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Just 5 Questions About.....
By Kindra Gordon
Editor’s Note: Next in a series profiling people, programs, and issues shaping today’s beef industry.

New Product Trends
What makes new foods on menus and supermarket shelves sizzle - or fizzle?

Start talking about food and it doesn’t take long to learn that people love to eat. As a result, new products are continually being introduced with marketers hoping to capitalize on consumers’ cravings for food and capture more market share.

In 2006, over 20,000 new food and beverage products were introduced in the U.S. alone – compared to between 5,000 to 6,000 new product introductions worldwide 20 years ago.
Over the last three years, more than a quarter million new food and beverage products have been unveiled – which illustrates how vibrant the new products arena is, says Lynn Dornblaser, director of consulting for Mintel, a consumer, marketing and media research firm. As a Chicago-based food trends analyst, she regularly provides industry commentary for the media including the Wall Street Journal, USA Today and CNN.

Dornblaser recently shared some of the latest trends in consumer preferences and new products for the meat and poultry industry in a global web seminar. Here, we recount the emerging food trends that she anticipates will shape the meat sector.

  1. How does growth in meat and poultry new products compare to other food and beverage categories?

    Dornblaser reports that all new product categories have seen steady increases for the past few years worldwide, with beverages being the most active new product category. She explains that this is likely because trends toward health and wellness, flavor or convenience can easily be adapted by the beverage sector.

    Indulgence categories such as confectionary, bakery and dairy are also among the leaders for new product growth.

    The red meat and poultry new product introductions have seen moderate growth, with new poultry items outpacing red meat within the category, according to Dornblaser. As an example, she shares that among center of the plate menu offerings chicken leads at 31%, while beef is at 26%.

  2. What do consumers have to say about meat and poultry?

    Mintel’s research reveals that consumers indicate they consume chicken most often of all types of meat, but when they have cravings they turn to red meat. However, about 37% of consumers cite having health concerns over beef, particularly for heart disease.

    Dornblaser says her firm’s surveys have also revealed that 36% of consumers say there are other meats they prefer over beef; about 10% have expressed concern over Mad Cow and pathogens such as E.coli; and 8% say beef is too difficult to prepare.
    When asked if beef and pork products in the US might ever catch up to the popularity of chicken products, Dornblaser sees it as an uphill battle for two reasons.
    Foremost she says are the health related issues to red meat compared to poultry. “Whether it’s actual or perception doesn’t matter, it’s still a belief that is difficult to overcome.”

    Second, and perhaps the bigger issue, is dealing with the ease of preparation of chicken over red meat. Dornblaser explains that many consumers in their 20s and 30s have little experience in cooking. She says, “They can handle chicken but red meat tends to be viewed as much more difficult.”

    Recognizing this, she suggests that the red meat industry needs to look at this later point as an opportunity to offer more full or partially prepared red meat products to better cater to consumers.

  3. Which other product trends are emerging across restaurant menus and retail?

    Dornblaser says there are three trends that stand out:

    1. Well-being or positive nutrition
    2. Convenience for “on the go”
    3. Flavor or ethnicity

    Within the trend of “well being,” Dornblaser says health remains a key issue across all types of products. This accounts for the growing focus on source ingredients – such as natural, organic or local foods. At both the restaurant and retail levels she reports that foods labeled natural and organic have increased steadily – and she expects that to continue for some time.

    Likewise, at retail she anticipates that more packaging will tout the “inherent goodness” of the ingredients – for instance red meat being a superior source of protein. Using the source of ingredients as a selling point also appears to be poised to grow. Dornblaser tells that in the United Kingdom some brands now include photos of the chef or farmers on the package and share specific details about the source of the ingredients and how they were raised.

    Regarding convenience, Dornblaser says this is a trend that consumers continue to seek. She expects restaurant curbside-to-go offerings (and even delivery) to expand, as well as take and bake, build a meal, value meals and snack offering options to grow.

    Within the retail sector, Dornblaser says consumers are seeking foods that allow them to “bring the restaurant experience home.” Such food offerings are already common in Europe and she predicts we’ll soon see more in the US.

    Finally, the trend of flavor is sizzling, according to Dornblaser. From restaurant menus to supermarkets she says consumers are seeking a variety of ethnic food experiences. Mintel’s research indicates Island flavors like Hawaiian, Jamaican, and Caribbean are gaining popularity, while Thai and Asian flavors are growing as well.
    She anticipates these flavors will show up in everything from pizza, sandwiches and wraps, to ribs, burgers and chicken. Ethnic flavors in sauces – such as curry, masala, peanut and pomegranate – are also on the rise.

  4. What’s your advice to marketers planning to introduce new meat products?

    Dornblaser says ethnic flavors are essential to new product development to help provide unique points of difference. Additionally, she says these flavors can also help add appeal to “better for you offerings” such as low-fat or low calorie foods.
    She also emphasizes that creative, attractive packaging is essential. “Given how crowded store shelves are it becomes the job of the package to shout out to consumers to take the product home,” she says. Dornblaser says effective packaging can be created with a combination of color, photography and a strong message about the health, flavor or uniqueness of a product.

  5. Do you ever see natural and organic products reaching a significant market share?

    There’s no doubt natural and organic foods are hot items, says Dornblaser. She anticipates that both segments will continue to see growth for a time – especially with Walmart and other retailers making a strong push to offer more organic and natural products.

    However, Dornblaser does expect both segments to eventually plateau. She explains, “Organic foods will level off at some point because of the ability to produce enough of them.” Likewise, she says producing natural products is easier and has less of a price premium, but she anticipates that more regulations will be put in place in the future that will limit what can be termed “natural.”

    Another food trend that Dornblaser anticipates the beef industry will need to monitor is appropriate portion offerings in retail and menu servings. She cites the 100 calorie snack packs that are already available, and reports that TGIFridays is testing about six menu items that are smaller portions and a smaller price point for consumers.

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