Natural Products Insider

JUL-AUG 2019

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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naturalproductsinsider.com 5 In the News IFT19 Top Food, Beverage Trends Plant-based proteins, sweeteners and sustainability were just a few of the top trends identifi ed by INSIDER editors at the 2019 IFT Annual Meeting & Food Expo held June 2 to 5 in New Orleans. As clean label continues to move from trend to mainstream, more suppliers are investing in sustainability and supply chain. Ingredient providers emphasized plant proteins such as pea, chickpea, oat and soy, as well as natural sweeteners including stevia, monkfruit and allulose. Solutions for fat and sodium reduction also were readily available, especially for indulgent categories like bakery, snacks and confectionery. Suppliers also showcased a host of functional ingredients to target health conditions such as immunity, digestive health, brain health, heart health and more. Confectionery, Energy Drinks Among 2018's Most Successful Food, Beverage Launches Information Resources Inc.'s (IRI) recent 2018 New Product Pacesetters report identifi ed the most successful CPG launches based on exceptional fi rst-year dollar sales. Products making the list addressed simplicity, either with ingredients, convenience or sustainability. In the food sector, indulgence was an overall theme, followed by health and wellness and portion control. The top food and beverage brands on the 2018 New Product Pacesetters list were: Kinder Joy (US$124.4 million); M&M's Caramel ($120.6 million); Oui by Yoplait ($100.5 million); Gatorade Flow ($78.1 million); RXBAR ($73.9 million); Grown in Idaho ($59.9 million); Mtn Dew Ice ($59.9 million); Lay's Poppables ($51.6 million); Ritz Crisp & Thins ($49.1 million); and Duncan Hines Perfect Size for 1 ($47.9 million). US Organic Sales Ring Up Record $52.5 Billion in 2018 Driven by consumer demand for high- quality, clean, transparent and sustainable products from companies that embrace social activism, sales of organic food and nonfood products hit a record $52.5 billion, up 6.3% from 2017, according to the Organic Trade Association's (OTA) 2019 Organic Industry Survey released May 17. Organic food sales soared to $47.9 billion, an increase of 5.9%, while sales of organic nonfood products jumped by 10.6% to $4.6 billion. The growth rate for organic continued to easily outpace the general market. In 2018, total food sales in the U.S. edged up just 2.3% while total nonfood sales rose 3.7%. "Organic is now considered mainstream. But the attitudes surrounding organic are anything but status quo," said Laura Batcha, CEO and executive director, OTA. "In 2018, there was a notable shift in the mindset of those working in organic toward collaboration and activism to move the needle on the role organic can play in sustainability and tackling environmental initiatives." Organic fruits and vegetables retained its spot as the largest of all the organic categories, with sales of $17.4 billion in 2018 for a 5.6% rate of growth, on par with the growth in 2017. By comparison, the overall fruits and vegetables category, including both organic and conventional products, grew by just 1.7% in 2018. Fruits and vegetables now account for 36.3% of all organic food sales. Organic fruits and vegetable make up 14.6% of all the produce sold in the U.S. and have nearly doubled their market share in the last 10 years. This is key because produce is a gateway to organic for consumers, especially Millennials and those with young families. Industry experts note that the more people learn about health and wellness, the more people buy fresh produce. Best sellers in organic produce include carrots, greens, apples, bananas, berries, avocados, Brussels sprouts, caulifl ower and tropical fruits like mangoes and papayas. Outside the fresh produce section, the frozen, canned and dried vegetable and fruit sections also made gains. Growth in the U.S. dairy sector slowed for the second year due largely to shifting diet trends; however, it is still the second- largest organic category. Dairy and egg sales were $6.5 billion in 2018, up 0.8% from 2017, with organic egg sales hitting $858 million, up 9.3% from 2017. Consumers also are buying products higher in healthy fats and protein, and many Millennials have moved toward plant-based foods and beverages. To satisfy today's consumer, the importance of innovation in the organic dairy sector has never been greater. In 2018, the industry responded with milk beverages with increased protein, more full-fat dairy products, new fl avors and grass-fed products. Consumers also are seeking organic nonfood products such as household goods, pet foods, skin care and supplements. What's more, Millennials have a higher awareness around supply chain transparency and sustainability. Sales of organic nonfood products increased 10.6% to hit $4.6 billion in 2018, above the 7.4% growth rate reported in 2017, and the 3.6% growth rate reported in 2018 for the overall nonfood industry. The strongest growth came from fi ber, the largest of the nonfood categories, which accounts for 40% of the organic nonfood market. In 2018, fi ber recorded $1.8 billion in sales, up from $1.6 billion in 2017. Food and Beverage Trends by Judie Bizzozero Plant-Based Proteins, Sweeteners, Sustainability Trending at IFT19 Listen to Informa editors Heather Granato, vice president of content; Sandy Almendarez, director of content; and Judie Bizzozero, senior editor, food and beverage; as they discuss food and beverage trends at IFT19. 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