Archive for category: Food Business

Sodium Related Label Claims Grew Sales by 3% in 2015

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The US Food and Drug Administration (FDA) noted that the average American consume about 3,400 milligrams of sodium daily. The agency issued a warning that too much sodium can have serious repercussions on our health, which includes hypertension and the risk of various cardiovascular diseases. They drafted guidelines that are intended to reduce the daily intake of sodium by 2,300 mg. Americans may start cutting back on their favorite, salt overloaded, comfort foods as companies use new sodium label claims to their advantage.


The Dangers of Too Much Sodium

Sodium is a widely popular food additive and flavoring. However, excess amounts can be dangerous for your health. Excessive consumption of sodium can lead to a plethora of diseases. One of the negative effects of too much salt in the diet is an increase in blood pressure.

When too much salt is ingested, it holds or retains the liquid in the body that contributes to the growing pressure of the blood.  It all starts in the kidneys. As sodium builds up in the body, the kidneys have trouble keeping up with the excess amount found in the bloodstream. Then it accumulates and holds onto water to dilute the excess sodium. This, in turn, increases the fluid in the surrounding cells and the blood volume. This process adds a lot of burden on the heart. As a result, excess salt intake also increases the risk of heart failure and stroke. Aside from high blood pressure, intake of too much sodium can also lead to stomach cancer and osteoporosis.

Low Sodium Label Claims Sell

While most Americans still consume significant amounts of sodium, there is an increasing trend seen in the population who show consciousness when it comes to their daily intake. They are shifting towards products that contain less to no salt.

Many consumers prefer to buy products which contain only 40% (or lower) sodium as they prefer to add the salt themselves. In fact, there is an increase in sales of products that claim to have less salt by as much as 23% since the end of April 2016. Nielsen found that the goods that have the highest sales are those that come with labels of “low salt” which has 72% of all sodium related products. On the other hand, products that are sodium-free only make up 3% of the sales.

 

So what could have attributed to this trend? More and more people in the United States are aware of the repercussions of including too much salt in their diet.  However, this does not mean that the sales of salt have decreased significantly. Studies still indicate that there is a spike in sales of salt by as much as 7.7% since last year. This is especially true for specialty salts such as kosher salt, sea salt, black salt, and Himalayan pink salt. Apparently, people who find it difficult to avoid salt are looking for better alternatives. These specialty salts contain more nutrients and essential elements than conventional salts. Despite their health benefits, consumers still need to control the amount of salt that they use every day.

Inspired by nielsen.com

New Ingredients Will Grow Sports Nutrition Market by 8% until 2020

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With more people involved in sports to promote healthy living, the consumption of sports nutrition products is also increasing.  Sports nutrition products include food, drinks, and supplements. Most of these products contain new ingredients that are geared to boost the performance. These products include ingredients like beta-alanine, creatine, caffeine, nitrous oxide, and androstenedione that are supposed to improve the power and strength of the consumer.

The Statistics of the Global Sports Nutrition Market

The global sports nutrition market is steadily growing at 8% according to the research of Technavio– a leading research and advisory company in the world.  The research group looked into the growth and projection of the sports nutrition market from 2016 to 2020 based on the generated sales and revenue of businesses. In the study, people from North America are the highest consumers of sports nutrition products pegged at 41.69% followed by those from Europe (25.64%), Asia Pacific (19.68%) and the rest of the world (12.99%).

sports nutrition

The North American sports nutrition market is valued at $11.04 billion in 2015 while Europe’s market is at $6.79 billion in the same year. The sale of the products in Asia Pacific is at $5.21 billion. There are many reasons why there is a rise in the demand for sports nutrition products, but one thing is for sure—more people are aware of the health benefits of losing weight and living active lifestyles.

Implications of The Market Rise and Popularity

Many manufacturers are now expanding their market reach by continuously improving their products and creating less complicated nutrition formulations that are compatible with different types of people. Another trend is to produce products that are targeted to a particular market. In fact, there is a rise in female-focused sports nutrition products that cater to active women.

With the increasing market for sports nutrition products, new regulations have been created to improve the distribution and legitimacy of the products. The new rules are a result of some manufacturers distributing products that may not be effective in boosting the performance of the athlete.

New Ingredients in Sports Nutrition Products

new ingredients sports nutritionOn the other hand, new ingredients have been eyed by manufacturers in making new lines of sports nutrition products. For instance, the use of probiotics as one of the main ingredients is an emerging trend. Probiotics contain live gut-friendly bacteria that can increase the absorption of nutrients and also provide a better immune system.

Other research companies are looking into other innovative ingredients such as collagen, Vitamin D, L-carnitine, and glycerol to create a product that can help consumers recover, replenish, as well as refuel after an exhausting exercise regimen. While many researchers are looking into different ingredients in creating sports nutrition products, the main highlight is on using organic, GMO-free, raw, and chemical-free ingredients to create new and better products that provide better nutrition to consumers who want to live healthy lives.

Inspired by fooddive.com

Millennial Dads Spend Most Time Shopping for Groceries

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Fifty years ago, women did the shopping while men worked or relaxed at home. However, the trend of consumer shopping has considerably changed over the years, thanks to technology and the shift in society. In the study conducted by Ibotta, a top mobile shopping app, it indicated that there is a significant increase in the number of fathers doing grocery shopping. Since 2013, the buying behavior of 90,000 parents was analyzed in a study. It revealed that there is a 62% increase in grocery purchases made by millennial dads.  This means that fathers between the age of 18 and 24 tend to shop for groceries 25% more than baby boomer parents.

 

Purchase Trends

While alcohol is still on top of the shopping list of many dads, the study found that purchase of alcoholic beverages is indirectly proportional to the number of kids they have. This means that the purchase of alcohol decreases as the family has more children. The study also indicated that dads buy more alcohol if they have two children (at least one and a half times more) compared to men who are not yet fathers. The data is a little confusing, but it shows us that purchasing behavior is not one size fits all.

Dads are also 2.5x more likely to purchase cereals, soda, and snacks than men without children. They also tend to buy more cameras than non-dads for the purpose of documenting their children and growing family. They are also highly likely to buy things that can increase their family’s well-being. For instance, they are 4x more prone to buying supplements for improving their health. They are also keen on purchasing products that enhance their appearance such as hair regrowth products and anti-aging creams.

The study also noted the differences in shopping behaviors between dads and moms. Compared to mothers, fathers are 11x more likely to buy beer for themselves (Who would have known?). They also tend to buy more protein products and nutrition bars for themselves.

 

Millennial Dads Leading Shopping…What Does it Mean?

The shopping trips among moms slightly increased, but grocery purchases are down to 2.4% for three years. Surprisingly, more fathers make more trips to the grocery stores every month, and their general shopping trip was more than 10% compared to the previous years.  So what does this indicate? It means that many millennial dads play bigger and more proactive roles at home by shouldering more of the domestic responsibilities such as grocery shopping for the entire household. Gone are the days when dads leave the shopping to women.

Bijal Shah, VP of Analytics and Data Products for Ibotta, noted that there is a generational shift from old fathers who embraced traditional roles against younger dads who are savvy with technology, use e-commerce, and who are now becoming more active within the family life. The use of e-commerce can prove to be very beneficial for millennial dads as well as dads from the older generation as it provides them more opportunities to shop even within the comforts of their home.

Inspired by prnewswire.com/ibotta-study

Taste is Leading Consumer Indicator for Beverages

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The rise of lifestyle diseases like diabetes and obesity have created a growing concern for parents and everyone at large to move to beverages that offer more benefits. This migration is what has come to be known as the better-for-you alternatives. It is the direction that the non-alcoholic beverage companies are moving with 90% of the new products they bring to market. However, taste still plays a major role in new product development of healthy alternatives.

Taste + Health = Top Beverages

After recent research by Mintel, it is clear that most people’s choice in non-alcoholic beverages is still primarily driven by taste. The percentage of individuals that prioritize taste above all else stands at a staggering 72% while health or nutritional benefits follow by a far cry at 21%.  The least influential factor for consumer preference according to the study happens to be functional benefits at 12%.

The same research shows that there was a stagnant or decline in sales between 2014-2015 and the saddest part of the story is that this trajectory is synonymous with the findings of the research. Carbonated soft drinks had a 0.1 percent growth, and juices grew by the same margin. The largest hits, however, were dairy milk that fell by 7 percent. On the other hand, beverages like coffee had an 8.7 percent growth and energy drinks had an 8.9 percent growth.

In the report, Mintel indicated that consumer preference was quickly changing and the numbers that stood at 66% for juice drinkers, 64% of carbonated soft drink drinkers and the same for dairy products would soon shift. This was as a result of the more than half of the Americans (67% to be precise) were often buying different or new style beverages. Another 18% indicated that they drink a vast variety of drinks. This goes to suggest that the scope of the non-alcoholic beverage industry is rapidly changing.

There is no doubt that the beverage market is doing all it can to meet the consumer’s need for healthier options. However, flavor and taste are still a big part of why customers prefer different drinks. If the taste is not great, then there is no doubt that the consumers will not even touch it. One of the beverage analysts at Mintel went ahead to state that the vast diversity of products that were available in the market made it much easier for consumers to move on to the next one.

It is true that the better-for-you movement is reshaping the industry, and the sales trends are proving this. However, brands will still have to consider factoring in the flavor factor which is primary as well as function and health.

The Future of Beverages

There has also been an emergence of cross-category beverages that has led to the development of new drinks. They add to consumer preference confusion and makes it also challenging for brands that would like to keep their new customers without polarizing those that have not yet made up their minds.

These varieties continue to diversify the options with 40% of customers being encouraged to purchase a new beverage as long as there is a sample in the store that they could try. The playing field is quite open, and the one brand that can incorporate great taste and health is more than likely going to take over the market.

Inspired by mintel.com

FDA Approves Folic Acid Fortification Corn Masa Flour

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Folic acid or folate is a type of B vitamin that is needed by pregnant women. It has essential functions in the development of the neural tubes to the brain and spinal cord of the fetus to develop properly. Eating folate-rich food is imperative not only for pregnant women but women in general. Consumption of 400mg of folic acid daily is enough to prevent the progression of neural tube defects. There are many sources of folic acid and it is important for women to eat a generous serving of these foods like lentils, spinach, broccoli, eggs and fortified grains and pasta.

Neural tube defects such as spina bifida and anencephaly are estimated to occur in 3,000 pregnancies in the United States every year. It is caused by minimal to no intake of folic acid. This is the reason why the US Food and Drug Administration (FDA) agreed on the fortification of food as an effective means of addressing micronutrient deficiencies.

Folic Acid Fortification to Help Hispanic American Women

Mandatory fortification of grains started in 1998, but despite this, there is a significant number of Hispanic children who suffer from this condition. Thus, one of the ways to diminish the inconsistency is to fortify the corn masa flour to improve the total consumption of folic acid among Hispanic women.

Corn masa flour is a primary component of Spanish dough that is made from cooking corn and alkali and grinding them. It is a staple food for many Latin Americans particularly those from Central America and Mexico. This type of flour has a wide variety of uses such as making tortillas, taco shells, tamales and corn chips. While corn masa flour is high in providing the necessary carbohydrates and energy for the body, it does not contain B vitamins. You would have to eat other foods that contain folic acid to get your daily intake.

Several types of research showed that Hispanic women have a lower intake of folate than non-Hispanic women.  As such, the US FDA has approved the fortification of corn masa flour with folic acid. Manufacturers of the corn flour should add up to 0.7 milligrams of folic acid per pound of masa flour. Increasing the consumption of folic acid in enriched corn masa flour is helpful in reducing the incidence of neural tube defects especially among populations wherein corn flour is a staple in their diet.

Studies showed that fortification of corn masa flour with folic acid can increase the daily intake of said nutrient in Hispanic women by as much as 20% which is higher compared to the normal consumption of only 4%. This also reduces the need for Hispanic women to take daily synthetic supplements as they can get their folate from staple food sources.

The addition of folic acid on corn masa flour was done after conducting a scientific safety review to ensure that adding the micronutrient is safe for the general populace. FDA also evaluated dietary exposure, toxicology data as well as other relevant information to make sure that corn flour enriched with folic acid is not only effective in preventing NTD but also safe.

Inspired by medicalnewstoday.com

Bottled Water is Top Beverage Among Generation Z

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For more than a few decades, carbonated drinks and sodas have remained as the number one beverage. In fact in 1998, an average American drank 54 gallons of soda and only 30 gallons of water a year. However, the excessive consumption of soda fueled the country’s rising rates of obesity and type 2 diabetes, and as a result many have shifted to other healthier beverage options. But with the age of Generation Z and Millennials at hand, soda is now being replaced by a pure and unadulterated drink–water.

Gen Z and Millennials have been taught to make healthy choices. This is especially true when it comes to choosing beverages. A recent survey conducted by the Beverage Marketing Corporation and Fluent indicated that most Millennials and Gen Z prefer natural drinks like water.

It is important to take note that these generations grew up knowing that soda and sugary beverages are bad for you. This is the reason why many opt to drink water. However, this also creates an opportunity for beverage companies to create healthy drinks to fill in the niche.

 

Bottled Water Tops the List

It is interesting to know that bottled water tops the list of beverages that gen z and millennials prefer. In the survey, 43% of the correspondents consume water seven times per week while 22% consume it with coffee, milk or tea.

The popularity of bottled water as the healthiest alternative to soda and other flavored drinks is the reason why it became the second most popular drink in the United States. Soda companies are shaking in their boots.

What makes it perplexing is that tap water is also available, but respondents still prefer bottled water. In fact, 20% indicated that they solely drink bottled water instead of tap water due to safety concerns (Flint, Michigan). However, more are willing to drink from the tap as long as it has been filtered with an efficient filtering system.

As more and more people have become conscious about their health, water has become the most favored beverage in the country. Unlike other drinks, water does not contain any calories. It makes sense since we need it to survive.

What’s Next for Bottled Water?

The bottled water industry has fast-tracked since people started drinking more water than soda. In fact, an average American today drinks 58 gallons of water compared to two decades ago. That’s a 20-gallon increase since 1998. So what’s next for bottled water?

Industry experts suggest that the bottled water will surely hold on to the top spot for many years to come. But the question whether people will start drinking from the tap is still uncertain unless they are sure about the source of their water.

The popularity of water as the number one beverage allowed companies to develop their line of flavored water as well as enhanced water to appease the market’s growing need for innovation. However, the concerns for plastic can cause a backlash in the industry, and this is something that water bottling companies need to address.

Inspired by beveragemarketing.com

Guilt-Free Products Account for 45% of PepsiCo’s Portfolio

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Americans love to eat unhealthy snacks. In fact, the US snack food industry is one of the largest in the world. With many food manufacturers jumping on the health bandwagon, PepsiCo is not an exception. Over the past few years, the company has geared to producing healthier and guilt-free snack products for their health-conscious consumers.

Pepsico’s Chief Executive Officer, Indra Nooyi, noted that most of the sales of the company come from its carbonated drinks. With the reshaping of its portfolio, the company is planning to release more products that use natural and healthy ingredients like fruits, grains, vegetables, and proteins. They also plan on releasing other beverages like water and unsweetened tea to give variation to their consumers.

The company’s plan to sell guilt-free food products will result in changing their entire product line up. In fact, the company noted that the health and wellness focused products account for 45% of the company’s revenue.

 

The Shift to Healthier Options

PepsiCo sees the need to change their products after being criticized for producing beverages that can contribute to obesity, type 2 diabetes, heart diseases, and other metabolic syndromes. Moreover, most consumers today have shifted to healthy lifestyle thus opting for beverages that are made from natural ingredients. With the rising obesity rates in the United States, the company also wants to contribute to solving the problem by releasing drinks that have fewer calorie counts than usual.

 

Benefits for PepsiCo

PepsiCo has always relied on their fizzy drinks to drive their sales up. But since most of the consumers have shifted their attention to healthier beverages, the decision of the company to create guilt-free products has paid off.

The growth of the company by promoting nutritious and guilt-free food products now accounts for 45% of the revenue portfolio of the company. And with the high demand from consumers for healthy products, it is expected that the corporation’s return on investment will grow as more market trends take shape. This trend does benefit not only PepsiCo but also other food manufacturers. Companies are doing their best to focus on health and wellness products as consumers continue to connect food to their health.

With the high demand for healthy snacks and foods, it is no wonder why PepsiCo and other food companies have started producing their guilt-free products. What will PepsiCo do next to stay ahead of the curve?

Inspired by marketwatch.com

Papa John’s Removes High Fructose Corn Syrup from Menu

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After decades of being under public scrutiny about serving empty calories to their customers, it is no wonder why many fast food companies have shifted their operations to eliminate unhealthy food ingredients. From McDonald’s kale salad to Chipotle’s sofrito and black bean salad, it seems that fast food restaurants are trying to serve healthier options. The infamous pizza delivery brand, Papa John’s, has followed suit by eliminating the use of high fructose corn syrup from their menu.

This national pizza place is pushing towards creating better and healthy pizza by removing one ingredient from its menu–high fructose corn syrup–on all its food items. This means that the pizza topping, sauce, and even desserts won’t contain this menacing sweetener. This is the first pizza delivery company in the United States to adopt this policy.

 

What is High Fructose Corn Syrup?

High fructose corn syrup is found in just about any kind of processed foods. It is a common sweetener used in creating soda as well as fruit-flavored drinks. It is also used in manufacturing different types of condiments such as ketchup, mustard, and other dipping sauces. This kind of sweetener is made from corn starch that has been converted into fructose. As a sweetener, it is often compared to table sugar. However, manufacturers are more attracted to it because of its low price point.

Excess consumption of high fructose corn syrup can contribute to unwanted calories that are linked to different types of health problems including obesity, type 2 diabetes, high blood pressure, high triglyceride levels, and heart diseases. Thus, the American Heart Association recommends only 6 teaspoons of added sugar for women and 9 teaspoons for men.

The decision for Papa John’s to completely remove high fructose corn syrup is big news to consumers who are looking for fast food chains that serve healthier food options.

 

What’s Next for Papa John’s

Chief Ingredient Officer Sean Muldoon noted that the company is always striving to provide foods made from high-quality ingredients, not only to improve the dining experience of customers but also to uphold their social responsibility.

This is the reason why the company is not only focused on the removal of the high fructose corn syrup in their menu but it is also looking for other ways to serve natural and healthy foods to its clients. For instance, the company is also now looking into using chicken that is raised without any antibiotics. The company has also stopped using fillers, MSG, artificial flavors, BHA, and hydrogenated oils in making their food. They are also looking into creating foods that will cater to their vegetarian and vegan customers.

Hopefully, the dedication of the company to produce better foods by using healthy ingredients will become a signal for other fast food restaurants as consumers continue to connect the dots between food and their health

Inspired by businesswire.com