Steve Katz01.24.23
In times of economic stress, whether it’s inflation, recession, unemployment, or any number of events that could wreak havoc on budgets and bank accounts, food reigns supreme as a reliable, steady end-use label market. Hey, we all gotta eat, right?
Take the pandemic, for example, when the $900 billion food market was on the front lines; when basically the entire global population ceased dining out. Food shopping boomed, as did takeout, thus, food packaging demands skyrocketed.
Food is a safe and steady market, but to really cash in on it and set yourself apart from competitors, it pays to know the latest trends and market fluctuations, what to expect, and perhaps most importantly for a label manufacturer, what specific food and beverage markets to consider targeting. So, let’s take a look at what’s in store for 2023 in this vital space.
In 2023, IFIC says, wellness will continue to be top-of-mind for many consumers, but it will increasingly come in liquid form, driven in large part by consumers looking for added benefits like energy, mental health and gut health support.
IFIC’s 2022 Food and Health Survey found that “more energy and less fatigue” were the most sought-after benefits from foods and beverages, with 37% of Americans saying as much.
“You can expect to see options that cater to those wishes multiply, such as ‘alt caffeine’ choices to old standbys like coffee and tea. Along with yerba mate, keep an eye out for more yaupon tea, a lower-caffeine alternative with a sweet flavor profile, which is derived from a species of holly native to the deep South,” according to IFIC.
Mocktails and nonalcoholic cocktail options continue to gain market share on menus and grocery store shelves, and are especially popular among younger consumers. This is perhaps a reaction to the early days of the pandemic, when alcohol sales and consumption spiked. IFIC says to be prepared to see a growing wave of nonalcoholic options not just during Dry January and Sober October, but throughout the year.
While energy was the most sought-after food benefit for all adult population groups, according to the IFIC survey, “emotional/mental health” was among the top three sought out by Gen Z, with more members of this demographic desiring this benefit compared to their older counterparts. Among those who made a change to their nutrition or diet in 2022 to manage or reduce their stress, 33% of survey respondents said they consumed foods/beverages that are supposed to reduce stress or the effects of stress, and 24% said they drank less alcohol.
While many consumers focus on what foods can do for their minds, others are also interested in what they can do for their guts. Probiotics have been steadily growing in popularity, with digestive/gut health being the third most commonly sought-after benefit among Americans.
“Don’t expect that interest to wane in the coming year, and expect to see them more and more beyond the yogurt section, as probiotics are increasingly being added to non-traditional foods like chocolate, ice cream, juices, sauces and even nutrition bars,” IFIC reports.
Similar to consumers’ pursuit of energy benefits, beverages are also viewed as a delivery system for probiotics and prebiotics. According to IFIC’s 2022 Consumer Insights on Gut Health and Probiotics Survey, of those who try to consume probiotics, 25% say they commonly seek them out in wellness drinks. Similarly, among those who try to consume prebiotics, 23% seek them out in wellness drinks.
Consumers are becoming increasingly comfortable with innovative, plant-based food alternatives, a trend that is expected to continue in 2023. An IFIC survey in December 2021 found that 28% would be interested in trying sea green-based products (e.g., algae- or kelp-based foods). Keep an eye out for food innovations featuring mushrooms, seaweed and jackfruit.
Food products deemed “natural” or “clean,” which consumers associate with healthfulness, will continue to be purchase drivers. According to the 2022 Food and Health Survey, more Americans in 2022 vs. 2021 say they regularly buy products labeled as “natural” (39% vs. 33% in 2021) or with “clean ingredients” (27% vs. 20% in 2021). When asked about which types of diets or eating patterns they’re following, clean eating was the top choice. More respondents said they followed clean eating in 2022 (16%) than in 2021 (9%).
Recent actions by the Food and Drug Administration (FDA) are bringing Americans closer to an updated definition of “healthy” foods. As far as consumers are concerned, the most common attributes they believe define a healthy food are “fresh” (37%), “low in sugar” (32%) and “good source of protein” (29%), according to the 2022 Food and Health Survey.
IFIC discloses that when consumers were asked in a 2021 survey to rate their level of interest in trying certain products, 19% said they would be interested in cell-cultured meat. In 2023, Americans will become increasingly familiar with meat derived from animal cells. “At the same time, we will have to come to a consensus on what to call those foods in the first place. According to one survey, ‘cultivated meat’ is emerging as a front-runner,” IFIC says.
“Americans have become much more conversant about global supply chains and what happens when they are disrupted by factors like the pandemic and war. The Covid-19 pandemic prompted many of us to reconsider how the products we take for granted every day don’t just appear on the shelves magically,” IFIC reports.
The cascading effects of world events aren’t limited to supply and demand. They also put upward pressure on prices, squeezing the finances of millions of Americans. For example, 83% of US consumers noticed an increase in the cost of food and beverages in the past year, according to the 2022 Food and Health Survey. Of those who observed an increase, 57% reported having to pay more for the same item as a result of increasing prices, and 29% said they purchased less overall than they would have otherwise.
In a nutshell, paying close attention to what’s hot and what’s not in the food space, and what appeals to the most important consumer demographics, can be a useful strategy in acquiring new business. The information you learn can point towards where you may want spend your marketing dollars for various food trade shows and publications, for instance. Bon appetit!
Steve Katz is the former editor of Label & Narrow Web and is now a regular contributor. He is focused on helping companies in the label industry share their news and tell their stories. Follow him on twitter @LabelSteve.
Take the pandemic, for example, when the $900 billion food market was on the front lines; when basically the entire global population ceased dining out. Food shopping boomed, as did takeout, thus, food packaging demands skyrocketed.
Food is a safe and steady market, but to really cash in on it and set yourself apart from competitors, it pays to know the latest trends and market fluctuations, what to expect, and perhaps most importantly for a label manufacturer, what specific food and beverage markets to consider targeting. So, let’s take a look at what’s in store for 2023 in this vital space.
Wellness Drinks and Gut Health
With issues like inflation, supply chain disruptions, technological advancements and changing consumer desires, the food market is experiencing a high level of change and unpredictability. But despite that instability – or because of it – several food trends are emerging for 2023, according to the International Food Information Council (IFIC). Among them are healthful beverages, demands for probiotics and protein, a focus on food labels and a lens on diversity.In 2023, IFIC says, wellness will continue to be top-of-mind for many consumers, but it will increasingly come in liquid form, driven in large part by consumers looking for added benefits like energy, mental health and gut health support.
IFIC’s 2022 Food and Health Survey found that “more energy and less fatigue” were the most sought-after benefits from foods and beverages, with 37% of Americans saying as much.
“You can expect to see options that cater to those wishes multiply, such as ‘alt caffeine’ choices to old standbys like coffee and tea. Along with yerba mate, keep an eye out for more yaupon tea, a lower-caffeine alternative with a sweet flavor profile, which is derived from a species of holly native to the deep South,” according to IFIC.
Mocktails and nonalcoholic cocktail options continue to gain market share on menus and grocery store shelves, and are especially popular among younger consumers. This is perhaps a reaction to the early days of the pandemic, when alcohol sales and consumption spiked. IFIC says to be prepared to see a growing wave of nonalcoholic options not just during Dry January and Sober October, but throughout the year.
While energy was the most sought-after food benefit for all adult population groups, according to the IFIC survey, “emotional/mental health” was among the top three sought out by Gen Z, with more members of this demographic desiring this benefit compared to their older counterparts. Among those who made a change to their nutrition or diet in 2022 to manage or reduce their stress, 33% of survey respondents said they consumed foods/beverages that are supposed to reduce stress or the effects of stress, and 24% said they drank less alcohol.
While many consumers focus on what foods can do for their minds, others are also interested in what they can do for their guts. Probiotics have been steadily growing in popularity, with digestive/gut health being the third most commonly sought-after benefit among Americans.
“Don’t expect that interest to wane in the coming year, and expect to see them more and more beyond the yogurt section, as probiotics are increasingly being added to non-traditional foods like chocolate, ice cream, juices, sauces and even nutrition bars,” IFIC reports.
Similar to consumers’ pursuit of energy benefits, beverages are also viewed as a delivery system for probiotics and prebiotics. According to IFIC’s 2022 Consumer Insights on Gut Health and Probiotics Survey, of those who try to consume probiotics, 25% say they commonly seek them out in wellness drinks. Similarly, among those who try to consume prebiotics, 23% seek them out in wellness drinks.
Plant-Based Innovation 2.0
Plant-based alternatives to meat and dairy are no longer new, but plant-based pasta, rice and snacks will be a growing trend in 2023. These products speak to consumers who seek both sustainability and innovation. The concept of “upcycling” appeals to these buyers, IFIC says, which takes plant-based food components that ordinarily would have gone to waste and processes them for use in other products, such as pulp and spent grain from soy milk or oat milk being added to flour. Upcycling reduces food waste and contributes to sustainable food production.Consumers are becoming increasingly comfortable with innovative, plant-based food alternatives, a trend that is expected to continue in 2023. An IFIC survey in December 2021 found that 28% would be interested in trying sea green-based products (e.g., algae- or kelp-based foods). Keep an eye out for food innovations featuring mushrooms, seaweed and jackfruit.
Clarity and Confusion in Food Packaging
IFIC says to expect to see more jostling in 2023 for the finite space on food labels. In a similar vein, greater consensus will begin emerging around label verbiage, as well as some of the terms and marketing claims that will be vying for more of a label’s real estate.Food products deemed “natural” or “clean,” which consumers associate with healthfulness, will continue to be purchase drivers. According to the 2022 Food and Health Survey, more Americans in 2022 vs. 2021 say they regularly buy products labeled as “natural” (39% vs. 33% in 2021) or with “clean ingredients” (27% vs. 20% in 2021). When asked about which types of diets or eating patterns they’re following, clean eating was the top choice. More respondents said they followed clean eating in 2022 (16%) than in 2021 (9%).
Recent actions by the Food and Drug Administration (FDA) are bringing Americans closer to an updated definition of “healthy” foods. As far as consumers are concerned, the most common attributes they believe define a healthy food are “fresh” (37%), “low in sugar” (32%) and “good source of protein” (29%), according to the 2022 Food and Health Survey.
IFIC discloses that when consumers were asked in a 2021 survey to rate their level of interest in trying certain products, 19% said they would be interested in cell-cultured meat. In 2023, Americans will become increasingly familiar with meat derived from animal cells. “At the same time, we will have to come to a consensus on what to call those foods in the first place. According to one survey, ‘cultivated meat’ is emerging as a front-runner,” IFIC says.
Thinking “Glocally”
“Glocalization,” IFIC says, refers to the interplay between globalization that also respects and adapts to unique local needs and conditions. Companies that expect to succeed in the global economy will need to pay attention to local forces.“Americans have become much more conversant about global supply chains and what happens when they are disrupted by factors like the pandemic and war. The Covid-19 pandemic prompted many of us to reconsider how the products we take for granted every day don’t just appear on the shelves magically,” IFIC reports.
The cascading effects of world events aren’t limited to supply and demand. They also put upward pressure on prices, squeezing the finances of millions of Americans. For example, 83% of US consumers noticed an increase in the cost of food and beverages in the past year, according to the 2022 Food and Health Survey. Of those who observed an increase, 57% reported having to pay more for the same item as a result of increasing prices, and 29% said they purchased less overall than they would have otherwise.
In a nutshell, paying close attention to what’s hot and what’s not in the food space, and what appeals to the most important consumer demographics, can be a useful strategy in acquiring new business. The information you learn can point towards where you may want spend your marketing dollars for various food trade shows and publications, for instance. Bon appetit!
Steve Katz is the former editor of Label & Narrow Web and is now a regular contributor. He is focused on helping companies in the label industry share their news and tell their stories. Follow him on twitter @LabelSteve.