|
Thursday, March 24, 2011
Trends in OTC and veterinary-dispensed pet supplements usage vs. usage of special-purpose nutritional formula pet foods and treats
Wednesday, March 23, 2011
As boomers turn 50 and enter their 60s, they are carrying with them a firm belief that getting older means getting better and they are making health and wellness a top priority.
|
Friday, March 18, 2011
60 Is The New 50! Health and Wellness #1 Priority for Americans 50+
Tuesday, March 15, 2011
“Going Green” Pushes the Market for Infant, Toddler and Preschool Clothing
New York, March 10, 2011 — Marketers across the consumer product spectrum have “gone green” to boost sales in the face of the recent economic downturn. For producers of clothing and footwear made for the youngest consumer, this ranks among several viable competitive tactics, according to Infant, Toddler and Preschool Clothing Market in the U.S., 3rd Edition by market research publisher Packaged Facts.
Infant, toddler and preschool (ITP) clothing/footwear is an evergreen market because the pool of newborns (and parents or grandparents eager to pamper them) is constantly renewed. Even so the market is mature, in that for decades the number of newborns has hovered around 4.0 million annually. Nonetheless, innovative marketing and design spurred retail sales of infant-to-preschool clothing and shoes to $18.4 billion in 2010 -- a figure projected to exceed $23.0 billion in 2015.
“While it seems almost trite at this point to say that ‘green’ or ‘sustainable’ products will fuel growth for a product, in the case of clothing for babies and young children, that is very significantly the case,” observes Don Montuori, Publisher of Packaged Facts. “Indeed, such products are on the verge of becoming mainstream – witness organic or recycled clothing being produced by national brands and sold by mass–merchandisers, including Walmart.”
Clothing and footwear made from fabrics of natural or organic fibers constitute a fast–growing but difficult–to–monitor niche populated by hundreds of small–scale marketers selling limited assortments of products for small-scale people. However, the niche is rapidly growing up to become a market of its own. Major ITP clothing/footwear marketers have already begun to invest more heavily in these products, thereby calling even more attention to them and further expanding consumer options, as evidenced by Faded Glory–branded organic ITP clothing sold through Walmart; Patagonia–branded ITP outerwear incorporating layers of synthetic fabrics made from recycled materials; Crocs clogs made from recycled plastic; and Summer Infant organic cotton swaddling clothes available at Babies “R” Us.
Infant, Toddler and Preschool Clothing Market in the U.S., 3rd Edition, charts the birth, societal, marketing, and licensing trends that drive sales in the mega–market for ITP clothing/footwear. The report analyzes not only the character of the ITP clothing/footwear business itself, but also the competitive personalities of players such as Brown Shoe, Carter’s, Disney, Hanesbrands, The Jones Group, and Sun Capital/Gerber Childrenswear. Experian Simmons demographic data are examined in depth. For further information, please visit: http://www.packagedfacts.com/Infant-Toddler-Preschool-2848320/.
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.
Packaged Facts: “Going Green” Pushes the Market for Infant, Toddler and Preschool Clothing
Wednesday, March 9, 2011
5 Hygiene Products Every Man Should Have
Competition on Aisle Five
A new study finds consumers are flocking to grocery-store prepared meals for two reasons. And restaurants should be worried. Friday, February 11, 2011
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.
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
Tuesday, February 8, 2011
From pushcart to grocery cart
The playbook for U.S. foodmakers often calls for exporting a successful U.S. product to points abroad. General Mills, for instance, has had a big hit in China with its classic Bugles corn snacks, albeit in some flavors we might not find here -- like seaweed.
 |
With its Wanchai Ferry brand, the Golden Valley-based packaged food company has called a reverse. The brainchild of a Hong Kong pushcart vendor, Wanchai Ferry evolved into a popular supermarket brand in China.
General Mills brought the brand to the United States, and so far, it's done well. Since the 2009 launch of Wanchai Ferry frozen dinner entrees for two, they've generated more than $50 million in annual sales and quickly grabbed a respectable slice of market share.
Multi-serving dinners are a sweet spot in the frozen meal business, but one that's also attracting a lot of competition. Within a year of Wanchai Ferry's debut, packaged food giant Unilever teamed up with restaurant chain P.F Chang's China Bistro to launch a frozen entree sporting the latter's brand. Its sales appear to have jumped ahead of Wanchai Ferry's.
Wanchai Ferry is rooted in the business of Chong Kin Wo, or Madame Chong. In the 1970s, she started selling dumplings in Hong Kong's busy Wanchai commercial area, and her wares eventually made it into grocery stores under the Wanchai Ferry brand. Pillsbury bought the brand in 1997, and General Mills inherited it with its purchase of Pillsbury in 2001.
General Mills has built the brand into one of its star assets in China. Wanchai Ferry products, including dim sum and wontons, are available in about 100 Chinese cities, carried by such major international food retailers as Wal-Mart and France's Carrefour. Wanchai Ferry sales in China in 2010 were up 20 percent over the previous year.
In 2007, General Mills launched Wanchai Ferry dry dinner kits in the United States, which require consumers to add meat and cost about $4.60. In 2009 came the debut of frozen entrees, complete with meat, which can be prepared in about 15 minutes and cost $7 to $8.
While the brand name is the same as in China, the products are different, an attempt to account for American tastes, Nudi said. The frozen dinners come in eight varieties, including Orange Chicken, Shrimp Lo-Mein and Beef & Broccoli. The goal is to deliver "restaurant quality food," Nudi said.
Multi-serve dinners like Wanchai Ferry have been a bright spot in the frozen entree world, despite their relative high cost during a tough economy. They've been the only frozen meal segment posting sales gains since 2008 among food mass merchandisers excluding Wal-Mart, according to a fall report by market researcher Mintel International.
"Given that its biggest increases were during the peak of the recession, it appears that this segment has done a better job than the others in capturing dollars that might have otherwise been spent dining out," the Mintel report said.
According to market researcher SymphonyIRI Group, which tracks sales in conventional supermarket channels, Wanchai Ferry carved out about a 3 percent share of both the multi-serve frozen meal business and the dry dinner mix segment by the end of last year.
The dry dinner market is dominated by General Mills' Hamburger Helper. The frozen, multi-serve meal segment is topped by Stouffer's and Bertolli, with market shares respectively of 31 percent and 10 percent, according to IRI. P.F. Chang's had captured 5 percent of the market by the end of December, according to SymphonyIRI.
Restaurant brands have long enjoyed success when transplanted to the frozen food aisles. Stouffer's itself was born from a now-defunct restaurant chain, while the Marie Callender's brand originated from a western restaurant group, according to a recent report by market researcher Packaged Facts.
General Mills got into the restaurant act itself last year by launching multi-serve frozen dinners in a partnership with Romano's Macaroni Grill. That gives General Mills a two-front offensive in the freezer: Macaroni Grill for Italian tastes, Wanchai Ferry for Asian.
Mike Hughlett • 612-673-7003
Monday, January 24, 2011
Download White Paper: 2011 Consumer Insights and Trends: Packaged Facts Forecasts the Product and Social Trends That Will Make Their Mark in 2011
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
Friday, January 14, 2011
Study: Modest Growth in Pet Supplement Sector
Study: Modest Growth in Pet Supplement Sector
Growth
of pet supplement and nutraceutical treat sales in the U.S. stalled in
2010, but the category is expected to gradually pick back up in the next
five years, according to a report released today by market research
publisher Packaged Facts.“As the economy improves, so should all things pet, but that recovery continues to appear modest,” said David Lummis, senior pet market analyst for Packaged Facts. “Spending on supplements will increase, but restraint will likely continue to characterize how pet owners shop and what they buy during 2011 and even 2012, making value appeals based on pet health, safety, professionalism, practicality, and yes, pricing, more important than ever.”
From 2006 to 2010, sales of pet supplements and nutraceutical treats grew at a compound annual growth rate of about 4 percent, to reach $1.2 billion in 2010, according to the report.
Following zero overall growth in 2010, Packaged Facts forecasts U.S. retail sales of pet supplements and nutraceutical treats to begin to pick back up in 2011, with the annual sales gains regaining steam through 2015. By this account, the annual percentage increases will rise from 2.4 percent in 2011 to 6.5 percent in 2015, lifting sales to approximately $1.6 billion in 2015, according to the report.
Packaged Facts anticipates growth to be considerably faster on the small animal side, which includes dogs, cats, birds, small mammals and herps, than on the equine side, with the compound annual growth rates coming in at 7.4 percent and 2.2 percent, respectively. As a result, small animal is expected to account for 58 percent of the market by 2015, up from 52 percent in 2010.
Thursday, January 13, 2011
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.
###
Sales of Pet Supplements for Dogs and Cats Not Recession Resistant, but Nevertheless Resilient
"As the economy improves, so should all things pet, but that recovery continues to appear modest," says David Lummis, senior pet market analyst for Packaged Facts. "Spending on supplements will increase but ‘restraint’ will likely continue to characterize how pet owners shop and what they buy during 2011 and even 2012, making value appeals based on pet health, safety, professionalism, practicality, and yes, pricing, more important than ever."
Packaged Facts estimates total U.S. retail sales of pet supplements and nutraceutical treats at more than $1 billion in 2010, reflecting a compound annual growth rate (CAGR) of 4% during the five–year period beginning in 2006. Sales growth stalled in 2009 and 2010 as the recession took hold and held on, a slow–down attributable almost entirely to a downturn on the equine side. As a result, the small animal category–including products for dogs and cats–gained ground between 2006 and 2010, increasing from 45% to 52% of the market and surpassing equine as the larger category last year.
U.S. retail sales of pet supplements and nutraceutical treats are expected to begin to pick back up in 2011, with the annual sales growth regaining steam through 2015. By this account, the annual percentage increases will rise from more than 2% in 2011 to almost 7% in 2015, lifting sales to an estimated $2 billion. Growth will be considerably faster on the small animal side than on the equine side. For both animal classifications, the pace will be faster in nutraceutical treats, which will continue to gain ground because of their indulgence advantage and a steady influx of more heavily marketed products. Ultimately, small animals will account for 58% of the market by 2015.
Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition segments the market into two categories–supplements and nutraceutical treats (i.e., those containing supplements or novel botanical ingredients addressing specific health conditions, such as glucosamine for joint health)–with a primary focus on products for dogs and cats, but also extending to horses and other types of companion animals including birds, small mammals, and reptiles. The report provides a forward–looking examination of the market from every angle, including breakouts by supplement type and retail channel, analysis of the complex and evolving regulatory situation, competitive structure and marketing trends, new product tracking, and consumer profiling. For further information, please visit: http://www.packagedfacts.com/Pet-Supplements-Nutraceutical-2588715/.
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.
Tuesday, January 4, 2011
Boulder's Evol, famous for burritos, turning attention toward other frozen foods - Boulder Daily Camera
Posted: 12/26/2010 09:30:00 PM MST
 |
| 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 ) |
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.
Monday, January 3, 2011
Energy Drinks and the New Food-Supplement Continuum
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.
Sunday, January 2, 2011
A sweet finish to the year
A sweet finish to the year
"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.
Wednesday, December 29, 2010
A very furry Christmas
A very furry Christmas
"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."
 |
| 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.
Wednesday, November 10, 2010
Breakfast Trends: Fierce competition sparks innovation
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.
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
Monday, October 25, 2010
The U.S. Moms Market 2010, 3rd Edition
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.
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>>
Wednesday, October 20, 2010
ITP Furnishings/Accessories/Toys Marketplace Transformed by Recession
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.