MARKET UPDATE: STEVIA SALES AS FOOD, BEVERAGE ADDITIVE TO REACH $275M BY 2017

STEVIA SALES AS FOOD, BEVERAGE ADDITIVE TO REACH $275M BY 2017

Published Jan 14, 2014 in Food Product Design

Posted in News, Market Research, Market Trends, Financial Reports, International, Sweeteners, High Intensity Sweeteners, Stevia, Sugar, Sucrose, Aspartame, Sucralose, Acesulfame K, Natural, Quality,Healthy, Healthy Foods, Nutrition, Diet, Calorie, Calorie Reduction, Weight Management, Food Additive,Confectionery, Desserts, Candy, Ice Cream, Frozen / Refrigerated Foods, Dairy, Dairy Ingredients,Beverages, Soft Drinks, Carbonated Beverages, Mintel

CHICAGO—The value of plant-based sweetener stevia, as an additive for use in food and beverage manufacture, totaled $110 million in 2013, and is expected to reach $275 million by 2017, according to new market research from Mintel and Leatherhead Food Research.

In contrast, aspartame, despite its recent ruling as safe for human consumption at current levels from the EFSA, is forecast to drop to £210 million by 2017 from its value of £280 million in 2013, as stevia, and blends of stevia and other sweeteners such as acesulfame K, begin to take a greater share of the market.

In 2009, only 5% of food and drink products launched using intense sweeteners used solely plant-derived sweeteners (although a further 2% used a blend of artificial and plant-derived sweeteners). In 2013, the share of plant-derived sweeteners jumped to 15% (with a further 3% used a blend of artificial and plant-derived sweeteners). Between 2011 and 2013, plant-derived sweeteners reached a high of 28% of launches in North America.

In a recent report, Zenith International predicts stevia sales will reach $409 million market value by 2016.

“Intense sweeteners offer a source of sweetness without the calorie contribution of sugar, an increasingly attractive proposition to consumers struggling to manage their weight," said Laura Jones, food science analyst at Mintel. "Signs that the global market for intense sweeteners has reacted to this increased demand for ‘healthier’ sweetener solutions is already evident."

By the end of 2013, the global market for intense sweeteners as additives used in the manufacture of food and beverage products is forecast to reach a value of $1.27 billion, a figure which represents an increase of 2.8% compared with 2012. By 2017, global market value is expected to increase to almost $1.4 billion, up by 9.7% from levels in 2013.

However, breaking down the usage of intense sweeteners in new product launches shows that today, artificial variants, such as acesulfame K, sucralose and aspartame are still dominant.

Due to its use in blends, acesulfame K leads in launch activity, however, the share of products using acesulfame K has gradually declined from 56% in 2009 to 49% of launches in 2013. Sucralose takes the second spot, found in around 40% of all products launched with an intense sweetener. Aspartame comes in next; however, its share is consistently dropping year on year, going from being used in 40% of 2009 launches to 32% of 2013 launches. Categories still heavily reliant on artificial variants include sugar confectionery, desserts and ice cream, dairy products and carbonated soft drinks.

The sucralose sector is now the largest sector within the global intense sweeteners market in value terms (34%), having overtaken aspartame in recent years and showing more potential for growth in some regions given its positioning as the most ‘sugar-like’ of the artificial sweeteners .

The use of intense sweeteners in launches of food and drink products has grown over the past five years, from being used in 3.5% of all launches globally in 2009 to 5.5% in 2012. Meanwhile, the global market for all sweeteners (intense and bulk) as additives—rather than sold to consumers at the retail level—was worth more than $2 billion in 2012. Value sales have started to pick up again as the worldwide economic situation has improved, with the global market up 3.8% from $1.94 billion in 2010.

Sources:

• Mintel: Stevia set to steal intense sweetener market share by 2017, reports Mintel and Leatherhead Food Research

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HEALTH ALERT: CONSUMERS CARRY 'SUPERSIZE' MENTALITY TO HEALTHY FOODS

CONSUMERS CARRY 'SUPERSIZE' MENTALITY TO HEALTHY FOODS

Published January 7, 2014 in Food Product Design

Posted in News, Science & Research, Costs, Economics, Consumer Preference, Consumer Panels,Healthy, Healthy Foods, Nutrition, Diet, Fried Foods, Foodservice, QSR, Beverages, Soft Drinks,Carbonated Beverages, Fruit, Fruits / Vegetables, Vegetable, Retail

NASHVILLE , Tenn.—Consumers often can’t pass up a "supersize" deal, despite possible health consequences. However, new research suggests consumers' willingness to save a few pennies on supersized purchases works also with healthy foods, according to a new paper published in the Journal of Marketing.

Researchers at Vanderbilt University found that by feeding into consumers’ desire to get a bargain, the same economic supersizing mindset that leads to dangerously unhealthy choices could help some people with healthier options as well.

“One of the studies in our research paper shows similar supersizing effects happening with the purchase of baby carrots," said Vanderbilt marketing researcher Kelly Haws. "Consumers are very attracted to deals in general and saving money per unit is very appealing to us, even when the deal is a larger bag of baby carrots."
The term “supersizing" was coined by the McDonald’s corporation in the mid-1990s to denote the practice of selling larger portions of fries and drinks for disproportionately small increases in price. McDonald’s dropped the term by the early 2000's.

However, supersizing is still an effective business practice that lives on, especially in the fast food industry.

“We know the health implications of a giant latte or supersized fries, so a little justification through feeling financially savvy and saving money makes us feel better about our decision and increases consumption," Haws said.

The research also found that reminders of nutritional goals—such as labeling calories on menus—can have some mitigating effect on the harmful effects of supersizing.

Sources:

• Newswise: Pennies vs. Pounds: How “Supersizing” Could Actually Lead to Healthier Choices

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FOOD SERVICE: 5 TRENDS TO SPUR FOOD SERVICE GROWTH IN 2014

5 TRENDS TO SPUR FOOD SERVICE GROWTH IN 2014

Published December 23, 2013 in Food Product Design 

Posted in News, Market Research, Market Trends, Foodservice, Restaurant, Fast Casual, Menu, Healthy,Financial Reports, Mintel, Costs, Quality, Pizza, Taste, Flavor, Technology, Sustainability, Demographic,Hispanic

CHICAGO—The U.S. restaurant industry can expect a 5.9% increase in sales in 2014, from $438 billion in 2013, spurred by five trends to hit food service in the coming year, according to Mintel.

The trends, identified by Julia Gallo-Torres, category manager, U.S. foodservice reports at Mintel, predict:
1.  Fast Casual Pulls Ahead—The impressive growth of the fast casual segment demonstrates consumers, who are still focused on price, are willing to pay more for foods they consider to be of better quality or healthier. A slew of new concepts focusing on customization, speed of service and convenience, have sprouted. These include higher quality burger chains; concepts more firmly focused on health and a rash of pizza restaurants that can deliver a fully-cooked, customized pizza in a matter of minutes.

2.  Premium Proves Practical—Not to be left behind, full-service concepts are mimicking the winning ways of fast casual restaurants. For example, several full-service brands are testing or have launched concepts that utilize the speedier fast casual service model. This is important especially during the lunch rush, when consumers don't have the time to wait. Other tactics include launching healthier, more flavorful menu items and employing technology to speed up the dining experience.

3.  Open Book Business Practices—More than ever, foodservice consumers are questioning the origin of their foods and they are demanding transparency not only in ingredient sourcing, but in general business practices, including the treatment of animals and employees. Consumers are interested in patronizing restaurants and buying brands that reflect their own values. Concepts that understand this and offer more information about their green practices or the causes they support stand to reap the rewards of increased loyalty.

4.  Due Demographic Diligence—Operators have been obsessed with Millennials. It's understandable, as they are the ones most likely to dine out in almost every restaurant segment. However, other demographics also present growing opportunities:

• Hispanics tend to dine out in larger groups and their population is increasing. Their spending power is expected to reach nearly $1.7 trillion by 2017, meaning serving this rapidly expanding community will be key to growth.
• Women visit restaurants less than men and this is likely due to their being more health- and budget-conscious. This indicates restaurants need to do more in terms of pricing, atmosphere and menu to gain momentum with this group.
• Baby Boomers enjoy dining out and have more disposable income than other demographics, but few marketing campaigns specifically target them.

5.  Technology Interface Revolution—Restaurants are increasingly using technology to cut service times, and to offer loyalty programs, promotions and discounts electronically. Furthermore, in-store tabletop tablets and menu boards offer nutritional and other information, while reducing order, wait and check out times. Brands are redesigning their websites to allow consumers to gain all the information they want with as few clicks as possible. This includes making their sites more attractive and useful via smartphones, which consumers rely on more and more for staying organized and gaining information.

Sources:

• PR Newswire: Mintel announces five key US foodservice trends for 2014

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Food Service Sector Analysis: Part 2 Top 25 Accounts

Food Service Sector Analysis: Part 2 Top 25 Accounts

Here are the top 25 International Restaurant Chains outside of US last year (2012) according to Euromonitor. 

7-Eleven: Convenience store known for drinks, snack items like sandwiches and, in some markets, pasta, dumplings and sausages.

Akindo Sushiro: Known for affordable sushi and conveyor belt, self-serve operation.

Costa Coffee: With its focus on quality, handmade coffee, Costa was the first U.K. coffeeshop to commit to sourcing Rainforest Alliance Certified coffee.

Dicos: Chinese quick-service chain that specializes in Western style food like fried chicken, burgers and fries.

Doutor Coffee Shop: Known for serving inexpensive, fast coffee and snacks like sandwiches and hot dogs to people on the move.

Enterprise Inns: A leased and tenanted pub company that collects rent from its pub operators. Tenants purchase alcohol and other products from Enterprise.

FamilyMart: Popular Japanese convenience store offering groceries, alcoholic beverages like sake and food such as onigiri, or rice balls.

Gusto: Family chain that serves both Japanese and Western foods. Steaks and hamburgers are some of the concept’s most popular dishes.

Gyoza no Ohsho: Japanese chain known for its dumplings, large portions and being fast and affordable.

Honke Kamadoya: A chain of supermarkets housing a popular Asian deli-style restaurant.

Hotto Motto: A takeaway bento chain specializing in freshly prepared food.  It opened its first overseas unit in China in 2010.

IKEA: Cafeterias in this home-goods store offer traditional Swedish food, with some variations, in the 40-plus countries IKEA serves.

JD Wetherspoon: A pub chain with a focus on value, a welcoming environment and responsible environmental policies

Jollibee: Serving American-style fast food with Filipino influences, Jollibee specializes in hamburgers and spaghetti.

Lawson: Although this c-store concept got its start in Ohio, it has thrived in its new home base of Japan, where it sells a number of prepared foods.

Matsuya: With operations in Shanghai and throughout Japan, this restaurant chain serves rice bowls and curry dishes.

Ministop: Billing itself as a “refreshment station,” this Japanese convenience store sells a number of prepared food products, including Sandwiches and bento boxes.

Mister Donut: Like Lawson, this chain was originally headquartered in the United States. It now serves its doughnuts, muffins, pastries and coffee mostly in its main market of Japan.

MOS Burger: A burger chain with units throughout East Asia. Its eponymous menu item is a top seller.

Paris Baguette: With major penetration in South Korea, this bakery brand focuses on quality, freshness and customer service. It has international stores in China and the United States.

Quick: This quick-service burger chain says it has adopted the American fast-food model for European tastes.

Saizeriya: A Japanese chain specializing in family-style Italian cuisine

Sukiya: This concept specializes in gyudon and donburi, which are rice-bowl dishes, as well as curry.

Sunkus: A convenience-store chain that also sells onigiri, or rice balls, and bento boxes.

Yoshinoya: A quick-service chain specializing in gyudon, or rice and -beef bowls.

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Food Service Sector Analysis: Part 1 A Global Perspective

Food Service Sector Analysis: Part 1 A Global Perspective

Global Markets:

As Nation’s Restaurant News introduces this year’s International Top 25, it is against a backdrop of a global food service market set to gain serious ground during the next five years, with sales expected to jump 32.3 percent to more than $3 trillion.  The flowing slide captures the total market globally.

Through 2017, the Asia-Pacific region will be the hottest food service sales growth market in the world in terms of net increase in total sales volume with Latin America a distant but still significant second, Research from Euromonitor International indicates Food service sales are expected to rise by $414.6 billion, or 39.1 percent, to $1.5 trillion between the end of 2012 and 2017 in the Asia-Pacific region,

Economic conditions in Japan appear to have stabilized and continue to improve, and further growth will be fueled by emerging markets, including China and India, that are creating larger classes of consumers who can afford to dine out.

Latin America, meanwhile, is expected to add $175.3 billion in food service sales — an increase of 62.1 percent — during that same five-year period. The anticipated levels of sales growth in the Asia-Pacific and Latin America markets are approximately seven times and three times, respectively, that forecast by Euromonitor for the U.S.-Canada region, where sales are expected to climb by $59.8 billion, or 11.6 percent, to $577.1 billion. Restaurant brands operating in the more mature U.S.-Canada region are expected to experience small to moderate annual incremental gains amid fierce competition for share of the existing market.

Though the Middle East-Africa and Eastern Europe regions are expected to lag the U.S.-Canada market in terms of change in net sales during the five years ending in 2017, at $43.9 billion and $27.6 billion, respectively, they will have better year-over-year percentage growth than their North American counterparts. The Middle East-Africa region is projected to see an increase of 58.2 percent in total food service sales by 2017, and Eastern Europe is expected to see a gain of 46.3 percent in the same period, according to Euromonitor.

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FOOD SERVICE TRENDS 2014: American industry leading edge concepts

2014 Foodservice Industry Trends

6DEC

The foodservice industry is all about trends. Trends can have a significant impact on a foodservice business. Today’s consumers are more interested than ever in the foods they eat, where they eat, and where their food comes from. True trends, as opposed to fads, shows the need in our society and how foodservice industries meet those demands.

Here are 3  foodservice industry trends you should look out for in 2014:

Restaurants In Retail  Shops

How would you like a glass of wine as you look around for a new pair of shoes? Well, the next big thing in food could be fashion. There is a growing trend of retail stores in the US developing their own themed restaurants within their store. A perfect example of this is Tommy Bahama’s New York flagship restaurant that sells rib-eyes and fish tacos. Another great example of this is David Burke’s Burke in the Box and Forty Carrots at Bloomingdales.

Bloomingdale's is America's only nationwide, full-line, upscale department store; and a division of Macy's, Inc. It was founded in 1872 and currently operates 39 stores in New York, New Jersey, Massachusetts, Pennsylvania, Maryland, Virginia, Illinois, Minnesota, Georgia, Florida, Nevada and California; and will open its 40th store in Chevy Chase, Maryland later this year.

The new Forty Carrots is attractive and enticing, awash with garden-inspired colors. In addition to 100 seats, fully twice the capacity of the old restaurant, and enlarged take-out area, the all-new location boasts a light and lively design with sleek, contemporary flatware and china from Villeroy & Boch to compliment the updated food presentations.

So what’s the value of putting a restaurant into a store?  Restaurateurs want to keep shoppers in their stores for as long as they can and giving shoppers the ability to drink and eat can increases the time they spend in the store. The more time spent in the store; the more likely a purchase will be made.

More Restaurants Using Tablets

Restaurants are embracing technology and the use of tablets is just another example of that. Earlier this week Applebee’s announced plans to install 100,000 tablets at every table in each of its 1,860 restaurants in the United States. These tablets will allow Applebee’s customers the ability to order food, pay their bill, and play games as they wait for their food. Back in September, Chili’s announced they would also begin installing tablets on each table of its 823 restaurants by March 2014.

While this move may seem like the beginning of the end for servers, don’t be alarmed. The restaurant business is about speed and service. Restaurants make more money when their servers are quick, and they get their customers out the door happy. The devices are for interactive purposes and convenience, targeting groups and families who wouldn’t mind paying $0.99 to play games. In fact, services could expect to see an increase in tips as the system is implemented to increase the spending per table and customers will benefit from better service as servers wont have many tasks on their plate.

Goodbye Trans Fats

Say goodbye to margarine because artificial trans fat in food will soon be a thing of the past. Earlier this month, the Food and Drug Administration (FDA) announced its preliminary determination saying trans fat is not “generally recognized as safe” for food. If this preliminary determination is finalized, hydrogenated oils (a component of margarine) will become food additives that could not be used in food without approval. Any food with unapproved additive cannot legally be sold in the U.S.

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