Archive for category: Consumer Packaged Goods

Packaged Facts Reports Stable Growth in the Natural Food Industry

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Modern consumers are no longer driven only by the price and taste of food. With most consumers seeking healthy foods, their shopping behaviors have also changed. Today, American consumers consider safety, experience, social impact, transparency, as well as health and wellness when it comes to purchasing food. This is the reason why organic and natural foods are a growing niche in the food industry.

According to the report titled Natural and Organic Foods and Beverages in the US (5th edition), most consumers value the transparency and eco-conscious models of how their foods are made. Opting for natural and organic foods fulfill the needs of the customers.

Research Director of Packaged Facts, David Sprinkle, noted that this new behavior of consumers resulted in the rise of the organic and natural foods market. Packaged Facts estimated that the industry would earn $69 billion by the end of this year. This is 11% higher than the sales from last year.


The Industry Shift to Organic And Natural Foods

The growth of the organic and natural products has outpaced the sales of conventional food items. It is forecasted that the growth will be up to 70% from 2016 to 2021. This is the reason why big food manufacturers are shifting towards the natural and organic food niche. They hope to achieve this by overhauling their products or creating a new portfolio in the hopes of attracting consumers who lean towards natural and organic foods.

But what most big companies do not realize is that integrating organic and natural foods to their established brand can be quite challenging. While the market for organic food products is rising, it still has big shoes to fill. Conventional companies might find it difficult to look for clean ingredients because the suppliers are not quite there yet.

Big Food Companies Making Changes

Although there are some challenges present, investing in the natural and organic food niche is worth it. In fact, many big companies have seen stark improvements in sales after jumping into the natural and organic bandwagon.

For instance, Campbell Soup Co. announced to remove all artificial flavors and colors in its products by the end of 2018. Other companies that have plans to remove its artificial colors and flavors include Mondelez, General Mills, Mars Inc., Kraft Heinz, and Hershey Co. On the other hand, companies like WhiteWave Foods have pledged to use only organic ingredients in their products.

The food manufacturing industry has come a long way from using artificial flavors and colors in the past to using only natural ingredients. As consumer behavior continues to lean towards clean ingredients and healthy foods, the other main food manufacturing companies will follow suit–an action that will not only benefit food manufacturers but consumers as well.

Inspired by prnewswire.com

Premium Packaging: The New Trend in Private Label

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The food manufacturing industry is highly competitive right now, and private label brands are keeping big brands on their toes. Aside from using clean ingredients, another industry trend is premium packaging.

Packaging is considered by most the brand and forms the first impression of products at the shelf in stores and online. Private label is adopting premium packaging to increase the perceived quality of their products and increase brand loyalty.

What Is Premium Packaging?

Big retailers are relying on cutting-edge packaging to enhance their brands. Premium packaging is all about improving the presentation of the product to make it distinguishable from competitors. It reinforces the identity of the brand, thereby making the products more appealing to the consumers. But it is important to take note that premium packaging is not only about using heavy-duty and expensive materials, but it also considers convenience and sustainability.


The Elements of Premium Packaging

Creating premium packaging can be a challenging task. Companies need to consider many things in the design of the packaging to sell their product, identity, and brand. Certain things should be taken into consideration when creating premium packaging, and these include the following:

  1. technical design innovation
  2. the durability of packaging
  3. convenience
  4. consumer health and wellness
  5. eco-friendly materials

For instance, thinking about the use of eco-friendly materials is necessary for creating premium packaging since so many people are now conscious of the green movement. Today, many manufacturers look into the sustainability of their packaging as they aim to produce less waste.

Convenience is also another factor especially if the product is designed for a particular target market. For instance, products that are created for the elderly should be convenient enough so that they can open the packaging without the help of others.

The Benefits of Premium Packaging in Private Label

The idea of presenting a product or brand as “luxurious” depends on the type of packaging used. People opt for luxury products to maintain a certain social standard. But more than social standards, luxury packaging can also improve the consumer experience. Private label companies are interested in premium packaging for this primary reason. They are already beating competitors on price, but they want to compete on experience now.

For instance, when the first microwavable meals became popular, demand increased because of the attractiveness of quick meals. Today, microwavable meals are no longer attractive and are commonplace. The use of ceramic pots to contain microwavable meals are used to create a better eating experience.

It is inevitable for companies to change their product packaging. It is one of the marketing strategies that companies should do to ensure success. With the constant evolution of product packaging, it will continue to push private label manufacturers to innovate and stand out from the crowd.

Inspired by http://digital.foodmanufacturing.com

Consumers Looking for More Plant-Based Proteins

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Where do you get your protein? The usual answer would be from meat and other animal products. Proteins are also found in plant sources, and they are gaining a lot of traction. In fact, 63% of Americans want to eat healthy by better understanding the ingredients found in their food. The preference of most consumers for natural and simple foods has led them to explore other food alternatives such as plant-based proteins.

Plant-Based Protein Beast Burger Beyond Meat NutriFusionPlant-Based Pulses: The New Meat

Although the sales of lean proteins in the United States have increased by 4.8% or $19.6 billion, many consumers are also buying pulses or grain legumes. Pulses are edible seeds made up of aggregates of peas, lentils, chickpeas, and other dried beans.

In a survey conducted by Nielsen, about 61% of the respondents opted for foods that have both high protein and fiber content where pulses are clearly spot on. And with the many health benefits attributed to eating pulses, it is no wonder why the United Nations declared this year (2016) as the International Year of Pulses.

Pulses are not only perfect for vegans and vegetarians. In fact, even carnivores can also take advantage of the many health benefits of pulses. But aside from nutritional and health benefits, people are now shifting to pulses because of its taste and eating convenience.

Why Are People Eating Pulses?

Health is becoming a priority for many American consumers these days. One of the most popular superfoods for health-conscious individuals is pulses.

There are different categories of consumers that consume pulses, and they vary in their income levels, dietary preferences, and life stages. However, the recent study conducted by Nielsen Homescan Consumer Moments indicated that most people who consume lentils are women who make up 70% of the respondents.

It is also important to take note that the manner of consumption of pulses indicated that consumers eat them at home.  In the study, 86% of the respondents consume legumes at home, and more are preparing them not as side dishes but as the main entrée. This means that many consumers today are taking control of their personal health by making time to cook their meals.

 

The Future of Pulses

Although there has been a rapid increase in popularity, the overall sales of some legumes have dropped significantly this year. For instance, while lentils and chickpeas are still dominating the sales chart with 11.1% and 64% growth respectively, other lentils like red, black, and white beans are on a steady decline.

The market for pulses in the United States is still very young. While the market is still experiencing slow growth for some of the seeds, well-known seeds like lentils and chickpeas are dominating the market. As more and more people appreciate the benefits of eating lentils, this food trend will continue to persist for years to come. It’s up to manufacturers to develop new plant-based alternatives that are tasty and excite consumers.

Inspired by nielsen.com

8 Natural Food Trends Disrupting the Market

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Natural food products are no longer a unique niche with a few followers. With the natural food movement growing across the industry, this niche has turned into a necessity for brands.

The New Hope Network conducted research that showed that people are consuming a lot of natural food products. Food manufacturers are prioritizing such opportunities to create products that meet the demands of many health-conscious consumers. Below are the natural food trends disrupting the market today.

Trend #1: Prebiotics

Our gut is our second brain. It is important to feed your gut bacteria with the right kinds of foods. Prebiotics are very popular right now, and many consumers buy them for health reasons. Modern prebiotic food manufacturers include Rainbow Light and Jica Chips. Products and supplements containing prebiotics have a high market prediction rate of 93% which means that the future of prebiotics will be huge.

Trend #2: Natural Food Products with a Mission

Products that are developed out of a mission is a popular food trend today. These products are not only geared towards health but also to the environment. For instance, the Marley Coffee EKOCups are recyclable pods that can help solve the problem of solid waste pollution caused by non-biodegradable coffee cups. Food companies that also support charities and communities are also appreciated by consumers.

Trend #3: Paleo Foods

The Paleolithic diet has caught on with a lot of people seeking a healthier lifestyle. This particular diet involves eating minimally processed foods that include no dairy, no refined sugar, and no grains.

Trend #4: Locally Sourced Foods

Gone are the days when people go crazy over imported food products. Today, many consumers want traceability through locally sourced foods. Many customers also want to source their foods locally because they want to support the local economy and the surrounding community.

Trend #5: Brain Food

Brain food is another trend that has become popular in the last few years. People want to protect their memory and brain function. Products that contain brain foods like hemp and green tea extract are becoming more popular. Moreover, foods that also contain omega-3 fatty acids vs. omega-6 are gaining traction for brain function benefits.

innovative hidden veggies good health natural foodTrend #6: Hidden Veggies

With many children avoiding their vegetables, hidden vegetables in food products are a welcome addition to the natural food trends disrupting the market. Many food manufacturers are developing products to hide vegetables since 33% of consumers in the United States indicated that they would rather eat vegetables they cannot see in their foods. Examples of sneaky veggies include the Made Good Granola Mini Snack Poppers and Good Health Salty Snack products with natural vitamins from vegetables.

Trend #7: Grass-Fed Meat

Many consumers are also looking for grass-fed meats and free-range poultry products. Today, most meats are obtained from grain-fed livestock. Feeding grains to livestock does affect not only the quality of meats but also the nutritional value. With the popularity of naturally grown livestock, this trend has a prediction score of 99%.

Trend #8: Eco-Friendly Packaging

Many consumers want products that come in eco-friendly packaging.  To answer the need of many consumers, food manufacturers are developing compostable packaging to reduce the waste produced from their products.

Inspired by fooddive.com

The Medical Food Trend is Growing

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Hippocrates once said, “Let food be thy medicine and medicine be thy food.” Despite the advancements in medical technology, many people are now considering medical food and nutrition to treat diseases and improve health conditions.

In a survey conducted by Nielsen, 39% of American households have someone who suffers from a particular ailment. And with the aging population increasing, chronic diseases will only grow in the coming years. Traditionally, people have turned to medications to solve these problems.

According to the Nielsen’s Global Health and Ingredient Sentiment Survey, 70% of consumers worldwide and 60% of the American respondents noted that they are actively making choices for their health to avoid different conditions like diabetes, high blood pressure, obesity, and high cholesterol.

What is Medical Food?

Medical food is a new concept, but it is defined as food formulated for the dietary management of diseases with distinct nutritional needs that a traditional diet cannot fulfill. Medical food should be nutritionally complete and are designed to meet the distinct nutritional requirements of particular patients.

Companies like Hormel and Nestlé are now looking into medical foods to help their consumers manage their ailments through nutrition. Manufacturers want to join the niche of medical food because of the rising trend. Food brands who are delving into medical food are looking into producing foods intended for patients suffering from obesity, lactose intolerance, diabetes, Crohn’s disease, and gluten intolerance. Food companies understand that being health-conscious is one thing but using medical food is a safer way to treat chronic illness.

The Future of Medical Food

The concept of medical foods is still in its infancy stage, but many question its future. With many people suffering from chronic diseases, consumers are looking for ways on how to manage their conditions without relying too much on conventional medicine and treatments.

Medical foods will go through a lot of scrutiny than conventionally processed foods. The extra attention that medical food gets will not only be focused on its nutrition claims, but also its safety as well as marketing. Marketing is critical because brands should not sell medical foods that fail to meet its promises.

The U.S. Food and Drug Administration is responsible for regulating medical foods under the Food Drug and Cosmetic Act Regulations 21 CFR 101.9(j) (8). The regulations for medical foods is not yet that strict, so food companies are not required to get approval by the FDA nor undergo premarket review. Moreover, they are exempted from getting labeling requirements for its health claims. Although the regulations for medical foods are not that stringent, they will surely change as the market expands. Medical food has a bright future but will face challenges from the FDA and consumers as the industry niche grows.

Inspired by http://www.fooddive.com

Innovative Food Brands Sneak Veggies on to Your Plate

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Clean eating is taking over as more people connect their health to the food they eat. Many consumers are moving away from eating artificial ingredients for better and healthier options. Food companies are taking advantage by adding fruits and veggies to a variety of convenient foods that consumers eat.

The Clean Eating Shift

sneaky veggies innovative foodThis shift towards clean eating has not gone undetected by food manufacturers. As a result, many manufacturers have developed new products with one goal in mind and that is to create delicious products charged with clean ingredients.

In a study conducted by the Produce for Better Health Foundation in 2015, researchers noted that the per capita consumption of vegetable decreased to 7% in the years 2009 to 2014. This was attributed to people consuming fewer side dishes during their meals.

The US Department of Agriculture recommends eating at least five cups of fruits and vegetables every day, but Americans only average two cups daily. This dietary problem was acknowledged and seen as an incredible opportunity for food manufacturers to create food products that use fruits and vegetables creatively to fill the nutritional void in most Americans.

Innovative Hidden Veggies

Companies such as Archer Daniels Midland, Green Giant and B&G Foods are now rolling out new products that sneak fruits and vegetables in them. For instance, the Green Giant brand introduced a new line of frozen veggie products like mashed cauliflower, veggie tots, and roasted vegetables.

innovative hidden veggies good health

Vice president and general manager of Green Giant, Jordan Greenberg, noted that many consumers are looking for products that are not only convenient but also healthy. Many companies are seeking alternatives to starches as well as looking for ways on how to introduce vegetables to children in the most appealing ways.

While this trend is very popular today, many marketing analysts of food companies believe that the trend will not die down anytime soon. In the food prediction trend called The Pinterest 100, the website noted that people will still continue to follow the trend of cutting their calorie intake by swapping vegetables for their carbohydrate and meat comfort foods.

Aside from prepared foods and meals, food manufacturers have also created drinks that are based on fruits and vegetables. Unique combinations of fruit drinks like ginger-pumpkin-orange or cucumber-kiwi-spinach have already found their way onto store shelves.

With the increasing obesity rate in the United States, many Americans are trying to eat clean and better. The problem is that most consumers are not willing to give up their comfort foods, so they don’t bother doing clean eating at all. As a result, a large population of Americans remains overweight. To answer the need of consumers for satisfying yet clean and healthy foods, many food businesses have found a new niche and have innovative products that incorporate fruits, vegetables, and other natural ingredients to provide real nutrition and not just empty calories to consumers. This results in a win-win situation for both consumers and food manufacturers.

Inspired by fooddive.com/news/vegetable-food-innovation

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Annie’s Wants Organic To Be Affordable For All Consumers

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The rise of organic food is creating waves all over the United States. The news circulating about the dangers of eating foods laced with pesticides and other harmful agricultural chemicals is shifting people towards clean eating. Consumers are seeing the benefits of eating organic products. However, the accessibility of organic foods is mostly exclusive to people who can afford them. In reality, not everyone can afford to buy a pound of strawberries for $15. It is just too much!

Fortunately, there are now organic companies trying to reach out to a broad spectrum of consumers. The all-American favorite food company Annie’s is encouraging people to eat food products made from organic ingredients by launching new healthy and price sensitive products.

Annie’s Leading Revolution in Affordable Organic Foods

A survey conducted by the USDA in April 2016, reveals that only 23% of American consumers can afford to buy organic foods. With the rising cost of organic food, it is no wonder why many people cannot afford to buy organic even though they are now available in most grocery stores.

Poor nutrition is a big problem in the United States. Poor nutrition is often translated to high obesity rates in the country. Having seen this issue progress over the years, Annie’s has vowed to launch at least 30 new products made from certified organic ingredients.  These organic products will be sold in the form of soups, yogurts, cereals, and baking mixes. The acquisition by General Mills has opened doors to supply chains that Annie’s never thought was possible.

John Foraker, Annie’s President, noted that the company has been passionate about making organic foods for decades and this principle not only benefits the farmers and consumers but the planet as a whole. Moreover, the company believes that organic foods should not be restricted to people on high social and economic tiers. The company’s decision to make their foods available to people from all income levels is ground-breaking on its own.

To fortify its new campaign, Annie’s launched an integrated digital campaign which helped the growth of the company. With the launch of the new campaign on August 19 of 2016, it allowed people to find out about the exciting campaign and participate in it by buying the new products.

So what is the implication of Annie’s campaign on the rest of the industry? Perhaps this bold move by the company will push the other primary players of the industry to opt for the wider distribution of organic foods thereby increasing the accessibility of healthy foods to all consumers. Will this happen in the future? We can only hope so.

Inspired by prnewswire.com

Nielsen Says Consumers Are Now Ingredient Inspectors

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With the advent of healthy living and clean eating, more people all over the world now practice due diligence when it comes to their food. In the recent Nielsen’s Global Health and Ingredient-Sentiment Survey, 70% of the respondents said that they make dietary choices to avoid health problems like diabetes, high blood pressure, and obesity. Nielsen has nicknamed these consumers the “ingredient inspectors.”

 

People Are Willing to Pay More for Healthy Foods

Around 68% of the respondents surveyed agreed that they are willing to pay more for healthy food and beverages. This was supported by U.S. retail sales data which indicated that the sales of health and wellness products are outpacing other types of fast-moving consumer goods.

According to Director Andrew Mandzy from Neilsen’s Strategic Health and Wellness Insights group, most consumers want to eat healthily. But they need the commitment from food manufacturers to create products that are made from simple and clean ingredients. Consumers depend on food companies to develop “better-for-you” products that are still convenient for their busy lifestyles.

 

Reasons for The Rise in Ingredient Inspectors

So why is there a rising trend in the food and wellness industry? Perhaps one of the reasons is food sensitivity or intolerance. The same survey conducted by Neilsen indicated that 36% of the respondents revealed that they opted for healthy foods because they are suffering from allergies or live with someone who does. The rise of lactose intolerance and seafood allergies was cited by 12% of the respondents.

Aside from food allergies, many consumers are actively excluding several ingredients from their diets. This motivation to eliminate certain foods can be brought about by religious influences or just small lifestyle decisions. Regardless, 64% of the respondents follow diets that prohibit certain foods or ingredients. For instance, 84% of the African and Middle Eastern respondents reveal that they follow a special diet as cited by their religion.  Respondents from Asia-Pacific scored 72% on the survey indicating that they support it for lifestyle and religious purposes. Most of them adhered to a vegetarian diet as reflective of their beliefs. Only 44%  of people living in North America and Europe cited motivation from religion to exclude ingredients in their food.

 

In the global survey, it was indicated that sugar is the most common ingredient that is eliminated by 31% of the respondents. Others limit their intake of carbohydrates and sodium for health reasons. Many of the interviewees are well aware of the effects caused by the foods they eat. In fact, 75% of people are anxious about the long-term impacts of incorporating synthetic ingredients into their food. Most of the respondents avoid foods that contain preservatives, coloring, and artificial flavors.

Consumers are demanding better food, and it’s up to food companies to supply this growing demand. It’s up to food companies to capitalize on the new opportunity and win customers with new healthy options.

Inspired by nielsen.com