LA Times: Small pet stores see healthy growth of organic food sales

Sales of premium-priced organic and natural pet food are expected to grow three times as fast as pet food sales overall through 2015.

Lance Castro, left, and Guy Miracle, owners of the Modern Dog in Venice, sell several brands of freeze-dried raw food and premium kibble. “It’s done wonders for our business,” Castro says. (Ricardo DeAratanha, Los Angeles Times)

By Cyndia Zwahlen

February 7, 2011

Organic, raw and even gluten-free food choices aren't just for people anymore.

These options are showing up at local pet shops that are looking to distinguish themselves from big-box competitors. After a slowdown in sales of premium-priced food during the recession, independent pet shops said the sector was recovering.

At the Modern Dog, a boutique in a Venice bungalow, co-owner Lance Castro was looking to add two new brands of freeze-dried raw food and premium kibble to the seven he already sells.
"It's done wonders for our business," said Castro, who opened the Abbot Kinney Boulevard store with Guy Miracle five years ago.

The store's popular Sojos dehydrated dog food mix of sweet potatoes, turkey, apples and flax meal, among other ingredients, costs $21.99 for a 2-pound bag, to which water is added to make 10 pounds of food.

Castro said he was looking at sites for a second location where he plans to have a refrigeration unit for fresh and frozen raw-food brands.

Nationwide, annual retail sales of organic and natural pet food are expected to grow three times as fast as pet food sales overall through 2015, according to an industry report to be released this week by the Packaged Facts market research company.

Industry analyst David Lummis, who wrote the report, estimated that natural and organics would grow 12% a year on average, hitting $2.8 billion in 2015. By comparison, he expects an average 4% annual growth rate for the entire pet food market over the same period. Overall pet food sales will reach $22.1 billion in 2015, Lummis said.

"People are treating their dog food like some people are treating their baby food," said Todd Martin, vice president of marketing for Castor & Pollux Pet Works, a Clackamas, Ore., company that makes organic pet food and treats. "They want to know it's safe, and they want to know it's quality."

Still, organic pet food — which costs as much as 30% more than non-organic — remains a tiny part of the overall market.

Many independent shops, which are in the vanguard of the organic food sector, got a boost in business in 2007 when pets died from eating food that contained imported wheat gluten and rice protein contaminated with melamine. The poisonous contaminant even showed up in some brands sold as being natural.

As with food for people, there are no regulations governing the word "natural" on pet food labels. But pet foods marketed as organic must meet the same U.S. Department of Agriculture standards as human food in the category, according to USDA spokesperson Soo Kim.

Annual sales of organic pet food increased tenfold from 2002 to 2009, when sales hit $84 million, according to the Organic Trade Assn.

Now that organics are becoming more popular, some large pet store chains are also carrying them, said Joan Storms, an analyst at Wedbush Securities in Los Angeles.

But the more exotic raw and organic pet food is still mostly the province of independent shops.

Neal Massa is co-owner of My Pet Naturally in West Los Angeles, where customers can find raw elk meat for $7.49 a pound and raw chicken and lamb for Fido for about $4 a pound.

"My clientele are probably mostly single, more single women than not, and what I am finding is that these are their kids," Massa said, referring to his customers' pets. "So you are going to spend a little bit more money for pet food."

Full Article: Pet food: Independent pet stores see growing sales of organic and natural pet food - latimes.com

Gluten-free has gone mainstream – but how long will that last?

Gluten-free has gone mainstream – but how long will that last?

WENCY LEUNG | From Wednesday's Globe and Mail

Published Tuesday, Feb. 01, 2011 1:29PM EST

In less than five years, sales of gluten-free products have nearly tripled, rising in tandem with the increasing number of new gluten-free goods. Beyond crackers, breads and pastas, it’s now possible to buy everything from gourmet gluten-free cookies at independent bakeries to gluten-free pizzas at restaurant chains such as Boston Pizza.

According to the Rockville, Md.-based research firm Packaged Facts, U.S. retail sales of gluten-free products reached $2.6-billion (U.S.) in 2010, up from $935-million in 2006. And in its 2011 Gluten Free Foods and Beverages report, the firm predicts sales will grow to $5.5-billion by 2015. A similar trend is under way in Canada, although precise national figures are not available. 

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Health, Budget Concerns Will Drive Food Flavor and Ingredient Market in 2011

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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Women dominating postsecondary ranks

Market Insights: A Selection From The Report

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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.
  

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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/.

Private-Label Food & Beverage Retail Sales

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Pet Supplies and Pet Care Products: The U.S. Market and a Global Perspective

Even as the economic picture improves, consumers remain cautious about spending, including in terms of the pet products they buy. Having lived up to its “recession-resistant” reputation once again, the business therefore continues to face challenges that have retailers, marketers and product developers relying more heavily than ever before on the all-important notion of pets as family. Accordingly, themes including health, function, comfort, safety, gifting, travel, and yes pet pampering are all weighing heavily on the value scale as market participants look to strike the perfect balance in pet categories across the board.

Tapping into Packaged Facts’ extensive pet market report collection and analyst expertise, Pet Supplies and Pet Care Products in the U.S., 8th Edition: Pet Health and Pampering: The New Value Equation provides detailed market breakouts and insights not available elsewhere. Covering non-food pet supplies of all types and for all companion animal types, the report examines trends in flea/tick care products, cat litter, toys, rawhide chews, bedding, grooming products, supplements, clean-up products and many other product segments. Using 2009 as the base year, it charts sales since 2005 and forecasts sales through 2014; breaks the market out by animal type and product category in both the mass-market and pet specialty channels; presents dollar sales and market share for leading marketers and brands; analyzes competitive strategies and shifts; profiles top companies and market innovators; analyzes new product trends; and provides demographic and psychographic profiles of product purchasers.

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Ethnic Hair, Beauty and Cosmetics Products in the U.S., 7th Edition

No market is an island -- but why do many marketers and retailers still consider the ethnic HBC aisle as separate from the rest of the store, sleepy and low-end? In reality, ethnic haircare, makeup, and skincare products are a vibrant $2.7 billion business that reflects the upscaling of the parent HBC market.



Photo: ethnicbeautycentral.com



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 have thus ventured beyond the usual hair relaxers, the few darker tints of makeup and heavy moisturizers, to offer premium-to-high-end beauty and grooming regimens sold through pop-prestige outlets such as Sephora, as well as through TV home shopping networks HSN, QVC, and others. Organic formulations are driving ethnic HBC sales, too -- because Americans of color actually skew more green-minded than Whites.

Yet ethnic HBC’s sell-through in the prestige, natural grocery, and TV home shopping channels, is still small in relation to its fabulous potential. As for the effect of the struggling U.S. economy, this market achieved mid-single-digit increases during the global recession of 2008-2009, and is expected to return to double-digit progress as the recovery proceeds.

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Cheese: Natural and Specialty Cheeses in the U.S. and Global Markets

With U.S. production of natural and specialty blended (N&SB) cheese at an all-time high — 10 billion-plus pounds by the end of 2009 — marketers are aggressively creating points of differentiation to better establish their brands in this highly competitive and crowded category. With more than 300 varieties of natural cheese made in the States, as well as just as many specialty blended cheeses, this is no easy feat, particularly when there are more than 200 marketers vying for the attention of consumers, retailers, chefs and even prepared foods product developers.

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Gluten-free has gone big time, but why so popular?

09/16/2010 - Michael Hill - Associated Press

This July 5, 2005 file photo shows gluten-free products on

display at a Hannaford Supermarket in Albany, N.Y. U.S.

sales of gluten-free food has more than doubled

since 2005 to over $1.5 billion, according to the market research

company Packaged Facts. And the growth spurt

is expected to continue at least through 2012.

(AP Photo/Jim McKnight, FILE)

Gwyneth Paltrow gushes over gluten-free. Chelsea Clinton's wedding cake was baked without it. The new Old Spice guy avoids the ubiquitous protein to help stay buff. In fact, odds are good you too have tried — or at least encountered — a product with the gluten removed.

Because gluten-free is what low-carb was a decade ago: The "it" diet discussed on daytime talk shows, promoted by hyper-slim actresses and adopted by masses. Grocery aisles are stocked with the likes of gluten-free pasta, crackers, cereal and beer.

Americans are enthusiastically exiling a dietary staple that wasn't even in most people's vocabulary a decade ago.

But why?

Unlike some other dietary boogeymen like trans-fats, gluten is not inherently bad to eat. Only a small percentage of people can't tolerate the protein, which occurs naturally in wheat, barley and rye. Plus, banning gluten from your diet can be really hard.

Not only is gluten an essential element of traditional breads and pastas (it's the protein that gives them their structure), it often is used as a thickening agent in processed foods, such as ketchup and ice cream. And cutting out gluten is no guarantee of weight loss.

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US low-sodium product launches soar – but consumers go for taste

Food Navigator USA, Caroline Scott-Thomas, 12-Apr-2010

The US has launched more products claiming low or no sodium than any other country in the past three years, according to a new report from Packaged Facts – but consumers still prioritize good taste.

The US Department of Agriculture has estimated that the average American gets about 4,000mg of sodium a day, well above the recommended daily maximum of 2,300mg. Excessive sodium intake has been linked to increased risk of high blood pressure, heart disease and stroke. And with an estimated 75 percent of sodium in the average US diet coming from packaged foods, industry is already under pressure to reformulate foods to contain less sodium.

However, Packaged Facts claims that reducing sodium intake is not at the top of consumers’ list of priorities for dietary change. The market research organization said that low-sodium is not as important to consumers’ healthy eating agendas as eating more fruit and vegetables, more fiber or limiting saturated fat, sugar and trans fat. Nevertheless, “if good-tasting, lower-sodium options are offered, consumers will buy them,” it said, as consumers are interested in eating healthier foods overall.

Sodium reduction poses many challenges for manufacturers, including functionality as a leavening agent or preservative, as well as consumers’ flavor preference. But there is still huge momentum in the industry to reduce sodium.

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Low- and No-Sodium Foods and Beverages in the U.S.

Novel fibers to grow 750% as consumers seek fiber-rich foods

By Stephen Daniells, 10-Sep-2010, Nutra Ingredients

The use of novel fibers in food products is set to sky-rocket over the next few years, with growth of 750 percent predicted, according to a new report from Packaged Facts.

Consumer interest in dietary fiber has been growing with scientific studies linking increased intake to reduced risks of cancers such as colorectal and cardiovascular disease, digestive health benefits and weight management.

A 2008 International Food Information Council survey found 77 percent of people are proactively trying to consume additional fiber.

Despite such good intentions, however, many Americans only achieve about 50 percent of their recommended amount of 25 to 30 grams of fiber daily.

And such stats are driving the introduction of new fiber-fortified food and beverage products, according to a new report Fiber Food Ingredients in the U.S.: Soluble-, Insoluble- and Digestive-Resistant Types by market research publisher Packaged Facts.

While interest in all types of fibers – insoluble and soluble – is expected to increase, the biggest growth is expected for so-called novel fibers. Packaged Facts defined novel fiber as “one that has not historically been viewed as a fiber food ingredient. This includes, but is not limited to inulin, FOS, GOS, resistant maltodextrin and soluble corn fiber.”

“Packaged Facts determined that sales of all fiber food ingredients (i.e., conventional, insoluble-type fibers; conventional, soluble-type fibers; and novel fiber food ingredients) will continue to increase indefinitely, as the market for fiber-enhanced foods is still in its infancy,” said Don Montuori, publisher of Packaged Facts.

“There is a great deal of room for growth across almost all food categories, which presents an opportunity for the many different fiber ingredients that are among the most popular with today’s food formulators,” added Montouri.

Novel growth

The market researcher is predicting a significant growth for these novel fibers, with the category predicted to increase its share of the market by more than 750 percent, jumping 35 percentage points from an almost 5 percent share in 2004 to a 39 percent share in 2014.

Packaged Facts estimates that in 2004, 91 percent of all fiber food ingredient sales were of conventional, insoluble-type fibers, which contains cellulose, hemicellulose and lignin and cannot be dissolved in water.

The remaining 9 percent share was split evenly between conventional, soluble-type fibers and emerging, novel fibers. The market researcher projects that insoluble fibers will decrease to 53.3 percent by 2014, while the share for the mostly new or newly refined conventional, soluble-type fibers will decrease slightly to 7.4 percent.

Soluble versus insoluble

Studies have also reported that insoluble fiber may reduce the risk of obesity and diabetes, but the biological mechanism underlying the benefits has only been assumed.

The assumption was that the fiber reduced the glycemic response (a rise in blood glucose), thereby increasing satiety and decreasing energy intake. A lower glycemic response decreases the demand for insulin, therefore reducing the risk of type 2 diabetes.

In Europe and Japan, soluble fiber has the greater market share than insoluble. In the US, where the entire fiber market was worth $192.8m (€151.0m) in 2004, insoluble fiber dominates the market with $176.2m (€138.0m), and $16.6m (€13.0m) soluble.

But while Frost and Sullivan predicts overall growth in the US to $470m (€369m) by 2011, the soluble fiber sector is expected to increase by almost twice the compound annual growth rate (CAGR) compared to insoluble fiber - 26.3 percent compared to 13.1 percent.

The arrival of multinationals

Data from Datamonitor in 2009 indicated that food manufacturers are increasingly adding fiber to their products, in a move described as going “back to basics”.

The market researcher said fiber has become an ingredient of choice for products targeting health conscious consumers and products designed to help combat obesity.

Based on data from its Product Launch Analytics, which tracks new products entering the global marketplace, Datamonitor said the percentage of new food products launched in the US that claim to be high in fiber hit 6.3 percent in 2008, up from 5.2 percent in 2006.

“Consumers have long known that fiber is ‘good for you.’ Now food makers are redoubling their efforts to increase the fiber content of many popular food products,” said Datamonitor.

Companies that have launched products touting their fiber content include the multinationals PepsiCo, Kraft, Campbell Soup, Kellogg and Dannon.


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