November 07, 2002 Recent News
What are media food gurus telling your customers to buy?
The 31st annual top 100 R&D survey
What Americans eat for breakfast
Communicating healthfulness to consumers
Breakfast cereals may find market in China
What are media food gurus telling your customers to buy?
A panel of Canadian food columnists, chefs and restaurateurs met to discuss trends they see in consumer food demands. One observed that people are now generally cooking only on weekends and that though they are having more dinner parties, they are more casual than in the past, and flavor and simplicity seem to be the key. Another trend is the interest in quality even by people who were never before interested in food. This is attributed to the publicity we have seen about how food can affect your health. Taste is also important, as are environmentally friendly products. Panel members predict the following are the hot new tastes for 2003: tea, simple food, North African food, Asian flavors, Vietnamese and south Asian food, southwestern flavors and dry rubs for barbecues, East India cuisine fused with North American (such as a pizza from Indian flatbread), lemony herbs, and different varieties of salt and grinds of salt. One panelist predicts that bubble tea (made with tapioca) is "going mainstream." Organic food, while not growing terribly quickly, will continue to be in demand. There is said to be a growing trend in foodservice to provide more environmentally friendly foods as chefs remove items like sea bass from menus because the species is being depleted.
(Extracted from Canadian Grocer, 9/1/2002)
Seniors rule!
Over 36 million Americans are currently over age 65, and the Baby Boomer population (currently aged 57 to 38) comprises another 75 million consumers. Over 80% of North American seniors have some form of physical condition that affects their diet, and an increasing proportion of them are aware of the impact of diet on health. The Report on Maturing Adults in America, by Wharf Research at the Center for Culinary Development in San Francisco found that seniors are more likely to "graze" during the day than to eat regular meals. A survey by Canada's National Institute of Nutrition (NIN) found the energy intake of senior women in the province of Quebec was under 1,500 kcal/day, and 25% were getting less than half the recommended dietary calcium. Flavor is also an issue, as seniors often have less active taste and smell facility than younger consumers. The NIN estimates seniors require two to twelve times as much flavor as younger adults. Seniors also favor ethnic foods, with Chinese, Italian and Mexican ranking the highest. The NIN found that the food industry is not focused on the growing senior market due to "lack of corporate priority, regulatory issues around fortification, health claims and the promotion of foods 'for special dietary use' to consumers, and assembling enough 'critical mass' were key barriers to market." The author concludes, "Companies are well-advised to initiate efforts to meet the needs of the elderly population" as the current seniors posses "considerable " spending power, which will only increase as the Boomer population crosses into senior status.
(Extracted from Prepared Foods, 8/1/2002)
The 31st annual top 100 R&D survey
This top 100 R&D survey includes responses from R&D staffs of the largest 100 food and beverage companies in the US. It suggests that the hottest emerging product category is nutraceutical/wellness foods, followed by ethnic/cultural, microwaveable, fortified and reduced-calorie foods. Ethnic foods are showing a dramatic increase in growth, having jumped from eighth among twenty categories several years ago to second this year. A more favorable regulatory climate seems to be keeping nutraceuticals and functional foods at the top. R&D teams are reported to be bringing more products to market, with about 48% of those being line extensions. About 70% of the new products take from nine months to over a year to go from concept to launch. R&D team leaders are, in 49.2% of instances, marketers, and 39% are bench chemists. Ninety percent of respondents say their companies employ cross functional teams in product development, up 5% from 2001. Food ingredient makers are becoming more involved in the process as well, and over 55% of respondents say they were asking for more assistance from them than they did a year ago. In order to keep abreast of industry developments, about 20% of respondents say patent activity is most important, 20% say work with suppliers is, and 15% rated web sites most important.
(Extracted from Food Processing, 9/1/2002)
What Americans eat for breakfast
In its annual eating trends survey, NPD group finds that the top breakfast foods in 2002 were, in descending order: ready to eat cereal, bread/toast, fruit, eggs/omelets, hot cereal, pancakes/waffles/French toast, bacon, bagels, sausage and sandwiches. Consumption of eggs, bacon and sausage increased slightly. Seventy-seven percent of breakfasts are eaten at home, 13% are skipped, 7% come from restaurants and 3% are carried from home. Adults aged 18-34 are most likely to skip breakfast. Another report from NPDFoodworld used the USDA's "Healthy Eating Index" (HEI) in the first major study to use the index since 1996. The HEI, a 0-100 scale, was developed 12 years ago and measures a healthy diet as above 80 on the scale, one needing improvement at 51-80 and poor at 50 or below. Americans had a HEI of 65.6, the lowest in the past four years, dropping from 66.5 in 1999.
(Extracted from Food Industry Newsletter, 10/7/2002 and Baking & Snack, 9/1/2002)
The emerging ethnic market
Mintel has published a report titled, "The U.S. Emerging Ethnic Foods Market," in which it estimates the emerging market at $800 million, not including those foods strictly defined as Chinese, Mexican or Italian. The report focuses on Japanese, Korean, Thai and some other Asian cuisines as well as those of India and the Middle East/North Africa. The public has become more aware of varied ethnic foods, and manufacturers have taken concepts to the market with a number of easy to prepare foods, driving the ethnic foods market to grow 41% between 1996 and 2001. Frozen, refrigerated and shelf-stable appetizers, snacks and entrees lead the market in growth, but about 60% of consumers see the packaged ethnic foods as inferior to restaurant versions. Dominant players in the five categories of the ethnic market - ramen noodles, sauces, oils, chutney and others, tend to produce products that "may not be strict interpretations of their original incarnations." Ethnic ingredients, such as chutney and ethnic sauces have a wider appeal, as do mainstream foods with ethnic-influenced flavors. The success of the Uncle Ben's bowl meals with a number of flavors from Asia is an example.
(Extracted from Prepared Foods, 10/1/2002)
Who is buying organics?
In 2002, Americans will spend $6.3 billion on organic foods (not including organic beverages), up from $1.8 billion five years ago, according to a recent report by Mintel of London. Research firm Roper ASW finds that 70% of Americans have purchased an organic food at least once, and about a third buy such products occasionally. Sixteen percent say they buy organic every time they shop. The biggest consumers are among the Gen Y (ages 18-24) and Baby Boomer (ages 35-49) generations, with 75-80% having bought organic food at some point. A solid 64% majority of these two groups agree that organic foods and beverages are healthier than nonorganic, versus just 56% of the general population, and 39-43% plan to increase their consumption of organic foods next year. Geographically, compared with the Northeast, the West has a higher percent of consumers who have ever purchased organic foods, but the Northeast purchasers are the most loyal, and agree that a major reason they buy organic is because they believe such products are better for them. On the other hand, 28% of adults have never indulged, and the bulk of those holdouts are Americans 65 and older. Their most common reasons for not buying organic foods are cost and skepticism, noting that there is no proof yet that organics are healthier. Another reason has been the lack of federal standards, which are effective October 21, 2002. The regulation mandates that no product can be lawfully labeled as "organic" unless it is USDA certified as being free of any ingredient produced using genetic engineering, irradiation or sewage sludge. Research analysts believe that certification will help fuel a growth in sales of organics. Seniors, however, are not budging, and remain skeptical.
(Extracted from American Demographics, 10/1/2002)
Increase in dining out
Unfavorable economics and terrorist activity have not curtailed the desire to "eat out." Americans are expected to spend an estimated $373 billion on food away from home in 2002. Included is everything from candy bars in vending machines to six-course meals at five-star restaurants. The increase over 2001 is estimated at 3.9%. The Bureau of Labor Statistics reports that in 2000, the typical American household spent $2,137 or 41% of the annual food budget on food consumed away from home. Households headed by someone 45-54 years of age spent the most, an average of $2,638, while those under 25 spent the highest share of their food budget (49%) away from home. Of the 8.1 million employees at restaurants and bars, 45% are under 25, and are as familiar with the kitchens of America's restaurants as they are with the dining rooms.
(Cargill Press Release 14 November 2002, Cobham UK)
Communicating healthfulness to consumers
According to this article in Prepared Foods, communication is important in reaching consumers. Manufacturers must communicate the healthfulness of products without preaching to consumers, who already know their diets need improvement. Subtlety will be the key. Before working to educate the public, one must be aware of what the latest health findings are. A recent study completely contradicts what consumers believe: that fresh fruits and vegetables are best. A Cornell study indicates that heat processing sweet corn can significantly increase levels of naturally occurring disease fighting compounds, and cooking tomatoes increases lycopene. Manufacturers are trying to make foods healthier. For example Kellogg completely reformulated its Complete cereal line to include 100% of 11 vitamins and minerals. Soy protein is a way to add nutrition. New markets such as women who are living 30-40 years after menopause exist. While consumers need hard scientific evidence and "want to know companies have done their homework, [they] don't want to read that homework." Taste appears to be the primary obstacle to healthy eating.
(Extracted from Prepared Foods, 10/1/2002)
Breakfast cereals may find market in China
According to an agricultural specialist at the US Consulate in Guangzhou, China, there is considerable potential for breakfast cereals in the country. At present, primary buyers are hotels catering to foreign visitors, but some supermarkets and hypermarkets are beginning to sell to local consumers. Joint ventures make up most of the domestic cereal, and both Kellogg and Heinz have plants in Guangzhou. Most imported breakfast cereals coming into the country are made at Kellogg plants in Australia, Malaysia and Thailand. Taste preferences tend to either sweet-tasting cereals or ones with no added flavors so fruits and spices can be added. Price and product awareness appear to be drawbacks at present, and a 20%-30% drop in price would increase demand greatly. Cereals are eaten not only as breakfast foods but also as snacks straight from the box, and snack foods have had a good history of sales in China. A decline in import taxes because of accession to the World Trade Organization is seen as helping sales.
(Extracted from Ag Reporter, 9/1/2002)
