CONSUMPTION BEHAVIOR AND TRENDS: FRESH INSIGHT REPORT UNDERSTANDING THE SHIFT REQUIRED TOWARDS HEALTHY, SUSTAINABLE AND ENJOYABLE DIETS - WBCSD
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FReSH insight report CONSUMPTION BEHAVIOR AND TRENDS: Understanding the shift required towards healthy, sustainable and enjoyable diets
Food Reform for Sustainability and Health (FReSH) thanks the following companies for their contributions to this insight report on consumption behavior and trends. FReSH consumption workstream leaders: FReSH consumption workstream member companies: FReSH would also like to thank the following organizations for sharing their case studies in this report: 2 FReSH insight report
FReSH insight report 3
4 FReSH insight report
Content
1. Private-sector opportunity for a shift towards
healthy, sustainable and enjoyable diets within
planetary boundaries
2. Introduction
The changing food landscape demands urgent adaptation 12
FReSH as a driving force behind transformation 13
3. Understanding consumers and future trends 14
Current consumption behaviors 16
Food preferences and choices 19
Barriers and enablers 20
Food influencers 23
Food trends and future drivers 24
4. Opportunity areas for the private-sector to
drive transformational change towards healthy
and sustainable diets 28
A . Innovation 29
B . Proactive self-regulation 30
C . Shaping demand by engaging with people in the right way 30
Promising examples from selected companies towards the FReSH
shared ambition 33
Company examples 34
Danone 34
Kellogg Company 35
Nestlé 36
Sigma Alimentos 37
Sonae 38
Stora Enso 39
Unilever 40
Research and advocacy 42
Smart Food 42
World Resources Institute 43
5. Conclusion and outlook 44
6. Acknowledgements 46
FReSH insight report 5
1. Private-sector opportunity for a shift towards healthy, sustainable and enjoyable diets within planetary boundaries 6 FReSH insight report
As businesses we have provided a broad set
of food choices to people for decades. In this
era of increasingly constrained resources,
population growth and dietary-related disease,
we need to deliver a broad set of food choices
that all taste good, are nutritious, healthy and
sustainable.
To drive these better choices we must
harness our knowledge of trends, behaviors
and attitudes to food and align our business
models within this paradigm shift.
Peter Bakker,
President and CEO,
World Business Council for Sustainable Development
FReSH insight report 7
Our global food system is unsustainable, unequal,
destabilizing and unhealthy.
Not only is one third of food And while we acknowledge that Besides the societal and
produced lost or wasted and business has played a key role in environmental urgency, improving
40% of agricultural soil degraded, these systems both on the positive food systems also provides
800 million people are also and the negative side, businesses a significant global business
undernourished while food are joining forces to transform them. opportunity: A worldwide food and
insecurity generates civil unrest. In order to identify best practices agriculture system in line with the
In addition, two billion adults are to address the consumption Global Goals has an estimated value
overweight, leading to increased challenges listed above and to potential of over US$ 2.3 trillion at
health care costs and a rise in improve the value chain, a joint current prices.
noncommunicable diseases program has been established
in both the developing and the between EAT and the World
developed world. Business Council for Sustainable
Fixing this broken system will require
Development (WBCSD): Food
Reform for Sustainability and Health
US$ 2.3 T
a full-scale transformation. We (FReSH). It is designed to accelerate is the estimated
need to provide healthy, enjoyable transformational change in global value of food system
diets for all while contributing to food system, ensure healthy, in line with Global
Goals
socioeconomic development enjoyable diets for all, and provide
and minimizing (and eventually foods that are produced responsibly
eliminating) environmental impacts within planetary boundaries.
and waste.
8 FReSH insight report
This report assesses people’s Looking into the future, seven When FReSH was
food behaviors, their preferences, major trends forseen by
and how they select food, showing our member companies are
launched jointly by
that while several patterns summarized, which will guide food EAT and the WBCSD,
can be categorized, there is consumption in the near future. a set of workstreams
no clear and objective way to Based on those findings and
project the behavior at any given the identified trends, this report
were created across
moment. Several influencers are proposes three opportunity areas the value chain,
furthermore identified, which for the private sector to accelerate from production to
play a critical role – sometimes businesses’ contribution towards
from a very early point in our lives. a positive change of the food
consumption.
While those influencers are very system: (i) innovation (ii) proactive The consumption workstream set
important to understand how to self-regulation and (iii) shaping out to provide an overview of the
drive transformational change, demand by engaging with aggregated knowledge shared
this report also assesses barriers people in the right way and gives confidentially by our participating
- namely affordability, accessibility, examples of current initiatives and member companies as well as
and food safety - that prevent a projects moving in that direction. publicly available consumer insight
shift towards a more healthy and reports. This report is a summary
sustainable diet. of findings and observations
collected from nearly 80 consumer
research reports. It provides
a common base of knowledge
about people’s food consumption
behaviors, their preferences, and
how we as people select food both
globally and across eight regions—
broken down into developing and
developed regions
This report does not intend to
address a specific gap in consumer
research or provide detailed
scientific proof of each trend
identified, but rather to provide
transparency on consumption
insights and opportunities
identified by the program. The
presented information is only
a starting point meant to serve
as food for thought and a basis
from which to further develop
opportunity areas and ideas such
as looking at how business has
driven consumption patterns and
internal drivers.
In addition, the report highlights
the work that member companies
and others are already doing to
help accelerate positive consumer
behaviors, preferences, and trends.
These are first steps toward the
FReSH shared ambition and the
right transformational direction.
FReSH insight report 9
2. Introduction 10 FReSH insight report
A full-scale transformation of the food system is required to
enable healthy, enjoyable diets for all while contributing to
socioeconomic development and minimizing (and eventually
eliminating) environmental impacts and waste.
Businesses interact with customers For instance, reducing food waste The majority of the food consumed
in different ways and with different in the value chain is estimated to be throughout the world is produced
purposes. While it is acknowledged worth up to US$ 405 billion a year and supplied by the private
that every business has to promote by 2030, while low-income food sector. This puts large and small
its own products in order to make markets are valued at up to businesses at the heart of both
profits, there are many examples US$ 265 billion in revenue growth1. the challenges and the solutions.
of how making profits and “doing Where traditionally the focus of The companies that embark on
good” can be combined. efforts to address food system this transformation journey first
sustainability issues was on farm have the chance to demonstrate
The potential value for a worldwide
to fork, it is now time to look at fork leadership and position themselves
food and agriculture system in line
to farm: considering consumers’ ahead of the curve.
with the Global Goals is estimated at
needs and desires at the heart of
US$ 2.3 trillion solutions to enable longer-term
consumption shifts while taking
at current prices.
a complete value chain approach
that links food consumption to
production, distribution, and
agriculture.
1
Business and Sustainable Development Commission, 2017. Better Business Better World. Available at: https://sustainabledevelopment.un.org/
index.php?page=view&type=400&nr=2399&menu=1515
FReSH insight report 11The changing food landscape demands urgent
adaptation
At present, agriculture is estimated In general, digital platforms have the
to be the driver of around 80% potential to change consumption
of deforestation and 70% of
freshwater resource usage
behaviors by increasingly providing
consumers with consistent and
80%
worldwide. Because of pollution high-quality food, consumption of deforestation
and depletion of water resources, data, and speed of delivery.
28% of agriculture (including 58% Powered by increasingly capable and 70% of
of irrigated cropland) already mobile technologies, consumer freshwater
takes place in water-stressed choice is also greatly influenced by
regions2. Moreover, nearly 70% social media. While technologies resource usage
of all agricultural land globally is are enabling increased food through agriculture
considered degraded: eroded or transparency and accessibility
robbed of its nutrients by poor land in urbanized areas, the increase
management and rapidly losing its in low-end discounters and
ability to provide sufficient food to price transparency can enable
local and far-flung populations. food access in low-income
66%
Population and economic growth neighborhoods and communities.
brings an increased use of these While the world is wealthier than it
natural resources, creating has ever been, with people in the
greater pressure on food systems middle-income bracket making of the world’s
and the land, water, and energy between US$ 10 and US$ 20 per
required to grow food. Since the day doubling in the last 15 years4,
population
world’s population is projected to income inequality remains one expected to live
reach 9.2 billion people by 20503, of the biggest social challenges
sustainable solutions need to we face, with 56% of the world’s in cities by 2030
be found. In addition, 66% of the population in the low-income
world’s population is expected to bracket5. In addition, the cost of
live in cities by 2030. The increase living is increasing faster than
of diverse cultural backgrounds income for many people, impacting
and skill sets in big cities is creating their consumption power and the
an emerging middle class that foods they are able to buy.
demands a greater choice of foods This is especially critical since food
and flavors. prices are expected to double
Consumer choice
over the next two decades6, mostly greatly influenced
by social
Convenience will also be a major affecting the emerging middle
driver of food consumption in classes living in cities who are
cities, since time is a scarce
resource. As people become more
dependent on cash from jobs in
a vulnerable job market threatened
media
urbanized, their food selection is by increased robotization.
increasingly determined by what is
quick, available, and ready-to-go.
All in all, the changing food
Therefore, hyper-convenient digital landscape is presenting
shopping will play a big role, since it is serious challenges that
making food accessible everywhere need to be addressed by
at any time. all players involved.
2
Food and Agriculture Organization of United Nations, 2017. The Future of Food and Agriculture
3
https://www.un.org/development/desa/en/news/population/world-population-prospects-2017.html
4
http://www.pewglobal.org/2015/07/08/a-global-middle-class-is-more-promise-than-reality/
5
http://www.pewglobal.org/interactives/global-population-by-income/
6
https://www.theguardian.com/environment/2011/may/31/oxfam-food-prices-double-2030
12 FReSH insight report70% World’s
population
FReSH as a driving
force behind
of all agricultural transformation
projected to reach
land globally In order to identify best practices
considered 9.2 billion to address these consumption
challenges and deliver improved
degraded people by 2050 health and sustainability along the
food value chain, a joint program
has been established between
EAT and WBCSD: Food Reform for
Sustainability and Health (FReSH).
It has been designed to accelerate
transformational change in global
food systems in order to provide
Convenience
healthy, enjoyable diets for all-diets
Digital shopping that are produced responsibly
as major driver making food within planetary boundaries.
of food accessible To achieve this ambitious goal,
FReSH has brought business and
consumption everywhere at science to work together. It draws
in cities any time on global knowledge and efforts
from premier research institutions
and is working with the business
community to develop successful
and impactful solutions.
Putting the consumer at the
center, FReSH has emphasized
understanding consumption
56%
behavior and trends since its
Food prices launch in mid-2016. With currently
expected around 40 member companies,
of the world’s
to double
FReSH is trying to catalyze change
across food systems, now focusing
population in
over the next on a number of transformational
low-income goals, specifically dietary shifts,
two decades food loss and waste, the true cost
bracket of food, and addressing hunger
in supply chains, along with
measuring and reporting.
13
FReSH insight report 133. Understanding consumers and future trends 14 FReSH insight report
The focus of the work within the consumption workstream
of FReSH has been to assess people’s food consumption
behaviors, their preferences, and how they select food -
based on over 80 reports from public sources and member
companies.
We have evaluated the main The heat map in Figure 2 provides The original research conducted
influencers of food selection, a consolidated overview of the by the consumption workstream
assessed the main barriers, and relevance of global behaviors analyzed eight regions of the world.
identified the major trends shaping based on the “food consumption” This report provides a high-level
future food consumption. workstream’s research findings. summary of this work by focusing
It also includes consumption on the aggregated global findings;
The objective of this work has been
behavior barriers and enablers, the detailed findings would go
to highlight the food consumption
as well as future trends across beyond the scope of this report
trends and behaviors that need to
eight different regions, and shows but are available to FReSH member
be accelerated, and conversely
the relative importance of a topic companies upon request.
those that need to be decelerated
across regions, from insignificant
and eventually reversed, in order
to highly relevant.
to identify concrete steps to
improve the food system and to
subsequently support a healthy and
sustainable diets within planetary
boundaries.
FReSH insight report 15Current consumption behaviors
A growing number of people around the world are seeking healthier
lifestyles. However, there are many factors influencing people’s
food choices including availability, affordability, cultural preferences,
lifestyles and convenience.
As seen on the Relevance Heatmap Figure 1: Definitions for Relevance Heatmap
(Figure 2), a few major consumption 1. BEHAVIORS EXPLANATION
behaviors stand out globally today: Convenience and on-the- go Speed and ease as a key purchase factor
Food as a treat Food as a reward or stress relief towards instant satisfaction
Food as self-expression Food as a reward or stress relief towards instant satisfaction
• Convenience and on-the-go: Food as an experience Desire to discover new products or features and add
them to one’s diet
Search for healthier eating Demand for natural, organic, simple, and less processed foods;
The time investment required to strongly driven by Millennials
access a meal can be as influential 2. FOOD PREFERENCES
in the food selection process AND SELECTION
as nutrition or ingredient claims. Simple, real, natural Search for minimally processed and more natural or organic foods
Low in sugar, fat, lactose, etc. Low in sugar, fat, caffeine, and components leading to intolerances
Less formal meals, up to six, are Ethical Ethical attributes in foods such as fair trade, organic, portion
replacing the traditional three meals control, and fortification certifications
Adoption of a flexitarian diet, one that is plant-based with the
Flexitarian
a day. Complete meals are being occasional inclusion of meat
substituted with quick mini-meals and Smaller portions Consumption of smaller portions of food in general and of
indulgence treats in particular
snackification, both at home and on Processed foods Desire for convenient processed foods as a result of an urban
the go, to adapt to people’s lifestyles, lifestyle
High animal protein consumption, mainly meat
especially in cities. In the UK, The Animal protein
3. BARRIERS
Telegraph called millennials the Availability Sufficiency of the national food supply, the risk of supply
“takeaway generation,” with research disruption, national capacity to disseminate food, and research
efforts to expand agricultural output
showing that they are ordering up Affordability Ability of consumers to purchase food, their vulnerability to price
to 10 pizzas a month. This growing shocks, and the presence of programs and policies to support
customers when shocks occur
trend is linked to the ease of ordering Food safety Variety and nutritional quality of average diets, as well as the
meals with an increase in the number safety of food
of services such UberEats, Deliveroo, 4. INFLUENCERS
and Amazon. In Southeast Asia, there Social media Celebrity endorsements, Instagram, Facebook, online advertising,
and company websites’ influence on eating behaviors
was a 133%7 increase in the number Friends, family, etc. Recommendation from a friend or family member
of food and drink launches with on- Traditional media
Educational system
TV, radio, and newspaper advertising
School influence through food education and eating habits
the-go claims in 2016 compared to Regulatory Government initiatives to influence food selection towards better
2012. In Australia, Mintel shows a 55% choices
increase in the number of food and 5. TRENDS
Tradition Maintenance and celebration of traditional food habits
drink launches advertised as “on the Adventure Search for unique food experiences, new ingredients, and flavors
go” between 2012 and 2016. Plant-based Desire to eat natural, simple, and flexible diets, downsizing meat
protein consumption
Food waste elimination Industry and individual efforts towards food waste elimination
Hyper-convenience Time and ease of access as a key factor in product choice
Health awareness increase Desire for healthy and sustainable food as a means of achieving
well-being and quality of life
Accessible nutrition Increased demand for safe, affordable, and nutritious foods.
More people expecting to find affordable options in the
marketplace that are also healthy
7
https://foodindustry.asia/a-look-at-food-and-drink-trends-in-southeast-asia
16 FReSH insight reportFigure 2: Relevance Heatmap
Africa Developed Emerging Developed Emerging Latin Middle North
Asia-Pacific Asia Europe Europe America East America
Current consumption behaviors
Convenience & on-the-go
Foodie-ism
Search for healthier eating
Food as a treat
Food preferences & choices
Health and belief driven
Simple, Real, Natural
Low in sugar, fats, lactose etc
Ethical
Flexitarian
Small Portions
Desire driven
Empty Calories
Processed Foods
Animal Protein
Barriers
Availability
Affordability
Food Safety
Influencers
Friends, family etc
Educational System
Social Media
Traditional Media
Regulatory
Trends Trends
Tradition
Adventure
Hyper Convenience
Health Awareness increase
Plant Based
Food Waste Elimination
Accessible Nutrition
Insignificant Low relevance Medium relevance High relevance
FReSH insight report 17• Foodie-ism, the appetite for • The search for healthier eating Shifting towards
new food experiences and the is seen through an increase in
use of food as self-expression, flexitarians (those who prefer
healthier and more
is driven by Millennials and plant-based dishes with the sustainable consumption
Gen Z who want to experience occasional inclusion of meat) behavior will require
new flavors and textures. and the greater demand for
This diversity is driving food natural, organic, simple, and
to take into account
culture trends around the less processed foods, both in present eating behaviors
exploration of authentic, global developed and in developing and the relative
food experiences, seeking markets. Of particular interest
pleasure and indulgence. here are the “Millennial food
importance it has in
Foods from all over the world sophisticates” who seek foods different regions.
are now making their way on to that are minimally processed
menus and into packaged food. (66%) and more natural or organic Furthermore food systems and
People from Russia to Brazil are (65%). More of them (63%) believe consumption behavior change
more open to experimenting that they are eating healthier cannot be achieved without meeting
with new and exotic flavors and than their parents. Millennials are consumers where they are today. The
ingredients. In the United States, also constantly getting new food shift also requires an understanding
Millennials and Gen Z consumers information from social media and of how people’s food choices are
are ethnically diverse and friends. In the last five years, the made at the moment of choice, which
incorporate eating habits from number of products labeled as can be contradictory and do not
across many different cultures. vegetarian has increased by follow a clear rationale in the context
In developing countries, higher 25% and vegan by 257%8. of different circumstances and the
spending power has also led to person’s physical and emotional
increased demand for foreign • Food as a treat state at that point in time.
cuisine experiences. Familiar describes foods that serve
foods and traditional meals “with as rewards or stress relievers.
a modern spin” through They are becoming increasingly
packaging, recipe, or cooking popular, especially as more
(e.g., on-the-go format, instant) people move to cities and have
are also in high demand. In busy lifestyles, where food often
addition, in a world where provides emotional breaks
social media play such an and rewards towards instant
important role in the way people satisfaction.
interact, participate in groups,
and express themselves, an
increasing number of people are
sharing their food experiences
Products labeled as
vegan
on Instagram and other social Products
media channels. According to labeled as
a 2016 BBC Good Food Nation
vegetarian have increased by
257%
Survey, 40% of Millennials have have increased
25%
posted photos of their food on
social media channels. This trend by
raises awareness and appetite
for adventure and gourmet eating
and influences the food culture
among young people.
8
https://www.r-trends.ru/netcat_files/526/459/global_food_and_drink_trends_2017_mentel.pdf
18 FReSH insight reportFood preferences and choices
Predetermined food preferences influence people’s food choices,
but other external factors can also impact what people choose to
eat at any particular moment in time. In that context, two prevailing
choice categories have been derived that drive consumption
behavior at the moment of choice depending on an individual’s
circumstances.
This dual behavior is often displayed easy and appetizing for them to In one of our case studies from the
by the same individuals, who make good food choices, removing World Resources Institute, we show
make very different food choices the cost and access barriers how, e.g., language that increases
depending, for example, on their and ensuring that the food taste food appeal can positively influence
state of mind, the types of food appeal is enhanced and never consumer choices. FReSH will
offerings available at a certain compromised. continue to explore this topic as part
point in time, and also the type of of one of our current focus areas
Achieving impact calls for cross-
meal occasion. In some cases, the that deals with understanding how
sector collaboration and a joint
internal and external circumstances to make dietary shifts happen.
effort of research, business,
affecting an individual might
governments and civil society.
motivate them to make a health-
conscious food choice, while a
Figure 3: Health and desire driven preferences and choices
few hours later the same individual
could be making a choice driven by
desire rather than health concerns,
with the motivation of instant
gratification.
Therefore, in order to positively
shift consumption patterns towards
healthier and more sustainable
decisions, we must also understand HEALTH DESIRE
DICTATES CHOICE DICTATES CHOICE
how the context and the individual’s
state of mind influences motivations Simple, real, natural
e.g., super shots
Empty calories
e.g., prepared frozen meals
towards a health- or value-driven Low in
with a low-calorie claims
Quick processed foods
choice versus a desire-driven one. e.g., sugar
e.g., fast food
Ethical, sustainable
Animal protein
We have listed different elements
e.g., sustainably sourced
e.g., beef steak with French fries
Flexitarian, plant-based
of those choices on the Relevance e.g., plant based proteins Reward
Heatmap. Figure 3 sums up the
e.g., chocolate bars
Smaller portions
e.g., almonds Indulgent
main differences between the two Food as a remedy
e.g., donuts
prevailing behaviors towards food e.g., honey Large portions
e.g., super-size soft drinks
choices. Free from
e.g., gluten
Research shows that nudging
people to make better food choices
for themselves is not about telling
them what they should eat but
instead is all about making it really
FReSH insight report 19Barriers and enablers
While healthy foods are becoming more accessible and in many
cases also more affordable, people’s decisions on what to eat
also depend on physical, economic, attitudinal, psychological,
biological, and social barriers or enablers.
Some of the most important Creating the practices to Food safety
barriers include: enable access to safe and • Food safety continues to be a
diverse fresh vegetables concern in developing markets
Availability
and fruits is a critical step in where, for example, fresh
• Food deserts are common in
closing the nutritional gap in produce can be available but is
both developed and developing
many of these communities. not always safe to consume due
urban areas. They represent a
Building awareness and mental to water-borne diseases or lack
significant challenge for low-
availability of the taste and of hygiene while handling food.
income communities to access
health benefits of vegetables According to the WHO, about
nutritious and fresh foods in the
and fruits is also a key factor in 1 in 10 people in the world fall
community, affecting as many
closing the consumption gap. ill and over 400,000 people
as 20 million people in wealthy
die annually after eating
nations like the US9.
Affordability contaminated food.12
• In rural communities in
• Today, cost is one of the top
developing countries, there is
barriers preventing people
a need for greater access to
from buying fresh and healthy
nutritious fresh vegetables,
foods. This is true among low-
fruits, and other foods.
income and middle classes.
According to the World Health
In Asia-Pacific, fresh foods
Organization (WHO) “developing
account for as much as 60% of
countries face policy-related
food, grocery, and personal
and structural barriers to fruit
care expenses across retail
and vegetable production
channels, on average. Fresh
and availability”10 with many
foods account for 53% of
developing countries losing
average expenses in Europe,
30–40% of their fruits and
30% in the United States, and
vegetables grown after the
25% in Latin America11.
harvest.
9
https://www.ers.usda.gov/data-products/food-access-research-atlas/documentation/
10
http://www.who.int/bulletin/volumes/91/1/12-106955/en/
11
Nielsen, 2013, “Why retailers are keeping it fresh”
12
http://www.who.int/mediacentre/news/releases/2015/foodborne-disease-estimates/en/
20 FReSH insight reportUnderstanding the current
barriers to healthy and
sustainable food choices
is essential for the food
industry to tackle the
challenges that will drive
the transformation. While
these barriers vary by
region, affordability and
food safety are consistent
barriers around the world.
Food actors working to
turn barriers into enablers
towards healthier and
more sustainable eating
need to keep in mind that
“taste is king” in food.
Taste is indeed one of the
main drivers why people
buy food, so any efforts to
shift consumer behavior
should include a strong
taste proposition.
Business can play a vital role in
overcoming these obstacles by
turning supply chain, commercial,
and consumption barriers into
opportunities and enabling
more people to eat healthy and
sustainable diets.
Finally, while availability,
affordability, and food safety are the
most critical barriers, businesses
will need to continue to improve
nutritional value and understanding,
especially acknowledging that
dietary habits and choices develop
early in life.
FReSH insight report 2122 FReSH insight report
Food influencers
Eating behaviors are already shaped in people first formative
years as children learn what, when, and how much to eat based on
culture, family, attitudes, beliefs and surroundings.
The most important influencing • From childhood into influencers. Bloggers and other
factors are described in more adulthood, social context cultural food influencers are
detail below: strongly influences eating important stakeholders to engage
behavior. We eat differently in in reshaping the food narrative
• Parents play a critical role in
a social setting than when we and what constitutes a healthy
shaping their children’s food
are alone. Moreover, our dietary and sustainable diet relevant to
choices based on their own
choices tend to converge towards the local culture. This holds true
beliefs on what foods support a
those of close social connections. especially within the group of
healthy child.
Millennials, 40% of whom have
• Social media posted photos of their food on
• The school system and media recommendations received social media, according to a 2016
also influence a child’s eating from food influencers and BBC Good Food Nation Survey.
culture. Ingrained food beliefs close networks of friends and
or paradigms are shaped by the colleagues through the internet
child’s social context and have a or in apps can have a greater These influencers, as well as
direct impact on his or her food ability to reshape food narratives, people’s eating behaviors,
choices in the short and long e.g., gluten-free or GMOs, than preferences, and barriers
term. For example, today’s eating science-based narratives. The have created a food culture
culture makes it acceptable and success of the social media
even preferable for many families food influencers builds on the
and set of trends that will
to switch from daily home-cooked trust that people place on the continue to drive the food
meals to packaged foods and social media channel and the system in the future.
food services. voices of other citizens and social
We want to explicitly acknowledge at this point
that while business can play a key role influencing
people’s consumption behaviors – and not always
for the better – several of the societal influencers
listed above can have an even stronger influence
on people’s eating behaviors than individual
companies.
FReSH insight report 23Food trends and future drivers
Based on desk research with FReSH member companies, this
section lists some of the most important trends to impact food
culture in the near future.
Rooted in culture and tradition Food adventure shared with Hyper-convenience
technology
According to Mintel, two in three Food services are emerging that
Chinese adults prefer to eat a Around the world, we’re experiencing include personalized recipes,
familiar Chinese breakfast rather an insatiable appetite for sharable diets, delivery and ingredient
than newer Chinese or Western food experiences, tasting new customization in all possible
options13. The familiarity with ingredients and flavors, and turning combinations around people’s
the taste profile and certain local them into social currency. A new lifestyles. Time is a very important
flavors and recipes with the benefit wave of meal kits and customized consideration when choosing what
of increased convenience in the food services are gaining to eat and can counteract or even
format or preparation is a food momentum in developed markets, overrule nutrition and health factors
trend identified across cultures. demonstrating a new trend towards if a choice needs to be made.
Convenient packaging and food food customization and enabling
service solutions such as on-the- technologies that make it easier for
go and takeout are a welcome people to create, prototype, and
upgrade to the already familiar market unique food offerings.
foods they love.
13
https://foodindustry.asia/a-look-at-food-and-drink-trends-in-southeast-asia
24 FReSH insight reportHealth awareness increase Plant-based foods
Consumption
Increased individual and collective
consciousness are linking
Natural and simple diets are on
trend. The percentage of flexitarians behaviors and
healthy and sustainable food
with well-being and quality of life,
is growing across the world. The
United States and Australia are
future trends
thus supporting expanded food driving the trend in these early vary significantly
health and sustainability claims.
For example, in Japan there is
stages. In Southeast Asia, vegetarian
claims increased by 140% in the across regions.
a growing demand for healthier period between 2012 and 2016, and
and functional products as the vegan claims increased by 440%
population ages. In Australia, there during the same period for food and While in developing countries
has been a rise in popularity of juice drink launches in the region14. convenience, food as a treat,
detox drinks, as a result of celebrities and food adventure are the top
advocating them as a good way consumption behaviors and food
to cleanse the body of impurities. trends, in developed countries
Finally, there is also an emergence of the focus is on convenience and
personalized nutrition and DNA diets proactive health. Figure 4 on the
that are radically changing the way in next page provides an overview of
which people seek nutritional advice the most prominent behaviors and
and personalized health diets. future trends FReSH consumption
Food waste elimination work stream has identified for
different regions:
Mintel calls this trend “Waste Not.”
It captures the many industry and
individual efforts towards food waste
elimination. Many retailers in Europe
are already selling imperfect fruits or
have unused food collection plans.
This is still an emerging opportunity,
Accessible nutrition
with the United States and Europe
The demand for affordable nutritious leading the way.
foods for low-income and new
middle-class people is perhaps one
of the greatest growth opportunities
for food companies.
13
https://foodindustry.asia/a-look-at-food-and-drink-trends-in-southeast-asia
FReSH insight report 25Consumer trends worldwide indicate increasing demand for affordable
healthy and natural products
Figure 4: Top consumer preferences and trends by region
North America
• Convenience & on-the-go
• Foodie-ism
• Search for healthier eating
• Adventure
Latin America
• Search for healthier eating
• Food as a treat
• Adventure
26 FReSH insight reportEmerging Europe
• Foodie-ism
Developed Europe • Search for healthier eating
• Convenience & on-the-go • Adventure
• Search for healthier eating • Hyper convenience
• Adventure
Emerging Asia
• Food as a treat
• Tradition
• Adventure
• Hyper convenience
• Plant-based
• Accessible nutrition
Developed Asia-Pacific
• Convenience & on the go
• Search for healthier eating
Middle East • Tradition
• Foodie-ism • Plant-based
• Food as a treat • Accessible nutrition
• Hyper convenience
Africa
• Convenience & on-the-go
• Tradition
• Accessible nutrition
FReSH insight report 274. Opportunity areas for the private sector to drive transformational change towards healthy and sustainable diets 28 FReSH insight report
Although some businesses are already working towards a
positive shift in the food system, the private food sector needs to
do more to drive transformational change
While we recognize the role that Food redesign for convenience, be tailored to provide healthier and
public-sector regulation needs to health and sustainability: more sustainable meals.
play, we believe that business action Unfortunately, most convenient
In parts of the world where food
is also extremely important to drive foods today for the emerging
safety and food availability remain
the transformational change that middle class are not exactly healthy
a challenge and people still lack
is needed in the food system in the or sustainable. This opens up
access to clean water, milk, and
near future. The private sector can opportunities for food companies
vegetables, food manufacturers
use this opportunity to go beyond to redesign existing products as
and retailers can partner to
what the public sector regulates well as create radically reformulated
innovate and deliver affordable
and strive to be at the forefront of new offerings with a focus on
and accessible foods. The types
this movement. For that reason, connecting optimal processing,
of innovation areas are manifold-
the private sector is even more nutrient-rich foods, and alternative
from improved packaging and
important to drive transformative proteins to help close the gap.
conservation techniques to
change in consumption behavior
Sustainable packaging: smart solutions to advance
towards “healthy, enjoyable diets
Connected to the demand for local production and enhanced
for all, produced responsibly within
convenient foods, there are many transport. Food manufacturers
planetary boundaries by 2030.” opportunities to leapfrog on can also partner with other service
Based on the analysis report of sustainable packaging solutions. providers (public and private) to
the FReSH research findings, three There is also an opportunity to extend the market reach of existing
opportunity areas for the private push towards new methods of players at a lower cost. It’s a clear
sector have been identified. conservation, freshness inventory competitive advantage, unlocked
tracking, or resealable packaging to by brand value.
preserve freshness.
A. Innovation
Nutrient-rich foods:
Proactive health opportunities
in retail:
The list above
Many people today believe a
product is better for them because
Retailers can leverage trends of provides a sample
it is labeled as “free from” or “low
proactive health, convenience, and
diversified proteins by promoting
of clear innovation
in”, missing the bigger picture of
whether the food is nutrient-rich
products with those attributes, opportunities but is
and supports a balanced diet. Food
providing displays, and creating
maximum exposure in stores.
not intended to be a
brands can work to make foods
that are more nutrient-dense and
The adoption of new distribution comprehensive list
to promote the FReSH healthy and
and transparency technologies
can make it easier and more
of all the innovations
sustainable foods narrative aligned
with the fast-growing trend towards
cost-effective for people to the private industry
simple, natural, and real food
choose healthy and sustainable
foods aligned with their health
can help drive
through product innovations. preferences. New distribution forward to enable the
Alternative protein sources:
The growing trend towards more
and shopper opportunities can
be gained through retail solutions
transformation
diversified and alternative protein that serve food deserts in in the food systems.
sources opens up significant cities. Tracking technology (e.g.,
opportunities for product blockchain) can support more
innovation and mind-changing effective decision-making along
storytelling with protein sources the food supply chain on health and
coming from fish, insects, and sustainability impacts and drive
pulses, to name a few. greater transparency for shoppers.
Food and meal home deliveries can
FReSH insight report 29B. Proactive self-regulation to a single scalable change in food Focus on children:
labeling that can significantly reduce Educational initiatives and
Collaboration:
edible food waste by simplifying partnerships geared towards
The private sector can work
food labels to “use by” and “best if younger generations are needed to
throughout the value chain to drive
used by.” Technology can enable change the nutritional paradigms
proactive industry-wide initiatives
greater farm-to-fork transparency formed during early years of life.
towards FReSH’s shared goal
and nudge consumers to make In many emerging markets, when
of “healthy, enjoyable diets for
better choices by providing helpful parents move up to the middle
all, produced responsibly within
information that can positively class, they buy more packaged
planetary boundaries by 2030.”
influence their choices. foods for their kids and see this as
Harmonization: doing the right thing, as packaged
Reframing food value:
The private sector can help advance foods are more convenient and safe
Educational initiatives are needed to
and accelerate legislation on a to eat. The opportunity here is to
reframe the value of healthy foods
national and international level that ensure that parents don’t have to
and emphasize the health, taste, and
supports a shift towards a healthier compromise convenience for their
versatility benefits to create mass
and more sustainable food system. children’s health.
demand for healthy and sustainable
For example, a higher level of
foods. Beyond education, it also Make it easier to prevent food
label transparency with regard to
includes the opportunity to enroll waste through education:
health and sustainability of foods
key food influencers, including Reducing food waste is not as
can make it easier for shoppers to
partnering with chefs to influence big a concern for people as
choose foods that are better for
food culture. For example, FReSH other food behaviors are (e.g.,
them. Mobile applications and other
could consider a coalition of aligned food convenience). To provoke a
technical solutions can inspire and
FReSH chefs to help deliver on the transformational change in the way
enable shoppers to make better
shared FReSH program ambition people think and act around food
choices for themselves and the
towards a healthy and sustainable waste, companies can work together
communities they source from.
food system under planetary to use big data, technology, and
boundaries. Chefs can help society packaging to help people better
overcome the often perceived preserve the freshness of foods,
C. Shaping demand by
trade-offs of healthy versus tasty, facilitate portion control, and reduce
engaging with people in the
exemplified, for instance, by the food waste at home. Food producers
right way
Plant-Forward Global 50 curated by and retailers can also do their part to
Create transparency to enable the EAT Foundation and the Culinary reduce food waste and loss along the
better consumer choices: Labeling Institute of America. Leveraging the supply chain, considering how they
can help consumers make better influence of social media as well purchase ingredients and packaging
choices from a nutrition and as engaging in multi-stakeholder while exploring how reducing waste
sustainability point of view. partnerships can furthermore help in the supply chain can be turned into
The 2017 Consumer Goods Forum’s to make an impact. consumer value.
call to action to more than 400
consumer goods companies shows We acknowledge that, over the
how, together, companies can play past years, there have been many
failures “educating” people towards
healthy and sustainable eating.
FReSH is collaborating with leading
organizations in behavioral change to
collect best practices and successful
case studies to inform FReSH
opportunities.
Basic good practices include the
use of inspiring language and visuals
that reframe the value and increase
desire towards more sustainable
and nutrient-dense diets, as well as
choosing the right social media and
cultural influencers who are trusted
(e.g., chefs) and can inspire people to
make better choices. These practices
need to be a focus area for FReSH’s
market-based solutions.
30 FReSH insight reportFReSH insight report 31
32 FReSH insight report
Promising examples from selected companies towards the FReSH shared
ambition
While it is still early days to say food companies are helping
shift towards a healthier and more sustainable food system, it
is worth covering some of the efforts companies are making to
drive social and environmental impact through brand and supply
chain innovations as well as educational initiatives.
The case studies in this report show and the key trends it addresses. that it’s still early in the journey, with
some examples of how businesses Furthermore, the key impact area is many opportunities still remaining
are identifying solutions and laid out and an indication is provided for companies to take more
interventions to help contribute to of the number of people impacted. proactive actions to help shift value
healthy and sustainable consumer Although the case studies below chains and consumption towards a
choices. Each case study is mapped provide good examples of how healthy and sustainable food system
towards the opportunity areas of companies can effect positive for people and the planet.
driving transformational change change, it’s important to recognize
Figure 5: Case Study Overview
OPPORTUNITY AREA(S) TO DRIVE
TRANSFORMATIONAL CHANGE
Self Shaping Key Key
Company / Case Geographic
innovation Demad trends impact
# of people
Comment
Contributor study influence regulation impacted
Engaging addressed area
Company
Examples Danone Reduction of World > Progressive
sugar content reduction of sugar
MorningStar > Nature healthy
Kellogg Farms intentions into
Company America
Vegucation delicious food
Nestlé for > Inspire action and
Nestlé Healthier Kids World help 50 M children
lead healthier lives
Less Sodium > Increase awareness
Sigma and Fat in Europe/ and provide healthy
Alimentos Packaged Meats Mexico products
Transformar.te > Decrease food
Sonae - transform Europe waste, reduce,
yourself reuse and recycle
Fresher
Stora Enso Strawberries > Optimise packaging
Europe of strawberries
from fields to fork
> Encourage
Unilever Follow in My increased iron
Green Foodstep Africa
intake
Research & Diversifying
Advocacy Smart Food Diets and Driving Africa > Encourage
Commercialization diversifying diets
of Traditional
and drive sales of
traditional grains
Grains
World Don’t put > Tested how plant-
Resources based sections
vegetables World on menus change
Institute in the corner ordering behaviour
Legend: AT TRIBUTE SCALE
KEY Rooted in Food Adventure Hyper-convenience Proactive Plant Based Food Waste Accessible
TRENDS culture and Shared with health Foods elimination nutrition
tradition Technology
KEY IMPACT
AREA Health Environment Social
# OF PEOPLE
IMPACTED < 1000 1000 - 1 M >1M
FReSH insight report 33Company examples
Case Study 1: DANONE
Regarding fresh dairy products, for 21% of the volumes sold in 2017 have
instance Danone has progressively had their nutritional value improved
reduced sugar and fat content by reformulation in the three previous
of brands in many countries. The years. Thanks to these efforts, by
margin of reduction was minimal for the end of last year, 67% of Danone’s
every year to ensure that consumers whole portfolio was compliant with
did not notice a significant change their ambition for 2020.
in taste but benefited from the To set up a mission as ambitious as
continuously improved products. bringing health through food to as
Even with these small changes in many as possible was a strategic
sugar and fat levels, Danone was able decision Danone took two decades
Progressive to achieve significant results over ago. Through a combination
reduction of sugar a long period of time. In Germany, of divestment, investment and
the kids brand ‘Fruchtzwerge’ has innovation, Danone has shifted the
content reduced its sugar content by 25% share of its portfolio that classifies
When it comes to health, Danone since 1991. In Canada, added sugars as ‘healthy categories15 from 39%
strives to improve the nutritional in Danino drinks have been reduced in 1996 to 88% in 2016. The rest of
quality of its products. To achieve by 18% since 2013. its portfolio is made up of healthier
this goal, Danone has deployed categories that allow customers to
Today, Danone has defined new
comprehensive internal nutritional choose options that improve their
targets with the objective to meet
targets since 2005. These targets diets, like low sugar beverages,
them by 2020 for all categories. They
have been applied in product occasional chilled products, and
are based on official nutrient intake
renovation and innovation projects, cooking aids. The recent acquisition
recommendations (WHO, EFSA, US
in the frame of the “Nutrition Check” of WhiteWave enabled Danone to
Institute of Medicine, etc.), the latest
procedure embedded in the add a wide variety of great-tasting,
scientific references on dietary
company’s project management healthier food to the portfolio.
practices as well as in-house targets
system. They are based on nutrition developed from Danone’s own
science, taking into account research programs.
technical feasibility, and the
consumer acceptance journey.
15
Danone has an operational definition for “healthy categories” that regroups products for the general population that are intended and suitable
for daily consumption in line with the food-based dietary guidelines (water, yogurts, milks and other daily dairy products, milks, and sugar-free
beverages) - products for early life nutrition (children below 3 years) and advanced medical nutrition products ; these products have a nutritional
composition that is tailored to the needs of their specific targets; and they comply to very demanding regulations
34 FReSH insight reportCase Study 2: KELLOGG COMPANY
The campaign featured materials As the campaign initiator,
including news articles, educational MorningStar Farms formed a strong
videos, a documentary and a Veg relationship with its consumers,
Effect CalculatorTM—a unique who shared the positive benefits of
tool allowing users to calculate swapping animal-based meals with
the environmental impact that MorningStar Farms and other plant-
MorningStar Farms® swapping meat-containing meals
for veggie meals has on water
based foods.
‘Vegucation’ - “Just usage, land usage, and greenhouse
While education on plant-based
eating with initiatives such as
what the world gas emissions18 . The objective
of the calculator was to help US
Vegucation continue to be very
orderedTM” consumers understand the power
important for MorningStar Farms,
the brand also recognizes the
that they had to make sustainable
Today, people in the United States critical role taste places in driving
decisions and informed food
consume on average 181 pounds of consumers’ choice, which nudges
choices – at literally every meal.
meat per person per year16 . Raising a behavioral change towards more
The Veg Effect Calculator
animals for food consumes water, plant-based eating. Three quarters
demonstrated the impact that
land and energy. For example, of the U.S. population is open to
swapping just one meal a week
cattle, raised for beef and milk, eating Veggie foods19, but most
could have on the environment
represent about 9.4%17 of total consumers feel that a vegetarian
and showed users that one swap
anthropogenic greenhouse gas diet is full of sacrifice. In 2017,
was equivalent to saving the water
emissions. In 2016, MorningStar MorningStar Farms launched “Grill
of 201 average showers and the
Farms, a veggie line of foods it to Believe it!”, a multi touchpoint
greenhouse gas emissions equal to
within the Kellogg brand portfolio, commercial campaign with a
6 times the average daily commute.
designed a campaign to reinforce focus on the taste experience of
the people and planet benefits The campaign was successful. “America’s Number 1 Veggie Burger”
of eating vegetarian meals. To The Veg Effect Calculator has during the U.S. grilling season. With
carry out the ‘Just What the World generated more than 64,000 unique full commercial support in store
Ordered’ campaign, the brand views since its launch and more alongside a robust sampling truck
developed three communication than 30 million people have watched tour featuring celebrity chef Richard
content pillars: (1) Veggie Cuisine – the documentary. Sustainability Blaise, MorningStar Farms saw
‘How veggie food fits my life’, (2) Veg was good for business too: the explosive growth through the back
for All – ‘Who eats veggie protein’, MorningStar Farms brand saw a half of 2017 and ended the year
and (3) Vegucation – ‘Why eat 25% advertising lift for digital and up +13% in Dollar Consumption vs
veggie protein’. print on its quest to educate more 201620.
people on the impact of shifting to
more veggie meals.
16
Economic Research Service from the United States Department of Agriculture https://www.ers.usda.gov/amber-waves/2017/ januaryfebruary/
us-per-capita-availability-of-red-meat-poultry-and-fish-lowest-since-1983/
17
http://www.fao.org/news/story/en/item/197623/icode/
18
https://www.morningstarfarms.com/just_what_the_world_ordered/what-we-do.html#calculator
19
Nielsen P52W Rolling 10/08/16; Veggie Demand Landscape
20
Nielsen SCAN Data US xAOC Calendar Year 2017
FReSH insight report 35Case Study 3: NESTLÉ
Offering tastier and healthier At the end of 2017, over
choices: 7 million parents had registered,
Over the past years, more than and Nestlé’s “It Takes All of
17,200 tons of salt and 8% of sugar Us” breastfeeding campaign
have been removed from Nestlé’s reached 120 million parents,
products. Furthermore, 1,041 new almost 95,000 healthcare
nutritious products where launched professionals and 56,700
in 2017 that are targeted to address employees.
Nestlé for healthier children’s daily needs and gaps.
• Nestlé product brands also
kids - A global Moving forward, Nestlé has set
clear commitments to make their
lead the children’s health
ambition to inspire portfolio more nutritious, including
journey. MAGGI, the cooking
brand of Nestlé, helps millions
action and help 50 a further reduction of salt, sugars,
and saturated fats as well as the
of families cook tasty and
million children lead addition of important ingredients
balanced meals. The brand
is deploying an ambitious
healthier lives like fiber-rich grains, vegetables,
or micronutrient in thousands of
cooking education program for
parents and kids, with recipes,
products across the world.
simple cooking tips, and online
Today, more than 2 billion people in courses. MAGGI is a Nestlé
the world are overweight or obese, Inspiring people to lead billionaire brand with sales
and 800 million are malnourished. healthier lives increasing at a rate of more
In 2018, Nestlé launched Nestlé • Through the various services than 3 percent. Going forward,
for Healthier Kids, an initiative that provided by Nestlé for Healthier as the company continues
accelerates efforts to support Kids, it is aimed to foster healthy to transform itself based on
caregivers on their journey to behaviors from the start of life its purpose and shared value
raising healthier kids. Through the to adolescence. Two examples: approach, it foresees growth of
alignment of Nestle’s portfolio A Nestlé program related to the as much as 5 percent.
with the nutritional needs of first 1,000 days (Nestlé Start
children and the adaptation of Healthy, Stay Healthy) translates
their communication and services the latest scientific findings With the launch of the Nestlé
delivered, the initiative is aimed at into practical advice and helps for Healthier Kids initiative in
helping caregivers raise healthier parents understand what to 2018, Nestlé steps up actions for
kids while ensuring sustainable feed, how to feed, and why the healthier kids, with the global
business growth. first 1,000 days are so crucial ambition to help 50 million children
to their baby’s future health. lead healthier lives.
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