For food and foodservice manufacturers, suppliers and operators, speaking the language of the military is big business, which Packaged Facts’ Trends in U.S. Military Food and Foodservice helps participants translate into increased sales.
Fact: The U.S. Department of Defense is the nation’s largest employer and a gateway to more than 3.2 million people.
Fact: The scope of military reach extends to the more than 12 million military members, families and retirees who depend on its wide net of retail, military installation, and combat food and foodservice operations, which have an international reach that incorporates everything from food and beverage supply to foodservice management to restaurant franchising.
This new market study assesses the attitudes toward various on-installation and off-installation foodservice options as well as, analyzes off-site foodservice spending among military service members, military spouses, civilians and retirees.
The report covers food and foodservice operations at military installations, including mess halls, exchanges and recreational facilities; and food and foodservice field training and contingency operations. While it focuses primarily on domestic military food and foodservice, the report also presents global U.S. military foodservice sales and trend analysis.
As a bonus, the report also includes an overview of the U.S. correctional facilities foodservice market, including growth drivers, market sizing and forecasting, prison cost trends, state correctional facility budgeting trends, state prison count reduction strategies, foodservice cost analysis, and foodservice cost cutting initiatives.
 For the past several years, consumers have been soothing themselves with all manners of baked goods, ranging from freshly made pies and Parisian macarons to decadent cookies and oozing lava cakes - all while enjoying new twists on old favorites as well as a more varied selection of baked goods and flavors.
Despite recent economic difficulties, baked goods generally remain an affordable indulgence, and one consumers can access in many places. The recession hasn't prevented sales of baked goods from growing, as the market has been pushed by a variety of drivers: convenience, premium ingredients, global flavor twists, wellness and nostalgia/comfort.
In Baked Goods: Culinary Trend Mapping Report, Packaged Facts and the Center for Culinary Development use the CCD signature Trend Mapping technique to profile seven sweet and savory baked good trends that provide fresh ideas for manufacturers and restaurant operators to enliven stale offerings, spruce up the bread basket and add excitement to both the baking aisle and freezer case.
The seven sweet and savory baked good trends appearing across the Trend Map® include:
- Stage 1: The Micropatisserie
- Stage 1: Alfajores
- Stage 2: Popovers & Gougres
- Stage 3: Specialty Frozen Desserts
- Stage 3: Better Baking Mixes
- Stage 4: Pretzel-mania
- Stage 5: Gone Gluten-Free
 |
| Photo Source: MediaPost Publications |
by Karlene Lukovitz, Friday, March 4, 2011, 5:41 PM
Sales of gluten-free foods and beverages, once considered specialty
items, had a compound annual growth rate of 30% in the U.S. between 2006
and 2010, according to the latest report on this category from research
publisher Packaged Facts.
Packaged Facts, which previously projected that sales of gluten-free
foods and beverages would reach $2.3 billion by 2011, has revised those
estimates, putting the market at $2.64 billion in 2010.
Moreover, despite factors such as expected falling product prices due to
a greater presence of these items in mass outlets and more
private-label choices, the researcher expects gluten-free products to
show average annual compound growth of 14% between 2011 and 2015, to
reach sales of to $5.6 billion by 2015.
The dynamics behind this growth start with growing consumer awareness of
celiac disease -- a chronic autoimmune intestinal disorder in
genetically susceptible individuals that causes a toxic reaction to
ingesting wheat gluten and similar proteins. A Mayo Clinic study found
that the rate of celiac disease has more than quadrupled in the past 50
years -- this despite the fact that it is still "staggeringly
under-diagnosed," according to Packaged Facts. Recent estimates are that
1% of Americans, or about 3 million people, may be affected. Food
allergies affect about 4% of U.S. adults and 5% of children, and the
incidence among children, in particular, has been rising rapidly.
Currently, the only treatment for celiac disease is lifelong adherence
to a gluten-free diet -- which is why, these days,
"everyone knows someone" who is living gluten-free, one marketer noted
to the report's researchers. In addition, there is evidence that
gluten-free diets may relieve autism in children and adult rheumatoid
arthritis.
Furthermore, from a broader perspective, a growing number of consumers
perceive gluten-free products as being of higher quality and having a
healthy "aura" -- a dynamic similar to the one that's driven sales
growth of kosher foods in recent years, points out the report. "There is
a demand for [gluten-free] foods and beverages that mainstream food
manufacturers and retailers are increasingly happy to satisfy," observes
Don Montuori, publisher of Packaged Facts.
Recognition by major brands and mass retailers of the sustainable --
non-fad -- growth of gluten-free products, and their resulting push to
market/carry such products, has resulted in health food stores' share of
these products' sales dropping by half in just two years, estimates
Packaged Facts. The surge in the sales and number of products
specifically marketed as gluten-free in supermarkets and mass
merchandisers tracked by Symphony IRI has reached the point that,
according to one brand marketer quoted in the report, gluten-free
products are becoming "just a regular grocery item."
Dominant gluten-free product categories in food/drug/mass retailers
include food/nutrition bars -- which, largely due to General Mills'
acquisition of the Lärabar brand in 2008, represent about 16% of total
gluten-free product sales in these outlets and showed the largest
year-over-year sales growth between 2009 and 2010, according to the
report. Sales of gluten-free ready-to-eat cereals declined slightly
between 2009 and 2010, but that category remains in second place.
Indeed, General Mills' "transformation" of its popular Rice Chex cereal
into a gluten-free product without changing its taste "stands as a
milestone indicator of the breadth of impact of gluten-free products
having mainstream consciousness," point out Packaged Facts' analysts. As
of November 2010, General Mills reported offering 250 gluten-free
products, including five varieties of Chex and numerous products under
the Betty Crocker and Bisquick brands.
Meanwhile, while product categories such as hot cereal, soups and frozen
pizza are still very small segments of the overall gluten-free
food/beverage market, they are showing significant, double-digit gains.
Consumers on gluten-free diets are willing to pay the higher prices
generally associated with gluten-free products, the report notes.
February 24 2011 | Kathy Crosett
Using a landline phone to make restaurant reservations is so 20 th Century. These days, consumers expect to engage with restaurants online and through mobile devices. Restaurant operators who don’t build up their online presence and brand loyalty are missing an opportunity to generate higher sales. Even outlets that have not traditionally advertised are finding new business coming from social media efforts.
The new Social Media and Technology in the U.S. Foodservice Industry: Trends and Opportunities for an Emerging Market report by Packaged Facts explains that everything has changed in the food service industry. Don Monturori, publisher of Packaged Facts says, “We believe the restaurant industry is in the midst of being shaped by the convergence of the mobile, yet always connected, consumer; location-based and context-aware technological innovation, and mobile payments, which already demonstrate the potential to redefine how to cultivate restaurant guest loyalty, incentivize dining occasions, and better tailor marketing messages.” As proof of this new trend, consider these facts:
- Almost 1/3rd (31%) of consumers who frequent restaurants for eat-in or take-out meals use their computers to place orders.
- About 1/5th (21%) of consumers use mobile phones or other devices to place restaurant orders.
Facebook and Twitter are the leading social media outlets for restaurant operators to conquer. Packaged Facts analysts point out that food service operators should focus on location-based promotions this year as active Facebook users are ‘frequently on the go’. In addition, Twitter can be used to reach “a younger, more urban, multi–cultural audience.” Studies show that Twitter has significant appeal for emerging demographics – Hispanics, African Americans and Asians. And these social media tools aren’t just being used by traditional restaurants. One of this year’s most interesting trends is the growing number of food trucks that serve unique and ethnic fare in urban environments. These lower-cost outlets are turning to Twitter to promote themselves.
As the restaurant industry battles to regain the losses suffered during the recession, most operators will be turning to lower-cost forms of promotions. For many, social media seems to fit the bill.
[Source: Facebook, Twitter and Smartphones Lead Social Media-Fueled Innovation within U.S. Foodservice. PackagedFacts.com. 8 Feb. 2011. Web. 24 Feb. 2011]
More Food Service Operators to Use Social Media - marketingforecast.com
The ball dropping in Times Square, resolutions, diets . . . all these are familiar signifiers of a new year. So, too, are prediction lists: what’s going to be hot, what’s not.
We at Packaged Facts have some experience gazing into a crystal ball and divining trends for the consumer marketplace (publishing market research studies on consumer goods and services for more than 50 years can come in handy . . .).
This month we gathered our market experts and asked them for their predictions regarding the product and social trends that will make their mark in 2011. Download our free whitepaper to hear Packaged Facts' analysts insights and predictions on:
* Retailing Trends
* Pet Market
* Apparel Industry
* Consumer Hobbies
* Personal Care Products
* The Use of Social Media
* Food and Beverage Market
* Baby Boomer Attitude and Behavior Shifts
Download:
http://www.packagedfacts.com/catalog/search.asp?query=white+paper
Health, Budget Concerns Will Drive Food Flavor and Ingredient Market in 2011
New York, January 11, 2011 — Consumer thriftiness and health-consciousness will continue to exert a notable influence over the food and beverage ingredient and flavor trends to emerge in 2011, according to Food Flavors and Ingredients Outlook 2011, the eighth edition of the annual series by market research publisher Packaged Facts.
"Heading into 2011, consumers are growing evermore weary of economic and nutritional health gloom and doom. Many have spent the last few years reinventing their financial and employment lives, and are now starting to focus more emphasis on their overall wellbeing and happiness in a way that is reflective of their values, being more pragmatic and deliberate in making decisions about how to spend both their time and their resources," says Don Montuori, publisher of Packaged Facts.
Packaged Facts believes food marketers, from the retail and foodservice sectors, will take that consumer mindset to heart in 2011. Some of the key trends Packaged Facts forecasts to hit it big in 2001 are:
-
Flavors From Around the Globe – Ethnic food will remain a bright spot for foodservice and retailers, providing variety and interest without taxing smaller food budgets. The growing presence of food trucks, with their varied ethnic fare at reasonable prices, will bring this national trend home to the local level.
-
Sustainability Trumps Local, Organic and Natural – Local, organic and natural foods will more often be connected with eco–friendliness and a more holistic lifestyle approach to eating that promotes sustainability. As a result, Packaged Facts predicts that there will be greater use of natural, organic, local and antibiotic and hormone–free ingredients at quick serve restaurants (QSRs) and fast casual restaurants in 2011. At retail, the popularity of private label organic products is anticipated to continue while growth in directly marketed local and organic produce, meats and locally processed foods sold via farmers’ markets and community-supported agriculture (CSA) is anticipated.
-
Wellness Overhaul – Packaged Facts anticipates that food will get more attention as the foundation of health, and wellness activities will be better integrated into overall lifestyle. Growing recognition that digestive health is a key link in promoting overall good health will help drive sales of yogurt and other foods containing probiotics, but gluten-free foods will likely show signs of slowing down after a year of explosive growth that some might consider to be a fad.
-
Plethora of Produce – Vegetables, more so than fruit, will take on added importance in 2011 as they move to the center of the plate. More fine–dining restaurants are starting to focus on vegetables as the main attraction, with either no accompanying meat, or used sparingly, as a condiment to accentuate flavor. Look for considerable menu experimentation with taste palates developing to savor a broad array of produce, with the likes of turnips, parsnips, black and purple kale, broccoli, spigarello, Romanesco, eggplant, celeriac, and sunchokes becoming more commonplace.
-
Flavor & Ingredient Crossovers – A key trend will be even more two–directional crossover of savory ingredients into sweet foods and sweet ingredients into savory foods. For example, Packaged Facts expects the use of olive oil to extend into a wide range of desserts and sweet goods including ice cream and gelato, cake and muffins.
-
Satisfying Sweets – Packaged Facts anticipates that agave will surrender some of its sweetening prominence to less exotic but always special honey as stevia still gains ground at a slower pace. Figs, pears, cherries and blackberries look likely to be the most popular fruits, along with the superfruit combination of blueberry and pomegranate. America’s appreciation of artisanal and retro desserts is expected to continue in 2011 with home–made pie and ice cream showing a great deal of creativity.
Food Flavors and Ingredients Outlook 2011, 8th Edition highlights predictions for the key drivers that will affect the U.S. food and beverage industry including rising food prices, consumer desire to take control and remain tight–fisted, actual vs. perceived thrift, government and industry pressure for a healthier diet and more focus on pragmatic lifestyle choices to promote happiness and well being. For further information, please visit: http://www.packagedfacts.com/Food-Flavor-Ingredients-2706877/.
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: www.packagedfacts.com. Follow us on Facebook, LinkedIn and Twitter.
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Boulder's Evol, famous for burritos, turning attention toward other frozen foods - Boulder Daily CameraBy Alicia Wallace Camera Business Writer
Posted: 12/26/2010 09:30:00 PM MST
If officials behind a Boulder-based frozen burrito company get their way, the Evol empire will spread in 2011 and do so in a very cold -- yet, brightly lit -- place.
A year after the Boulder-bred Phil's Fresh Foods gained some investors and rebranded itself as Evol Burritos (not sinister, it's 'love' spelled backwards), the company changed its name once again. Now operating as Evol Foods, the local manufacturer is launching a line of frozen gluten-free bowl entrees and has grander plans to tackle other sides of the frozen food market, founder Phil Anson said.
"It evolved really quickly into a big overall convenience brand," Anson said. "Over time, we'll be in entrees and you'll see us go into other categories that are as big or bigger than entrees."
What those could be, Anson's not saying right now, just that Evol Foods will broaden its offerings more in the spring and summer.
Although he's staying mum, Anson expressed confidence in Evol Foods' ability to gain a foothold in the sector. Consumers are looking for something fresh, new and different, he claimed.
"That's why we launched Evol," he said. "We really wanted to create a lifestyle brand that people can connect with."
Anson said he also sees a big gap on the meat front, especially in the natural, organic, active and health-focused arena.
"Just because people want natural and organic products doesn't mean they don't want meat," he said.
Evol Foods is expanding in a sector that had "strong" growth during the past five years, but also experienced a slowdown this year.
During 2006 to 2010, sales in the frozen foods and beverages channel increased $10 billion, or 21.7 percent, for a compound annual growth rate of 5 percent, according to an industry report released this month by Packaged Facts. The projected sales gain of 1.7 percent, or $900 million, for 2010 would be the weakest during the period; although, sales gains in the preceding
Jason Espinoza checks the seal on the burrito packaging and racks the burritos for the refrigerator at Evol Foods in Boulder on Dec. 9. ( MARK LEFFINGWELL )
years could have been driven by higher prices, officials for the market research firm said in the report.
While some consumer spending has contracted during the economic downturn, frozen foods have been affected to a lesser extent, according to the report.
"The new economic reality feeds two opposing trends in consumer goods markets, including frozen foods: premiumization (upscaling) and cutting back (downsizing)," Packaged Facts officials wrote in the report. "Rather than canceling each other out, these two trends interact in the face of slow economic recovery as consumers juggle how to get the most out of less money or less spending."
Evol Foods' sales multiplied in 2010, Anson said, noting the company should finish the year up 200 percent from 2009.
The brand's distribution also exploded. As Phil's Fresh Foods, the burritos were sold in 700 stores. Now, as Evol, they are sold in 5,000 to 6,000 locations, he said.
Anson said the key to future expansions -- in sales, products and areas such as food service -- will include his "foodie" mindset and keeping on top of the variety of food-related trends.
"Monitoring what's happening from white tablecloth restaurants to mobile eating, my ears are attuned to all of those things," he said.
Wellness Ingredients: Culinary Trend Mapping Report
Long before today’s pharmaceutical industry, civilizations treated illness with diets meant to balance one’s humors (Greeks), yin and yang (Chinese) or doshas (Ayurveda). Whatever the bodily ailment or concern, food in the form of herbs, spices, barks, teas, soups and what-have you was administered to make a body better. This age-old notion is regaining traction, and represents a growing trend in the American health and wellness arena today.
Consumers are more engaged than ever trying out new foods and diets in hopes of curing what ails them or preventing ailments to which they are susceptible. Consumers’ participation in uncovering and treating various conditions with food is part of this era’s DIY-care mentality. Hobbled with healthcare issues and economic woes, while simultaneously emboldened by innumerable Internet pages and a growing understanding and acceptance of alternative medical systems —Traditional Chinese Medicine with its acupuncture, holistic medicine and its tinctures, naturopathy and even yoga—consumers have never had more motivation or ammunition for finding new cures themselves, especially diet-related ones.
The wellness ingredients profiled in this report all have this ancient medicinal wisdom element in common. These ingredients have been consumed for healthfulness by cultures around the world for centuries, and are finding new life today in natural food stores as well as the natural food aisles in mainstream grocery stores.
- Stage 1: Healing Spices — Holy basil and turmeric are two Ayurvedic staples situated at Stage 1 but gaining momentum in the health food world as functional ingredients with therapeutic properties. Boasting digestive and mental health benefits, these spices are being incorporated into teas, nut butters and energy bars.
- Stage 2: Hemp — Although industrial hemp production remains illegal in much of the U.S., the market for hemp products is flourishing. Hemp seed is the edible part of the hemp plant, and it packs quite a nutritional punch. No wonder it’s become a healthful booster to everything from nut bars to milk to salad dressing.
- Stage 2: The New (Old) Fermented Foods — Fermented foods like miso, kasu, tempeh and pu-erh tea are rapidly gaining adherents as consumers seek out foods that are less processed and more nutrient-rich. Benefits range from an ability to improve digestion to naturally high protein content, and these imported superfoods can enhance taste, too.
- Stage 2: Sprouted Foods — Health-focused manufacturers are sprouting wheat, rice and other grains, nuts and seeds and using them as a base for wholesome grain goods that offer more nutrition and are more digestible than similar products made without sprouted grains.
- Stage 3: Grass-fed Meat & Dairy — Grass-fed Meat & Dairy has an impressive health halo as well as an improved reputation for taste. It also feeds into consumers’ desires for more authentically good-for-you products, those our grandparents and great-grandparents relied on.
- Stage 3: Agave Nectar — Agave nectar fits well with consumer desires for a more healthful plant-based sweetener. Its lower-than-white sugar glycemic index means it helps maintain even blood sugar levels, and because it is sweeter than sugar, consumers can use less of it, making it a good value.
- Stage 5: DHA — Docosahexaenoic Acid (DHA) may be the hottest long-chain fatty acid you can’t pronounce. DHA is a source of Omega-3 that is being promoted for its ability to enhance brain function and development.
• • • • •
The Culinary Trend Mapping Report is an indispensable tool for those whose job it is to stay abreast of what's hot - and what will be - in the food world.
The reports leverage the Center for Culinary Development’s (CCD) signature Trend Mapping technique, a validated method for identifying which culinary trends are gaining traction and which are simply flashes in the pan.
Each 65+ page journal is packed with trends, data, strategies and insights on the food industry that simply aren't available anywhere else.
Each Issue of the Culinary Trends Mapping Report
- Identifies the maturity level of foods and ingredients according to CCD’s unique, proprietary 5-stage trend mapping process.
- Concentrates on a theme that is affecting the food industry, and then looks at the emerging and established trends along the Trend Map that are shaping this theme.
- Delves into these trends and what they mean for you and the manufacturing, retailing, and foodservice industries.
- Gives strategic insight into how consumers are thinking of and reacting to new foods and ingredients.
- Provides business know-how regarding opportunities, challenges, and ways to implement current trends into foodservice, retail, and packaged goods operations.
- Presents a feature interview with a member chef from CCD’s exclusive 80+ member Chefs’ Council who offers expert analysis and unique perspective on a specific trend.
Trend Mapping
Trend Mapping is guided by the premise that major food trends pass through five distinct stages on their way to the mainstream:
- Stage 1: The ingredient, dish and/or cooking technique appears at upscale dining establishments, ethnic and popular independent restaurants.
- Stage 2: The item is featured in specialty consumer-oriented food magazines such as Bon Appetit plus retail stores such as Sur La Table that target culinary professionals and serious home cooks.
- Stage 3: The item begins to appear in mainstream chain restaurants—Applebee's or Chili's—as well as retail stores such as Williams-Sonoma that target recreational cooks.
- Stage 4: Publications such as Family Circle and Better Homes and Gardens pick up the buzz.
- Stage 5: Finally, the trend makes its way to quick service restaurant menus and either starts to appear or gains increased mainstream presence on grocery store shelves.
Availability
Published bimonthly, the Culinary Trend Mapping Report is available for purchase as a single issue or a six-issue subscription.
Market Insights: A Selection From The Report
Bolstered by revenue safeguards such as federal food programs and
student loans, K–12 and college foodservice has emerged as an industry
bright spot expected to grow steadily over the next several years,
according to The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education by market research publisher Packaged Facts.
Women dominating postsecondary ranks
For fall 2008, 19.57 million students were enrolled at all Title IV postsecondary institutions. 18.97 million of these students were enrolled in a 4-year undergraduate program (48.0% of total enrollment), a graduate program (12.7% of total enrollment) or a 2-year program (36.3% of total enrollment).
- Among the 9.39 million students enrolled in a 4-year undergraduate program, 7.42 million (or 79.0% of all 4-year undergraduates) were enrolled full time and 5.26 million (or 56%) were female.
- While graduate students were more evenly split between full-time and part-time status, some 61% of graduate students were female.
- 2-year institutions also enrolled a higher percentage of females, but about 59% of 2-year students were enrolled part time.
View Table of Contents »
Written by David Sprinkle for Natural Product Insider
Energy drinks and energy shots have been one of most remarkable success stories in the mass-market for foods and beverages. According to SymphonyIRI data presented by Packaged Facts at the 2010 SupplySide West conference in Las Vegas, Red Bull posted $45 million in dollar sales gains through supermarkets, drugstores and mass-merchandisers for the 52-week period ending October 2010, even with the exclusion of Wal-Mart, as well as convenience stores. Although sales growth has leveled off from an average 31-percent annual rate throughout the middle of the decade, Red Bull dollar sales were up 12 percent for the most recent period. Even that relative tapering off in growth is partly attributable to thunder-stealing by Living Essential’s 5-Hour energy shots, which are posting 58-percent annual growth through these outlets.
| Table 1: Selected Leading Dollar Sales Gainers by SymphonyIRI Tracking in Food, Drug and Mass Outlets (52 Weeks Ending Oct. 3, 2010) |
| Brand Line |
$ Sales |
% Chg |
$ Gains |
| Chobani Yogurt(Greek-style) |
$196M |
246% |
$140M |
| Red Bull Energy Drink |
410 |
12 |
45 |
| Fage Total Yogurt (Greek-style) |
123 |
57 |
45 |
| 5-Hour Energy Shot |
118 |
57 |
43 |
| Dannon Activia Yogurt |
251 |
20 |
41 |
| Nature’s Bounty Mineral Supplements |
233 |
20 |
38 |
Energy drinks and energy shots serve as a wake-up call to the rest of the beverage market. Major marketers and megabrand managers certainly took notice of the sales success, as evidenced by new product introductions, such as AriZona Energy drink, Crystal Light Energy drink mix (“caffeine and energy releasing B vitamins to help you feel energized”), Minute Maid Natural Energy Strawberry Kiwi with Yerba Maté (“a delicious juice drink providing a natural energy lift”), and Snapple’s Elements Energy Drinks or AriZona's new Fast Shots (A.M. Awake, Rx Energy). Food manufacturers also learned the energy lesson, as evidenced by new products, such as General Mills’ Fuel Wheaties, which aims to boost an athlete’s energy, endurance and performance.
Part of the marketer enthusiasm for energy drinks and energy shots stems from the fact that these new products, like formerly newfangled sports/activity drinks, invert the usual age pattern for dietary and nutritional supplementation. Use of nutritional supplements overall, as indicated by the Experian Simmons Spring 2010 national consumer survey, rises from 36 percent of Gen Y-ers to 76 percent of senior citizens. Consumption of Red Bull energy drinks, in contrast, falls from 19 percent among Gen Y adults to 3 percent among Boomers and virtually nil among seniors. Use of 5-Hour energy shots, similarly, takes a plunge after a usage peak of 7 percent (twice the average) among Gen Y adults.
| Table 2: Use of Red Bull Energy Drink by Adult Generational Cohort |
| Age Cohort |
Percent |
| Adults Overall |
7.3% |
| Gen Y (18-29) |
18.9 |
| Gen X (30-44) |
9.5 |
| Boomers (45-64) |
3.2 |
| Seniors (65+) |
n/a |
| Source: Compiled by Packaged Facts based on Experian Simmons Spring 2010 National Consumer Survey. |
Energy drinks and energy shots are also important for underscoring that consumer priorities in dietary and nutritional supplementation are not necessarily, and for younger consumers, not even primarily, about health concerns. A Packaged Facts online consumer survey in 2009 asked U.S. adults whether they had purchased food or beverage products within the prior 12 months specifically because of nutritional benefits in relation to health conditions or concerns. This survey showed 71 percent of adults purchased food or beverage products for this reason, with energy levels (24 percent) and appearance/beauty (23 percent) edging out such medical concerns, such as digestive health (22 percent), cholesterol, obesity/weight management and immunity as the top triggers for such purchases (Packaged Facts, Functional Foods and Beverages in the U.S., 2009). A follow-up survey in 2010 showed 10 percent of U.S. adults strongly agree they “frequently” choose foods and beverages because they are naturally rich in specific nutrients, and 32 percent somewhat agree.
That almost three-fourths of adults make at least trial purchase of food or beverage products for functional reasons testifies to the blurring of the food and supplement markets. Historically, food was natural. Whether from farm or sea, food was associated with nature’s bounty—or, too often, the lack thereof. Even turning agricultural crops into bread, cheese or wine relied on basic natural and physical processes, such that these traditional foodstuffs did not seem, conceptually speaking, to fall very far from the tree.
In the modern era of American supermarkets, that paradigm faded. Nationally branded packaged food “products” claimed the spotlight, and the reliability, abundance, variety and heavily marketed innovation of branded products tended to relegate farm foods to second-class status. Moreover, both the focus on branded food products and the distinctively modern luxury of choosing from among too many foods along supermarket aisles helped pave the way for consumer adoption of nutritional supplements. If food manufacturers tossed extra vitamins and minerals into their processed foods, why not toss multivitamins into your shopping cart? If food product choices hinged in part on the presence of desirable nutrients, why not cut to the chase and buy those nutrients in isolated form?
Most recently, nature’s bounty has made a comeback in the form of whole foods and consumer demand for natural/organic, seasonal, fresh, local and sustainable food options. At the same time, nutritional supplements have kept their place at the table, such that Packaged Facts projects retail sales of supplements to average 7-percent annual growth from $9.4 billion in 2009 to $13.2 billion in 2014.
What is notable here is the mildness of our awareness of contradiction (reservations within the medical community notwithstanding). Without stirring up much sense of incongruity, ultra-traditional Greek yogurts and high-tech Activia fly off the shelves together. Without much tripping of consumer wires, Whole Foods Market is a leading retailer of nutritional supplements, Nature’s Bounty is a leading supplement brand, and supplement manufacturers are busily adopting food marketing product claims, such as gluten-free, vegetarian and even single-serve.
| Table 3: High Growth Nutritional Supplement Package Tags/Claims, 2005 vs. 2009 |
| Package Tag/Claims |
Increase |
| No Gluten |
56% |
| Vegan |
41 |
| Vegetarian |
34 |
| Natural |
32 |
| No Dairy |
26 |
| No Sugar |
24 |
| Single Serving |
23 |
A continuum has emerged in the food and beverage market from whole foods and superfoods to fortified/functional foods and supplements. In response to myriad dietary and nutritional concerns, American consumers have characteristically chosen an “all of the above” approach. This new continuum has brought superfoods, along with fortified/functional foods and beverages, to the sweet spot of new product development, such that these center-of-continuum products will continue to account for disproportionate share of the best-selling, most profitable entries in the market.
Because of amped-up competition and the proliferation of hybrid products along this food-to-supplement continuum, marketers of nutritionally positioned foods and beverages face multiple challenges. One is to create products that combine key nutrients and benefits/functions in ways that make instant, intuitive sense to busy consumers. Another is to create products that are tasty and wholesome enough to compete with nature’s bounty. Superfood products have an advantage here, as evidenced by the success of Greek-style yogurt. Another challenge is creating products that are convenient and portable enough to compete with pills. Functional/fortified foods and beverages have an advantage here, as evidenced by the success of 5-Hour energy shots. Navigating this continuum effectively will help turn consumer trial of your product into wake-up-and-smell-the-energy retail success.
David Sprinkle is research director for Packaged Facts (PackagedFacts.com), Rockville, MD, and co-publisher of Culinary Trend Mapping Reports, a joint publication with the Center for Culinary Development (CCDSF.com), San Francisco.
A sweet finish to the year
Christmas is a lucrative time for local chocolatiers as they continue to weather the economy's downturn.
By JACKIE CROSBY, Star Tribune
Last update: December 23, 2010 - 10:08 PM
The machines were humming this week inside the sprawling factory at
Abdallah Candies in Burnsville. A worker gently sprinkled sea salt onto
dark chocolate pieces as they moved along a conveyor belt, while two
women on a nearby line stamped "B's" into the warm chocolate that
enveloped a vanilla-butter-cream filling.
"They're going out the door as fast as we can make them," said CEO
and owner Steven Hegedus, the fourth generation to run the company, as
he surveyed the 65,000-square- foot plant. "Business is brisk."
Christmas makes up 35 to 40 percent of annual sales at Abdallah,
which manufactures chocolate candies and confections for more than 6,000
gift and specialty food stores across the country, as well as Lunds and
Byerly's locally. The company specializes in "everyday chocolate,"
generally priced lower than most handmade artisan brands, but higher
than, say, Hershey's.
If America's sweet tooth provides insight into how consumers feel
about the economy, chocolatiers such as Hegedus have some hope for the
year ahead.
"We put resources into infrastructure so that when the economy picked
up, we'd be poised to be at the next level of production," he said.
"That's exactly what's happening now. The recession's not over, but it's
picking up."
The $17.3 billion U.S. chocolate industry has expanded, but hasn't
regained its prerecession pace of growth, according to consumer market
research firm, Packaged Facts. Sales have been resilient mainly because
the percentage of Americans who buy chocolate -- 3 out of 4 -- has
remained steady.
Industry experts attribute that relative vigor to what economists
call the "lipstick factor," where sales of small luxury items stay
strong during times of economic hardship because of their ability to
lift spirits.
Nonetheless, the recession has forced a handful of chocolate makers in
the Twin Cities to become more nimble, and to think of their business
in new ways.
Brian McElrath and Christine Walthour, a husband-and-wife team who
own wholesaler B.T. McElrath, have completed shifted their business
model. A couple of years ago, they manufactured mostly filled
chocolates. But in 2009 they boosted production of high-quality
chocolate bars.
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/.
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.
MORE
The African-American Market in the U.S., 8th Edition
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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:
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.
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Nonetheless, operators must continue to experiment aggressively with menu pricing strategies and focus on courting minority racial/ethnic groups—and prepare for profit margin compression. The onus of food commodity price increases is sizeable enough to threaten the restaurant recovery unless restaurant operators are prepared to bite the bullet on profit margins. Continuing a trend that gathered momentum in 2011, many operators will need to maintain menu prices at the expense of higher margins or risk losing customers. 
