Culinology - December 2012 - (Page 45)
into niche markets such as Greek yogurt and single-cup coffee with success. Consumers are cutting back on staple products such as milk, fresh bread and rolls due to price increases. Value sales of staples grew 1.6% in the past year compared with 4.8% for non-staples, and volume sales have declined 2.5% in staples compared with 0.2% growth in
Value continues to drive purchasing patterns
The food and beverage market is experiencing slow and negative growth in 2012, as evidenced in value sales slowing from 5% in 2011 to 4.1% in 2012, according to SymphonyIRI, Chicago. Value sales are sales through multi-outlets, including convenience stores. “Our comprehensive review of food and beverage trends for 2012 points to limited growth with weak growth prospects for the remainder of the year,” said Krishnakumar S. Davey, managing director, Symphony Consulting. “Shoppers are still making conservative and deliberate purchase decisions and are reluctant to open their wallets. With this in mind, manufacturer and retail decision makers must uncover select, high-growth categories, and target products and offers to very specific shopper groups.” Smaller companies with revenue under $1 billion are doing the best in 2012, with their value sales growth increasing an average of 7.9% year-to-date as compared with 3% for medium-size businesses and 1.3% for large enterprises. Volume sales from smaller manufacturers also have exceeded competitors with 3.6% growth for smaller manufacturers compared with declines of 0.5% and 3.3% for medium and large manufacturers, respectively. Small manufacturers have gotten
non-staples. Consumers also still define value on price with 78% of shoppers saying they will continue to seek deals in the future and 56% of consumers saying they are choosing stores based on lower prices. Shoppers also are making more trips to the store and purchasing fewer items per trip to spread the cost. SymphonyIRI said to achieve growth, manufacturers must focus on investing in key areas of growth and developing a strong portfolio of popular products such as new-age snacks and health and wellness items. The products must be at good price points and targeted at fast-growing shopper segments such as GenY and older baby boomers.
Fiber category still in its infancy
The market segment for fiber-enhanced food products is still in its infancy and has room to grow, according to “Fiber food ingredients in the US: Soluble, insoluble and digestiveresistant types, 2nd Edition” from the market research firm Packaged Facts, Rockville, Md. More than 50 different fiber ingredients are available to food formulators. Packaged Facts predicts some fiber ingredients will grow at a faster rate for such reasons as being more compatible to many applications and being a new entry to the market that gains the attention of large food manufacturers, said David Sprinkle, research director for Packaged Facts, a division MarketResearch.com. “The introduction of some fiber food ingredients, specifically many of those categorized as novel, has allowed for the development of entire new categories of fiber-enriched foods, which is helping drive the growth of specific fiber food ingredients,” he said. “The strongest trend is with boosting the fiber content of grain-based foods, in particular those marketed as ‘made with whole grains.’” The Dietary Guidelines for Americans 2010 has played a factor in the growing emphasis on whole grains and other inherent sources of fiber, according to Packaged Facts. Legislation in the US that requires baked foods served in public schools to contain no less than 51% whole grain, effective July 1, 2014, also is influencing the market. Currently at least half of grains offered to students during the lunch week must be whole grain-rich.
DECEMBER 2012 | Culinology |
Table of Contents for the Digital Edition of Culinology - December 2012
Culinology - December 2012
Table of Contents
President's Letter - A foundation for success
Emerging Trends - Super grains gain momentum
Digestive traits may affect obesity issue
Member Profile - Beauty and the Feast
Whole Grains - Delivering grains deliciously
Consumer Trends - What's next?
Ethnic ingredients top McCormick’s Flavor Forecast
Culinology - December 2012