Food Business News - March 24, 2015 - (Page 18)

Six forces shaping natural, organic product development Trends in the natural channel are influencing conventional brands at a faster pace ANAHEIM, CALIF. - By 2020, sales of natural and organic food are expected to represent nearly 14% of total food sales. "For a long time, natural and organic was 1%, 2%, 3%, so we're finally making some critical mass in terms of total food sales, and that's expected to accelerate as more food companies and big retailers start to get more into natural, organic and healthy foods," said Carlotta Mast, executive director of content and insights at New Hope Natural Media. She and Jenna Blumenfeld, senior food editor at New Hope Natural Media, discussed industry trends during a presentation at Natural Products Expo West held March 5-8 in Anaheim. Sales of natural, organic and better-foryou products are expected to grow 8.1% annually to $226 billion by 2018. Driving the steady growth are robust product innovation and an accelerated shift in consumer behaviors. Additionally, more consumer packaged goods companies are entering the segment. "We've got a lot more people from some of the large companies and C.P.G.s because they're all trying to learn how to be more successful with natural, organic and healthy products," Ms. Mast said. "And a big part of that is our industry as a whole is growing more than two and a half times faster than mainstream packaged foods. This is where the growth is, this is where the innovation is, this is where the excitement is." Early estimates track just over 12% growth of natural and organic food and beverage sales in the United States last year. 18 FOODBUSINESS NEWS ® While conventional frozen food sales have been stagnant in recent years, sales of organic frozen foods increased nearly 16% in 2014, up from 8.6% in 2013, according to research from New Hope Natural Media, which produces Expo West. Organic oils grew 30% last year, led not only by olive oil but coconut oil and avocado oil, too. Non-dairy, non-soy products grew 17% last year. What's driving this growth? Ms. Mast and Ms. Blumenfeld pointed to six key forces shaping the industry. "One of the reasons it's important to pay attention to the trends is that, as we've seen, it's really accelerating in terms of the timeline that a trend will move from the organic and natural channel into mainstream," Ms. Mast said. "Things are moving much, much more quickly these days. It is important to be on top of what's new and what's happening and really be able to identify those trends that have a lot of staying power. "We believe the trends related to our macro forces have a lot of staying power and are very quickly moving from niche and natural all the way into mainstream." Ancient wisdom From chia to baobab, the market for whole, nutrient-dense ingredients has exploded, Ms. Blumenfeld said. "It's about going back to basics with simple, clean ingredients," she said. "What smart manufacturers are doing is making these products very accessible." Nature's Path, for example, introduced The market for products featuring whole, nutrient-dense ingredients is growing rapidly. Q'ia Superfood Superseeds & Grains oatmeal, made with gluten-free rolled oats, chia, hemp and buckwheat. "Maybe a shopper isn't going to make a full bowl of buckwheat for breakfast, but they most certainly will eat hot cereal," Ms. Blumenfeld said. Feed me Forward-thinking companies are addressing the challenge and opportunity of feeding a growing population. From Blu Dot Protein Tea with whey protein to Chapul energy bars made with cricket flour, a growing number of products are developed to deliver sustainable protein. "What's exciting about cricket flour is not only is it a very sustainable source of protein compared to beef or chicken - it takes a very small amount of water to produce the crickets needed to produce cricket flour - but it's also a highly nutritious protein," Ms. Mast said. "Of course," she added, "there's the ick factor." Food tribes Increasingly more consumers are gaining identity not by what they wear or March 24, 2015

Table of Contents for the Digital Edition of Food Business News - March 24, 2015

Food Business News - March 24, 2015
Inside General Mills’ new approach to innovation
Nestle pursuing nutrition-based treatment for autism
Dairy Business News - Inclusion innovation: More than a chip or a chunk
Table of Contents
Web Contents
Editorial - Flexibility is needed to meet new opportunities
Kind raising the bar with innovation
McDonald’s to unlock power of local regions
Lancaster Colony acquires flatbread maker
SodaStream going after Keurig
Six forces shaping natural, organic product development
Stevia slow to penetrate confectionery market
C-Suite insight: C.P.G. at a crossroads
Kroger’s Simple Truth sales hit $1.2 billion for year
Private equity firm buys American Beverage Co.
Washington - Dietary Guidelines coming into focus
Market Insight - A `normal’ year for U.S. crops?
Health and Wellness - Shining a health halo over protein
Meat industry criticizes D.G.A.C. recommendation
Ingredient Innovations - Number of proposed pho alternatives widens
Still no timetable for final GRAS rule
Company Profile - Mondelez gaining momentum
New Food Products
Natural Products Expo West/Engredea
Ingredient Market Trends - Millers forecast soft red winter wheat crop at 381 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - March 24, 2015