CHICAGO—According to market research data presented at the 2010 Institute of Food Technologists (IFT) Annual Meeting & Food Expo®, introductions of new food and beverage products in the United States have showed a significant increase, especially in contrast with the bleak new-product scene in the latter half of 2009.
Data from Mintel International Group reviewed during “An essential market update for product development in today’s challenging economic environment,” shows that U.S. introductions of new food and beverage products has risen approximately15% over the last half of 2009. This is seen ass a positive sign that the fall-out from the economic recession has stabilized and manufacturers are creating new innovations to meet consumer demands.
According to Lynn Dornblaser, director, CPG Trend Insight, Mintel, the 15.2% increase in food and beverages this year has been driven by new “treat foods,” such as Greek yogurt and pretzel M&Ms, and products like specialty mayonnaise and spice collections that make it easier for consumers to make restaurant-quality food at home.
However, U.S. manufacturers are not investing heavily in products for the organic food category, Dornblaser said. New organic products, which hit a high of 12% of new products in 2008, have dropped to about 7%. The larger companies are moving away from broadening their organic offerings, and new products now are largely driven by products from smaller companies or by private label organics. Private label products allow cost-conscious consumers to choose an organic food or beverage, even though it costs more than a nonorganic private-label product, while paying less than for a premium organic brand, Dornblaser said.
In general, private labels are driving many food and beverage decisions as consumers try to cut dollars from their grocery budgets, said Barbara Katz, president, HealthFocus International, who presented data from the HealthFocus Trend Study when discussing “the new value equation” that is changing the way consumers shop for food. Among those surveyed with reduced incomes, 40% reported buying more private label products. Brands are continuing to struggle in the current economic environment with only 1 out of 10 shoppers reporting being loyal to a brand, with the least loyal brand purchasers falling in the18 to 29 age range.
