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Mintel

2011 Consumer Packaged Good Trends

by Janet on December 2, 2010

More trends.  This time it’s a look at the 12 consumer packaged goods (CPG) trends that Mintel predicts will make an impact in 2011 — spanning across categories of health and wellness, the environment, demographics, marketing and media, convenience and indulgence.

1. Quiet reduction: Sodium, sugar and high fructose corn syrup (HFCS) are three well-known ingredients that appear to be experiencing covert reductions in product formulations. While sodium reduction has long been the focus of “quiet reduction,” sugar and HFCS are jumping on board. As the media continue to demonize HFCS, what may start as covert reduction is likely to end up as a key labeling issue, in the same way trans fat-free has become the norm in some parts of the world. The European region still awaits approval of stevia, but Mintel predicts we’ll see sugar and stevia used in conjunction to achieve an overall lower sugar content in new products. However, “stevia” will not always be part of the overt communication. Instead the messages will be “naturally sweetened” or “reduced sugar.”

2. Redefining natural: Get ready for a “natural shakedown,” says Mintel.  While all types of natural claims have grown in importance in all regions, and across all product categories, the term “natural” is still ill-defined. Terms that are vague or not well understood will come under fire and we are due to see an intervention of regulatory bodies. Also, expect to see a new focus on accentuating the positives of what is in a product, rather than emphasizing what is not in it.

3. Professionalization of the amateur: Mainstream brands are getting into a more serious “professional” arena, by bringing into the home what used to require a specialist service. This trend arguably has its origins in personal care markets, with “salon-style” hair treatments for home use, but continues to expand to include household (“professional strength” cleaning products) and food (chef-endorsed, restaurant-style meals).  Mintel identifies several food products that help consumers create meals quickly, easily and with better results at home  – including McCormick’s Recipe Inspirations.

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4. Sustainability stays focused on the basics: Sustainability is not slipping down the priority list, but instead of seeing new developments, expect to see a continuation of what we have seen, with a few twists. There will be a greater focus on reduced packaging that promotes environmental responsibility in combination with uniqueness, such as boxless cereal bars or more cereals without the inner bag. Also, expect water usage to become a hot, consumer-facing issue in 2011. Companies will be looking for ways to conserve water and change their consumption habits so that there is enough world supply.

5. Blurring categories: How much more innovation can you get out of a category? Manufacturers’ response to consumer needs is the driver to developing hybrid products. Consumers don’t necessarily view products as being in one category or another, rather they look for solutions that meet their needs, and that may be something that straddles multiple categories. Sparkling beverages are appearing more and being positioned as a source of refreshment, as well as sophistication. Beyond hybrid forms, we also see a blurring of how consumers use products – with beverages consumed as snacks, snacks as meals, and personal care and home care products that do more than one thing, as well.  Mintel cites as a trend example Dr. Pepper Snapple Group’s Sunkist Solar Fusion, a carbonated fruit-flavored drink with caffeine.

6. New retro: Over the last year, we have seen more big brands that revitalize old products and old ad campaigns, tapping into the escalating trend of nostalgia. We anticipate more of these in 2011. Companies are returning to a time when life seemed somehow easier, whether that’s the 1980s for consumers in their 20s, or the 1970s or 1960s for older consumers. You’ll see this with brands using old formulations, old package designs, re-runs of advertising campaigns or new ads with a retro feel.

photo: lavenderbouquet on flickr

photo: lavenderbouquet on flickr

7. Less is more redux. Mintel says the “less is more” thinking is linked increasingly to convenience and economical solutions, with the environment taking a secondary role.  They suggest the trend may possibly signal a revival of previously “tired” categories, such as dehydrated soup.  Concentrates and simplified forms are appearing in many categories, including Starbuck’s Via insResource_Senior_Activ_vaniltant coffee.

8. Simplicity for older consumers. Older consumers, especially Baby Boomers, will continue to look for products tailored to their needs.  As they age, consumers will focus on simple, realistic results rather than hype or lofty promises.  As a trend example, Mintel cites Nestle’s Nutrition Resource Senior Activ in Switzerland, a nutritional supplement for older adults to “aid in improving nutritional status, regaining strength and energy after illness or surgery, and supporting physical strength and cognitive health.”

Similarly, a new product that was recently launched by Abbott called Ensure Muscle Health is going after the 40+ crowd with concerns about age-related muscle loss.

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9. Econo-chic. Luxury is making a comeback, but in a more limited way.  In 2011, Mintel says CPG products will be positioned as “small treats” to appeal to consumers who want occasional splurges.

10. More cradle-to-grave brand initiatives. Products will stretch their brand values and their target market up and down the age spectrum.

11. Instant results. Consumers will demand results-driven products that provide a benefit instantly.  While currently seen primarily in personal care products, such as beauty-enhancing cosmetics and anti-aging skin care, Mintel predicts that it will expand to food and drink.

12. Personal hygiene comes out of the closet. For personal care products, discretion is out, honesty is in.  Mintel says look for more open discussion of formerly taboo subjects, leading to greater and more unique product development and more transparency in marketing.

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At the recent Institute of Food Technologists meeting in Chicago, Mintel hosted the Global New Products Pavilion and showcased the latest food and beverage trends from around the world.  Mintel’s new product experts, Lynn Dornblaser and David Jago, identified three macro trends and asked attendees to taste and vote on their favorite products in each category.

Here’s a look at the outcome:

1.  Baby Boomers: a generation in search of new productsdf-smartfood-honey_300

“With baby boomers comprising 26% of the population, it only makes sense that manufacturers are positioning products just for them,” Dornblaser said. “The trick is to position these products with the needs of baby boomers in mind, without making the consumer feel like they have ailments or are aging.”

Smartfood Popcorn Clusters from the U.S. took first place in the boomer category. While being an indulgent snack, it also touts calcium and fiber.

Tripl3 O Antiox Green Tea with Honey from Colombia came in second.

Kellogg’s All-Bran Buds Singles from Canada took third place.

2.   Satiety: the next big thing in weight management

With rising obesity rates and an increase in chronic ailments, wellness is a trend we’ll be seeing a lot of in the next few years and satiety fits right in.

IFT attendees chose the EcoSlim Dark Chocolate Bars from Portugal as their favorite product for staying fuller longer.077976

Kellogg’s Special K Sustain Breakfast Cereal from the U.K. came in second.

Barilla Mulino Bianco Grancereale Fiber Biscuits from Italy took third place.

3.  Simple ingredient statements:  clear language for confused consumers

“Natural” and “additive-free” have become part of the consumer’s health and wellness vocabulary, according to Dornblasher.

People are attracted to clean labels and are taking great measures to avoid over-processed foods.

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It was a tight race in the simple category. Pepsi Raw Natural Born Cola (U.K.) came in first place with its natural plant extracts and new pack design.

131481Yoplait Simply Gogurt Portable Lowfat Yogurt from the U.S. came in second place.

Planet Lunch Squeezable Fruit from the U.K. was the third place winner.  The portable fruit in a bag touts 100% natural ingredients.

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Top Restaurant Trends for 2010

by Janet on November 20, 2009

photo source: Flickr, Waleed

photo source: Flickr, Waleed

What’s in store next year for restaurants?  Mintel Menu Insights, a service that tracks U.S. menu trends, identified five predictions for 2010.   The trends reflect a greater focus on high quality ingredients, classic flavor combinations and authentic, old-fashioned preparations  to lure in diners.

“In 2010, we expect menus to go back to the basic roots of good food and drink,” said registered dietitian Maria Caranfa, a senior analyst for Mintel Menu Insights.  Here are Mintel’s top five restaurant trends for next year:

  • Classically simple. Many restaurants did less pioneering during the recession and what did they discover?  Simple sells.  In 2010, Mintel predicts chefs will harness the power of classic combinations and simple, pure ingredients.  This year the top new menu items for chain restaurants is an all-America classic:  the burger.  Look for more nostalgic, decadent pleasures on the menu:  bacon, lobster, classic cocktails, milk-and-cookies and donut hole desserts.
  • Restaurant-grown. Just because people don’t have time to cook doesn’t mean they don’t crave homemade food.  Next year, watch chefs add a homegrown — or rather, restaurant-grown — touch where they can:  artisan breads and cheeses, house-infused spirits, locally sourced produce and meats.  “Rustic” will be the buzzword that describes imperfectly-shaped pizza crusts and mashed potatoes.  Restaurant-grown items are also a great way for restaurants to differentiate themselves.
  • Dining out in. “If you build it, they will come”  isn’t working the way it used to.  Half of Americans are spending less at restaurants because of the economy, so it’s time for restaurants to come to them.  Burger King is one of the latest to sell its food (French fries) in retail stores, but expect more retail-restaurant connections in 2010.  Additionally, more restaurants will uphold relationships with customers by using iPhone apps for menu changes and online ordering.
  • Inherent health. Nearly nine in 10 Americans think eating healthy is important, but 63% say it’s difficult at restaurants because there aren’t enough healthy items. It’s time for that to change:  2009 saw a trend toward healthier menus, but 2010 will see a sharp increase in good-for-you food and drink.  Tomorrow’s healthy menus will feature inherently nutritious items — those with fiber, omega-3, vitamins and antioxidants — that deliver on flavor too.
  • Regional ethnic. In this great melting pot, it’s no wonder people love ethnic food.  In July, four in five adults told Mintel they’d eaten ethnic food at a restaurant in the past month.  Cuisines like Mexican, Chinese and Italian have become so mainstream, however, that it’s time to dig deeper.  Restaurants will increasingly pinpoint specific regions — Tuscany, Brazil, Morocco, or even within the U.S., North Carolina BBQ — to develop tomorrow’s ethnic food.

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2010 Consumer Packaged Goods Trend Predictions

by Janet on November 18, 2009

photo source: Flickr, Mazda6 (Tor)

photo source: Flickr, Mazda6 (Tor)

What will be the breakthrough new food products of next year?  The trend experts at Mintel released their 2010 global consumer packaged goods predictions.  Overall, the theme is about recreating the familiar.

“Post-recession, we don’t expect manufacturers to reinvent the wheel,” said Lynn Dornblaser, a new products expert at Mintel.  “Instead, we predict 2010′s new products will give shoppers something familiar paired with something new to better satisfy their needs.  On retail shelves, we expect today’s familiar megatrends — health and wellness, convenience, sustainability — to get a fresh, new makeover for 2010.”

Next year, Mintel predicts the following trends will impact global new product development as manufacturers try to pique interest in new launches while keeping shoppers comfortable.

  • Sodium reduction. Poised to be the next major health movement, sodium reduction is finally ready to take hold.  The key difference, Dornblaser says, is that “sodium reduction is being pushed by food companies and health organizations, not by consumers.”  This could mean slow adoption of the “less salt” mantra by shoppers, even as the food industry moves ahead. Pepsi_Natural_12oz
  • Fitter products.  Expect an increase in lighter, slimmer and easier products in 2010.  They’ll be lighter in formulation (cleaner labels), slimmer (less packaging) and easy to use (simple packaging and formulations).  Mintel’s Global New Products Database indicates that 48% of U.S. products had a decline in number of ingredients.  A shorter ingredient list has become something to brag about, and a “natural” positioning beats all other claims.
  • Real, fresh. “Fresh” continues to grow, including on restaurant menus.  It can mean better for you, local, additive free, less processed, more natural, traditional and authentic.  It often ties in with decreasing number of ingredients and increased explanation of where products come from.
  • Local gets stretched. For many shoppers, buying only local products isn’t realistic.  However, people still want products with recognizable origins and those that haven’t been shipped too far.  In the U.K., for example, nearly half of shoppers buy British-made products when they can.  For 2010, the definition of “local” will expand, becoming more practical for major companies to use and for mainstream shoppers to purchase.urban detox2
  • Detox redux. The concept of “detox” is coming on strong.  The claim declined in beauty and personal care, but growing in food (108%+) and drink (19%+).  Detox has become a new way to talk about weight managment and even mainstream brands are beginning to make detox claims.
  • Simple made special. In 2010, chic packaging and premium positioning will elevate everyday items to a new level.  Companies will be reinvigorating brands in new ways, and everyday basics will become “destination” products.  The recent trend towards boutique-inspired packaging highlights how manufacturers will make the ordinary a little more special next year.
  • Small moves in eco-friendly. Companies are taking smaller, yet significant moves regarding the environment.  Consumers are taking smaller steps themselves.  That’s because subtle changes are easier for consumers to accept.  What we’ll likely see in 2010 are products that not only offer an environmental story but provide value for money and products that use new ways to appeal to consumers.
  • Symbol overload. Shoppers say they’re confused and skeptical about different nutrition symbols on food packages.  In response, more manufacturers will opt for clean, clear facts on front-of-packages in 2010.  Coca-Cola announced it will put calorie information on the front of pack next year, expect to see other products do the same.
  • Color coding for convenience. To help shoppers make faster choices, more manufacturers will color-code their products in 2010.  Nearly two-thirds of Americans (64%) say they want color-coded packaging and 45% of Brits claim to compare products by their labels.  Color coding also helps brands stand out on cluttered store shelves.
  • Iconic budget brands. Private label or store brands are starting to look a lot more like brands.  As consumers cut spending because of the recession, smart marketers ramped up promotions for their private label lines.  Many shoppers now equate private labels with national brands and value them as such.  In 2010, low cost, high quality private labels will thrive.
  • Multipurpose makes inroads. Consumers must make do with less, so products that serve several needs will grow in popularity. Expect to see more beverages labeled as snacks and snacks positioned as meals.

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An Update on Global Consumer Trends of 2009

by Janet on September 2, 2009

It’s not going to be all work and no play for today’s consumer, according to Mintel.  Even as the economy drags people down financially and emotionally, this market research firm predicts a continued focus on enjoyment and life fulfillment.  While people around the world still feel pessimistic, Mintel sees them discovering ways to transform their lifestyles and lighten the mood. 

Here’s a look at Mintel’s five global consumer trends for 2009:

Trust
Trust is a paramount concern in 2009 as banks, food manufacturers and government officials suffer from losing people’s confidence.  In the U.S., 66% of adults say they have less trust in financial services companies because of recent economic developments.  Food companies are at risk too; 60% of Americans worry about food safety.

Control
When the financial bottom dropped out last year, already-choosy consumers found another reason to grasp for control:  security.  A Mintel survey of U.S. affluent adults found that two in five intend to permanently spend less and decrease their reliance on credit cards, thus increasing control over their finances.   “We see new values taking hold as people adapt to today’s tighter economy,” said Harry Foster, global analyst at Mintel. “Conservative and pragmatic are in, excess is out.  Consumers feel pessimistic about the future, so they’re taking cautious steps to ensure their safety and happiness now.”fling1

Playfulness
Despite negative feelings about the economy and pressure to cut back, people still want to enjoy themselves.  In the U.S., three in five people say they traveled domestically in the past year, but to save money, more travelers visit friends or family, spend time looking for travel bargains or choose cheap transportation.  Additionally, helping people achieve the balance between necessity and pleasure, food manufacturers have been releasing quirky, light-hearted new products.  Today, playfulness offers people a way to escape, engage and build relationships with brands.

simply-pb-packageSimplicity
In work and play alike, consumers around the world continue to seek simplicity.  More than two-thirds of Americans told Mintel they’ve been simplifying their lives over the past 6 months, while nearly 9 in 10 think there is “too much emphasis on material things in our society.”  Food manufacturers have followed suit, launching more products that appease people’s desire for clear functionality, clean ingredient labels and simple packaging.  Restaurants have jumped on this trend by offering all-inclusive meal deals that tell people exactly what they’ll get for their money.

Trading down, up and over 
Trying to save where they can, consumers continue trading down across spending opportunities.  Eight in 10 Americans say they’re cooking at home more now, while 52% admit to spending less at restaurants this year compared to last.  With so much trading down, however, many consumers also trade up in some instances to reward themselves.  Small luxuries like fine chocolate are a common treat, while other shoppers purchase gourmet food at the grocery store because it’s still more affordable than eating out.

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Kids’ Menus Need an Upgrade

by Janet on August 21, 2009

clx0810idea1Today’s kids’ menus are so … last year, according to Mintel Menu Insights.

This restaurant menu trend tracker says the average children’s menu doesn’t offer enough variety or healthful food — even as parents, kids and chefs alike call out for better options.

An analysis of kid’s menus by Mintel shows the same cliched foods are repeated year after year, with chicken fingers at the top of the list (10% of kids’ menu items).

Here’s a look at the top 10 kids’ menu items, which remains virtually unchanged since 2005.


1.  Chicken fingers
2.  Grilled cheese sandwich
3.  Macaroni and cheese
4.  Burger
5.  Hot dog
6.  Cheeseburger
7.  Cheese pizza
8. Corn dog
9.  Pizza
10. Spaghetti

Do kids and parents really never tire of the same old thing?  Not at all, says registered dietitian Maria Caranfa, director of Mintel Menu Insights.  ”Our research shows parents want more nutritious options for their kids, and children are open to fruits, veggies and healthier versions of standard fare.  The generic kids’ menu really doesn’t meet the needs and desires of today’s families. Only 3 in 10 parents say their children eat healthfully at restaurants, but Mintel found kids will eat fruits and vegetables when eating out:  77% are open to ordering vegetables, 86% would order fruit items.

Some restaurants have introduced healthier items for kids, although french fries are still the most common side — offered with 66% of kids’ menu items.  Other vegetables and fruits are gaining popularity (now at 39% and 43%, respectively).  Even rice and salad (18% each) are showing up as kids’ side options.  Additionally, more restaurants now use menu descriptors in attempts to quantify health.  ”Fresh” is the top marketing claim on kids’ menus, appearing on 17% of items this year (compared to 8% in 2005).

“Restaurants dabble in healthier menus for kids, but there’s still significant work to be done,” said Caranfa.  ”Health and obesity issues, the popularity of ethnic foods and increased media coverage are creating pressure for revamped kids’ menus.  Soon, health and menu variety will be the new standards in kids’ dining.”

It looks like things are beginning to change, according to the Kids and Moms Consumer Trend Report by Technomic. This restaurant consultant asked 1,200 kids ages 6 to 12 about their dining habits.  About 80% of the children surveyed said they have tried to eat more fruit in the past 6 months, and 77% said they tried to eat more vegetables.  In fact, it looks like older children are skipping the chicken fingers and opting for healthier items from the adult menu.

Carolyn O’Neil wrote about the new dining-out data in the Atlanta Journal-Constitution. She interviewed registered dietitian and blogger Janice Bissex, co-author of The Moms Guide to Meal Makeovers.  ”If eating out is a frequent occurrence, some ground rules should be set,” she said.  She recommends limiting soft drink consumption and encouraging water, lowfat milk or juice as healthier beverage options.  But what concerns Bissex most is not offered on kids’ menus.  ”I’d like to see more whole-wheat bread for sandwiches, cut up fruit and baby carrots.  And instead of pasta in butter, I’d prefer to see pasta and marinara sauce with broccoli.”

Fortunately, some restaurants are beginning to introduce better-for-you kids’ options. That’s great to see. But even so, don’t feel limited to “kid food.”  Don’t let the restaurant define what’s appealing and appropriate for kids.  Consider asking for half portions from the adult side of the menu and encourage your kids to try new foods — going beyond the chicken fingers and fries.  It’s a topic I addressed recently in the Chicago Tribune.

I wrote about the narrowly defined “kids cuisine” and how this modern-day kiddie meal may be more than a childhood obesity threat, it may be doing something equally insidious to kids — deadening their developing palates.

“Our children’s palates are being dumbed down by greasy, salty and sweet foods and drinks,” said registered dietitian Keith Ayoob, a pediatric specialist at Albert Einstein Medical Center.  ”Once they get used to these flavors, the taste threshold is set so high that fresh fruits aren’t sweet enough and vegetables taste too bitter,” he told me.

Something to think about next time you pick up the kids’ menu.

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The ‘Naturally Sourced’ Food Trend

by Janet on June 22, 2009

label-100-natural_3002“Naturally sourced” is a hot trend and companies are quick to tout this attribute on product labels.  “Natural” is now the leading claim on new products, according to the Mintel Global New Products Database, which indicates that the claim was included on 23 percent of foods and beverages launched last year.

The recent Institute of Food Technologists meeting in Anaheim, California, featured a ton of  examples.  Take a look at this IFT trend tour that showcases the array of  naturally sourced products on display.

Included in this video is black garlic, which is one of the emerging flavors and foods that Dana McCauley writes about in the Topline Trends section of her food blog.  Dana is a wonderful food trend tracker and I encourage you to check out her site (“a recipe writer’s diary”).  Black garlic was also hailed as an “it” ingredient by The Washington Post:   “In relatively short order, black garlic has morphed from obscure dietary supplement to trendy top-chef ingredient.”

black-garlic1

Black garlic even has its own web site Black garlic, where you can learn more about this product, find recipes and order it online.

It does appear that black garlic is poised to be the next naturally sourced super food.  So what is it?  Black garlic is made by using a patented, month-long heat-curing process that boosts the antioxidants and natural compounds in raw garlic that have been linked to a reduced risk of cancer.   The fermentation also creates a softer, chewy texture and a slightly sweet, licorice taste. Forms of fermented garlic have long been eaten for health reasons in Korea and Japan.  In fact, black foods overall are a hot trend in Asia  – a topic I wrote about previously for the Chicago Tribune.

So it seems…natural is the big buzzword and black is the new black.

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Simplicity Is The New Sophistication

by Janet on April 23, 2009

fiveKeep it simple stupid.  That’s the current rallying cry in the food industry.  Simplicity is a dominant trend  — perhaps it’s an antidote to the complexity and stress of these uncertain times.  Maybe it’s a backlash against the onslaught of pumped up, engineered foods.  There does seem to be a growing  skepticism of complicated formulations and unfamiliar ingredients –  and food companies are taking notice.

Today, people are looking for foods that have been stripped back to basics.  They want unpretentious, unadorned or “natural” foods, which are perceived as more real and authentic. That often comes down to few and familiar ingredients — a trend that Haagen Dazs nailed on the head with Five.  This new ice cream focuses on the small number of ingredients that go into every carton — and it’s all ingredients you’d likely have at home:   milk, cream, sugar and eggs. 

In a recent Marketing Daily article, simplicity was described as the new sophistication.   Margaret Kime, director of innovation for the brand-building consultancy Fletcher Knight, said “brands that celebrate the aesthetic beauty in real ingredients, simple preparation and artful presentation will be aligned with the driving philosophy that good food is eaten fresh and prepared unpretentiously.”  She cited several new products in the beverage category that are redefining simplicity, including all-natural Pepsi Raw and Honest Beverages (“Be Real. Get Honest.”).

But it’s not only about new food products.  One of my favorite cereals is Shredded Wheat.  And this no-nonsense breakfast food is coming on strong to tap into the recession-driven demand for comforting, simple and familiar foods.  And the company is really playing up the anti-innovation factor.  Now it’s hip to be behind the times. 

Post Foods just announced that it will be embarking on a new campaign to highlight that the cereal has remained unchanged since it was first introduced 117 years ago, and still contains only “one simple, honest ingredient – 100 percent natural whole grain wheat. ”10037568advertisement-for-shredded-wheat-promoting-it-as-the-national-breakfast-posters

“There’s been a marked change in American values, with a greater desire for honesty, trustworthiness, and security during a time of economic and societal uncertainly,” said Kelley Peters, director of integrated insights and strategy for Post Foods. The company said that its focus on remaining the same for more than a century should come as a “refreshing change…in an increasingly complex and rapidly changing world.”

This old-fashioned cereal couldn’t be more modern.  Not only does it have the simplicity thing going for it, but it’s also high in fiber — a shortfall nutrient that’s being added  to all sorts of foods and beverages today.   Digestive health is a hot claim, according to Packaged Facts, who predicts that it will rule in 2009.  

Shredded Wheat is also playing the natural card, and “natural” is now the top label claim on new products, according to the market researcher Mintel.  Additionally, as nutrition information moves front-of-pack, more companies will be turning their attention to simplicity and looking to remove artificial colors and flavors.

Sometimes, what’s old is really new again.

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Recession Proof Eating

by Janet on April 7, 2009

Turns out, life in a recession isn’t bad for everyone.  Some food products are actually thriving in this sluggish economy, according to Mintel.  The market research firm identified the food and drink markets that are being improved by recessionary woes.  And they all have a few things in common — they fall into the comfort/simple food categories and can be purchased at a general supermarket for a relatively low price.  Then at home, they can be prepared quickly. 

“Over the past year, we’ve seen people trying to save money on food by either dining out less, cutting supermarket bills, or both,” said Bill Patterson, a senior analyst at Mintel.  “More people cook at home now, but they still want healthy, convenient, tasty food and drink for their dollar.”  

Here’s a look at some of the recession-fueled industries that Mintel predicts will do well throughout the economic downturn:

  • Bread.  The core of basic American eating, from breakfast bagels to lunchtime sandwiches to dinner rolls, Mintel sees the bread market faring the recession quite well.pbj  

    photo credit: xixsnaps on Flickr

    photo credit: xixsnaps on Flickr

  • Sweet spreads.  Brown bag lunches are back.  America’s quintessential lunch — the PB&J — is doing great during recessionary times.  A healthy, cheap source of protein, peanut butter will drive sweet spread sales to increase 26% from 2008-2013, up substantially from Mintel’s initial prediction of 12%.
  • Frozen meals. Convenient, available in family-sized servings, filling and often inexpensive, frozen meals will undoubtedly benefit from the recession, Mintel predicts.  The firm expects a total sales increase of 4.5% in 2008.
  • Side dishes.  More people are cooking at home, but small conveniences like ready-prepared side dishes aren’t out of the question for many families.  The side dish market grew more than 5%, driven by increased sales of basic comfort foods such as mac and cheese.
  • Coffee. The $4 latte is finally going out of fashion. More adults are making their coffee at home, causing the retail coffee market to grow 6% in 2008, a substantial jump from Mintel’s original forecast of 2.4%.  Mintel expects this market to enjoy continued success in the future, though recent, less expensive coffee drink launches from Dunkin Donuts and McDonald’s will compete with at-home coffee sales.

In a survey of 1,008 adults, 40% said they’re eating less nutritious foods in an effort to save money.  But not sure how they’re interpreting less healthy.  Cheap doesn’t necessarily mean bad.  Asked which foods they’re eating more of:  pasta (44%), sandwiches (39%), soup (36%), eggs (36%), cold cereal (36%), bread (29%), peanut butter (28%), tuna fish (27%), beans (26%) and hot dogs (22%).

Some research indicates that people are even more motivated to eat nutritious foods during these tough economic times.  Food industry research analyst Christopher Shanahan from Frost and Sullivan said consumers are increasingly focused on ways to avoid becoming ill due to the economic downturn and companies would do well to pay attention.  Focusing on health and wellness and building brand awareness are the most successful strategies for weathering the global economic storm, he said.

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Going “Green” Slowing Down Due to Recession

by Janet on February 20, 2009

The economy is starting to cut into the growth of the green movement, according to new consumer research from Mintel.  The number of Americans who say they almost always or regularly buy green products remains unchanged since last year, at 36%. This comes after tripling the previous year — from 12% in 2007 to 36% in 2008.

Marcia Mogelonsky, PhD, senior research analyst at Mintel, explains the shift in green shopping behavior…

“People’s priorities have changed because of economic hardship. A substantial number of shoppers are now struggling just to provide the basics for their families, so green living is no longer top of mind for many Americans.”

Cost is the biggest barrier. Mintel’s survey found the majority of adults are willing to pay only a little extra for green products. More than half of respondents (54%) say they would buy more green products but the products are too expensive.

“Today’s shopper is looking for value,” said Mogelonsky. “Value doesn’t mean just low prices, but cost is definitely a factor. True value includes health and safety benefits, quality, convenience, appeal and trust, all at a reasonable price. Companies who provide those benefits, as well as appease shoppers’ green sensibilities, will enjoy success despite the recession.”

organic-food-usda-9451

Even though the trend is slowing, Mintel predicts a 19% growth for green products overall through 2013.  Markets including green personal care and environmentally friendly household cleaners are expected to perform especially well. Organic food, the most mature segment, will experience slowing but steady growth over the next five years, despite lower prices from private label organics and competition from natural and local foods.

Despite the green slow-down, the number of green labels continues to grow.  Check out the range of eco-labels that are now being used on foods and beverages today.

 

 

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