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Download Material from the Site (One Machine Readable Copy and One Print Copy Per Page) for Your Personal, Noncommercial Use Only Official Magazine of SupplySide® November 2014 $39 US ® foodproductdesign.com An Exclusive Digital-Only Issue Better-For-You BREAKFAST CEREALS 05 Market Watch: Cereal by the Numbers 08 Building BFY Cereals 16 Takeaways for Your Business A NATURALLY SWEET PREBIOTIC FIBER VitaFiberTM is a unique, clinically-proven, prebiotic fber that is naturally sweet. Easy to formulate with powder and syrup, VitaFiberTM is perfect for bars, beverages, baked goods, confectionary or chocolates, VitaFiberTM provides all the benefts of fber without the bloat. Transforming natural products BioNeutra.ca into better health. NOVEMBER 2014 BETTER-FOR-YOU BREAKFAST CEREALS 05 08 16 Market Watch: Building BFY Breakfast Cereals Takeaways for Your Business Cereal by the Numbers Demands for improved nutrition have Food product designers are taking Three in four Americans report prompted developers to reduce sugar advantage of various resources— regularly eating cereal, and more and sodium as well as increase fiber including ingredients, formulation than 40 percent of cereal consumers in ready-to-eat (RTE) cereals. Product strategies and information—to choose it as an evening or late-night developers have a host of ingredients produce better-for-you breakfast meal or snack. Increased snacking that can boost fiber levels in better- cereals. trends are shaping how cereal is for-you (BFY) breakfast cereals being consumed, while a focus without skimping on taste and other on health and wellness is driving sensory attributes. innovation in the category. foodproductdesign.com Copyright © 2014 Informa Exhibitions LLC. All rights reserved. The publisher reserves the right to accept or reject any advertising or editorial material. Advertisers, and/or their agents, assume the responsibility for all content of published advertise- ments and assume responsibility for any claims against the publisher based on the advertisement. Editorial contributors assume responsibility for their published works and assume responsibility for any claims against the publisher based on the published work. Editorial content may not necessarily reflect the views of the publisher. Materials contained on this site may not be reproduced, modified, distributed, republished or hosted (either directly or by linking) without our prior written permission. You may not alter or remove any trademark, copyright or other notice from copies of content. You may, however, download material from the site (one machine readable copy and one print copy per page) for your personal, noncommercial use only. We reserve all rights in and title to all material downloaded. All items submitted to FOOD PRODUCT DESIGN become the sole property of Informa Exhibitions LLC. 3 Food Product Design | Better-For-You Breakfast Cereals foodproductdesign.com NUTRITION l HEALTH l FOOD l BEAUTY Ingredient Marketplace 2015 moves to Orlando Ingredient Marketplace is the leading destination to streamline the process of finding ingredients, contract manufacturers, packaging companies and more that aid in successful launches of finished products. The new location is more centrally located for attendees and the Orlando World Center Marriott will allow for the expo, conference and accommodations to reside under one roof. April 7-9 Expo Hall April 8 & 9 Ingredient Marketplace. Where buyers and sellers connect. Orlando World Center Marriott Registration Opens Early December 2014 *supplysideshow.com Market Watch: Cereal by the Numbers By Judie Bizzozero | Managing Editor e’ve heard it time and time again, breakfast is the most important meal of the What’s more, Americans continue to eat day. Our mothers told us that every morning, and in recent years, science has breakfast cereal as a snack, with more Wproven that moms really do know best. Countless studies have found eating a than 40 percent of cereal consumers nutritious breakfast offers many benefits, including improved concentration, better choosing it as an evening or late-night weight control, increased strength and endurance, better heart health and even meal or snack. Cold cereal also plays a lowering the risk of type 2 diabetes. crucial role in snacking, as two in five Unfortunately, today’s fast-paced cold-cereal eaters consume it as a snack culture has many Americans shifting right out of the box, while 15 percent mix away from the traditional sit-down it with other ingredients to make their own breakfast of eggs or a heaping bowl customized snack mix. of cereal in favor of convenient Cereal sales, which include ready-to-eat “on-the-go” breakfast items such as (RTE) cereals, hot cereals and cereal bars, granola bars, yogurts or bagels, and continue to rebound from the diminishing restaurant chains like McDonald’s and sales experienced a few years ago. New Starbucks have increased their breakfast market data from the “Consumer and offerings. This means cereal Innovation Trends in Cereal Products manufacturers need to think outside the 2014” consumer insight report from box and offer innovative and nutritious Datamonitor, London, revealed the global products that suit the eating habits of cereal market reached $41 billion in sales today’s consumer. in 2013, with RTE cereals gobbling up 69 The global cereal percent of the market share, followed by The Global Cereal Market cereal bars (21 percent) and hot cereal market reached There is no doubt that convenience foods (10 percent). and foodservice have taken a bite out of Globally, the RTE cereals category has a $41 billion in sales traditional breakfast cereal sales, but compound annual growth rate (CAGR) of 4 in 2013, with RTE cereal manufacturers can rest easy percent, while the hot-cereal category isn’t knowing cereals are consumed by 90 far behind at 3.5 percent. Cereal bars are cereals gobbling up percent of families—and 97 percent of the fastest-growing category, with an families with children—in the United estimated 4.7-percent growth from 2013 69 percent of the States. According to the 2014 “Cold and to 2017, most likely due to the convenience market share. Hot Breakfast Cereals in the U.S.” report and nutritional value of the products. from Packaged Facts, Rockville, Maryland, In terms of the top-five markets for three in four Americans report regularly cereals, the United States rings up the eating cereal. More than 60 percent of lion’s share of cereal purchases, totaling American adults still eat hot cereal, while $17.2 billion, followed by the United three in five cold-cereal eaters and two in Kingdom ($3.7 billion), Mexico ($2.8 five hot-cereal eaters consume cereal billion), Canada ($1.8 billion) and Australia daily or a few times a week. ($1.7 billion). 5 Food Product Design | Better-For-You Breakfast Cereals foodproductdesign.com General Mills and Kellogg’s make up 60 obesity. As such, the industry is under Grape-Nuts and said it is exploring percent of the global RTE cereal market, pressure to reduce sugar content of their whether it will add more non-GMO followed by Cereal Partners Worldwide (a products, especially cereals marketed to verified products to the Post Foods 50/50 joint venture between Nestlé and children—obesity has more than doubled product line. General Mills), PepsiCo and Post in kids and quadrupled in adolescents in Kellogg’s jumped on the protein Holdings. Private-label cereals also have the past 30 years. The Yale Rudd Center bandwagon in 2012 with the rollout of its gained traction in the marketplace during for Food Policy & Obesity’s “Cereal FACTS Special K Protein Plus® cereal, featuring the past five years as cost-conscious 2012 Report” found from 2009 to 2012, 10 g of protein and 3 g of fiber. Post consumers try to keep rising grocery cereal companies improved the nutrition Foods followed suit in 2013 with its Great costs in check. of most cereals marketed directly to Grains® Protein Blend Cereal, featuring According to Datamonitor, 39 percent of children. Overall nutritional quality a combination of protein, whole grain new cereal product launches in 2013 came improved for 13 of 16 child-targeted and fiber, designed to increase metabolic from Europe, compared to 24 percent in brands, and the average nutrition score rate. In February 2014, the company North America and 21 percent in Asia for children’s cereals improved from 40 added to the Great Grains line with the Pacific. Interestingly, the global share of out of 100 in 2009 to 43 in 2012. Of the two Great Grains Digestive Blend cereals cereal product innovation from countries in 22 different varieties of child-targeted featuring 7 g of fiber and more than 40 g Asia Pacific increased from 2011 to 2013, cereals available in both 2008 and 2011, of whole grains. showing growth potential for cereal product 10 (45 percent) reduced sodium, seven Consumer interest in better-for-you innovation from emerging markets such as (32 percent) reduced sugar and five (23 (BFY) foods is extremely relevant to the China and India. percent) increased fiber. category, and product innovation is being Product designers also must consider driven by demand for high-protein, high- Factors Driving Growth new nutritional demands from the fiber and low-sugar options. Cereal Factors contributing to the growth of the increasingly health-conscious consumer, makers use a number of standout U.S. breakfast cereal market include and those changing preferences already ingredients to boost the healthy halo of increased demand for convenience in have impacted many big names in the RTE cereals, such as vitamins, minerals breakfast products, new product RTE cereal category. For example, earlier and proteins, but fiber fortification has development and increased marketing this year, General Mills announced its become a hot trend since most Americans initiatives. But according to Datamonitor, original Cheerios will no longer contain fall short of their recommended daily health and wellness is the most genetically modified organisms (GMOs) intake. What’s more, incorporating fiber important trend driving innovation in the due to consumer and activist pressure.
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