GLOBAL FOOD & DRINK TRENDS 2018 - Siicex

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
GLOBAL
FOOD & DRINK
TRENDS 2018
GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
EDITOR’S NOTE                                                                                 CONTENTS
                              Mintel’s 2018 Global Food & Drink Trends are the result
                              of collaboration between 60 of Mintel’s expert analysts                     2
                              in more than a dozen countries around the world. These
                              global conversations have led to the identification of
                                                                                                   Full Disclosure
                              five key trends that reflect overarching 2018 consumer
                              themes including trust, self-care, stress, individuality, and
                              sustainability. Each of the trends has been chosen because
                              it will have an impact on consumers, manufacturers, and
                                                                                                            9
                              retailers across Europe, the Middle East, Africa, Asia           Self-Fulfilling Practices
                              Pacific, and the Americas in 2018.

                              The concepts are current but also incorporate elements
                              that are evolutions of Mintel’s 2016 and 2017 Global                     18
Jenny Zegler
Global Food & Drink Analyst
                              Food & Drink Trend predictions, which continue to be
                              significant influences in many categories and countries.
                                                                                                  New Sensations
                              To showcase the relevance of the five future-looking trends,
                              our analyst insights have been supported by evidence
                              gathered from Mintel’s proprietary consumer research,                      26
                              innovative developments observed by Mintel’s expert team
                              of trend spotters, and international food and drink products     Preferential Treatment
                              collected in Mintel Global New Products Database (GNPD).

                              We look forward to engaging in meaningful conversations
                              to help you explore the potential these trends present for                 33
                              your business.                                                        Science Fare
                              Best wishes for the year ahead.

                                                                                                                           1
GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
FULL      In our new post-truth reality,
             consumers require complete
             and total transparency from

DISCLOSURE   food and drink companies.

                                              scandals, and suspicion
             What’s                           about large companies. The
                                              convergence of skepticism
             Happening                        extends and enhances the
                                              existing consumer interest
             in 2018?                         in the origins of food and
                                              drink that has been present
             Many consumers around the        (in some markets) for the
             world lack trust in regulatory   past decade.
             systems, manufacturers,
                                                   French milk brand C’est qui le
             and even their fellow                  patron?! (which translates to
             humans. This compounds                “Who’s the boss?!”) surveyed
             a pre-existing wariness              6,850 consumers online about
                                                  half a dozen criteria from farm
             about food and drink                gate price to packaging in order
             because of product recalls,                   to develop its product.

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
Widespread distrust has increased
                                                                                                                the need for food and drink
                                                                                                                manufacturers to be forthcoming
                                                                                                                about their ingredients, production
                                                                                                                processes, and supply chains.

                                                                                                                As shown by the growth
                                                                                                                in natural, ethical, and
                                                                                                                environmental claims,
                                                                                                                widespread distrust has
                                                                                                                increased the need for food
                                                                                                                and drink manufacturers to
                                                                                                                be forthcoming about their
                                                                                                                ingredients, production
                                                                                                                processes, and supply
                                                                                                                chains. This places pressure
                                                                                                                on manufacturers to offer
                                                                                                                thorough and honest
                                                                                                                disclosures about how,
Betterwith "Honest" ice creams are claimed to be the first farm-fresh traceable premium ice creams in Canada.   where, when, and by whom
                                                                                                                food and drink is grown,
                                                                                                                harvested, made, and/
The need for reassurance              no additives/preservatives,            environmental claims, such         or sold. Food and drink
about the safety and                  organic and GMO-free)                  as environmentally friendly        transparency can take
trustworthiness of food and           appeared on 29% of global              packaging as well as animal        many different directions,
drink has led to increased            food and drink launches                and human welfare claims,          but the various claims
use of natural, as well as            from September 2016 to                 have risen to 22% of global        serve a singular purpose: to
ethical and environmental,            August 2017, which is an               food and drink introductions       help consumers feel more
claims in global food and             increase from 17% of global            between September 2016             confident about the safety     Namyang Agiggoya Mom's Cooking baby food from South Korea is
                                                                                                                                               said to be scientifically designed by the company's baby expert and
drink launches. According to          food and drink launches that           and August 2017 from just          and purity of the food and        made with selected ingredients, such as Korean rice or beef and
Mintel Global New Products            used natural claims from               1% in the same period from         drink that they purchase.                                                 pesticide-free vegetables.
Database (GNPD), natural              September 2006 to August               2006-07.
product claims (which include         2007. Similarly, ethical and

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
as a top three concern           where a product was made.        Santuario and other domestic              consumers as shown
Why                            when choosing a specific         Indeed, 70% of Italian, 66%      coffee-growing regions.                   by a Vietnamese mobile
                                                                                                                                                                            One in five
                               supermarket, hypermarket         of French, 58% of Spanish,                                                 application, Te-Food, that       Canadians trust
Consumers                      or online retailer. A lack of    56% of German, and 55%           More brands can follow                    allows consumers to scan
                                                                                                                                                                            the health claims
                               honesty can also damage          of Polish consumers aged         Nescafé’s lead and link to                barcodes or QR codes on
Will Buy                       trust because 65% of Thai,       16+ are more likely to trust a   local or domestic supply                  packages of pork to learn        on food and/
                               64% of Australian, and 61%       company if it manufactures       or production as a way to                 more about the environment
Into This                      of Indonesian adults in major    products within their own        reassure patriotic shoppers,              and treatment of the pigs.
                                                                                                                                                                            or beverage
                               metropolitan areas feel          country. At the same time,       while other brands can                    Meanwhile, other consumers       packaging.
Clarity is required because    cheated when a company           ethical claims can be an         appeal to consumers who                   might need to see actual
distrust is rampant. A mere    is not clear about the high      expectation in certain           are more focused on buying                proof, such as the 22% of
one in five Canadian adults    sugar content of its products,   categories as shown by the       products that are perceived               US vegetable buyers who
trust the health claims        according to Mintel research.    57% of UK adults who use         to have the most trustworthy              would like to see more fresh
on food and/or beverage                                         and buy milk, milk drinks or     or purist origins. Technology             vegetables grown on
packaging. Nearly half (45%)   Transparency takes many          cream and are more likely        also can be used to reassure              store premises.
of Chinese grocery buyers      forms, with some consumers       to buy the products from a
aged 20-49 rank food safety    simply interested in knowing     brand and/or supermarket
                                                                that spells out on pack how it   Natural and ethical claims on global new food
                                                                supports its farmers. Brands     and drink product launches are on the rise
                                                                also can be built around
                                                                origin as shown by Nescafé’s
                                                                Artesano line launched in                       Natural                                SEPT. 2006-AUG. 2007 | 17%
                                                                Colombia that celebrates                product claims
                                                                the heritage and farmers of            (ie no additives/
                                                                                                         preservatives,
                                                                                                    organic, GMO-free)                                                  SEPT. 2016-AUG. 2017 | 29%

                                                                Nescafé Artesano Santuario
                                                                Risralda was launched in                     Ethical and       SEPT. 2006-AUG. 2007 | 1%
                                                                Colombia in 2017 and is           environmental claims
                                                                supported by Nescafé Plan,          (ie environmentally
                                                                which aims to improve the            friendly packaging,
                                                                livelihoods of farmers and       animal/human welfare)                                        SEPT. 2016-AUG. 2017 | 22%
                                                                their communities and
                                                                assist with the sustainable
                                                                management of landscapes.
                                                                (Source: www.facebook.com/
                                                                NESCAFE.CO)                      Source: Mintel Global New Products Database (GNPD)

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
SELF-
                                                                                               FULFILLING
                                                                        Budweiser has
                                                                        launched new
                                                                                               PRACTICES
                                                                        packaging that
                                                                        identifies the 12 US       As more consumers find
                                                                        states where the
                                                                        beer is brewed.            modern life to be hectic
                                                                                                   and stressful, flexible
                              transparency attainable to      giant Amazon’s acquisition
Where                         all consumers reflects the      of premium grocer Whole              and balanced diets
Next?
                              principles of Mintel’s 2017
                              Global Food & Drink Trend
                                                              Foods Market has the goal of
                                                              making “high-quality, natural
                                                                                                    will become integral
In addition to disclosing
                              ‘Balancing the Scales: Health
                              for Everyone,’ which noted
                                                              and organic food affordable
                                                              for everyone,” according to
                                                                                                       elements of self-
more specific transparency    that healthy food and drink     the company. Retailers also                care routines.
details, the next wave of     are not to be considered        have an opportunity to share
clean label challenges        luxuries. Similarly,            more information, which
manufacturers and retailers   transparency will soon be       could appeal to the one
to democratise transparency   expected as a claim that will   quarter of Brazilian grocery
and traceability so that      be affordable and accessible    retail shoppers who would
products are accessible to    to more consumers. The          like to know more about
all consumers regardless of   market is moving in that        how private label products
household income. Making      direction as e-commerce         are made.

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
by consumers developing                                                 Consumers agree managing/releasing stress
What’s                           their own unique definitions      Verival Organic Pumpkin & Tomato      properly is an important factor for a healthy lifestyle
                                 of healthy diets and lifestyles     Porridge is a savoury alternative
Happening                        that often include following            to traditional sweet porridge
                                                                     available in Germany that is high
                                 balanced diets and allotting
in 2018?                         time for relaxation.
                                                                      in protein and made with whole
                                                                   vegetable pieces, herbs and spices.
                                                                                                                                   52%                                     45%                          43%
The frantic pace of modern       The challenge of
life, constant connectivity,     determining the
pervasive distrust, and          elements of a healthy                                                                          THAILAND                              AUSTRALIA                      INDONESIA
contentious tones in politics    diet can contribute to
                                                                                                         Base: internet users aged 18+ in major metropolitan areas
and the media have caused        negativity and stress
                                                                                                         (1,301 in Thailand, 1,407 in Australia, and 1,192 in Indonesia)
many consumers to look for       because consumers                                                       Source: APAC Metro Consumer Study 2017
ways to escape negativity        are bombarded with
in their lives. Many people      potentially conflicting
who feel overwhelmed are         reports as to which                                                     For example, French,
focusing on “self-care,” or      ingredients are                                                         Italian, and Spanish
prioritising time and efforts    recommended and                                                         consumers are as likely to
dedicated to themselves.         which ones should                                                       be actively reducing their
Approaches to personal           be avoided.                                                             consumption of or avoiding
well-being vary by individual,                                                                           fatty foods as they are to
but are increasingly marked                                                                              be reducing or avoiding
                                                                                                         sugary foods. Aversion
                                                                                                         to specific ingredients is
                                                                                                         being heightened as more
Aversion to specific                                                                                     cities, states, and countries
ingredients is being                                                                                     implement taxes, labelling,
                                                                                                         and other mandates in order
heightened as more cities,                                                                               to raise awareness about
states, and countries                                                                                    the potential health impacts
                                                                                                         of sugar, salt, fat, or other
implement mandates in order                                                                              avoidable ingredients.
to raise awareness about the
potential health impacts of                                                                                                                                      Austria's Tranquini expanded its line of relaxation beverages with a
                                                                                                                                                                non-carbonated flavoured water that contains extracts of green tea,
sugar, salt, and fat.                                                                                                                                                                        lemon balm, chamomile, and lavender.

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
Consumers seeking
                                                                                                     more routine relief from
                                                                                                     stress will change the
                                                                                                     definition of “permissible
                                               Nature Dent Sugar Free Chewing Gum                    indulgence” from the rare
                                               from Iran is made with a 100% natural
                                               gum base and includes natural herbal                  feast to habitual better-
                                               extract for a formulation that is said to
                                               relieve stress.                                       for-you treats.

The often contradictory        plant-based ingredients             Permission to enjoy treats or     Consumers who are seeking
advice on what to avoid        as noted in ‘Power to the           satisfy cravings is an integral   more routine relief from
finds many consumers more      Plants,’ one of Mintel’s            aspect of self-care that          stress will continue to change
interested in what food and    2017 Global Food & Drink            particularly addresses the        the definition of “permissible
drink offers instead of what   Trends. Plants are just one         widespread need for stress        indulgence” from the rare
it lacks. This affirmational   component of balanced               relief. For example, Mintel       over-the-top feast to more           Innocent Raspberry, Cherry
                                                                                                                                         & Apple Morning Juice from
approach maintains the         diets, with many consumers          research reveals that 52%         habitual better-for-you and      France is made with goji berries
importance of formulating      creating personalised diets         of Thai, 45% of Australian,       flavourful treats that are        and added vitamins B1, B2, B5,
with the natural and often     that also prioritise consuming      and 43% of Indonesian adult       indispensable elements of          B6, a combination that is said
                                                                                                                                       to reduce fatigue and stress to
nutritional ingredients of     sufficient protein, staying         metropolitan consumers say        physically and emotionally         help consumers get a boost in
fruits, vegetables, grains,    hydrated, and allowing              managing or releasing stress      balanced lifestyles.                                the morning.
seeds, herbs, spices,          themselves the                      properly is an important
botanicals, and other          occasional treat.                   factor for a healthy lifestyle.

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
When it comes to stress            launched from September
                                               Häagen-Dazs Minis variety pack        relief, ‘Power to the Plants’ is   2016-August 2017. Plant-
                                               from Singapore contains three         once again relevant because        based ingredients also can
                                               Green Tea & Almond and two Mango
                                               & Raspberry 40ml ice cream bars for   herbs, spices and botanicals       be consumed as treats unto
                                               portion-controlled treats.            can be leveraged for their         themselves as shown by
                                                                                     traditional connections with       the 57% of US fruit
                                                                                     relaxation. Chamomile,             consumers who eat fruit
                                                                                     lavender and lemon balm are        to satisfy cravings.
                                                                                     the leading herbs and spices
                                                                                     used in global food and drink
                                                                                     with relaxation properties

                                                                                                                            Available in Japan, Meiji White
                                                                                                                         Café GABA Coffee contains 28mg
                                                                                                                           of the neurotransmitter GABA,
                                                                                                                          which is often claimed to provide
                                                                                                                            mental balance and relaxation.

            Balance-minded consumers            such as those high in sugar
Why         often are willing to write their    or salt are fine as part of
            own definitions of “healthy”        a balanced diet. Chinese
Consumers   based on occasion and               consumers, meanwhile, are
            need-state. Two-thirds of           open to either option when
Will Buy    Canadians who eat sweet             it comes to dessert because
            baked goods agree that it is        better-for-you ice cream
Into This   acceptable to occasionally          interests 85% of Chinese             57% of US fruit
            indulge regardless of               ice cream consumers,
            nutrition. Similarly, 41% of        while 76% are interested in
                                                                                     consumers eat fruit
            UK snacking consumers               indulgent offerings.                 to satisfy cravings.
            agree that unhealthy snacks

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GLOBAL FOOD & DRINK TRENDS 2018 - Siicex
You’ve paid for it.
                                                                                                                        Is it happening?

Dr. Oetker has extended their globally successful mug cake line in Brazil to include savoury
mug snacks that provide consumers with snack-sized potions of popular indulgent recipes.

                                        openings in the
Where                                   market for a variety of
                                        formats, formulations,
Next?                                   and portion sizes of
                                        food and drink that
In 2018, individual                     provide consumers
definitions of self-care and            with options that can fit
balance will reinforce the              their individual diet plan
need for a variety of food              and their current—or
and drink products that                 aspirational—mood.
present consumers with                  Indeed, self-care-focussed
positive solutions that can             consumers will be looking
be incorporated into their              for ingredients, products,              Sargento Sweet Balanced Breaks is
customised and flexible                 and combinations that                   a line of snacks available in various
                                                                                 sweet-and-savoury combinations
definitions of health and               address nutritional, physical,               that offer protein and portion-
wellness. This creates                  or emotional benefits.                                   controlled calories.
                                                                                                                        MINTEL FIELD SERVICES:
                                                                                                                        The difference between thinking you
                                                                                                                        know and being sure.
16                                                                                                                                                            17
NEW       Texture is the latest tool to
             engage the senses and deliver

SENSATIONS   share-worthy experiences.

                                                posts. Mintel’s 2016 Global   Of the various sensory-
             What’s                             Food & Drink Trend ‘Eat       engaging properties
                                                With Your Eyes’ observed      identified in ‘Eat With
             Happening                          the potential for food and    Your Eyes,’ texture has a
                                                drink to involve more of      particular opportunity to
             in 2018?                           the senses through colour,    follow the lead of colour,
                                                shape, fragrance, and other   which has become a popular
             Encounters that appeal to          formulation elements. In      feature in formulations
             multiple senses can provide        2018, the sound, feel, and    that aim to allure more
             consumers with escapes             satisfaction that texture     of the senses. Food and
             from the routine and stress        provides will become more     drink products have used
             of their lives, opportunities to   important to companies and    a variety of ingredients,
             make memories, or generate         consumers alike.              such as turmeric, matcha,
             “like-worthy” social media                                       and activated charcoal, to

             In 2018, the sound, feel,
             and satisfaction that texture
             provides will become more
             important to companies and
             consumers alike.

18                                                                                                   19
European consumers
                                                                                                          Why                               are open to trying
                                                                                                                                            food and drink with
                                                                                                          Consumers                         unusual textures
                                                                                                                                                                                        GERMANY
                                                                                                                                                                                                          POLAND

                                                                                                          Will Buy
                                                                                                          Into This                                                          FRANCE

                                                                                                          Asia is a model for the
                                                                                                          potential of unexpected                                                                 ITALY
                                                                                                                                                                 SPAIN
                                                                     Nabisco Oreo honored US              applications of texture in
                                                                     Independence Day celebrations with   food and drink because
                                                                     a limited-edition chocolate Oreo
                                                                     with red and blue popping candy      the region hosts a range of
                                                                     inside the cream.                    beverages with pulp, tapioca
                                                                                                          pearls, and extra carbonation
                                                                                                          along with food that also
create vibrantly hued drinks,    who continue to seek food                                                boasts innovative textures
snacks, and other food that      and drink that is perceived
                                                                        Texture is the                    that might be unheard of
                                                                                                                                                                 37%                     22%              36%
attracts attention, especially   as fresh, functional, filling, or      next facet of                     in other parts of the world.                                            26%             22%
on Instagram, Pinterest, and     simply fun. To align with this                                           These innovations likely
other image-centric media.       trend, brands can emphasise
                                                                        formulation that                  influence the fact that many
Colour will continue to be       the qualities of existing              can be leveraged                  Chinese consumers are
                                                                                                                                            Base: 2,000 internet users aged 16+
                                                                                                                                            Source: Mintel Reports 2017
important, but texture is the    products as evidenced by                                                 open to a range of textures
next facet of formulation that   a South Korean ad for Ritz
                                                                        to provide                        across categories. Just over
can be leveraged to provide      Crackers that showcased the            consumers with                    half of Chinese consumers         and one third of Chinese
consumers with interactive—      noises made when opening                                                 aged 20-49 who eat biscuits       20-49 year olds say their
and documentation-worthy—        and eating the crispy cracker.
                                                                        interactive—and                   or crackers identify layers       ideal yogurt would have
experiences.                     Texture also can be a key              documentation-                    of coating or filling as an       cereal, grains, or seeds.
                                 element for introductions                                                important quality of an
From chewy beverages             such as the May 2017
                                                                        worthy—                           indulgent biscuit. In addition,
to complex formulations          limited-edition Firework               experiences.                      43% of Chinese 20-49-year-        43% of Chinese 20-49-year-old
such as creamy ice cream         Oreo in the US that                                                      old ready-to-drink (RTD) tea
with crispy chunks, texture      contained popping candy                                                  consumers are interested in
                                                                                                                                            RTD tea consumers are interested
can make products more           inside the cream of the iconic                                           RTD options with fruit bits       in options with fruit bits.
captivating for consumers        sandwich cookie.

20                                                                                                                                                                                                                 21
The Boba Room was a pop-up exhibition in New York City in 2017 that provided multiple
photogenic rooms designed to provide visitors with the feeling that they were walking
through cups of bubble tea, a beverage that is emerging in popularity in the US.

Although Asia is home to             could be inspiring some of            carbonated soft drinks with      mixed with seeds/grains,         that are packaged in
many unexpected texture-             the 37% of Spanish, 36% of            added texture such as pulp.      including linseed or chia, are   see-through bottles to
enhanced innovations,                Polish, 26% of French, and                                             an important factor when         allow consumers
Europe has the largest share         22% of German and Italian             In the Americas, three in        choosing juices. Companies       to “see the
of global food and drink             consumers who are open                10 Canadian adults who           also are developing textured     flavours.”
launches with descriptions of        to trying food and drink with         eat sweet baked goods are        innovations, such as Yoplait
texture since January 2016,          unusual textures. Meanwhile,          interested in cookie and chip    Disfruta, a range of yogurt
according to Mintel. These           a quarter of UK consumers             hybrids and 11% of juice-        drinks with natural fruit
detailed product descriptions        would be interested in                drinking Brazilians say juices   chunks introduced in Mexico

                                                                                                                                                     Taberu Mango
Europe has the largest share of                                                                                                                   Flavoured Crispy
                                                                                                                                               Seaweed Snack from
global food and drink launches                                                                                                                   Thaliand is said to
                                                                                                                                                 be a healthy snack
with descriptions of texture                                                                                                                    made with seaweed
                                                                                                                                                and crisped rice for
since January 2016.                                                                                                                              additional crunch.

22                                                                                                                                                                     23
Where
                                   utilised to enhance or
                                   innovate around texture,
                                                                                                             The entire success
Next?
                                   such as freeze-drying fruit
                                   for snacking or twice-baking                                              of your product is down
                                                                                                             to in-store delivery and
                                   salty snacks.
In 2018, more products
can be developed with              In particular, food and drink
combinations of textures
that surprise and delight
consumers. As with
                                   designed with additional
                                   textures has the potential to
                                   engage younger iGeneration
                                                                                                             it’s the one thing that’s
colour, more companies
have the opportunity to
add texture via natural
                                   consumers who are hungry
                                   for experiences. These
                                   teens and young adults
                                                                                                             out of your control.
ingredients, such as the           (ranging in age from 10 to
pulp of fruit or vegetables,       27 in 2018, depending on
the tingle of spicy peppers,       the region), have grown
or carbonation resulting           up with technology, which
from fermentation as with          has made interactivity and              Pepsi Strong 5.0 GV Cola
kombucha. Production               documentation indispensable             Drink was relaunched in Japan
processes also can be              parts of everyday life. Teens           with rich flavour, the highest
                                                                           carbonation to provide a strong
                                   were the target for the                 and refreshing sensation and
                                   Australian launch of                    high levels of caffeine.
                                   Coca-Cola’s carbonated
                                   soft drinks Fanta Jelly that            multisensory food and drink
                                   instructed consumers to                 that uses unexpected texture
                                   “shake the can; wake the                to provide the iGeneration—
                                   wobble” and Fanta Sour                  as well as consumers of
                                   Tingle, which promises                  all ages—with tangible
                                   to awaken taste buds                    connections to the real
                                   with its tangy flavour. The             world as well as moments
                                   quest for experiences                   worth sharing either in-
                                   provides opportunities for              person or online.

                           Fanta Sour Tingle Berry Flavour Drink was
                           launched in Australia in 2017 and is said "to
                           be bursting with extreme sourness."
                                                                                                             MINTEL FIELD SERVICES:
                                                                                                             Point-of-purchase
                                                                                                             measurement and analysis
24                                                                                                                                       25
PREFERENTIAL
                                                                                aged 20-49 now use their
                                                What’s                          mobile phone more than a
                                                                                desktop or laptop for online
                                                Happening                       grocery shopping, which is
                                                                                significant given that 77%

 TREATMENT
                                                in 2018?                        have shopped at online
                                                                                grocers for home delivery.
                                                Motivated by the potential to
                                                save time and ideally money,
                                                consumers are sampling
                                                a variety of channels and            Amazon launched a range of
                                                technologies when shopping         private label products in 2017
                                                for food and drink. The                under the Happy Belly and
                                                                                  Wickedly Prime brands, offering
                                                latest evolutions in shopping          exclusive brands for online
                                                offer consumers
       A new era in
                                                                                                grocery shoppers.
                                                prompt and affordable

       personalisation                          delivery, a curated
                                                adventure courtesy of
       is dawning due to                        subscription services,
                                                ease of automatic
       the expansion of    35% of UK            replenishment,
                           online grocery       and simplicity of
       online and mobile   shoppers say         synchronisation with

       food shopping.      the ability to add
                                                smart home devices.
                                                Busy consumers are
                                                drawn to e-commerce
                           products             sites, mobile apps,
                           to their grocery     voice control, and
                                                other online and mobile
                           order through        options because they are
                           voice command        advantageous to their busy
                                                schedules and potentially
                           technology is        their budgets. For example,
                           appealing.           65% of Chinese consumers

26                                                                                                            27
The adoption of voice-enabled
                                                               smart home accessories, such as
                                                               Amazon Echo, makes it easier to
                                                               add items to shopping lists.

                                                               technology to establish
                                                               new levels of efficiency,
                                                               such as customised
                                                               recommendations, cross-
                                                               category pairings, and
                                                               resourceful solutions that
                                                               save consumers time, effort,
                                                               and energy.

                                                               Beyond convenience,
                                                               technology will offer new
                                                               possibilities for personalised
As technology helps to make     a feature of interest to the   recommendations of
shopping as effortless as       35% of UK online grocery       products and individually
possible, an era of targetted   shoppers who, according        targetted promotions. For         Click-and-collect services, such as Walmart pick-up, are advantageous to consumers’ busy
promotions and products         to Mintel, agree the ability   example, The Coca-Cola            schedules and potentially their budgets.

is emerging. The adoption       to add products to their       Company has developed
of voice-enabled smart          grocery order through voice    a smart vending machine           physical Hema markets                 on online, as well as offline,
home accessories, such as       command technology is          that enables personalised         where shoppers must use               shopping behaviours. By
Amazon Echo or Google           appealing. On the supplier     offers and mobile purchases.      a mobile app that provides            combining consumer insights
Home, will make it easier to    side, brands, companies,       Chinese e-commerce                efficient and personalised            on purchases, as well as
add items to shopping lists,    and retailers can leverage     company Alibaba introduced        shopping experiences.                 other online activities,
                                                                                                 Meanwhile, e-commerce                 companies and retailers can
                                                                                                 giant Amazon’s acquisition of         target individuals based on
As technology helps to make                                                                      Whole Foods Market and a              their habits and preferences
shopping as effortless as possible,                                                              partnership between Walmart           both in the store and online.
                                                                                                 and Google will likely provide
an era of targeted promotions and                                                                consumers with targetted               Walmart announced a partnership

products is emerging.                                                                            promotions, suggestions, and
                                                                                                                                           with Google to offer hundreds
                                                                                                                                          of thousands of items for voice
                                                                                                 innovations that capitalise               shopping via Google Assistant.

28                                                                                                                                                                                          29
The personalisation made             an app called Meu Desconto
Why                                  possible by new technologies         (“My Discount”) that provides
                                     could draw in more                   customised promotions from
Consumers                            consumers. In particular,            brands for members of the
                                     three in 10 Brazilians agree         store’s loyalty programme.
Will Buy                             that loyalty programmes that         The retailer has plans to
                                     give personalised rewards            upgrade the app to include
Into This                            based on their interests             store maps and virtual
                                     are appealing. Brazilian             queues that allow consumers
                                     supermarket chain Grupo              to schedule a time to go to
                                     Pão de Açúcar has launched           the cashier.

                                                                                                                                               Motivated by the potential to save time and money, meal
                                                                                                                                               kit subscription services, such as Hello Fresh and Blue
                                                                                                                                               Apron, offer consumers a curated adventure.

                                                                                                          Retailer apps could be       consumers with recipe               36% of
                                                                                                          used to improve in-store     suggestions that complement
                                                                                                          selection and displays for   shopping lists, a quality that
                                                                                                                                                                           Americans say
                                                                                                          more efficient shopping      could appeal to the 36%             planning meals
                                                                                                          experiences. Leveraging      of US consumers who say
                                                                                                          such insights could appeal   planning meals and eating
                                                                                                                                                                           consumes more
                                                                                                          to the 39% of Canadian       occasions consumes more             time and energy
                                                                                                          grocery shoppers who         of their time and energy than
Supermarket chain Grupo Pão de Açúcar has launched a new app called Meu Desconto (or “My
                                                                                                          agree that supermarkets      they would prefer.
                                                                                                                                                                           than they
Discount”) that offers loyalty programme members customised promotions based on their shopping
habits. (Source: iTunes App Store)                                                                        should organise food by                                          would prefer.
                                                                                                          meal occasion. Retailers
                                                                                                          and brands can also target

30                                                                                                                                                                                                       31
Where
Next?                                                                                                     SCIENCE
                                                                                                          FARE
The rapid expansion in
the variety of food and
drink retail channels
will fuel the opportunity
for recommendations,
promotions, and product
innovations based on
actual consumer behaviour
patterns. While this offers
opportunity, it also could
                                Brandless is an online-only grocery store in the US that provides high-
compromise brand discovery      quality food and products priced at $3 each.
and endanger brand loyalty
because custom offers might     behaviours. This new era
prioritise benefit, such as     of plentiful places to shop
convenience, value, or time,    will pressure all brands to
over brand. This presents       be more relevant, efficient
a challenge to well-known       and/or affordable in order to
brands while also creating      retain customers.
an opening for upstarts,
such as US e-commerce site
Brandless, which offers a
                                Three in 10
range of private label food,    Brazilians are
drink, and household goods
for a universal price of $3
                                interested
each. Companies also could      in loyalty
tempt consumers by creating
products, suggesting
                                programmes that
combinations of goods           give personalised
and other options across
consumer categories that
                                rewards based
align with online and offline   on interests.

32
Technology is being used to                                                                       as those made by General
                                                                                                  Mills, Tyson, Cargill, Unilever,
                                                                                                                                                availability of scientifically
                                                                                                                                                engineered food and drink.
                                                                                                                                                                                     consumers to think differently
                                                                                                                                                                                     about how scientifically
engineer solutions for our                                                                        and tech billionaire Bill
                                                                                                  Gates, have hastened the                      In 2017, 26% of Spanish,
                                                                                                                                                                                     engineered products could
                                                                                                                                                                                     benefit the traditional food
stretched global food supply.                                                                     pace of development and                             13% of Polish, 11%             and drink supply, especially
                                                                                                                                                        of French, 9% of             the potential to alleviate
                                                                                                                                                        Italian, and 8% of           some of the pressure that our
                                                                                                                                                        German consumers             global food supply is under.
                                solutions to replace               Developments that engineer                                                           aged 16+ agree that          Forward-looking companies
What’s                          traditional farms and              food and drink staples                                                               lab-grown, cultured,         are raising awareness by
                                factories with scientifically      such as laboratory-grown                                                             or synthetic meat            putting their products into
Happening                       engineered ingredients             meat and animal-free dairy                                                           appeals to them.             perspective compared with
                                and finished products.             have grabbed headlines in                                                            Pioneering products          the traditional food and drink
in 2018?                        Enterprising companies are         the last five years, but the                                                         may encourage                supply chain. US company
                                building on advancements           resulting products are often
A technological revolution is   in technology, including           expensive and some are still
playing out in manufacturing    stem cell cultures and 3D          years away from widespread                                                             Beyond Meat’s prepared meal is made with plant-based chicken
                                                                                                                                                         and states that when buying the product, the consumer is said
as some forward-looking         printing, to replicate nature      commercial availability.                                                              to be “lending Mother Nature a helping hand and positively
companies are developing        in controlled environments.        However, investments, such                                                            impacting climate change by conserving water, energy, and land.

                                                                                                  European consumers find lab-grown,                                                                     26%
                                                                                                  cultured, or synthetic meat appealing

                                                   Based in the US, Memphis Meats has
                                                   created lab-grown meatballs as well as
                                                   cultured chicken and duck prototypes                                                                                             13%
                                                   grown from stem cells, with an aim to                                                                      11%
                                                   launch in 2021.                                                                       9%
                                                                                                              8%

                                                                                                          GERMANY                       ITALY               FRANCE               POLAND                 SPAIN

                                                                                                  Base: 2,000 internet users aged 16+
                                                                                                  Source: Mintel Reports 2017

34                                                                                                                                                                                                                   35
Beyond Meat notes that                                               water would stop buying               one in five Brazilian grocery
when consumers purchase        Why                                   water that was harming                retail shoppers agree
its prepared meals, which                                            the source area’s natural             environmentally friendly
are produced in partnership    Consumers                             resources. Meanwhile,                 products such as recyclable
with General Mills, “the                                             around 20% of Indonesian              packaging are worth the
consumer is lending Mother     Will Buy                              and Thai consumers, and               extra cost.
Nature a helping hand and                                            just over 10% of Australian
positively impacting climate   Into This                             consumers, agree that                 In time, the target audience
change by conserving water,                                          helping to protect the                for scientifically engineered
energy and land.” Fellow       Scientifically engineered food        environment through                   ingredients could go beyond
plant-based meat company       and drink will initially attract      activities such as using              environmentally conscious
Impossible Foods gets more     consumers who are worried             fewer plastic bags or riding          consumers and appeal
specific, defining that its    about the environment and             bikes instead of driving cars         to consumers who are
plant-based burger uses        are taking steps to be more           is an important factor for a          concerned about ingredient
95% less land, 74% less        eco-conscious. Six in 10              healthy lifestyle, according to       consistency, efficacy, and
water, and creates 87% less    UK adults who buy bottled             Mintel research. Meanwhile,           purity. For example, US
greenhouse gas emissions
than the current meat
supply chain.                  Mosa Meat is a start-up from the Netherlands that has reportedly lowered production costs for
                               its tissue-cultured hamburgers to €10 per burger from €250,000. (Source: culturedbeef.org)

Forward-looking
companies are
raising awareness
by comparing
scientifically
engineered food
and drink with the
traditional food and
drink supply chain.

36                                                                                                                                    37
indoor farming company
Bowery has a goal to grow
                                        Just over 10% of Australian                                       consumers who agree
organic and natural produce             consumers agree that              Where                           that meat substitutes that
using automation and                                                                                      are similar in taste, texture,
machine learning to use less
                                        helping to protect the            Next?                           and/or appearance to
water and yield more and                environment through                                               real meat appeal to them.
higher quality food. Lab-                                                 Technology will begin to        Technology also could
made advancements also
                                        activities is an important        disrupt the traditional food    eventually be used to
can address consumers who               factor for a healthy lifestyle.   chain in 2018 as enterprising   design food and drink that
are open to efficiency, such                                              manufacturers aim to replace    is inherently more nutritious,
as the 32% of US fruit buyers                                             farms and factories with        which presents the potential
that are interested in fruit that                                         laboratories. An important      to extend the audience of
is genetically modified to stay                                           aspect to capture consumers     scientifically engineered food
fresher longer.                                                           will be that products provide   and drink to reach nutrition-
                                                                          acceptable substitutions to     conscious consumers.
                                                                          their harvested counterparts,
                                                                          such as the quarter of UK
          Impossible Foods, which is based in California's
     Silicon Valley, designed the plant-based Impossible
     Burger to sizzle, smell, and release juices similar to               Technology will
                                animal-based hamburger.
                                                                          begin to disrupt the
                                                                          traditional food chain
                                                                          in 2018 as enterprising
                                                                          manufacturers aim to
                                                                          replace farms and
                                                                          factories with
                                                                          laboratories.                                                                  US start-up Perfect
                                                                                                                                                    Day has set out to create
                                                                                                                                                 cow-free dairy products by
                                                                                                                                               using yeast and fermentation
                                                                                                                                            to create the same milk proteins
                                                                                                                                             that cows make, which are then
                                                                                                                                           combined with plant-based sugar,
                                                                                                                                                            fat, and minerals.

38                                                                                                                                                                               39
Some questions we                                                                         MINTEL
     can help you answer
                                                                                               FIELD SERVICES:
     BRAND
     INTEGRITY AND
                                   RETAIL
                                   ACTIVATION
                                                                 STRATEGY
                                                                 Where does the white
                                                                                               Your cost-effective solution
     QUALITY
     Are my products reaching
     the shelf?
                                   AND CATEGORY
                                   MANAGEMENT
                                                                 space exist?

                                                                 How are my competitors’
                                                                 pricing and promoting their
                                                                                               to ensure your in-store
                                                                                               investment gets delivered.
                                   Is my investment being
                                                                 brands in-store?
     How are my products           delivered in-store?
     being presented?                                            What are the new product
                                   Are my products being
                                                                 introductions are being
     Where are packaging           merchandised as intended?
                                                                 made in my category?
     defects occurring?            How do my products
                                                                 Are there new point-of-sale
     Is my product on the shelf    compare to the competition
                                                                 opportunities?
     at the right time?            on the shelf?
                                                                 What claims are being
     Are my products               Are the right point-of-sale
                                                                 made within my category?
     being sold to my intended     messages being used?
     quality standards?                                          How can I increase my
                                   Are my point-of-sale
                                                                 space allocation?
     Are my products being         messages in the
     served in compliance          right place?                  Who is stealing my space
     with regulation?                                            on the shelf and whose
                                   What does my
                                                                 space can I steal?
     How will I procure hundreds   category look like in
     of products for focus         emerging markets?
     groups next week?

                                                                                               Find out more at:
                                                                                               www.mintel.com/in-store-services

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