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Touring a World of Product Innovation BY A. ELIZABETH SLOAN Touring a World of Product Innovation Food trends travel quickly around the globe, often following a similar path in very different locations. © extravagantni/iStock/Thinkstock pg 22 10.15 • www.ift.org A widespread avoidance of food additives, a rapidly growing middle class aspiring to Western ways, and just about anything ethnic are among the trends driving new product innovation around the globe. lthough there are differing local food preferences, consumers’ biggest worry (Nielsen 2014a). when it comes to trends and new product innova- Demographically, a dramatic increase in the number Ation in the $5.3 trillion global food and beverage of single adults living alone, smaller family households industry, the world has become a much smaller place (average size of 3.6 persons in 2015), greater urbaniza- (IDDBA 2015). More than ever before, the consumer tion, more working women, and an aging population will drivers of food selection, culinary cues, nutritional pri- continue to demand innovative food product approaches orities, and lifestyle-driven packaging needs are (Boumphrey 2015). following a similar path. China, India, Japan, Western Europe, Australia, After taste, the top global new food product purchase Canada, and the United States top the list of countries drivers include affordability, convenience, brand recogni- with the largest number or highest percentage of older tion, and novelty; affordability, health/wellness, consumers (Nielsen 2014b). Global life expectancy is convenience, and environmental compatibility are the now 71.3 years; 138 million babies were born in 2014 most important new product needs/desires (Nielsen (Boumphrey 2015). 2015a). About one-third of the population in South America, More than half (57%) of global consumers purchased Asia, and the Middle East/Africa are Millennials; in a new food or beverage during their last grocery shopping Western Europe, Australia, and North America, one- trip. Those in developing markets are most inclined to try quarter are Millennials (Innova 2015a). new products (Nielsen 2015a). In 2014, bakery, followed One-third of global consumers planned to spend by snacks, dairy, processed fish, meat and egg products, more on away-from-home meals in 2015 (Nielsen prepared meals, and desserts were the most active new 2014a). McDonald’s, with sales of $52.3 billion, remains product categories, according to Mintel (IDDBA 2015). the world’s largest restaurant chain, followed by KFC, With the global middle class growing by 70 million $19.3 billion; Burger King, $8.4 billion; Starbucks, $8.3 people each year, food marketers will enjoy an unprece- billion; Subway, $7.8 billion; Pizza Hut, $6.1 billion; and dented period of aspirationally driven buying behavior as Tim Hortons, $6.0 billion (Technomic 2015). consumers crave more Western-style, culinary-centric, After the United States, Russia, Italy, South Korea, and convenience-driven foods (Nielsen 2013, 2015a). China, France, and Thailand are the largest convenience Although half (54%) of global consumers still store markets (Dimakakos 2014). European-style food believed their country was in a recession in the third halls that offer fresh-prepared, gourmet products already quarter of 2014, global economic consumer confidence are enjoying a warm welcome in North America has risen steadily over the past two-and-a-half years. (Datassential 2015a). Countries with the highest levels of consumer confidence include, in descending order, India, Indonesia, the What’s Cooking? Philippines, Thailand, the United Arab Republic, China, Global demand for quicker/easier food preparation, and the United States (Nielsen 2014a). ready meals/take-away meals, restaurant-style recipes, Fifty-seven percent of global consumers rated their and heartier mini-meal options continues to skyrocket. In personal finances as good/excellent in 2015; only 13% 2014, 27% of global consumers bought a new food or claimed “little spare cash on hand” (Nielsen 2014a). After drink because it was more convenient; in Latin America, the economy and job security, health, and work/life bal- 38% did so (Nielsen 2015a). ance were the top global consumer concerns in 2014, More than half (55%) of global consumers still regu- followed by war/terrorism. In the Asia-Pacific region, larly cook a meal from scratch; 38% do so using health concerns have replaced the economy as preprepared items. Eight in 10 typically spend at least 30 10.15 • www.ift.org 23 pg Touring a World of Product Innovation consumers purchasing ready meals and the global frozen food market projected to reach $156.4 billion by 2020, restaurant-quality fresh chilled and frozen meals will be in high demand (Euromonitor 2014a; Persistence 2015). Fresh and frozen kebab kits (e.g., Samia Kit Pour Kebab in France), fresh Asian meal kits, and vegetable terrine, tangine, and casserole kits are among the hot make-at- home meal trends. In Germany, Mars Foods’ Mirácoli Specialty Lasagna Kit contains all the ingredients except the meat. In Australia, tuna forms the basis of Safcol’s line of ethnic ready-to-eat portable pouch meals/snacks. In Germany, Unilever’s Rűgenwalder Műhle vegetarian “ham and spicy” meatballs come in a grab-and-go microwave- able cup. The United Kingdom’s House of Dorchester’s BBQ Fondue Mixed Melting Chocolates is a dessert fondue prepared in its foil pack on a cooling grill. In the Czech Republic, Hügli offers a cupcake that is microwaved in the cup; Aveve’s Cake in a Cup contains a Chicken preparation is in the minutes making dinner; globally, 60% of moms with kids porcelain cup and powder and requires only the addition bag with the Moy Park Good at home spend more time making dinner (Euromonitor of water to prepare. Kitchen line. Photo courtesy of Moy Park 2014a). From spiralized fresh vegetable ribbon pasta (e.g., Around the globe, Chinese consumers (71%) are carrot spaghetti) in the United Kingdom to crispy coco- most likely to regularly cook their evening meal from nut curl snacks (sliced from real coconut) in Thailand, scratch using fresh/raw ingredients. Brazilians are the swirls and curls are another new direction. Substituting most likely to order home delivery or take-away meals vegetables for carbs (e.g., cauliflower couscous) is a new from supermarkets/restaurants to eat at home for dinner idea taking root in the United Kingdom (Innova 2015b). (25% versus 16% of global consumers overall). Fewer The global market for breakfast on the go was esti- than one-third of global consumers prepare a meal to be mated at $48.2 billion in 2013; China, the United States, carried to work or school (Euromonitor 2014a). Mexico, Brazil, and Russia are the largest markets. In the Netherlands, Nestlé’s Maggi Tender & Spicy uses Three-quarters of global consumers prepared their seasoning-infused papyrus paper to ensure perfectly pre- breakfast in 15 minutes or less last year (Euromonitor pared chicken in a pan. In the United Kingdom, the Moy 2014b). Park Good Kitchen line of seasoned fresh chicken roasts In the United Kingdom, Yowk portable fresh soft- self-baste and cook in the bag. boiled egg is packaged with an egg cup, salt/pepper, Asian-flavoredSharwood’s Stir Fry Melts make season- breadsticks, and a spoon with teeth for cracking/eating. ing stir-fry dishes easier; Darégal Gourmet Ltd.’s Japan’s Ultramix Pancake Bitter Choco delivers the ultimate Sharwood’s Stir Fry Melts OneDoze spice/herb sachets are designed specifically for chocolate pancakes. are designed to simplify preparation of a stir-fry steamed vegetables. Holy Lama Naturals’ Spice Drops are In the Middle East and Africa, 62% of adults ate a meal. Photo courtesy of Premier concentrated natural spice liquid extracts. snack as a morning meal replacement in 2014, 58% did Foods At the United Kingdom’s 2015 Natural Food Show, so in Latin America, 55% in Asia-Pacific, 48% in North Larchwood Foods’ Mr. Hugh’s America, and 44% in Europe (Nielsen 2014a). Breakfast brand introduced orange- and biscuits, meal replacement beverages, nutrition bars, vanilla-flavored rapeseed baking yogurt, and cereal in a cup are enjoying brisk sales for oils; the Anglesey Sea Salt Co. early morning consumption. Global breakfast cereal sales offeredOat Smoked Water to add a will top $43 billion by 2019 (Transparency 2014). touch of smokiness to stocks, Globally inspired breakfast items (e.g., Asian-flavored pastry, and bread. In Italy, the syrups, coconut milk pancakes) and traditional ethnic Polenghi Group launched a 100% breakfast foods, (e.g., huevos rancheros, shakshuka, natural lemon juice spray. ashta) are among the hot U.S. culinary trends for 2015 Mushroom marmalades, veg- (NRA 2014). etable pestos, and umami butter (e.g., Something Fishy Irish Shellfish Munching Madness Culinary Butter) are other new Global snack sales reached $374 billion for the year cutting-edge trends. ended March 2014, up a mere 2%. While Europe and With one-third of global North America accounted for the majority of the pg 24 10.15 • www.ift.org Touring a World of Product Innovation Figure 1. Leading Snack Categories by Region, Including Sales in Billions. From Nielsen, 2014 sales of dips and spreads, including salsa and hummus, were up 6.8% North America Europe (Nielsen 2014c). Savory items (e.g., Salty Snacks $28 Billion Confections $47 Billion crackers, rice cakes, and pita chips) were among the fastest-growing Refrigerated Refrigerated Snacks $22 Billion Snacks $36 Billion snacks last year, up 21% in Latin America; meat snacks grew 25% in Confections $20 Billion
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