Mintel Releases 2010 Global Consumer Packaged Goods Predictions
New products in the coming year will recreate the familiar, according to Mintel’s 2010 global consumer packaged goods (CPG) predictions. “Post-recession, we don’t expect manufacturers to reinvent the wheel” said Lynn Dornblaser, Mintel’s new products expert. “On retail store shelves, we expect today’s familiar megatrends--health and wellness, convenience, sustainability--to get a fresh, new makeover for 2010.”
Mintel predicts seven core trends will impact global new product development: Symbol overload: In the US, nearly half of adults say having caloric information on the front of packages would help them reduce their intake. More manufacturers will opt for clean, clear facts on front-of-pack statements in 2010. Sodium reduction: Poised as the next major health movement, sodium reduction is finally ready to take hold. Local gets stretched: For 2010, the definition of “local” will expand, becoming more practical for major companies to use and for mainstream shoppers to purchase. Simple made special: The recent trend towards boutique-inspired packaging highlights how manufacturers will make the mundane a little more special next year. Color coding for convenience: To help shoppers make faster choices, more manufacturers will color-code their products. Iconic budget brands: Private label “brands” are starting to look a lot more like brands. Gen Y cleans up: New products will highlight simplicity of use and quick, easy results to appeal to Gen Y shoppers.
Women Still Predominant Household Shoppers
Even though women will soon outnumber men in the workplace, they are still largely responsible for purchasing food and other items used by the entire household, according to data from Mediamark Research & Intelligence (MRI). For instance, in 1989, 85.5% of principal household shoppers were female. By the spring of 2009, that figure had dropped to 75.1%, according to MRI--meaning women are still the predominant purchasers of food and household items.
“Although in a financial sense, women as breadwinners are far more commonplace than they were two decades ago, they're clearly still responsible for bringing home the edible bread and everything that goes on it,” said Anne Marie Kelly, SVP, Marketing and Strategic Planning, at MRI.
IRI Report Reveals Better-For-You CPG Products Experiencing Sales Growth
“During the past several years, marketing programs have effectively stimulated demand for healthier CPG solutions, but there is still a lot of opportunity for growth,” said IRI Shopper Marketing and Innovation President Thom Blischok. The latest IRI Times & Trends Report, “Health & Wellness: Redefining Healthy Living,” takes a new look at product development, marketing and merchandising tactics that will increase penetration of better-for-you food, beverage and beauty care products.
“Retailers and manufacturers should consider leveraging the brand strength of existing national and private brand products and introduce brand extensions that feature healthier and/or organic ingredients, Blischok said. “Kellogg's instituted this approach with its Pop-Tarts brand, which now includes whole grains. And, Hostess has taken a slightly different approach by offering portion-controlled packages for several of its snack cakes.”
Savvy CPG marketers and retailers are also exploring merchandising opportunities. Use of displays or kiosks featuring better-for-you products, cross-selling healthier products on packages of “traditional” products and selectively reducing prices are examples of three successful strategies being employed today.
Colman Brohan Davis Study Finds Healthy Eating Winning Battle At Retail
Consumers are making food purchase decisions based on healthy ingredients and nutrition considerations, according to a new study conducted by Colman Brohan Davis. The Colman Brohan Davis Consumers Food Shopping Survey revealed what matters most when making food purchases: 1. Taste 2. Cost 3. Ingredients 4. Nutrition labels, 5. Fat content 6. Locally Grown 7.Sustainability 8.Shelf life 9. Organic 10. Packaging11. Fair trade 12. Brand name.
Virtually 100% of respondents said they read nutrition labels “always” or “sometimes.” When asked, “Do ingredients influence your purchase?” over 80% said “yes.” In order of priority, women are “always” interested in: fat, calories, sugar, fiber and protein. Men are “always” interested in: fat, calories, sugar, protein and preservatives.
Millennials Entering Strong Growth Period In Income And CPG Spending
Millennials-Americans born between 1979-1989-are one of the largest demographics in the country and will soon be entering a strong growth period in both income and consumer packaged goods (CPG) spending. However, taking advantage of this emerging $54.3 billion opportunity presents significant challenges, according to IRI’s, “Winning with Millennial Women Shoppers” report. When compared with older shopper groups, Millennial households shop less often, spend more per trip, and do a greater share of their CPG spending at supercenters and Walmart.
Millennial non-food spending is similar to Generation X households. At a category level, hair care, suntan products and household cleaner cloths have potential for strong growth, since consumption in many non-food categories peak for shoppers in their 40s when household size peaks. IRI research found that compared with women in their 30s and 40s, Millennial women report an even stronger need for retailers to serve as better partners to support healthy diets. Nearly half of Millennial women think they don’t have a healthy weight. Millennial women are motivated to “shop for health,” but they believe finding healthier foods at retail is a challenge.
MRI & Natural Marketing Institute Report On Green Consumers-
Natural Marketing Institute and Mediamark Research & Intelligence have integrated NMI’s LOHAS consumer segmentation model with MRI’s Survey of the American Consumer database. LOHAS is an acronym for “Lifestyles Of Health & Sustainability,” a segmentation system that classifies consumers by their attitudes toward the environment.
The five LOHAS consumer segments now available through MRI are: LOHAS (19% of adults): consumers dedicated to personal and planetary health; NATURALITES (15% of adults) have a strong personal health focus but are not as committed to the environment; DRIFTERS (25% of adults) have good intentions, but factors other than the environment influence their behavior; CONVENTIONALS (24% of adults) don’t have far-reaching green attitudes; UNCONCERNED (17% of adults) The environment is not a priority to this segment.
