As 2011 hastens to a close, Innova Market Insights, The Netherlands, recently held a webinar geared to prepare food and beverage formulators and marketers for the 10 trends it believes will dominate the market.
 
The biggest trend will capitalize on a movement currently in progress: “pure” is the new “natural,” and more marketers are making use of the words “purity,” “pure origin” and “True to Nature” on their labels. “Natural products are becoming the rule rather than the exception in most Western markets, despite ongoing issues with a clear definition of what ‘natural’ encompasses,” explained Lu Ann Williams, head of research at Innova Market Insights. “One way around this has been marketing the ‘purity’ of a product.”
 
In Europe, labels with E number food additive codes have also been finessed. Ms. WIlliams pointed to the packaging for Unilever’s Becel spread, which originally listed “acidifier (E330)” among its fine print ingredient declaration. On its newly updated, green colored packaging, however, the E number is replaced with commonly understood “acidifier: citric acid,” to present a more natural appearance to consumers, helping them understand that the additive in question wasn’t created “in a science lab.”
 
According to Ms. Williams, key areas of ingredient development in the pure and natural space are sweeteners and natural colors. “At a recent show we saw a lot of products promoting stevia, agave and coconut sugar as sweeteners,” she said.  “There’s a lot of interest in natural sweeteners and we feel this will continue to be a big trend.”
 
Green & Local
 
The concept of “green,” though not altogether new, has also taken root and has diversified beyond basic corporate responsibility and sustainability. Innova tracked a dramatic increase in the number of products launched with “ethical claims.” “If we go back to 2005 or 2006 there was basically no interest in this, but it has since skyrocketed and grew 10 times over the next four to five years,” said Ms. Williams. “It hasn’t slowed down at all and we’re going to see a lot more focus on this.”
 
A newer component of the green trend has been the “ingredientization” of commodities. “We’ve seen more and more materials being tapped—mushroom stems turned into mushroom concentrate that’s used as an MSG replacer; pineapple cores used as a replacement for dietary fiber. This whole idea of doing something with more is going to continue,” said Ms. Williams. She also pointed to an increase in UTZ and FSC Certifications.
 
The concept of location was cited as another top trend, given the trend of eating locally-sourced food. “Interest in where their foods are coming from has never been higher among consumers,” said Ms. Williams. “This is being driven by an interest in supporting local suppliers, a desire for ethnic-style lines, concerns over the quality and safety of imported products or the demand for authenticity in terms of products from a particular country or origin.” This trend is especially important in the EU where there are compulsory Country of Origin Certification Regulations.
 
Ms. Williams also asserted that even multi-national companies have begun to adopt local strategies. One early adopting example was SABMiller, which recently launched Impala, a cassava-based beer brewed in Mozambique, billed as an affordable beer “made using locally-sourced raw materials for lower income consumers in Africa.”
 
On the other end of the pricing spectrum, premium products continue to assert themselves as important brand components. Innova found that a premium treat can be justified as an affordable indulgence during difficult economic times, particularly if it can also encompass a better-for-you-element. In fact, the premium trajectory is still increasing despite uncertain economic times. “We see premium continuing to grow as an important product driver of new product launches,” commented Ms. Williams. “Kit Kat 70% Dark is a great example—it’s fair trade, it’s indulgent, doesn’t cost too much, but still falls into the premium position.”
 
The Senior Segment
 
In the realm of consumer-based trends, Innova found the senior segment to be an increasingly important focus. “In 2050 the United Nation estimates there will be 2 billion people over the age of 60—even in the more developed regions this (age range) will increase by 50% over the next 40 years,” Ms Williams said. “There’s a big need for products that cater to this market.”
 
To that end, companies have begun addressing the needs of an aging population, both in terms of packaging functionality and also in general and specific health concerns. “New EU regulations on labeling should also help seniors by improving the clarity and visibility of nutritional information. Various recent moves have been made in U.S. front-of-pack labeling,” Innova researchers found. “Keywords include ‘easy to open,’ ‘easy to digest,’ ‘reduced acid,’ ‘for strong bones,’ ‘specifically formulated,’ ‘nutritionally balanced,’ ‘improved health,’ ‘easy to read labels,’ ‘lightweight packaging.’”
 
Inside of the package, specialized nutrition for seniors has also advanced. For example, dysphagia—difficulty swallowing—has become a key issue; 22% of 50+ year olds suffer from the disorder, according to data from Innova.
 
Prevention & Potential
 
Outside of the senior set, there has been in increased effort on the part of middle aged consumers to maintain active lifestyles with the purpose of “successful aging” or “extending the middle years.”
 
In particular, Innova found a big focus on ingredients that assisted in prevention. For example, “elevated homocysteine has been shown to be a risk factor for dementia in older adults. An increased intake of homocysteine-lowering B-vitamins, such as B6, B12, folic acid and riboflavin may be beneficial. Other beneficial ingredients seen featured in products: CoQ10, ginkgo biloba, polyphenols, acetyl-L-carnitine, green tea and DHA (some studies suggest that omega 3 PUFA may reduce the risk of cognitive decline),” Ms Williams said. “Resveratrol has [also] received a lot of attention for influencing the aging process, because in animal studies it has been shown to reproduce many of the benefits of a calorie restricted diet, most importantly activation of SIRT1, a nuclear protein and key regulator of lifespan in several organisms.”
 
And with the increased focus on ingredients comes an increased demand for the science to back up the claims. “When we look at the regulatory environment in Europe, this will have a lot of legs for a long time,” said Ms. Williams. “EFSA’s article 13 generic claims will be published in a union list in 2012—this offers a big opportunity. Being able to put that your product is supported by a scientifically tested claim gives a lot of trust to your consumers.
 
An ingredient claim/positioning currently gaining a lot of traction in the EU is immune health and its correlation to vitamin C. “After EFSA accepted the claim that vitamin C could be linked to maintenance of the normal function of the immune system there was a huge uptick in use of products,” said Ms. Williams. “Regulations enable consumers to realize that they aren’t wasting their money.”
 
Consumers are also paying attention to the ingredient label, especially as it relates to potentially detrimental attributes like trans fats and sodium. “Governments around the world are putting a lot of pressure on food companies as it relates to obesity and related health problems like diabetes,” said Ms. Williams.
 
The final trend set to impact 2012 is the increased quest for protein. Connected to weight loss and satiety, Ms. Williams said much of the new protein technology is driving the category in new directions with an eye on stability, for example promoting plant-based proteins instead of poultry. “Meat-free alternatives are more prolific,” she said. “Consumers get protein; look at the interest in Greek yogurt and hummus.”
 
To watch the Innova Market Insights webinar, follow this link.