food and beverage development

FOOD AND BEVERAGE TREND REPORT 2008

LOW GLYCEMIC FOOD / BEVERAGE TRENDS

One thing we know for sure is that Americans are becoming more health concious and one of the big trends is good carb or low glycemic. This term was relatively unheard of just a few years ago, but low-glycemic foods and beverages are establishing themselves as a viable niche in the mainstream U.S. market--with 2008 year-end sales reaching $380 million, according to Low Glycemic Index Food and Beverages in the U.S., the latest market research from Packaged Facts.

Low glycemic foods include whole wheat breads and pasta, brown rice, and sorghum--the ingredient Anheuser-Busch is using to market a new non-wheat-based lager. Complex sugars such as tagatose, palitinose and trehalose are just some of the great bulking and sugar agents that are beyond sugar. They have added functionality, antioxidant capabilites and stabilize blood sugar and energy for hours on end.

The beverage trend for 2007 is reducing harmful high glycemic sugars, such as eliminating high fructose corn syrup, and eliminating aspartame and other artificial sweeteners. Another beverage trend is creating healthy functional beverages that go beyond energy drinks.

Packaged Facts projects that low glycemic sales will continue to soar at a compound annual growth rate of more than 45% during the 2007-11 period, with sales touching $1.8 billion in 2011.

Effectively cross-marketed to the nation's more than 20 million diabetics as well as consumers interested in other wellness areas such as energy and weight loss, low glycemic fare is making its mark with products that go one step beyond no- and low-sugar.

SUGAR FREE OR LOW SUGAR FOODS TRENDS

Low-sugar has become a huge trend in the food industry. Food makers are rushing to meet demand from consumers concerned with their waistlines and healthier eating by providing an array of new products, some of them aimed at children.

According to a survey done by the Grocery Manufacturers Association, a food industry trade group, almost 50 percent of all grocery shoppers said they were looking for products with reduced sugar.

Just about every major food company is thinking along these lines. Among the new products being offered are Pepperidge Farm Sugar Free Milano cookies, Arnold Smart & Healthy Sugar Free bread and General Mills 75% Less Sugar Cocoa Puffs.

Propelled in part by the popularity of the sugar substitute sucralose, or Splenda, the food industry last year introduced 2,225 sugarless or sugar-reduced products in the United States, according to the research firm Productscan Online. This figure is more than double that of two years ago and represents 11 percent of all new products.

ACNielsen has identified both organic and low or no sugar as the two "good for you" food segments that will get products noticed by consumers and generate the strongest sales growth. Many of these new low-sugar products are not just the old standbys like diet sodas and sugarless gum, but foods and drinks like cereals, fruit juices, cookies, bread, ice cream, flavored milk, pasta sauce, maple syrup and even bottled water.

ORGANIC FOOD AND BEVERAGE TRENDS

Ok this is no big secret, organic is growing every year at an exponential rate. The demand for and consumption of organic foods particularly in North America is expected to grow through 2015. No longer just a niche market, both organic food and the organic consumer are becoming a larger part of the mainstream. This has some important implications for food producers and processors.

The traditional organic consumers are usually those who purchase organic food as part of their beliefs and lifestyle. As the niche market expands, other consumer segments are coming into play such as aging baby boomers, university students, and others who perceive organic food as a healthy, tasty or chic alternative to conventional food.

More than one-half of Americans (54 percent) have tried organic foods, with nearly one-third (29 percent) claiming to consume more organic foods and beverages than one year ago. In addition, Americans are expanding their horizons beyond traditional gateways to organic foods such as produce and dairy. One survey, which was released one year after the U.S. Department of Agriculture's National Organic Standards went into effect, shows organic options including snacks, ready-to-go and packaged goods have increased in the last year. In addition, across all product channels, sales of 100 percent "certified organic" products are growing at 21 percent, according to data released by SPINS.
LOW CARBOHYDRATE FOOD AND BEVERAGE TRENDS
Low Carb? Your probably thinking that low carb was dead right? Well it's not and in fact, low carb is making a comeback. Consumers are now realizing that the best way to lose weight is by cutting carbohydrates. This has fueled the sugar free industry boom and low glycemic rise as well.

A new report, from US-based Information Resources Inc. (IRI), shows that over 5 million North Americans have gone back to low-carb diets over the past 12 months.

More importantly, perhaps, for the future of the low-carb sector, the report suggests that nearly 2.5 per cent of Americans have also attempted to informally lower their carb consumption - a niche waiting to be exploited by both the consumer packaged goods (CPG) and retail sectors.

The report shows that there are in fact three types of product which will benefit from low-carb: naturally low-carb product categories, including eggs and meats, as well as no/low/reduced sugar categories like bottled water and diet soft drinks; and reduced-carb brands from food/beverage manufacturers.

And the research also shows that the long-term benefits to the food industry need not be the exclusive reserve of specialist companies or major multinationals: sales of naturally low-carb products were up 4 per cent in the year, compared to just 1.7 per cent for the food industry as a whole, the IRI data showed.

Nonetheless, 2008 could be the start of a comeback year for low carb. While the increase will probably never be what it once was at its height in in 2003 we can all realize that low carb products will be bouncing back. Of course, due to the overly ethusiastic expansion and bust of so many low carb companies in 2004, finding low carb food products will be tough for the consumer for some time to come.

In summation, as food and beverage trends rise, all natural and good for you type foods are the way to the future. Green packaging and bio degradable items are also associated with new food beverage trends and should be incorporated with any new product line.