Top Ten Trends for 2017
by Innova Market Insights
Jorge Sarasqueta– Latam Director
Abril 2017
Innova Market Insights’ Top 10 Trends for 2017
TOP 10 TRENDS FOR 2017 ABOUT INNOVA MARKET INSIGHTS
1. Clean supreme
2. Disruptive green
3. Sweeter balance
4. Kitchen symphony
5. Body in tune
6. Plain sophistication
7. Encapsulating moments
Innova Market Insights is a leading market research company, serving
8. Beyond pester power our customers with our unique and powerful Innova Database: the
world’s largest database for the food industry, used by leading
9. Fuzzy borders companies in food ingredients and manufacturing for future success
in the dynamic FMCG/CPG industry.
10. Seeds of change
2
2
Trend 1 – Clean Supreme
EVOLUTION OF A TREND THAT IMPACTS NPD IN F&B CLEAN CLAIMS
Indexed growth of F&B new product launches tracked over • No additives/preservatives remains the most tracked claim
time with a key clean label claim (Global, 2008=100)
• Natural is the ultimate aim, but still lacks a clear definition
400
“From Clean to
Clear Label” • Organic fills in the natural gap as it is considered healthy
300 • Non-GMO: significant growth due to voluntary claims
“Processed is Out”
CLEAR IMPLICATIONS
200
“Go Natural”
• Clean label ingredients like coloring foods are thriving
100 • Cleaner formulations result in shorter ingredient lists
• Transparency about ingredients, process and final product
0
• Processing technologies for a clean label processing
2008 2009 2010 2011 2012 2013 2014 2015
3
3
Double digit continuous growth for clean label related NPD around the world
EUROPE EUROPE
NORTH
AMERICA $128.321 +17% ASIA
+18% +16%
AFRICA
+13%
LATIN
AMERICA
+37% AUSTRAL
-ASIA
+19%
4
4 * % represent CAGR (2011-2015) of new product launches tracked with a clean label claim
* Clean label claims: no additives/preservatives, natural, organic or GMO-free
The rules have been rewritten
CLEAN AND CLEAR FROM FARM TO FORK INDUSTRY LEADERS “CLEAN” THEIR PORTFOLIOS
• More and more dairy launches are carrying grass-fed
claims. The global number doubled from 2014 to 2015.
• Other claims to watch include “antibiotic free,”
“animal welfare” and “GMO-free.”
Arla A38 Mild Hindbaer 0.5%: Raspberry
Flavored Mild Acidified Milk With 0.5% Fat
Content (Denmark, Sep 2016)
Claims: Caring all the way from the farm to
you. Owned by farmers.
Naturally rich in protein and calcium.
5
5
Trend 2 – Disruptive Green
PLANT POWERED GROWTH TRULY MAINSTREAM
Indexed growth of F&B new product launches tracked over • Plant milks, meat substitutes and vegan offerings have
time with a plant based claim (Global, 2011=100) rapidly moved into the mainstream.
• Consumers are looking for innovative options to take the
750
inherent benefits of plants into their daily lives.
• Plant power: even dairy companies are now leveraging
the functional and technical benefits of plants in NPD.
500
PLANT APPLICATIONS
• Alternative protein (i.e. vegetarian/vegan): both
250 plant-based dairy and meat alternatives continue to grow
• Healthy herbs & spices: turmeric, rosemary and sage all
show strong growth across categories
• Coloring foods: impressive growth for coloring foodstuffs,
0 ranging from elderberry to spirulina.
2011 2012 2013 2014 2015
6
6
Energy from natural sources is booming
“GREEN ENERGY” IS TAKING OVER THE CATEGORY MORINGA GREEN ENERGY SHOTS
Percentage of energy drink new product
launches tracked with specified ingredient
(Global, 2011-2016YTD)
30%
Green coffee Green tea
24%
20%
17%
10% 8%
3%
0%
2011 2012 2013 2014 2015 2016-YTD
7
7
Coloring foods application continues to rise across categories
EVOLUTION OF NPD WITH COLORING FOODS COLORING FOODS WITH FOODS
• Coloring foods include black carrot, carrot and elderberry
Indexed growth of F&B new product launches tracked with and can be listed as ingredients instead of additives.
coloring foods in the ingredient list (Global, 2011H1=100)
250
• Key categories for applications include confectionery,
222 dairy, soft drinks, bakery, ready meals and sauces.
200
150
Breyers Cherry Vanilla
Ice Cream (United
100 States, Apr 2016)
100
Claims: plum, cherry
and black carrot
50
concentrates
(for color)…
0
2011/ 2011/ 2012/ 2012/ 2013/ 2013/ 2014/ 2014/ 2015/ 2015/ 2016/
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1
8
8
Trend 3 – Sweeter balance
GROWING PRESSURE ON SUGAR CONSUMPTION KEY PLAYERS ARE TAKING “PREVENTIVE” MEASURES
• Concerns about sugar intake has never been higher up
on the agenda.
• Scientific and official bodies from the WHO downwards
have been focusing on the levels of sugar in the diet and
its role in the growth in obesity and chronic health
problems globally.
Scientific publications on sugar consumption
(Global, 2006-2015)
1500
1000
500
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
9
9
The food industry responds
SUGAR CLAIMS SHOW STRONG GROWTH QUEST TO BALANCE TASTE AND HEALTH
Food & beverages launches tracked with sugar
related claims (Global, 2011 vs. 2015)
2011 2015
CAGR ’11-’15 CAGR ’11-’15 CAGR ’11-’15
+21% +14% +32%
Alpro Plant-Based Vanilla
Ice Cream (UK, Oct 2016)
Claims: Enjoy plant power. 100%
plant-based. With less sugars and
saturated fats than the market
reference in ice cream, this is a
delicious treat to indulge in. 30%
less sugars and saturated fats.
Free from colors and
preservatives. Suitable for
vegans. Made from nature’s
tastiest ingredients. Free from
dairy and gluten. Delicious rich
and creaminess.
10
No Added Sugar Sugar Free Low Sugar
10
Consumers are looking for a sweeter balance in soft drinks
CONSUMER AWARENESS SWEET SHIFT IN SOFT DRINKS
Does the sugar content of soft drinks influence your
70%
purchase decision? Answer: YES (Innova, 2016)
60%
60%
50% 57% 56%
UNITED KINGDOM
40%
UNITED STATES
MEXICO
30%
20%
10%
0%
11
11
Trend 4 – Kitchen symphony
ETHNIC FLAVORS TRAVEL AROUND THE GLOBE GLOBAL INFLUENCES
Indexed growth of F&B new product launches tracked over • There has never been so much variety and spread in the
time with an “ethnic” positioning (Global, 2011=100) choice of authentic cuisines around the world.
• The connected world has led consumers of all ages to
250
become more knowledgeable of other cultures.
• This has created an opening for visually appealing
200 products with high authenticity and specific ingredients.
150 FLAVOR TRENDS
100
• World flavors: NPD based on world flavor ranges are
popular, especially for the snacks and ready meals sectors.
• Food truck: street food and food truck flavors have been a
50
source of inspiration for NPD for retail.
• Revival of the classics: cuisine classics are being reworked
0 from comfort food to restaurant quality.
2011 2012 2013 2014 2015
12
12
Asian foods and flavors continue to thrive in North America and Europe
THAI INDIAN MEXICAN
• Growth of Thai claims is mainly • Indian inspired hot snacks and • Mexican foods not only popular in
coming from soups and cooking soups are emerging in North the USA anymore; more authentic
sauce. It has grown at a CAGR of America; product launch activity versions going global
+13% from 2011 to 2015. tripled from 2014 to 2015.
Le Grand Soupe Indienne Dhal: Indian Dhal Soup Knorr Mexicaanse Enchiladas; Mexican
Toro Thai Market Red Curry (Norway, Oct 2016) (Canada, Oct 2016) Enchiladas Kit (Netherlands, Mar 2016)
“Made in Thailand with fresh ingredients." Indian dhal soup with red lentils and garam
13 masala spices.
13
Burger King launches city editions in various countries
These American street food inspired burgers were recently launched in the Netherlands
14
14
Trend 5 – Body in tune
PERCEIVED DIETARY NEEDS DRIVE FREE FROM HEALTH AWARENESS DRIVES GROWTH OF PROTEIN
• Consumers are experimenting with free from products • At the same time, consumers continue to increase their
and specific diets like paleo and low FODMAP. intake of foods and beverages with ingredients that they
• Industry is providing consumers with the opportunity to consider healthy, like protein and probiotics.
further personalize towards their perceived dietary needs.
Percentage of F&B launched tracked with Percentage of product launches tracked with a
specified claims (Global, 2015-2016YTD) protein claim (Global, 2010H1 vs. 2016H1)
2014 2016YTD 2010 - H1 2016 - H1
25%
15%
12,7% 21%
20%
10%
15%
6,9% 12%
10%
10%
5%
2,3% 4%
1,2% 5%
0%
0%
Gluten Free Lactose Free
Cereals Dairy
15
15
Trend 6 – Plain Sophistication
THE “CRAFT” TREND BIG BRANDS CRAFT UP THEIR PORTFOLIO
• The number of food & beverages launches with a
craft positioning increased by +15% in 2015.
• Alcoholic beverages are driving the trend, but
confectionery, bakery and soft drinks
manufacturers are tapping in too.
Indexed growth of F&B new product launches tracked with
key word “craft(ed)” (Global, 2011=100)
400
300
200
100
0
2011 2012 2013 2014 2015
16
16
Top companies in the beer category present response to craft’s success
SMALL COMPANIES LEAD IN BEER NPD ACTIVITY HEINEKEN H41 LAGER EXPLORATIONS
Share of total beer new product launches tracked
(Global, 2012H1-2016H1, top 10 breweries vs. other breweries)
Top 10 breweries Other breweries
100%
66% 70% 72% 70% 76%
80%
60%
40%
Heineken H41 is part of the Heineken Lager Explorations.
It is made with a wild yeast found in Patagonia. The name
20%
comes from the latitude where it was found.
34% 30% 28% 30% 24%
0%
2012 - H1 2013 - H1 2014 - H1 2015 - H1 2016 - H1
17
17
Simple sophistication strategies
FLAVOR ORIGIN SPECIFICATION ORIGINAL RECIPES SOPHISTICATED FLAVOR BLENDS
Fage Crossovers Tomato Basil Blended Low-
Fat Greek Strained Yogurt With Roasted
Almonds (United States, Jun 2016)
Tropicana Carbonate Mexican Pepsi Cola 1893 Ginger
Lime Fruit (Japan, Apr 2016) Cola Drink (US, Mar 2016)
18
18
Trends 7 – Encapsulating moments
TARGETING SPECIFIC CONSUMPTION OCCASIONS BREAKFAST IN A BAG
• Next to an on-the-go snacking positioning, the away from • A simple and convenient way to ensure you never miss a
home snacking positioning is emerging. Popular words breakfast. Perfect for taking into the office or whenever
are “ideal for school boxes” or “perfect office snack.” you are on the go.
Indexed F&B launches tracked with a mention of the
specified keywords (Global, 2011=100)
Office School "in the car"/"on the road"
350
300
250
200
150
100
50
0
2011 2012 2013 2014 2015
Monster Health Food Free And Lo Muesli (Australia, Sep 2016)
19
19
Capturing the right moments with the right products
INDULGENCE SHARING TEA TIME/AFTERNOON
20
20
Trend 8 – Beyond pester power
GROWTH IN NPD TARGETING KIDS CONVENIENCE FOR YOUNG FOODIES
F&B launches tracked targeted to kids (Global, 2011-2015) Cake Angels Crayola
Crafty Cooks Let’S Bake
2011 2015 Yummy Wildlife Friends
Gingerbread Kit
+11% (UK, Aug 2016)
+13%
+14%
+13%
+14% +32%
Dairy Ready Cereals Snacks Meat, fish & Fruit &
meals eggs vegetables
21
21
Kids are interested in more than just cartoons on the box
TV SHOWS TARGET ADVANCED COOKING FOR KIDS REVOLUTION FOODS TARGETS KIDS @ SCHOOL + HOME
• Founded in 2006 as a provider of nutritious, affordable
school lunches to kids, it now serves 2 million school
meals every week in 14 states.
• The company uses the insights it garners from serving
kids lunch every day to design the products that end up
in consumers’ shopping bags.
22
22
Making products “kids proof”
MORE FUN CONVENIENT PACKAGING CONVENIENT CONSUMPTION
La Fruitiere De Picardie Tete De Pomme
Pomme Delisuc': Fresh Jonagold Apples Del Monte Quality Disney Squeezie: Apple And M Morrisons Just For Kids Easy Peelers
For Kids (France, Oct 2016) Mango Puree (United Kingdom, Oct 2016) Clementine (United Kingdom, Jun 2016)
23
23
Trend 9 – Blurring boundaries
COFFEE OR DAIRY ALTERNATIVE ? SMOOTHIE OR ENERGY DRINK ? MILK DRINK OR SPORTS DRINK ?
24
24
Hybrid innovation continues to deliver more excitement
MCDONALD’S LAUNCHES SWEETY NUTELLA “BEERIFICATION” OF COFFEE
Available only to McDonald’s customers in Italy, Nutella spread Starbucks introduced this nitrogen-infused version of Nariño
between two hamburger buns and comes in a cardboard box 70 Cold Brew Coffee in 2016. “After handcrafting our Cold
similar to the hamburger containers. Brew recipe, we infuse it with nitrogen at the moment it’s
poured to create Nitro Cold Brew”.
25
25
Trend 10 – Seeds of change
HIGH NPD ACTIVITY FOR CHIA & QUINOA KELLOGG TAKES ANCIENT GRAINS INTO MAINSTREAM
Indexed F&B product launches tracked with top
ancient grains (Global, 2011=100)
Buckwheat Quinoa Millet Chia Spelt
1000
Kellogg's Ancient
Legends Porridge
750 Pot With Spelt,
Barley, Oats, Chia
Seeds And
Coconut
500
(UK, Oct 2016)
Description: Instant
multigrain porridge
250 made with spelt, barley,
oats, chia seeds and
coconut, in a plastic
tray. Just add water.
0
2011 2012 2013 2014 2015
26
26
Seeds & grains are moving into new spaces
MORE APPLICATIONS FOR SEEDS ADDING A HEALTH ANGLE WITH SEEDS & GRAINS
• Increasing consumer interest in previously exotic seeds
like chia and quinoa has fueled the application of seeds in
general.
• Seeds bring a natural source of flavor, texture and health,
including a high protein content and consumers are
looking to benefit.
SEEDS & GRAINS GROW EVERYWHERE
27
27
Innova Market Insights’ Top 10 Trends for 2017
TOP 10 TRENDS FOR 2017 ABOUT INNOVA MARKET INSIGHTS
1. Clean supreme
2. Disruptive green
3. Sweeter balance
4. Kitchen symphony
5. Body in tune
6. Plain sophistication
7. Encapsulating moments
Innova Market Insights is a leading market research company, serving
8. Beyond pester power our customers with our unique and powerful Innova Database: the
world’s largest database for the food industry, used by leading
9. Fuzzy borders companies in food ingredients and manufacturing for future success
in the dynamic FMCG/CPG industry.
10. Seeds of change
28
28
THANK YOU!
EMAIL
[email protected]
[email protected]
29 www.innovadatabase.com
29
