Foodnavigator-usa Podcast

Despite what your parents told you growing up – looks matter – especially for food and beverage products in the current era of Instagram where more than 500 million people around the world check their photo feeds daily and 68% of Millennials photograph their food before eating it.

While the rapid growth of the plant-based market in the US initially may have been fueled by demand for alternatives to animal-protein and -dairy, the trend is quickly evolving as consumers’ tastes become more sophisticated and they begin to embrace plants for what they are – and not just what they can mimic and replace.

The exponential growth of non-dairy milk sales and variety in the US, in many ways has been a harbinger for the overall plant-based movement, but as demand for the beverages continues to rise – so too are consumers’ standards, which could prompt a shake-out in the near future.

Attracted to recent high-dollar acquisitions, consumer demand for healthy and sustainable options, and the opportunities created by a diversifying retail landscape, the number of investors flocking to the food and beverage industry continues to grow exponentially as does the amount of capital they are betting on increasingly earlier stage companies.

While the vast majority of Americans still buy their groceries in supermarkets or at supercenters, their loyalty should not be taken for granted as other stores – including limited assortment, club, specialty and even farmers markets – are stepping up their game to capture market share.

Blockchain technology may be best known for its ability to securely move crypto-currencies such as Bitcoin around the word, but the technology can do much more -- especially in the food and beverage industries.

By 2050, the Earth’s population is predicted to reach upwards of 10 billion people who will require significantly more food than is produced today, which many predict is not feasible without drastic changes in the way food is produced, transported and consumed.

In recent years, the healthy eating trend had expanded dramatically beyond a fad for the few to gain a stronghold with mainstream shoppers, but produce is still at a significant disadvantage when it comes to capturing the attention of children and teenagers -- especially when it is pitted against the star-studded campaigns used to market sugar sweetened beverages, confections and salty snacks.

With annual retail sales of cold brew coffee estimated at more than $29 million in 2017 and predicted to grow to $170 million by the end of 2025, it is easy to see why at Natural Products Expo West in Anaheim earlier this month so many new players were entering the market with RTD options or leveraging the smooth, chocolaty flavor profile in products across categories.

CBD far and away stole the show as the hot new ingredient at Natural Products Expo West in Anaheim last week, but it wasn’t the only notable trend with promising market potential or significant recent development.

With newcomers launching practically every day in the food and beverage industry, the pressure is on for legacy brands to up their innovation game – and according to industry giant Unilever the best way to do this is to start with modern consumers’ core values and address their top concerns.

Whether through multi-million dollar investments in startups or high dollar mergers and acquisitions of larger, established companies, the food and beverage industry currently is being flooded with funding, and with it many opportunities as well as challenges.

For many food and beverage brands, their product packaging is their first – if not only – touchpoint with consumers, and yet all too often companies treat it as an afterthought or as little more than a protective exterior for what is inside.

Shoppers increasingly are making purchasing decisions based on how sustainable they perceive a product, brand or manufacturer to be, but as recently published research from Nielsen notes the consumers’ definition of sustainability is amorphous – making it difficult for brands to meet their demands, unless they proactively take control of the conversation.

In the last month, the food and beverage industry rallied around the hundreds of thousands of people whose paychecks were unexpectedly stopped during the partial government shutdown, but even though government is back up and running, for now, more than half of Americans still struggle to eat well and live a satisfying life on their current income.

After taking a slight hit in 2017 compared to 2016, consumer satisfaction with the food and beverage industry rebounded in 2018 as companies delivered innovative products that both surprised and delighted consumers and met their demands for healthy options.

The idea that a plant-based diet could improve the health of people and the planet was once niche, but is rapidly gaining mainstream momentum with two pivotal developments this week, including an endorsement by the high profile EAT-Lancet Commission and the launch of the first-ever plant-based lifestyle program to help patients manage chronic disease.

While there will always be a place in consumers’ hearts – and cups – for freshly brewed classic teas such as English breakfast and tisans like chamomile, shoppers increasingly are looking for premium, innovative options and formats that allow them to enjoy the beverage more often and more easily, according to category players.

The food and beverage industries are undergoing a massive renaissance with fresh ideas continuously entering the market, but with a dismal failure rate for new CPGs of upwards of 85% in the first two years, it can be difficult to identify from the outset if an idea is truly disruptive versus a flash in the pan.

When meal kits first launched in the US, Americans were fast to embrace the idea of pre-planned, pre-portioned, ready-to-prepare dinners delivered to their doors, but according to new research from Packaged Facts that love quickly faded for many who became disenchanted with meal kits’ high prices, extensive packaging and inflexible subscription models.