This Growth opportunity series investigates the trends in the North American food and beverage market, identifies companies that are taking advantage of these trends via innovations, and consequently highlights opportunities that still exist in the market.
Globally, there is now a holistic approach to tackling health related issues by managing diet. This makes the health and wellness trend the top trend within the food and beverage industry. On top of this food manufacturers now want the ability to make clean label claims while also ensuring consumers have access to the product attributes they are familiar with, such as taste.
The main impact of the industry trends is that manufacturers across the supply chain have to continuously innovate in order to have a competitive advantage while also tackling the challenges caused by the burden of diseases. The type of food consumed is one of the ways to deal with the burden of various Non-communicable diseases (NCDs), thus, placing a significant responsibility on the food and beverage industry.
According to the Centers for Disease Control and Prevention (CDC), 36.5% of United States (US) adults are obese, with medical cost at $147 billion as at 2008. Canada has a lesser proportion, with 24.3-25.4% of adults reported as obese as at 2007/09. However, the rate of obesity has increased significantly in the country, over the years.
Statistics like these have made various governmental and regulatory authorities come up with laws to support health and wellness.
For example, the US Food and Drug Administration (FDA) recently announced that the new nutrition facts label for packaged foods will reflect new scientific information, including the link between diet and chronic diseases.
Manufacturers across the food and beverage supply chain will now need to take advantage of developments like this by innovating in line with the ability to make claims.
Functional foods have the biggest growth potential in the food and beverage market and a key success factor will be the ability to incorporate health ingredients into all types of food and going beyond the traditional applications. Ingredients with proven health benefits will stand out in this market, with additional advantage if they have the ability to ensure generally acceptable tastes in foods and supplements.Formulation support will also be a critical success factor, as it is expected that introducing new ingredients into an existing product might have its technical challenges, hence ingredient manufacturers will need to provide technical support for different application types.