Translating Food & Beverage Consumer Trends for Market Success

Understanding consumer trends is vital to many organizations in the ever-changing health and nutritional marketplace. And as consumer attitudes translate into behavioral patterns and respective product usage patterns, knowledge and insight about such trends are a prerequisite for many strategic initiatives.

One of the fastest changing markets in response to consumer demand is the food and beverage area. The Natural Marketing Institute (NMI) has identified several top food and beverage trends facing product developers and marketers. The trends include food as medicine, energy and vitality, children’s nutritional challenges and ethical consumerism.

Food as Medicine

The notion of ‘food as medicine’ has been evident for thousands of years. More recently, once relegated as a morning refreshment, orange juice is now consumed by many for its calcium content. As consumers begin searching for new delivery systems and product formats, they are beginning to transfer their interest and buying habits from condition-specific supplements into functional foods and beverages. In fact, two out of five consumers believe functional foods can be used in the place of some medicines, a 54-percent increase since 2003.

While 49 percent of consumers use condition specific supplements, 65 percent report using functional foods, a number which has grown 40 percent from 1999 (Figure 1). Consumers are initially driven to use functional foods and beverages for overall health and wellness, but the specificity of use is a driving trend. Based on NMI’s annual Health & Wellness Trends Database™, it is clearly evident that a majority of consumers would use food and beverages to prevent many specific medical conditions, including blood sugar imbalance (67 percent), high cholesterol (67 percent), intestinal irregularity (65 percent), diabetes (64 percent), and heart disease (63 percent).

While some health and medical conditions are more prevalent among older Americans, weight management, energy and appearance are of particular relevance and represent strong platforms for younger consumers, especially those aged 26 to 35. As so, aligning consumer targets by health conditions is vital to any marketing strategy (Figure 2).

It is also becoming increasingly evident that more consumers are hearing the message of ‘health through diet.’ In fact, almost two-thirds of consumers have added foods to their diet to eat healthier and are looking to functional foods to provide extra health benefits.

The stage is now set for the continued expansion of functional foods/beverages. First, scientific and technological discoveries continue to uncover new functional ingredients and platforms, allowing a range of ingredients to be added to many foods and beverages without altering taste or texture. Second, the use of specific communications and packaging claims on various foods and beverages are easing consumer confusion and providing the basis for healthier food choices. Third, increased consumer packaged goods competition in general has created the opportunity for food and beverage manufacturers to differentiate their products, with“ health-related functionality” now representing a viable plat form a cross many applications.

Click here to view graph

Energy, Vitality and Balance

Three-quarters of all U.S. adults are living a healthy lifestyle in order to have energy to do the things they want to do. With a third of consumers concerned “a lot” about preventing lack of energy and almost half seeking foods that provide them with energy, it is clear why energy and vitality is a growing platform manufacturers and retailers should not overlook. It is interesting to note that concern over preventing lack of energy shows relevance across all age groups, highlighting a major lifetime value opportunity.

In addition, the notion of energy has many dimensions and broader applications of this category are developing among consumers. Whereas many may relate energy with regard to the “spikes” brought on by caffeine or sugar, more consumers are recognizing that to avoid the highs and lows during the day, their diet needs to provide a sustained level of energy. Almost half of consumers realize that foods can help maintain constant blood sugar levels and sustain energy levels, clear evidence that the post low carb era is morphing as a sustained energy platform.

With more than half of consumers indicating they would use food or beverages to prevent and treat lack of energy, and the proliferation of energy products in the market, it appears evident that energy and vitality will continue to be a strong and viable category for the food and beverage industry.

Nutritional Challenges in Households with Children

Parents face many challenges regarding their children’s nutritional needs. While almost three-quarters of parents say they actively teach their children the importance of proper nutrition in the foods and beverages they consume, only a third of households with children under 12 feel their child is knowledgeable regarding nutrition. In addition, only 15 percent of parents with teens feel they are successful in getting their child the proper nutrition. In fact, one out of four parents feels they have little control over what their kids eat.

Part of the challenge is the continued demand on taste (versus nutrition); approximately one-third of households indicate that taste is the only thing that matters when it comes to what their child will eat. In addition to taste, parents also seek healthier snack ideas, with seven out of 10 parents stating snacking can be part of a healthy diet. Taste is not the only barrier, as two-thirds of households with children are not willing to give up convenience for health.

The desire for convenience coupled with a decreased parental control may have some heavy consequences. Weight management has become much more of an issue for households with both young children and teens, with parents reporting that over half of teens (56 percent) and young children (52 percent) are managing their weight. And two out of five parents agree their child needs more exercise.

A hectic lifestyle may also be creating challenges for parents who are trying to ensure their child is getting the proper nutrition (Figure 3). NMI research shows over a third (38 percent) of working mothers are not monitoring many important ingredients in their child’s diet such as sugar, cholesterol, calories and fiber—higher compared to non-working mothers. Parents with teens show higher limiting behavior regarding the amount of cholesterol and trans fats in their child’s diets, while households with young children limit more allergy-oriented items like dairy, pasta and wheat, and negative ingredients such as caffeine and artificial sweeteners.

While parents of young children are trying to limit the amount of sugar their children consume, they are more likely than households with teens to use table sugar on a regular basis, possibly preferring to offer their children something natural as opposed to artificial. This opposition to artificial ingredients appears to be part of the “organic halo” that exists in households with young children, as the majority believes organic foods are better for their children.

Click here to view graph

Ethical Consumerism

According to NMI’s LOHAS (Lifestyles Of Health And Sustainability) Consumer Trends Database™ segmentation model, consumers are shifting away from the “unconcerned” segment, characterized by little to no environmentally responsible behavior, where society and the environment are not priorities. These consumers are shifting into segments that either dabble, accept or embrace many environmental and societal responsibilities.

This shift has considerable implications across many aspects of an organization, from its social responsibility behavior, to its manufacturing practices and sustainability efforts, to its packaging. As consumers grow more concerned about the need to preserve and protect the environment, they will look to companies to do their share to protect the environment. An example of this trend in foods and beverages is related to fair trade practices, with about half of all U.S. adults indicating the use of fair trade certified ingredients are important to their purchase decision.

In fact, over half (60 percent) of all U.S. adults indicate that knowing a company is mindful of its impact on the environment and society makes them more likely to buy their products, be more loyal to the company (57 percent), and more likely to talk to their friends/family about the company (52 percent).

Click here to view graph

The most environmentally dedicated segments, the LOHAS and “naturalites” segments continue to raise the bar as far as expectations of companies and their responsibility to manufacture in a sustainable manner, to use renewable energy sources and to provide recyclable packaging. In fact, approximately three-quarters of the U.S population feel it is important for a product to not only use minimal packaging but also environmentally friendly packaging materials.

From sourcing to usage to post-consumption, these “cradle-to-grave” opportunities exist across all organizations to become more eco-friendly. Keeping an eye to the most entrenched segments should prove most opportunistic. 

Steve French is managing partner with The Natural Marketing Institute (NMI), a strategic consulting, market research and business development firm specializing in the health, wellness and sustainability marketplace. For more information on NMI’s services or proprietary research tools, contact French at [email protected].