Marianne Gillette's presentation at CITA Congress 2009

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Conscious consumerism: new trends in food consumption and home cooking since 2008 crisis. Did you know 68% of consumers cut spending on nonessential grocery items? Find out more through Marianne Gillette's presentation at the Carribean Congress of Food Technology in Costa Rica, 2009.

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Marianne Gillette's presentation at CITA Congress 2009

  1. 1. © 2009 Institute of Food Technologists<br />New Products and Innovations in Food <br />ALACCTA<br />Costa Rica<br />October 27-29, 2009<br />Marianne Gillette President Institute of Food Technologists (IFT) <br />
  2. 2. IFT is a Global Organization<br />Founded in 1939<br />More than 18,000 members worldwide<br />16% of IFT Members are international in more than 100 countries<br />59 Sections and Sub-sections, 28 Divisions<br />Members come from all areas of the food industry; 85% come from Industry, 13% from Academia, and 2% from Government<br />
  3. 3. The Economy has Spawned a New Era of Conscious Consumerism<br />Big increases in food prices, which rose 6.6% in 2008; expected to increase 4 to 5% in 2009 <br />Two-thirds (68%) of consumers cut spending on nonessential grocery items<br />
  4. 4. Conscious consumers are buying fewer premium items…<br />52% purchased fewer <br /> organic products<br />42% gave up favorite brands<br />30% bought less fresh produce <br />
  5. 5. …And buying fewer value-added foods in grocery stores…<br /><ul><li>59% bought fewer individual serving packages
  6. 6. 55% purchased fewer prepared </li></ul> meals at grocery stores<br />
  7. 7. Food Spending Steeply Declined in 2008<br />Consumers are trading down to lower priced items<br /> (e.g. private label) and buying fewer items.<br />
  8. 8. Home Meals are now approaching the 25-year high of 1992. <br />People want restaurant-quality foods that enable them to sample a world of flavors.<br />Enormous market now for appetizers, snacks, barbecue rubs/sauces, gourmet foods.<br />…And Consumers are back in the Kitchen !<br />
  9. 9. Restaurants have taken a hit…<br />► Consumers are cutting back on restaurant visits and trading down on foodservice purchases<br />► U.S. foodservice growth in 2009 will dip into negative territory (-2.2% for nominal growth). <br />► Technomic expects 2009 will be worst year for foodservice since it began tracking performance in 1972<br />► To attract customers, restaurants are offering more menu innovation and limited-time offers than usual<br />
  10. 10. The Economy is #1 concern for Food Executives<br />Top 10 concerns for 2009 of 600 retail & mfg. decision makers in food and CPG industries in 54 countries <br />1. Economy and Consumer Demand (ranked No. 4 in 2008)<br />2. Food Safety (ranked No. 2 in 2008)<br />3. Corporate Responsibility (ranked No. 1 in 2008)<br />4. Competitive Landscape (ranked No. 9 in 2008)<br />5. Retailer-Supplier Relationships (ranked No. 5 in 2008)<br />
  11. 11. …and Technology is #9…<br />6. Retail/Brand Offer (ranked No. 8 in 2008)<br />7. Consumer Health & Nutrition (ranked No. 3 in 2008)<br />8. Consumer Marketing (ranked No. 11 in 2008)<br />9. Technology and Supply Chain (ranked No. 7 in 2008)<br />10. Human Resources (ranked No. 6 in 2008)<br />
  12. 12. Last Year’s Growing Food Trends have changed course…<br />Items consumers consider expendable and which they can live without, given the current economic situation<br />► Fine dining restaurant 89%<br />► Organic foods 85%<br />► Daily cup of gourmet coffee 83%<br />► Fast casual restaurant 74%<br />► Casual sit-down restaurant 67%<br />
  13. 13. …while some items are less effected<br />Things consumers think are untouchable and they cannot live without, given the current economic situation<br />► Internet service 81%<br />► Basic cell phone service 65%<br />► Basic cable/satellite TV service 60%<br />► Hair cut/coloring 40%<br />► Fast food restaurant 37%<br />
  14. 14. Consumers don’t appreciate the shrinking packages…<br />► Only 9% of consumers suggest that manufacturers downsize the package while keeping the price the same<br />► In 2008, about 30% of all packaged foods lost some content<br />► Ice cream containers have<br />gone from half-gallon to<br />1.75 quarts and now to <br />1.5 quarts<br />
  15. 15. Top 10 Food Trends<br />Dr. Elizabeth Sloan, PhD April 2009<br />Cooking Again<br />In 2008, 242 meals per person were prepared and eaten at home …back to 1992 levels <br />2.Homeward Bound<br />88% of Americans say that they are staying home more often, creating untapped food and beverage opportunities. <br />
  16. 16. Top 10 Food Trends<br />Gourmetization<br />In 2008, 37% of adults went to restaurants to try new cuisines, 29% to try new flavors. <br />4.The New Pacesetters<br />54% of America’s 72 million Gen Y adults (ages 18-32), say they don’t cook well, although they want to eat gourmet everyday. <br />
  17. 17. Top 10 Food Trends<br />Little Luxuries<br />Consumers continue to splurge on indulgent luxuries that provide “me time,” or remind them of fun times. <br />Scared Straight<br />Consumer confidence in food safety has plunged in the past year. <br />
  18. 18. Top 10 Food Trends<br />Changing Shades of Green<br /> In both 2007 & 2008, 36% of Americans claim to almost always or regularly buy green products. <br />Me M.D.<br />In 2008, two-thirds (66%) of consumers made a strong effort to eat fortified foods.<br />
  19. 19. Top 10 Food Trends<br />Thirsting for More<br />The overall market for functional beverages is continued to grow to $34 million by 2010.<br />Form Follows Function<br />Four in 10 shoppers (40%) purchased more canned, frozen and boxed foods in 2008.<br />
  20. 20. Food Category Winners & Losers in 2008<br />Food category winners (unit sales growth)<br />► Sports drinks +7.4%<br />► Fresh frozen poultry + 4.7% <br />► Wine + 4.3%<br />► Frozen plain vegetables + 4.1%<br />► Breakfast meats + 3.1%<br />
  21. 21. Food Category Winners & Losers in 2008<br />Food category winners (unit sales growth)<br />► Processed frozen poultry + 3.1%<br />► Dinner sausage + 3% <br />► Beer/ale/alcoholic cider + 2.9%<br />► Dry packaged dinners +2.7%<br />
  22. 22. Food Category Winners & Losers in 2008<br />Food category winners<br />► Pasta (all categories)<br />► Energy drinks<br />► Refrigerated side dishes<br />► Refrigerated juices/drinks<br />► Frozen seafood<br />
  23. 23. Food Category Winners & Losers in 2008<br />Food category losers<br />► Frozen entrees/dinners<br />► Refrigerated entrees/dinners<br />► Shelf-stable juices<br />► Bottled water, but water filter<br /> sales soared<br />► Ice cream<br />► Carbonated soft drinks<br />
  24. 24. Food Category Winner – Private Label<br />► 77% of consumers agree<br />that store brands are as good,<br />or better than, national brands<br />
  25. 25. Private Label an increasing Threat to Brands<br />► Private label food sales in U.S rose 10% in 2008 to $83 billion; national brands grew about 2.6%<br />► Private label sales grew most rapidly in 3rd quarter 2008 with consumers earning &gt; $100K<br />► Retailers embrace private label for several reasons—better margins and it helps to make their stores a destination for shoppers—enhancing store loyalty<br />► Consumers embrace private label products for cost savings and comparable quality to brands; private label is typically 30% cheaper than national brand<br />
  26. 26. ► 30% of consumers say they are buying more store brands products now than a year ago<br />► Nearly 55% of consumers say they buy private label (PL) frequently; in 1991, only 12% bought PL frequently<br />► Wal-Mart plans reintroduced its Great Value store brand in July with new packaging and marketing; the store brand accounts for about 10-15% of Wal-Mart’s food sales<br />► 20% of Costco’s sales are private label, 27% for Kroger, and 17% for SuperValu<br />
  27. 27. Manufacturers are innovating their brands to differentiate from Private Label<br />►Kellogg is test marketing a<br />shorter cereal box that is<br />more pantry-friendly and<br />store shelf-friendly and<br />cuts packaging<br />materials 8%<br />
  28. 28. The Economy has shifted the Three Stable Food MegaTrends…<br />
  29. 29. The Economy has shifted the Three Stable Food MegaTrends…<br />
  30. 30. Consumers still demand HEALTH<br />All Natural / Clean Label<br />Reduced Sodium<br />Naturally Healthful Ingredients<br />Whole Grain<br />Antioxidants<br />Low Calorie<br />Heart Health<br />Gut Health<br />
  31. 31. For McCormick customers, the number new products with ‘naturally good in’ is increasing and strong.<br />
  32. 32. In these launches, a wide variety of claims are covered:<br />Functional:<br />Antioxidant Benefits<br />Bone Health<br />Brain & Nervous System<br />Cardiovascular<br />Digestive<br />Homeopathic<br />Immune System<br />Other Functional<br />Skin Disorders<br />Weight Control<br />Minus:<br />Low/No/Reduced:<br />Calorie<br />Carb<br />Cholesterol<br />Fat<br />Glycemic<br />Sodium<br />Sugar<br />Transfat<br />Plus:<br />Added Calcium<br />Added Fiber<br />High Protein<br />Vitamin/Mineral Fortified<br />Natural:<br />All Natural<br />Botanical/Herbal<br />No Additives/Preservatives<br />Organic<br />Wholegrain<br />
  33. 33. Food manufacturers have responded to the demand for Low Sodium products by:<br />Reducing sodium chloride in existing food products<br />Substituting Sea Salt<br />Substituting mineral salt blends, phosphate ingredients, taste potentiators for salt, and maskers for KCl<br />Using salts with different geometric / surface area properties<br />Using spices such as onion, garlic powder and chili pepper powders in place of salt to boost flavor<br />Combinations of the above to simulate salt.<br />
  34. 34. To Lower Calories, the addition of certain functional ingredients is useful…<br />► Specifically, proteins, fatty acids, and fibers help promote satiety,burn fat, and build lean muscle mass.<br />► Functional ingredients for weight management include almonds, chromium picolinate, conjugated linoleic acid, oat and palm oils, whey protein, soy protein, red-pepper, and resistant starches.<br />►Spices and Herbs used to increase sweetness, enhance satiety, reduce fat.<br />
  35. 35. Consumers are becoming aware that Antioxidants in the diet can fight multiple diseases…<br />► Heart disease, macular degeneration, diabetes, cancer, and other health problems are all traceable to oxidative damage.<br />► Antioxidants such as vitamins A, C, and E, selenium, and lycopene occur naturally in fruits, vegetable, spices and herbs.<br />► Specific phenolics are beginning to appear on food labels.<br />►Food manufacturers are harnessing these natural disease-fighters and making them available in food products.<br />
  36. 36. Besides weight management, maintaining a Healthy Heart and Digestive System are concerns for consumers.<br />Dietary fiber plays a key role in safeguarding<br /> heart health and immunity and promoting <br /> digestive health.<br />Forms of dietary fiber :<br />Resistant starch, Dextrins, Beta-glucans, <br />Oligosaccharides, Polydextrose, Soluble cellulose fiber, Whole Grains.<br />Probiotics are popular, despite the class action against Danone… <br />- Specific strains of probiotic organisms<br /> - Oligosaccharides such as inulin<br />
  37. 37. …and because we don’t simply want to feel young…but LOOK youngBeauty From Within has become an emerging new ‘health’ trend…<br />
  38. 38. Convenience will remain a key driver for consumers in the future…<br />Convenience can be shelf stable, frozen, supermarket prepared, fast food or meal kits.<br />Fresh Pre-cut Vegetables<br />Packaging Innovation is a key driver<br />No comprise on flavor quality<br />Authentic, Mininimally Processed.<br />
  39. 39. Flavor will always be the Key Driver<br />Consumers want authentic, regional, ethnic flavors<br />Authentic, Fresh, Bright Appearance<br />Complex and Layered Flavors<br />Flavors for Celebration and Entertainment<br />Comfort Foods<br />Away from Home Flavors at Home<br />
  40. 40. IFT Trend Tours<br />► New and productive approach to navigating IFT’s Expo Floor in Anaheim<br />► Included a series of self-guided tours—each linked to an important and timely ingredient trend—Functional Foods, Weight Management, Naturally Sourced, Flavor & Color Innovation<br />
  41. 41. IFT’s Intellectual Property <br />Exchange Session <br />Innovators from academia and industry holding food science and technology intellectual property (IP), serve as presenters. <br />Attendees can learn more about IP that presenters were willing to share or license. <br />
  42. 42. Special thanks to Food Technology Magazine<br />Marianne Gillette PresidentInstitute of Food Technologists (IFT) <br />
  43. 43. Headquarters<br />525 W. Van Buren Street<br />Suite 1000<br />Chicago, IL 60607<br />312.782.8424<br />ift.org<br />Washington, D.C. Office<br />1025 Connecticut Avenue, NW<br />Suite 503<br />Washington, D.C. 20036<br />202.466.5980<br />

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