bake - August 2016 - 30

Brought to you by

the consumer pulse
Millennial trends
RISING EXPECTATIONS, MEET CLEAR
OPPORTUNITY.
How can I give millennials what they want? That's the question on every food retailer's and manufacturer's
mind these days. To delight millennial tastes, while adhering to their values, is to tap into the massive
market potential of a generation that offers a combined global spending power of $2.45 trillion.1 However,
catering to millennial tastes while meeting your own manufacturing needs isn't as simple as, say, making
toast. It takes the right mix of ingredient appeal and formulation functionality to create a winning recipe
for both you and your millennial consumers.
A good place to start is understanding that the most essential ingredient in millennial life-and food-is
authenticity. According to Nielsen, 30 percent of millennials eat organic, and 80 percent want to know more
about where their food is grown.2 When it comes to bread purchases, over a third of older millennials (ages
25-34) and 29 percent of younger millennials (ages 18-24) seek all-natural ingredients.3 Food sourcing
and transparency can serve as an important step in reaching millennial consumers, especially for large
manufacturers. In a recent survey, Mintel found that U.S. millennials are two times more likely to distrust
large food manufacturers, compared to non-millenials-43 percent versus 18 percent.4 Offering consumers
a clean-label, easy-to-read ingredient list can help you build your brand's own transparency story.
In 2015, Food Business News declared clean label the food trend of the year. A clean-label bread
appeals to millennials' desire not only for transparency but also for "better for you" ingredients. While
simpler ingredients and shorter labels are becoming an expectation for millennials, they're not willing to
trade cleaner labels for diminished quality or taste. Developing clean-label products, however, can be a
complex process, often involving removal or replacement of highly functional ingredients that affect key
characteristics such as shelf life, taste and texture. Bread manufacturers that successfully overcome
these challenges will appeal to millennials and rise to the top.
SOURCES: 1: CNBC, 2: MAXWELL PR, 3: GMI/MINTEL, 4: MINTEL

MILLENNIAL TRENDS IN THE MARKETPLACE
To delight millennial tastes, while adhering to their values, is key to success.
Massive market slice.
At 88 million strong,
millennials represent

33%
of the U.S. population.

Rolling in the dough.

Millennials account for

$2.45 trillion
in global spending power.

What's the food 411?

80%

of millennials want to know more
about where their food is grown.

30%
eat organic.

SOURCES: BLOOMBERG VIEW, COUNCIL OF ECONOMIC ADVISERS, EXECUTIVE OFFICE OF THE PRESIDENT OF THE UNITED STATES, CNBC, MINTEL

What our expert says
"Balancing the removal of ingredients with consumer choice drivers is a critical step in making better choices for the products companies produce,
but the deﬁnition of clean label is not so tidy. Overall, consumers do not want to think about the ingredients in their food, but they will when they experience health concerns or disruption in the market. As consumers continue to aspire toward healthier living, health and wellness behaviors such as
reading packaging labels are becoming more prevalent. However, one size does not ﬁt all, and consumer segmentation is vital to understanding the
evolving health and wellness landscape. Companies will need to consider their core customer base when developing and marketing cleaner options.
As we learned in our proprietary research, there are two clear groups within the bread category: ingredient-focused consumers and nutrition-focused
consumers, and the drivers of purchase vary for each. Transparent labeling and messaging will be critical as these consumers continue to seek information about what is contained in the products they are buying," says Corbion's Marge O'Brien, senior manager, global consumer insights.

- Marge O'Brien,
Senior Manager,
Global Consumer
Insights, Corbion

bake - August 2016

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