Personalized food, health and well-being, sustainability, zero waste and taste and indulgence are the five macro trends that impact the food sector in this new commercial reality.
The pandemic resulting from the outbreak of covid-19 has essentially served as a driving force behind most of the trends that had been developing before the crisis, only slowing down those linked to sensory experiences, concerns about the use of plastic in packaging and preferences for imported options, since the context has stimulated the consumption of brands and alternatives of local origin, according to an analysis by the Costa Rican Foreign Trade Promotion Agency (Procomer).
Berries, cherries and citrus fruits, fruits that due to their vitamin C content are generally associated with positive effects on the immune system, reported increases in sales in the US and European markets during March, April and May 2020.
In this context of new consumption habits, which emerged worldwide due to the outbreak of covid-19, banana sales (due to its high potassium content and its contributions to health) have been extremely positive.
Foods whose properties and benefits are well defined, and are produced by companies with sustainable practices, have the greatest potential to gain ground in a market that has been rapidly transformed.
Although in recent weeks’ e-commerce and analysis of how consumers buy in times of quarantine has occupied most companies, there are other trends that could define the food market, once the most critical phases of the covid-19 outbreak are over.
There is an increasing preference on the part of European consumers for confectionery products made from natural raw materials free from artificial ingredients.
From a statement issued by the Costa Rica Foreign Trade Promotion Office (PROCOMER):
Europe seeks confectionery free from artificial additives
'Natural' has become a key factor for consumers of the five largest European economies (Germany, France, UK, Italy and Spain) who choose gum flavoured with fruit, candy and other products in this category.
In the US an increasing number of farmers are replanting with non-GM seeds, while grains prices fall and there is a growing preference for organic products.
At the end of 2014 consumption of non-GM foods such as cereals, salad dressings, eggs and other products increased by 15%, with sales reaching $9.6 billion. By analyzing consumer trends, the US agricultural sector expects this year increases of up to 45% in sales of non-genetically modified maize seeds and 8% in un genetically modified soy.
Supermarket or "own brands" with lower prices have started to gain ground in the market for organic and healthy food products among US consumers.
From a statement issued by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
Own brands of organic and natural products are gaining ground in the US
The emergence of brands such as Kroger's Simple Truth, Wild Harvest by Supervalu and Simply Nature by Aldi for organic and natural products are a clear example of how own brands are evolving, as both producers and retailers aim to satisfy consumer demand which is increasingly more concerned about wellbeing and nutrition with more healthy options at a good price, leading many supermarkets to create their own brands focusing on a balanced diet.
Changes in food consumption patterns and preference for organic products are forcing the egg industry to modify its production techniques.
The demand for "specialty eggs" from hens that are free range or fed with organic products and a tendency to consume only egg whites in order to avoid cholesterol is revolutionizing the industry, forcing producers to develop new forms of production.
Weather events and seasonal changes in consumer habits have caused a scarcity of products such as cucumbers and strawberries.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
Organic vegetables and free range eggs are gaining popularity to the extent that are scarce in major supermarket chains.
Spokespeople for the ShopRite stores in New Jersey, said the supply crunch is being felt throughout the retail segment and can be explained by an increase in demand in a context of limited availability. This diagnosis of scarcity is also supported by the Safeway chain, whose spokesperson said the shortage could last until the fourth month of 2014.
Organic and natural pet foods are the most in demand globally.
Natural and organic pet food has had great growth in the market. Between 2002-2012 premium brands increased their share by 68%, according to statistics provided by Euromonitor International.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
Greater awareness of health issues is affecting pet owners who are opting for organic or natural pet foods made from fresh products and which do not contain preservatives.
Sales of beverages and low-calorie foods such as cereals and snacks, have picked up in the old continent.
From an article by the Costa Rica Foreign Trade Promotion Office (PROCOMER):
Sales of products and low-calorie drinks have risen in Europe, according to the consulting firm Mintel, after a decline in 2004. According to Laura Jones, analyst at Mintel, the rise in demand for these products is driven by the popularity of low calorie diets such as Atkins, which has led people to be more aware of the amount of calories and carbohydrates they are consuming." This increased awareness has been promoted by some consumers. In Europe recently low-calorie products have been launched which have introduced a wide range of products that are normally associated with carbohydrates."
Unlike European and South American consumers, Asians show a greater willingness to pay more for organic products.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
The Spaniards are not willing to pay more for organic products, as is clear from the last Socialogue Report prepared by IPSOS in 24 countries worldwide. Although more than half of the Spanish population (51%) are appreciative of businesses who undertake initiatives to respect the environment, only 27 % were willing to pay more for these products.
During 2012, organic food sales totaled more than $1.374 billion, 14% more than in 2011.
From an article by the Foreign Trade Promotion Office of Costa Rica (PROCOMER):
Dutch consumer spending on organic food in 2012 reached more than 1 billion euros, up 14% compared to the previous year, of which 90% was purchased from the supermarket chains Heinjn Albert and Jumbo while the rest was sold in specialty stores and markets.
A growing part of the Korean population is concerned about eating healthier, increasing the interest in organic foods.
A statement from the Foreign Trade Promotion Office of Costa Rica ( PROCOMER ) reads:
Although still small compared with other countries , the Korean market for organic products is growing rapidly . Until recently local organic products were limited to fresh vegetables, some fruit and rice, but in recent years major food industries have begun to process this type of goods.
An announcement has been made of new nutritional standards to be implemented in schools across the country, which include foods groups such as whole grains, low-fat dairy, fruits, vegetables and protein.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The Secretary of Agriculture of the United States, Tom Vilsack, announced that under new nutrition standards to be applied in schools across the country, Smart Snacks in School, students will have a greater choice of healthy foods.
A good marketing strategy in promoting organic products is to include ethical statements to help producers to differentiate themselves from their competitors.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
A study in five European countries which was recently published in the magazine Appetite, suggests including ethical statements in the promotion of organic products is a good marketing strategy for differentiating yourself.