Post on 13-Apr-2017
The trends that will dominate the food industry in 2017January 2017
Innovate or die
IntroductionThe world’s food industry is incredibly dynamic, intensely competitive and relentlessly creative
With consumers demanding more than ever, offering foods and drinks that stand out from the crowd and tap into their ambitions – or help alleviate their concerns – is becoming more a prerequisite than a “nice to have”
Here I summarise the eight trends I think will dominate the food and beverage industry this year.
1. Reformulation prevails Reformulation has already become a constant for many
established brands and will continue in 2017 This will be driven by:
ongoing reduction of salt and satfat in sauces, bakery, dairy etc the sugar backlash, which will impact many sectors beyond soft
drinks and many countries beyond the UK the natural trend: formulating out artificial colours, flavours and
preservatives legislation: expect EFSA, the FDA and other
authorities to extend action on specific ingredients and categories. The FDA’s PHO ban comes into force in 2018, and it looks likely EFSA will reduce ADIs for various colours
cost concerns: inflation, discount retailers and thriving competition mean manufacturers’ margins will remain tight and savings need to be found.
Photo: DSM Food Specialties
2. Organic blossoms – but only so farOrganic options are now a mainstay in many retail categories, especially fresh produce, dairy and meat
Western Europe and the US will remain the largest and fastest-growing markets. Rabobank predicts CAGRs of 6.7% and 7.6% respectively over the next nine years
Demand is being driven by consumer concerns about the environment, food safety, health and animal welfareBut the stratospheric growth can’t last forever. Organic food production simply can’t keep pace with the amount the world consumes and price remains a barrier to ubiquity.
3. Meat under pressureThe US, China, Brazil and Europe will remain the world’s biggest meat eating nations
Although a core part of the human diet for thousands of years, red meat consumption will fall in mature markets, primarily in light of health concerns Poultry and fish will fare better despite environmental and
animal welfare concerns prevalent throughout the sectorWe’re still to see the full impact of WHO’s 2015 report into the link between processed meat consumption and cancer But this category’s biggest challenge for now is cleaning up
labels while ensuring adequate shelf lifeHowever, in developing markets, per capita meat consumption will continue its growth.
4. Beauty food
Collagen peptides, botanicals, natural-source vitamin E, aloe vera and green tea are tested, known and trusted
But as more companies jump on the cosmeceutical bandwagon, independent efficacy testing will become a prerequisite for long-term success.
First there was food that benefited health, now there’s a huge opportunity for “beauty from within”
Research & Markets believes the industry will be worth US$ 61 billion by 2020, with Asia-Pacific driving demand
Key areas of focus will include skin care, anti-ageing and hair care
Photo: DSM
5. The power of plants In line with the natural and sustainable trends that will prevail in 2017,
I expect an even greater focus on plant-sourced food and drink ingredients
Plus, veganism, vegetarianism and flexitarianism are all still on the rise
Plants can be healthy and appealing sources of nutrients and characteristics we want of our food today, such as
Protein, which can be obtained from algae Colour, from vibrant vegetables like red beet Acidity, from crop ferments Sweetness, thanks to stevia or fruit concentrates Cosmetic benefits like those offered by botanicals
Photo: SVZ
These ingredients will increasingly replace artificial additives, animal-derived ingredients, allergens and unhealthier options like fat and sugar.
6. Scrutiny of labelsThe clean label trend is no longer limited to premium and mid-market brands. Consumers will continue to refuse ingredients they don’t recognise No category or retailer will be exempt from this attention
And I think authorities will again step up efforts to ensure labelling is always accurate. The food industry still has work to do when it comes to consumer trustMaintaining quality standards while achieving the “perfect” label may require some or all of the following: Ingredient innovation Applications expertise Changes in processing methods New packaging solutions
Photo: Corbion
7. Expansion of the sugar warWhere soft drinks started, other sectors will follow
Already some chocolatiers and confectioners are cutting sugar levels in their products
Dairy foods, especially those aimed at children, will come under the spotlight too
As will breakfast cerealsAs sugar reduction affects both taste and texture, creative solutions are needed, especially in developed markets where natural alternatives are the preference
8. Free-fromThe free-from market began with the need of some consumers to avoid certain allergens This is still a major driver, with allergies being diagnosed in
more and more people each yearBut free-from now has a more ethical dimension too and is gaining popularity among the “worried well”
Double-digit growth is being forecast in large markets, helped by major improvements in quality, taste and choice
Opportunities are even bigger where manufacturers tap into other trends like the power of plants, experimentation with foreign cuisine and health & wellness
What else?Disruption: never has there been more appetite or opportunity for small, local artisan food producers and start-ups who aren’t shackled by the rules that govern multinationals. Supported by initiatives like Reimagine Food and facilitated by a resurgence in “buying local,” expect fantastic creativity from businesses you’ve not heard of yet
Fixing what’s wrong: for all its strengths, the food industry can improve in many areas. Waste reduction is already a key focus and will remain so. Improving working conditions in developing countries that grow and supply the world’s crops will also top the agenda in 2017.
Join the conversation!What do you think? How will these trends impact your business? And how can BDB help you take advantage of them? We love to talk shop. Find us here…
@zoe_wilkins @bdbmarketing
zoe@bdb.co.ukideasthatconnect@bdb.co.uk
+44 161 925 4700