With inflation leading to rising food prices and an increased focus on better-for-you food products, the food ingredients industry is facing a myriad of challenges.
Cargill, a fast-moving consumer goods giant, recently put together its TrendTracker for the tenth year in a row. Food Dive sat down with Keith Albright, the company’s marketing insights and analytics manager for North America, at IFT First in Chicago earlier this month to discuss the findings.
“Healthy for me and Mindful Eating”
For the past few years, a growing number of consumers are looking for ways to move towards a healthier but still fulfilling lifestyle.
“Mindful eating,” has become a buzzword. It basically conveys the idea that consumers avoid certain ingredients and opt for products with labels like “natural,” “clean-label,” “whole,” and the like, according to Albright.
At the crux of this trend is natural aspirations and ingredient avoidance, said Albright. Consumers want to recognize what’s on the label.
In order for food companies to be agile with this trend, they need to rethink how certain food products are conveyed to consumers via packaging and marketing.
“We know that our high intensity sweeteners are natural. But do consumers think that? The truth of it is, sometimes they don’t,” said Albright.
When consumers don’t feel they understand certain ingredients and what they are eating, companies may lose the chance to catch them at their point of purchase, Albright added.
Cargill’s TrendTracker found 62% of consumers read food product labels.
“It’s not like they’re picking up a product and meticulously going over the ingredient deck, but it would take the two of us probably about two seconds to look at the ingredients and go ‘I’m out,’” said Albright, stressing that companies need to hone in on those two seconds.
In terms of specific ingredients that consumers are avoiding, 72% said sugars, 47% said sodium and 41% said saturated fats.
Ingredient focus is a bit different than reading labels on packages, said Albright.
Consumers are not only looking to include certain ingredients into their diets — and avoid others — but they also want to understand more about them.
Forty-four percent of consumers were found to have an interest in food and beverage for medicinal benefits.
“This is a great example of the tension between seeking goodness and that convenience factor,” said Albright.
BodyArmor, for example, does a good job in conveying what they offer to consumers and the health benefits consumers can expect, according to Albright.
The trend of “eating to live” was one that surprised Albright.
“As you go about targeting different demographics, from Gen Z to the millennial to the X or Boomer, and as you go through the life cycles, first they are interested in energy, then brain power, then heart health, and then it’s about weight management and as you get older, personalized nutrition.”
“Conscious consumption”
Health, convenience, value and experience have always been at a crossroads when it comes to consumer decisions. The inner workings of how these factors play into purchases is what has changed.
According to Albright, there are two main trends here. One is “value accelerated” — which means consumers are looking for more ways to stretch a dollar in their food budget without sacrificing the value of the food.
“It’s not all about price, value means something different for consumers now,” said Albright.
During the recession in 2008, consumers would switch to a private label or opt for a cheaper brand when they didn’t have the money. Now, they aren’t as willing to do that if the brand doesn’t align with their expectations and fit to their taste, according to Albright.
“Transparency and trust are another big component of this trend,” he said.
Forty-six percent of consumers agree that for a food and beverage to be healthy, it must be healthy for them and the environment.
“Consumers are taking on a ‘right factor,’” said Albright, meaning they feel as though their purchasing decisions do more than affect the way they eat and their overall health. If you think about a parking lot of 500 for a gym club, and someone throws their trash on the ground, “the interesting thing here is they’re going in to take care of their body without taking care of the environment. So one of them in a parking lot of 500 represents that trend is more caring about the environment and themselves.”
“Experience it”
Despite an increased focus on better-for-you food products, consumers are still looking for a sensory experience in a guilt-free way.
“Taste is still king,” said Albright. “Indulgence is really important to the mind and to your total satisfaction.”
The restaurant industry has taken a hit from both the pandemic and now with consumers looking to cut down on food budgets. And taste is a huge factor in consumers deciding what to eat and where, according to Albright.
“Simplify my life”
This final trend is all about the ins and outs of eating, the balance of food service and omnichannel and do-it-yourself dining support.
“I always like to say, five to ten years ago, who would have thought we would be comfortable getting in the car with a stranger, paying them and giving them our credit card number? Right now, who would have thought that we were completely comfortable with having a stranger to deliver our food?” said Albright. “It’s that openness that makes my life simpler, it’s really unique to see.”
Fifty-six percent of consumers now say they order groceries online, the report said. This rate picked up during the pandemic, according to the report, that growth has slightly slowed down but it’s here to stay.
Cargill’s report also showed that 65% of dinners take less than 30 minutes to make.
One trend that Albright was surprised to see was how much of an impact social media has had on eating patterns.
Forty-six percent of consumers said technology makes food preparation quicker, helps save time and makes the experience more enjoyable.
“So the complexity that technology can often bring is actually participating in the enjoyment factor of it,” said Albright.
Sixty percent of consumers say that social media has encouraged them to make healthier choices in their diet and lifestyle, according to the report.
