Food Institute Top Trends

Marketing

Food Industry Review Food Industry Review 2013 edition The Ultimate Reference Guide “from FARM to FORK” Each year, The Food Institute publishes what we proudly refer to as “the ultimate reference guide” – a compilation of economic and industry data of impact to the food and drink industry. On the strength of the weekly Food Institute Report, which members receive, this publication delivers all the information you could ever possibly need to enable you to make key decisions. The 2013 edition has recently debuted and covers a multitude of topics. 1 Food Industry Review Consumer Trends Retailing Formats Restaurants & Foodservice Technology & Social Media Sustainability Specialty & Organic New Products Private Label Food Processing Mergers & Acquisitions Demographics CPI/PPI ~ 2013 Edition ~ The U.S. food industry in 2013 resembled a Kaleidoscope – a continually changing picture of what is happening, and what’s expected to happen, to the ever-changing food business. Find out how social media and technology are REALLY impacting business – or uncover what’s trending with Private Label and New Products. The Food Institute offers many different ways to explore the tumultuous food and drink industry – YOU need to be prepared – we are here to help you gain reliable information, every day and each week. 2 Consumer Trends ~ Market Influences ~ Lifestyle Changes New Shopping Behaviors Technology Economy Value Consumers are an ever-changing breed, and food businesses – no matter where in the food chain – must adapt quickly. Lifestyle Changes: almost 80% of people research their purchase BEFORE they get to food store; shop for products when you know they will be on sale New Shopping Behaviors: expect products to be discounted; 90% of shoppers know what they are buying before they enter the store; 80% buy items with coupons; 62% are buying store brands vs. name brands; 62% are using “loyalty cards” which offer discounts; 58% buy items only when they are on sale (this is according to research from MarketTools, Inc.) Technology: technology has become a fact of life. More than ½ of all shoppers use technology either before or after their shopping trip. Economy: Gas prices influencing food retailing; less trips to the store Value: has become a way of life – the “new normal” – shopping for deals is expected to continue into the immediate future 3 Consumer Trends How much time do Americans spend on food? Eating Behaviors – how many minutes? Where, When and With Whom are we eating? What are we doing while eating? Let’s discuss the TRENDS Snacking Impulse Purchases Healthier eating habits The Food Institute provides statistics behind food consumption trends. We do so in Today In Food daily e-news, the weekly Food Institute Report. 4 Retailing Formats …What’s Trending? The food retail market continues to shift – some retailers are downsizing their stores (Walmart), while others are looking to enlarge (Dollar General) and provide more food retail space. 5 2013 and beyond Online shopping Cautious Consumer Simplified Shopping “FRESH” Retailers Warehouse Clubs Strong New Concept Stores “test the waters” The Food Institute keeps an eye on retail concepts every week in our member-only Food Institute Report. Consumers are price - cautious. Simplified shopping is now the norm – coupons and loyalty cards aren’t always enough – consumers are seeking extra discounts and perks!! But what?? Stores like Whole Foods, and other “fresh” retailers, are appealing to the more affluent shopper, and continue to take business away from traditional grocery outlets. Warehouse Clubs continue to be dominated by 3 chains (BJ’s/Costco/Sam’s Club) and continue to grow their sales as consumers see “buying in bulk” as an affordable option. And, New Concept Stores – established retailers offering options – “re-sizing” – “revamping” ……. Always, a new look….based on consumer wants & needs 6 Restaurants & Foodservice Chain restaurants see a brighter future Micro Desserts Better Burgers  Better Sandwiches QSR Trends Fast food menu revamps Attracting more “health conscious” consumer Continued push for foreign expansion We are finally starting to see a glimmer of hope on the horizon for chain restaurants – over the years, new strategies have been implemented – yet, we must all remember that FOOD QUALITY is still THE most important element in the restaurant segment. We have seen the rise of “better burgers”  now is the time to revisit the sandwich sector and modernize it the way that burgers have. Micro Desserts are hot now …. Perhaps, consumers don’t feel as though they are really being overindulgent. Quick Service Restaurants are revamping menus – and offering healthier options. And, we are increasingly seeing a push for chains to expand overseas. 7 Technology and Social Media Impact on Food Retailers Think outside the Box When it comes to Technology and Social Media – “think outside the box” ….. Social Media is redefining our relationship with food – as almost half of new foods launched are conveyed to consumers through avenues such as Twitter, Facebook and Pinterest. It is key to understand the importance of social media and its role in food in today’s society – smartphones and tablets will drive the sector – and data shows that, regardless of age, they will be an influence. 8 Sustainability Less packaging Sustainable seafood More environmentally responsible retailers/manufacturers Sustainable efforts highlighted LEED Certification Solar Power initiatives By-Product Energy ~ Lessen the Environmental Footprint ~ All Americans are acutely aware that we need to lessen our environmental footprint. We will look to retailers and manufacturers to become more environmentally responsible. Less packaging offers perhaps the most visual way to be environmentally friendly. Sustainable seafood is an area of consumer concern – they are wanting to know where their food is coming from and what impact that has had on the environment – the industry continues to respond. Additionally, several efforts can be promoted within manufacturing sites to make a company more “green.” (see 3 bullets above) 9 The numbers reveal … Specialty Food growth continues Age ~ Income ~ Region (key factors in Specialty Food Purchases) The Specialty Food segment is a hot category and is expected to continue to grow. The Food Industry Review chapter on Specialty and Organic foods offers detailed research into the sector and identifies the fastest-growing categories. (This chapter also compiles data from Specialty Food Association, Mintel and SPIN) 10 Organics and Local “Natural and organic products aren’t completely passe, but local varieties are steadily gaining ground.” Source: John Frank, Mintel Between 2013 and 2015, specialty food manufacturers, distributors and retailers all agree that “LOCAL” claims will grow the most. Source: NASFT Report “Organic products are healthier for my family and me” Source: OTA U.S. Families’ Organic Attitudes and Beliefs Study LOCAL –Defined as being within a 200-mile radius, LOCAL is the key buzzword for what consumers are seeking, as they become more aware of the benefits of buying product. Many ORGANIC products fall into this “local trend” area as well. 11 New Products 2013 Yogurt offerings Snacking options Novel beverages All-natural offerings for children Coconut New Flavor offerings Looking for inspiration for your new product? Nostalgia and Innovation Mintel’s global database revealed a surge in product introductions for food & drink products, during the first half of 2013. Looking for inspiration for your new products? A marriage of NOSTALGIA and INNOVATION was found to resonate with U.S. consumers. 12 Private Label Favorable perception continues to grow Retailers diversify offerings and expand brands Canned sector enjoys sales growth as consumers trade down Driving drug store sales What’s in a Name? Private Label – once a category that marketed itself exclusively as a “me too” brand – is now looking for innovative ways to expand its offerings. As the favorable perception of Private Label is at an all-time high, marketers are venturing into new areas, by expanding brands, and commanding a strong presence in drug stores. The economy is a factor and as an opportunity to offer an alternative to shoppers. As US consumers become more savvy, many are not caught up with a “brand image”. If the private label offers the same benefit, at a lesser price point, why buy anything else? We track this in the weekly Food Institute Report to help members stay ahead of these trends. 13 FOOD PROCESSING What are we seeing? Where is the future headed? A growing trend focuses on GLOBAL FLAVORINGS A look to acquisitions A focus on core brands The Food Processing chapter has lots to offer for those interested in that area of the food business. 14 Mergers & Acquisitions What’s Impacting Food Business M&A? Debt crisis in Europe Investment banks and private equity firms Retailers post big year in acquisition activity Franchised restaurants The Food Institute tracks mergers & acquisitions activity across the food and beverage space, every week. We have been doing so since 1928. Members can search through M&A transactions across the business, online and in The Food Institute Report delivered in print and electronic copy every week. A look at food business mergers and acquisitions activity: Investment banks and private equity firms showing an increased interest in purchasing food businesses Lots of activity thus far with Retailers M&A within the franchised restaurant sector up by 12+% 15 Demographics Each year, The Food Institute pulls together so much information on Demographics when it comes to food/drink spending. This can be found in Today In Food daily e-news alerts and the weekly Food Institute Report. We have more than enough data to fill an entire reference document – which Food Institute members get a discount on. 16 Understanding Consumer Spending Analysis of every variable that impacts food industry AGE INCOME EDUCATION GENDER COMPOSITION OF HOUSEHOLD SIZE OF HOUSEHOLD RACE & ETHNICITY REGION OF COUNTRY METRO/RURAL/URBAN LOCALE The Food Institute provide in-depth analysis to every variable that impacts the food industry (see above). We gather data from government and private sector agencies to put it into context for you to use in business today. 17 Consumer Price Index and Producer Price Index “ “Those who do not learn from history are doomed to repeat it” The Food Institute, through our weekly report, depicts the difference between the Producer Price Index and Consumer Price Index. It also explains the usage of each, how data is collected and what, if any, consumer buying habits, are a result of CPI. This is must-have information to truly understand the impacts of global food prices and the industry down the line. The Food Institute gathers it together in one place for you to make informed decisions. 18 THANK YOU To become a member and gain full access: www.foodinstitute.com/joinfi or Call Lina at 201-791-5570, ext. 214 In closing, THANK YOU – The Food Institute has valuable information for any organization charged with giving advice or support to food and drink companies. We can equip you with access to these tools, through annual membership. Food Institute membership is an investment of $795 for an entire year of access. If you join soon, we can deliver the 2013 Food Industry Review as a free “thank you” gift. Contact Lina for details. Thanks again – and a Happy, Healthy New Year. 19
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Top food and beverage sector trends that influenced the U.S. marketplace in 2013. Lessons for future planning for food and drink companies, consumers, academics and more. All compiled from The Food Institute this past year and available in our annual publication.
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Food Industry Review Food Industry Review 2013 edition The Ultimate Reference Guide “from FARM to FORK” Each year, The Food Institute publishes what we proudly refer to as “the ultimate reference guide” – a compilation of economic and industry data of impact to the food and drink industry. On the strength of the weekly Food Institute Report, which members receive, this publication delivers all the information you could ever possibly need to enable you to make key decisions. The 2013 edition has recently debuted and covers a multitude of topics. 1 Food Industry Review Consumer Trends Retailing Formats Restaurants & Foodservice Technology & Social Media Sustainability Specialty & Organic New Products Private Label Food Processing Mergers & Acquisitions Demographics CPI/PPI ~ 2013 Edition ~ The U.S. food industry in 2013 resembled a Kaleidoscope – a continually changing picture of what is happening, and what’s expected to happen, to the ever-changing food business. Find out how social media and technology are REALLY impacting business – or uncover what’s trending with Private Label and New Products. The Food Institute offers many different ways to explore the tumultuous food and drink industry – YOU need to be prepared – we are here to help you gain reliable information, every day and each week. 2 Consumer Trends ~ Market Influences ~ Lifestyle Changes New Shopping Behaviors Technology Economy Value Consumers are an ever-changing breed, and food businesses – no matter where in the food chain – must adapt quickly. Lifestyle Changes: almost 80% of people research their purchase BEFORE they get to food store; shop for products when you know they will be on sale New Shopping Behaviors: expect products to be discounted; 90% of shoppers know what they are buying before they enter the store; 80% buy items with coupons; 62% are buying store brands vs. name brands; 62% are using “loyalty cards” which offer discounts; 58% buy items only when they are on sale (this is according to research from MarketTools, Inc.) Technology: technology has become a fact of life. More than ½ of all shoppers use technology either before or after their shopping trip. Economy: Gas prices influencing food retailing; less trips to the store Value: has become a way of life – the “new normal” – shopping for deals is expected to continue into the immediate future 3 Consumer Trends How much time do Americans spend on food? Eating Behaviors – how many minutes? Where, When and With Whom are we eating? What are we doing while eating? Let’s discuss the TRENDS Snacking Impulse Purchases Healthier eating habits The Food Institute provides statistics behind food consumption trends. We do so in Today In Food daily e-news, the weekly Food Institute Report. 4 Retailing Formats …What’s Trending? The food retail market continues to shift – some retailers are downsizing their stores (Walmart), while others are looking to enlarge (Dollar General) and provide more food retail space. 5 2013 and beyond Online shopping Cautious Consumer Simplified Shopping “FRESH” Retailers Warehouse Clubs Strong New Concept Stores “test the waters” The Food Institute keeps an eye on retail concepts every week in our member-only Food Institute Report. Consumers are price - cautious. Simplified shopping is now the norm – coupons and loyalty cards aren’t always enough – consumers are seeking extra discounts and perks!! But what?? Stores like Whole Foods, and other “fresh” retailers, are appealing to the more affluent shopper, and continue to take business away from traditional grocery outlets. Warehouse Clubs continue to be dominated by 3 chains (BJ’s/Costco/Sam’s Club) and continue to grow their sales as consumers see “buying in bulk” as an affordable option. And, New Concept Stores – established retailers offering options – “re-sizing” – “revamping” ……. Always, a new look….based on consumer wants & needs 6 Restaurants & Foodservice Chain restaurants see a brighter future Micro Desserts Better Burgers  Better Sandwiches QSR Trends Fast food menu revamps Attracting more “health conscious” consumer Continued push for foreign expansion We are finally starting to see a glimmer of hope on the horizon for chain restaurants – over the years, new strategies have been implemented – yet, we must all remember that FOOD QUALITY is still THE most important element in the restaurant segment. We have seen the rise of “better burgers”  now is the time to revisit the sandwich sector and modernize it the way that burgers have. Micro Desserts are hot now …. Perhaps, consumers don’t feel as though they are really being overindulgent. Quick Service Restaurants are revamping menus – and offering healthier options. And, we are increasingly seeing a push for chains to expand overseas. 7 Technology and Social Media Impact on Food Retailers Think outside the Box When it comes to Technology and Social Media – “think outside the box” ….. Social Media is redefining our relationship with food – as almost half of new foods launched are conveyed to consumers through avenues such as Twitter, Facebook and Pinterest. It is key to understand the importance of social media and its role in food in today’s society – smartphones and tablets will drive the sector – and data shows that, regardless of age, they will be an influence. 8 Sustainability Less packaging Sustainable seafood More environmentally responsible retailers/manufacturers Sustainable efforts highlighted LEED Certification Solar Power initiatives By-Product Energy ~ Lessen the Environmental Footprint ~ All Americans are acutely aware that we need to lessen our environmental footprint. We will look to retailers and manufacturers to become more environmentally responsible. Less packaging offers perhaps the most visual way to be environmentally friendly. Sustainable seafood is an area of consumer concern – they are wanting to know where their food is coming from and what impact that has had on the environment – the industry continues to respond. Additionally, several efforts can be promoted within manufacturing sites to make a company more “green.” (see 3 bullets above) 9 The numbers reveal … Specialty Food growth continues Age ~ Income ~ Region (key factors in Specialty Food Purchases) The Specialty Food segment is a hot category and is expected to continue to grow. The Food Industry Review chapter on Specialty and Organic foods offers detailed research into the sector and identifies the fastest-growing categories. (This chapter also compiles data from Specialty Food Association, Mintel and SPIN) 10 Organics and Local “Natural and organic products aren’t completely passe, but local varieties are steadily gaining ground.” Source: John Frank, Mintel Between 2013 and 2015, specialty food manufacturers, distributors and retailers all agree that “LOCAL” claims will grow the most. Source: NASFT Report “Organic products are healthier for my family and me” Source: OTA U.S. Families’ Organic Attitudes and Beliefs Study LOCAL –Defined as being within a 200-mile radius, LOCAL is the key buzzword for what consumers are seeking, as they become more aware of the benefits of buying product. Many ORGANIC products fall into this “local trend” area as well. 11 New Products 2013 Yogurt offerings Snacking options Novel beverages All-natural offerings for children Coconut New Flavor offerings Looking for inspiration for your new product? Nostalgia and Innovation Mintel’s global database revealed a surge in product introductions for food & drink products, during the first half of 2013. Looking for inspiration for your new products? A marriage of NOSTALGIA and INNOVATION was found to resonate with U.S. consumers. 12 Private Label Favorable perception continues to grow Retailers diversify offerings and expand brands Canned sector enjoys sales growth as consumers trade down Driving drug store sales What’s in a Name? Private Label – once a category that marketed itself exclusively as a “me too” brand – is now looking for innovative ways to expand its offerings. As the favorable perception of Private Label is at an all-time high, marketers are venturing into new areas, by expanding brands, and commanding a strong presence in drug stores. The economy is a factor and as an opportunity to offer an alternative to shoppers. As US consumers become more savvy, many are not caught up with a “brand image”. If the private label offers the same benefit, at a lesser price point, why buy anything else? We track this in the weekly Food Institute Report to help members stay ahead of these trends. 13 FOOD PROCESSING What are we seeing? Where is the future headed? A growing trend focuses on GLOBAL FLAVORINGS A look to acquisitions A focus on core brands The Food Processing chapter has lots to offer for those interested in that area of the food business. 14 Mergers & Acquisitions What’s Impacting Food Business M&A? Debt crisis in Europe Investment banks and private equity firms Retailers post big year in acquisition activity Franchised restaurants The Food Institute tracks mergers & acquisitions activity across the food and beverage space, every week. We have been doing so since 1928. Members can search through M&A transactions across the business, online and in The Food Institute Report delivered in print and electronic copy every week. A look at food business mergers and acquisitions activity: Investment banks and private equity firms showing an increased interest in purchasing food businesses Lots of activity thus far with Retailers M&A within the franchised restaurant sector up by 12+% 15 Demographics Each year, The Food Institute pulls together so much information on Demographics when it comes to food/drink spending. This can be found in Today In Food daily e-news alerts and the weekly Food Institute Report. We have more than enough data to fill an entire reference document – which Food Institute members get a discount on. 16 Understanding Consumer Spending Analysis of every variable that impacts food industry AGE INCOME EDUCATION GENDER COMPOSITION OF HOUSEHOLD SIZE OF HOUSEHOLD RACE & ETHNICITY REGION OF COUNTRY METRO/RURAL/URBAN LOCALE The Food Institute provide in-depth analysis to every variable that impacts the food industry (see above). We gather data from government and private sector agencies to put it into context for you to use in business today. 17 Consumer Price Index and Producer Price Index “ “Those who do not learn from history are doomed to repeat it” The Food Institute, through our weekly report, depicts the difference between the Producer Price Index and Consumer Price Index. It also explains the usage of each, how data is collected and what, if any, consumer buying habits, are a result of CPI. This is must-have information to truly understand the impacts of global food prices and the industry down the line. The Food Institute gathers it together in one place for you to make informed decisions. 18 THANK YOU To become a member and gain full access: www.foodinstitute.com/joinfi or Call Lina at 201-791-5570, ext. 214 In closing, THANK YOU – The Food Institute has valuable information for any organization charged with giving advice or support to food and drink companies. We can equip you with access to these tools, through annual membership. Food Institute membership is an investment of $795 for an entire year of access. If you join soon, we can deliver the 2013 Food Industry Review as a free “thank you” gift. Contact Lina for details. Thanks again – and a Happy, Healthy New Year. 19
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