'Fresh' and 'global' to overtake traditional goods, says research
increased taste for ethnic goods are two trends set to have a
sustained impact on the packaged food industry, according to new
research.
The findings suggest that these evolving consumer preferences will result in the gradual replacement of traditional consumer packaged goods with more global and more 'fresh' counterparts.
The results, from market research firm the Hartman Group, were drawn from around 650 hours of consumer observation, which were designed to help understand the "why behind the buy".
Primarily ethnographic in nature, the research involved tracking consumer behavior in all settings where food is bought and consumed. As well as conducting interviews with around 300 US households, the researchers spent time with consumers in their homes, in supermarkets and in restaurants.
And one of their key findings was the way in which a growing consumer interest in 'fresh' products is transforming the way the food industry is doing business.
"Whereas many years ago consumers were actually attracted to the convenience, predictability and reliability of processed and packaged foods, those same features now repel most consumers," said the Hartman Group.
"Like it or not, our complex global economy and our flexible production and distribution systems have given consumers access to goods of unparalleled quality and distinction- hallmark features of fresh-, and for most there is no need to go back," it added.
According to the group, it is simply a matter of time before the "fresh revolution" is fully realized.
At the same time, however, the market researcher noted that there will continue to be room in the market for packaged goods, but that these will be increasingly marginalized in favor of fresh alternatives.
The importance of 'fresh' in the American diet has also been pin-pointed by another industry expert. However, Harry Balzer of the NPD group, who has been studying the nation's eating patterns for the past 25 years, noted that the inconvenience of including fresh items in a meal remains a major drawback for consumers. Manufactures, he said, need to find ways to make fresh easier for consumers in order to combat this "fresh stress".
Another increasingly popular trend confirmed by the Hartman Group is the globalization of food preferences.
"Our notion of choice is undergoing great transformation (…) Our more complex, flexible, global economy ensures more diverse, more authentic and higher quality choices," said the group.
"Foods once appearing ethnic, exotic or just plain disgusting to older generations are now commonplace in the daily lives of our younger generations (…) Today's teenage consumers, for example, are as comfortable indulging in Japanese candy or sushi after school and cooking Pad Thai for dinner as they are meeting their friends for Dim-Sum on a Saturday afternoon," it said.
This next generation consumer will never be content with conventional staples such as potato chips, cookies, gum or soda, claimed the group.
"In 2006 every product or brand is, by definition, a global brand," it said.
Indeed, the ethnic foods market, including Hispanic, Asian, and African-American food and beverage products, currently generates about $75 billion in annual sales in the US, which is equal to $1 out of every $7 spent on groceries. However, while foodservice is bringing in about 65 percent of those sales, retailers trail behind with 35 percent of the market.
The recent findings by the Hartman Group were published in advance of the group's annual 'trends' report, which is due to be released at the end of the year. The annual reports draw on research conducted by the group throughout the year, including research in areas such as wellness and organics.