1 trillion in 2010, African Americans are a key segment in an American economy that increasingly depends upon the needs and preferences of multicultural consumers. Packaged Facts' new market study, The African-American Market in the U.S., 8th Edition, analyzes the forces shaping the purchase decisions of African-American shoppers and sheds light on key areas such as how black consumers decide where to shop and what influences them while they are shopping. Assessment of the trends shaping the African-American market with an emphasis on opportunities available to marketers. Financial forecast of buying power held by African Americans through 2014 and detailed demographic profiles of the African-American population. In-depth examination of attitudes and behavior of African-American shoppers as it applies to food, clothes, drug-store items and home electronics and furnishings. Unique perspective on the shopping behavior of affluent African Americans consumers. More | View Table of Contents

Pet Insurance in North America, 4th Edition—Blog Entry



David Lummis



As the pet market analyst for Packaged Facts, I started covering this market in 2003.  Wow.  Talk about a market that’s come a long way—and yet still has a long way to go.  Back in 2000, the market was valued at under $50 million, with almost all of those sales coming from a single company, Veterinary Pet Insurance (which founded the market in 1980).  In the fourth edition of our report, released on Monday October 18, 2010, sales were at $354 million, with a dozen companies established in the North American market.

If that sounds like phenomenal 10-year growth it’s because it is, at approximately 600%.  But get this:  This figure still represents less than 1% of the 180 million-plus dogs and cats in North America.  That means (doing a little very rough math) that if the level rises to 10%, we’ll be looking at a market worth $3.5 billion, and with 25% of dogs and cats insured, a market worth nearly $9 billion.  This isn’t out of the question, since about one-quarter and one-half of dogs and cats are insured in the United Kingdom and Sweden, respectively.  There’s a lot going in the North American market right now too, including major insurance companies weighing in as underwriters, such as Aon with Healthy Paws, Aetna with Pets Best, and Berkshire Hathaway subsidiary Central States Indemnity Co. of Omaha with PurinaCare.

Still, marketers have their work cut out for them in dealing with the lingering impact of the recession.  In Packaged Facts’ September 2010 consumer survey, among those who did not have pet insurance, 42% cited as the reason “don’t want additional bill” and 37% said they “don’t want to spend the money for it.”  With economic recovery slow at best, this reticence does not seem likely to change overnight.  Packaged Facts does not expect consumers to throw open their pocketbooks any time soon, but rather to continue to practice moderation.  Thus value will remain a major marketing theme in 2011 and 2012 as pet insurance companies strive to communicate the benefits of their products and keep the pricing options as attractive as possible.  Expect to see more zero- (and other very low) deductible plans, following in the footsteps of Trupanion and, more recently, VPI (via its new Feline Select Plan).

That said, the level of competitive activity is at an all-time high, and with so many irons in the fire I’m not ruling out a “big boom” in the North American pet insurance market.  Such growth will, however, depend on the ability of marketers to move from what appears to be a stage of market cannibalization (and perhaps some retrenchment, even) to one of more uniform growth via an expanded consumer base.  One possible catalyst to higher-level growth would be the entry into the market of another mega-retailer, such as PetSmart (via its Banfield units) or Walmart, the latter of which is reportedly planning a Canadian launch as a Western Financial white label (although neither company could confirm this).

One thing’s for sure, given the currently very low level of pet insurance penetration and very high level of competitive activity—about a half dozen companies have entered the field just since 2004, including PetFirst, Pets Best, Embrace, Fetch/Petplan USA, Trupanion, PurinaCare, and Healthy Paws—the North American pet insurance party is likely just getting started.

~David Lummis, Senior Pet Market Analyst, Packaged Facts

The U.S. Moms Market 2010, 3rd Edition

A new market research study takes a look at the changing demographics in the mom's market and details who is and will become a Mom in the near and distant future.

The report is divided into two parts: The Market Fundamentals and The Market Opportunities.

The Fundamentals

Within the fundamentals you will understand the facts about Moms and children. You will also get to know Mom better by looking at the different ‘stages’ she goes through as a mother of children at varying ages. Additionally, you will step inside her mind to understand not how she is using her cell phone or how much time she spends on the internet, but what she worries about and/or what motivates her.

The Opportunities

The second part of the report takes macro trends and applies them to the Mom Market and explores the resulting micro trends. Highlighting the most influential shifts in the U.S.: Finances, Ethnicity, Eco-Awareness and Technology, the report is filled with specific insights, implications and examples of opportunities for brands.

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Each chapter includes insights and implications so that once you put the report down you will have ideas, plans and actions in mind. Highlights include a look at brand attribute importance by Moms vs. females overall and by Moms across different ethnic groups.
Additionally, commentary on new products in the market coming directly from Moms is included for understanding and distillation.

More Information>>

students are 60% more likely than average to have dinner foodservice at a grocery store or supermarket

As part of our foodservice reports series, we’ve paid close attention to the increasing competition restaurants face from food retail prepared foods. According to Dinner Trends in U.S. Foodservice (October 2010), prepared foods are succeeding with students, who are limited-service restaurant stalwarts. Our proprietary consumer research indicates that students are 60% more likely than average to have dinner foodservice at a grocery store or supermarket, and about 40% more likely than average to have dinner at a convenience store/gas station.

So, while students may not go grocery shopping as often or spend as much there as consumers who have more established households, they clearly respond to convenience-minded offerings when they visit. We believe this provides significant opportunity for food retailers, not just because students are generally more convenience-driven but also because they are more health-conscious. As a group, students may be prone to say they want healthier fare and then make contrarian food decisions—a function of impulse, cost-considerations and the metabolic hubris of youth. But as more and more university foodservice programs have come to understand, students will embrace more healthful options if they meet cost and quality parameters—and the supermarket is optimally positioned to leverage own-branding to provide healthful fare.

But the most significant benefits may run longer-term. Having grown up during what we have coined “The Restaurant Age,” students aged 18-24 are as far removed from routine grocery shopping (and home cooking) as any generation before them. By providing prepared foods that meet their needs, food retailers not only drive a wedge between students and restaurants; they can also leverage that wedge to bring them into the home-cooking fold, by educating on meal planning and meal budgeting, or by using the prepared foods space as a bridge to introduce easy-to-cook meals that blend old-fashioned standards such as mac-and-cheese and spaghetti with new-found international and/or aspirational ingredients—for a reasonable cost, of course.More>

10 Steps to gaining mind share from parents of young children

10 Steps to gaining mind share from parents of young children

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Kids’ Furnishings/Accessories/Toy Sales Regain Momentum, Hit Record $18 Billion Mark in 2010

Press Release
Immediate Distribution

New York, October 21, 2010 — The combined U.S. retail sales of children’s home furnishings, portable accessories, and toys are ascending by more than 5% during 2010 to reach a record $18 billion by year’s end, according to market research publisher Packaged Facts’ recent industry study, Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S., 4th Edition. The report focuses on products for kids age 0-5.

In terms of share of retail dollars, toys account for more than $8 billion, or 46%, of the entire infant, toddler, and preschooler (ITP) furnishings/accessories/toys market in 2010. However, accessories (baby monitors, car seats, strollers), which account for over a third of the market with more than $6 million, have gained a bit of ground since 2006. Furnishings (cribs, highchairs, safety gates, etc.) have consistently accounted for nearly $1 out of every $5 throughout most of 2006–2010 with a total expected to surpass $3 billion.

Packaged Facts forecasts U.S. retail sales of ITP furnishings, accessories, and toys will exceed $22 billion as of 2015 with the market’s total growth for the period beginning 2010 amounting to 24%. Such optimism regarding sales of ITP furnishings/accessories/toys is conditional upon the country's continued recovery from the economic recession of 2008-2009.

In the ITP furnishings/accessories/toys marketplace of 2010, the competitive situation is best characterized by issues of price, value, and upscale—whether high-tech or simply elegant—brand image. In the realm of luxury goods, many brands are experiencing stronger sales in 2010 and the ITP durables market appears to be benefiting from affluent or wealthy Americans’ return to spending, post-recession. Such a resurrection is largely enabled by the improving economy, and in addition, to the pre-recession upscaling of America’s taste in nursery décor, strollers, learning toys, and other ITP products.

"America’s tastes have long been trained toward the upscale," says Don Montuori, publisher of Packaged Facts. "In the broader marketplace, upscale brands have become particularly powerful influences in our society, and in many of our product markets, ever since the Reagan era of the 1980s.  It seems that once we acquire a taste for the luxuries that upscale brands provide, even the severest recession can only temporarily halt or reverse these brands’ progress."

The pre-recession, recession, and recovery eras have opened up a "mid-luxury" tier for ITP durables. Many marketers of expensive ITP goods have issued intermediate-priced versions of their products to accommodate Americans whose lifestyles have been disrupted by the shaky economy. And consumers have indeed met such marketers halfway by purchasing strollers in the $500–$600 range instead of spending $1,200 for example.

Even for the millions of moms–to–be who often cannot afford anything deemed upscale or high-end, the acquisition of luxury or mid-luxury ITP products has more frequently been made possible by the collaboration of multiple friends or family members (occasionally numbering in the dozens) pooling resources to purchase high–end gifts for baby showers. Through this practice the rare and exotic then becomes fairly common. Packaged Facts’ survey data reveals that nearly 33% of all adults are purchasers of products for infants, toddlers, and preschoolers; 26% of which are purchasing for other people’s children.

Infant, Toddler and Preschool Furnishings, Toys and Accessories in the U.S., 4th Edition analyzes three product categories that upscaled prior to the worldwide financial crashes of 2008–2009: young kids’ furnishings, accessories, and toys. The report examines lingering after–effects of recession factors in depth, delivers historical sales data, provides a dollar forecast for the year 2015, reveals the results of Packaged Facts’ own survey of nearly 2,000 consumers, and synthesizes Experian Simmons demographic data. In addition, the study profiles the corporate battle styles of Crown Crafts, Dorel, Leapfrog, Maclaren, MGA Entertainment, Newell Rubbermaid/Graco, Phil&teds/Mountain Buggy, and UPPAbaby. For further information, please visit: http://www.packagedfacts.com/Infant-Toddler-Preschool-2707953/.

About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products.  Packaged Facts also offers a full range of custom research services. To learn more, visit: http://www.packagedfacts.com/. Follow us on Facebook, LinkedIn and Twitter.

Pet Insurance in North America, 4th Edition

Now in its fourth edition, Packaged Facts’ Pet Insurance in North America is the most comprehensive examination of the U.S. and Canadian pet insurance markets available and a must-have for any company interested in this dynamic industry. Although sales growth slowed due to the recession, revenues (measured as gross written premiums) remained in the double digits in 2009 while delivering a 2005-2009 compound annual growth rate of 21%. Packaged Facts expects the North American market for pet insurance to continue to chart strong annual increases over the next five years, with the high level of competitive activity helping to offset the slow economic recovery and ongoing challenge of communicating the value of pet health insurance to budget-watching consumers.

As of 2010, industry pioneer Veterinary Pet Insurance (VPI) continues to lead the market. However, both the U.S. and the Canadian pet insurance markets have experienced significant market share shifts during the past five years as more than a half dozen new companies have come onto the field. Each of these companies brings with it unique strengths, in some cases including potent co-marketing affiliations with powerful brands (e.g., PetPartners and the AKC, PurinaCare with its own famous name), and in other cases including important retail channel thrusts (e.g., PetFirst with Kroger and Petfinder.com, and Trupanion with Petco). The industry is also seeing more investment backing and large insurance companies coming into the market as underwriters, including Aon with Healthy Paws, Aetna with Pets Best, and Berkshire Hathaway with PurinaCare.

ITP Furnishings/Accessories/Toys Marketplace Transformed by Recession

Packaged Facts observes that the consumer ITP durables marketplace has morphed under the pressure of the difficult U.S. (and world) economies, since at least 2007.  Although retail dollar growth was still positive in that year across all three of our ITP categories studied here – furnishings, essentially homebound; accessories, more portable; and toys of an astonishing range of types – changes were already in effect:  Pre-recession, many marketers were entering new brands, or extending their established brands, into the lower reaches of the luxury price-tiers, and more obviously, into middle luxury – “mid-luxe” tiers. 

In the stroller segment of the accessories category, for example, marketers such as Newell Rubbermaid, having bought the sophisticated Japanese-made Aprica brand earlier in 2008, thus covered the under $200-$370 range more deeply, because the new acquisition complemented Newell’s popular Graco brand, priced up to $270.  Also pre-recession, Phil&teds and UPPAbaby were both rolling out namesake brands with high-tech or elegant design features, at MSRPs topping out at the upper reaches of the mid-luxe tier, or at $600-$700. 

Initially, these marketers may have viewed their price-positionings as shrewd competitive moves versus the $1,000-plus Bugaboos, Maclarens, Stokkes, and other strollers.  Bugaboo, not content to be the mid-luxe specialists’ punching bag, introduced the Bugaboo Bee in 2007, listing it at $535.

There was also some accommodation of the value set, with extensions downward into the under-$200, and even under-$100, brackets; the low-end models were often lightweight umbrella strollers, but in any case, tended to show the design influences of higher-priced counterparts. 

As the cost of fossil fuels skyrocketed, and consequently, the pricetags on groceries and manufactured goods also shot up; as the U.S. mortgage scandal unfolded; as unemployment rates rose; as the war in Iraq cost untold billions – some ITP durables marketers may have concocted their multi-price-tiered battle plans to double as hedges against a recession that did happen, after the fourth quarter 2008 crashes of financial exchanges around the globe. 

In 2010, there is plenty of anecdotal evidence that high-end ITP durables -- for instance, the Teutonia brand of German-made strollers acquired by Newell Rubbermaid in 2007, and now priced up to $890 -- are selling well again.  But the newly reinforced mid-luxe and value tiers will be with us for a long time to come, offering wider arrays of brands, and certainly, more choices of affordable status brands.