Foodnavigator-usa Podcast

Consumer tolerance is running out for food and beverage companies raising prices to offset inflation, based on volume and sales declines reported by several large CPG manufacturers during the most recent round of quarterly earnings calls.

Water stewardship and use claims are quickly emerging as a top trend in 2024 and could become a “tiebreaker” between competing products as consumers become progressively concerned about sustainability amid increasingly inconsistent rainfall – including droughts and floods – that threaten crops, livestock and overall wellbeing.

Nearly a third of Americans are self-described “health-conscious snackers,” according to new research by YouGov, which also found 35% of healthy snackers are willing to spend more than $50 on snacks each month.

Consumers increasingly are weary of “drinking empty calories,” and are instead looking for less sugar and more functional benefits from their beverages – be it enhanced hydration, gut-health support, mood and mental health management or permissible indulgence from drinks that cut the calories but not the flavor.

Meaningful innovation in the consumer packaged goods industry has ground nearly to a halt post-pandemic for all but an “elite 20%” of companies, according to the Boston Consulting Group’s latest Build for the Future Survey, which analyzes insights from more than 1,000 C-suite executives, including from 68 CPG companies, about their ability to harness their “innovation vision” to accelerate growth, enhance operations and compete effectively.

Despite buckwheat’s status as a superfood staple in many parts of the world, including as the base for soba noodles in Japan and in kasha in Ukraine, the protein- and fiber-packed pyramid-shaped seed has struggled to secure a stable spot in the US diet – until now.

A third of global consumers consider cheese a staple, with most buying the dairy product because they love the flavor or are drawn to its health benefits, according to Innova Market Insights, but industry innovators add those are not the only reasons sales of cheese in the US are steadily climbing.

Sales of clean label products are outperforming total store sales, according to new research from the Acosta Group which also found consumer interest in products free of “bad” ingredients or “chemicals” is rising alongside high-profile state legislation seeking to ban specific food additives.

Can the humble hotdog help slow or even reverse the negative effects of climate change? According to natural and organic meat brand Applegate Farms the answer is yes – especially if it is made with regeneratively farmed beef, which the company is committing to using for all of its beef hotdogs by the end of 2025.

Beverage sales have outpaced that of food within the specialty segment in the past decade, according to the Specialty Food Association, which attributes the boom to an increased demand for functional benefits, a faster pace of innovation and a lower threshold for initial trial.

Sustainability may not be as highly prioritized as taste or price in purchase decisions for food and beverage, but research suggests it is increasingly important to consumers -- especially younger shoppers who are coming into their buying power.

With the recent launch of an AI-powered Smart Assistant, leading business-to-business e-commerce platform Alibaba.com wants to help level the playing field and increase the odds of success for small and medium enterprises and solopreneurs by simplifying their sourcing and supply chain operations.

Regenerative agriculture may be a relatively new or unknown concept to most US consumers, but new research by ADM suggests that as shoppers’ awareness of the practice grows so too does their trust in retailers and brands that implement its tenets and their intent to buy products sourced from those that practice it.

A resounding theme of “better” emerged at the Winter Fancy Food Show in Las Vegas last week, where more than 1,200 specialty food companies came together to showcase the latest innovations in cheese, condiments, baked goods, snacks and more.

Historically, most Americans have liked to keep their food and tech separate, as in the case of genetic modification, but research from animal-free dairy company New Culture suggests the majority of consumers will accept technology or unfamiliar production methods if the taste and texture of food are uncompromised and if there are added benefits, such as for the planet or animals.

Once considered taboo and woefully underfunded in terms of research and product development, women’s health will continue to emerge as a major growth opportunity for food and beverage brands in 2024 as hormonal health and menopause rise to the top of the list of health claims fueling social discussions.

Tea’s inherent functional benefits, positive sustainability messaging and diverse usage occasions, formats and flavor profiles should make it a shoe-in for US consumers searching for healthier options that don’t compromise taste or convenience, and yet it is often overshadowed by other beverage categories, revealing opportunities for brands to better communicate the value proposition of and stories behind their products.

As an early adopter of the “triple bottom line” framework, the premium confection company Endangered Species Chocolate has been “doing well by doing good” for 30 years by responsibly sourcing ingredients, supporting fair trade, prioritizing sustainability and giving 10% of its annual net profits to conservation efforts.

After Perdue Farms received unsolicited but ultimately what it characterized as “fair” criticism for its approach to animal care years ago, the protein producer began inviting annually animal welfare advocates, farmers, academics and stakeholders from across the value chain to visit its farms to share concerns, ask questions and offer feedback after learning how the company currently approaches its business, how the broader landscape is changing and what the future may hold.

Snacking in the US continues to climb, according to data from Circana, despite predictions that a surge in the frequency and sales of snacks during the pandemic was unsustainable and would revert to pre-COVID levels as consumers returned to in-person events and adopted a hybrid lifestyle.