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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.
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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%.
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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.
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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.
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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.
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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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