November  2003 Times & Trends Executive Summary:
Convenience Versus Healthier Eating  - Who's Winning? -

This month’s Times&Trends focuses on growth in convenience and “healthy” food and beverage consumption in the traditional supermarket or grocery channel. This analysis draws from scanner sales information provided by IRI’s InfoScan® Reviews Advantage: Supermarket or Food Channel Databases, linked to sales trends across food and beverage consumer packaged goods categories and brands.

This free summary is also accessible via the GMA Web site  at http://www.gmabrands.com/publications/gmairi.cfm

Convenience has dominated food and beverage innovation and growth in recent history.

  • Prepackaged salad kits were launched in the early 90s and are now a $3 billion category in just the traditional grocery channel.
  • Portable snack bars now cater to every meal occasion – breakfast, lunch, dinner and in-between – and every “healthy-ed up” benefit – weight-loss, portable energy, nutritional supplement, low-carb – reaching over $1.5 billion in traditional supermarkets at the end of third quarter and still growing double-digit.
  • Restaurant recipe trends have become the high standard of home cooking aspirations. Restaurant brands are now conveniently available in supermarkets, selling more than $1 billion just across the four largest restaurant or carryout brands.

Dinner solution manufacturers and local grocers now do the prepping for consumers – chopping, marinating, grilling, seasoning, including meat or poultry – in one frozen, refrigerated or shelf-stable kit or in a single-serve carryout carton.

“Do-it-for-me” and portability conveniences are huge businesses.

Reviewing Healthy-ed Up versus More Convenient Trends  
There are definite signs that “you-are-what-you-eat-or-drink” is on the move and that we will see the kind of innovation and growth that “do-it-for-me” did for convenience products. Packaging will carry more specific fat-content information and claims. Brands will endorse or play off of weight-loss or control benefits. Organic and natural food chains will become a serious grocery factor. And, healthier eating and “healthy-ed up” products will take on new dynamics and directions.

New healthier benefits – such as low carbohydrates or less calories – combined with more convenience are going to grow like crazy, based on consumer response to innovations in the current year (based on data through Oct. 5).

Atkins Dieters Feast on Low-Carb Snack Bars  
Portable protein bars provide the right combination of nutrition, taste and convenience. These Atkins dieter favorites, along with protein snacks such as beef jerky and pork rinds, are growing at double-digit rates.

“Do-it-for-me” Is Still Driving Dinner Solutions
There are many competing dinner solution dynamics. Weight-control brands are garnering more share of prepared entrees, low-carb dieting is driving growth of red meat categories, interest in “natural” foods has increased sales of store brand-driven natural cheese while saving prep time continues to favor salad kit growth.

Egg Consumption Is Back
Remarkably, supermarket scanner sales of fresh eggs are up 13.4% (more than $300 million in sales) during the current year– “Atkins” dieters make a bacon and eggs breakfast. Bacon and sausage meats are up 7% and more than $200 million in growth.

Portable Yogurt and Breakfast, Cereal or Granola Bars Winning Breakfast Consumption  
Exciting combinations of portable nutrition and flavor continue to experience double-digit growth. But there’s also the decadent expansion of Krispy Kremes across America.

Packaging and Form Innovation Pulsing Salty Snacks  
But can “Healthy-ed Up” innovation be far behind?

Dieters’ Sweet Tooth Is Shaping Dessert and Sweet Snack Growth
Healthy-ed Up frozen novelties lead sales growth. Diet candy is up 50%.

Bottled Water Continues to Pulse Beverage Growth
But performance drinks and soymilk or non-dairy beverages are the new and coming stars. Soft drinks have gone flat.

Beer, Wine & Spirits Growth led by diet and heart-healthy minded drinkers
Light beers and Michelob Ultra capture low carb dieters’ attention and beer growth while boomers take favorable “heart-healthy” PR to heart and drive wine and spirits growth.

 

   
 

Back to Top

 


Source: IRI's Times & Trends Reports
Information Resources, Inc is a leading provider of UPC scanner-based business solutions to the consumer packaged goods industry.