© 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

2016 Food & Drink Trends

Even Better NPD Strategy, FDIN 8th March 2016

Katya Witham, Senior Food & Drink Analyst, Mintel

2

Eco is The New Reality

Artificial: Public Enemy No. 1

Based on a True Story

Eat with Your Eyes

From the Inside-Out

For Every Body

Fat Sheds Stigma

Alternatives Everywhere

Diet by DNA

Table for One

E-Revolution: From Carts to Clicks

Good Enough to Tweet

2016

Mintel’s Top 12 Food & Drink Trends

FORMULATION NATURAL

CONSUMER BEHAVIOUR HEALTH

3

Artificial: Public Enemy No. 1

Consumer demands for natural and “less

processed” food and drink are forcing

companies to reformulate to remove artificial

ingredients.

4

There is a huge anxiety about what we consume

Source: Lightspeed GMI/Mintel

Product recalls.

Allergy scares.

Villainous

additives...we’re

more wary of what

we consume than

ever before…

71% of US consumers agree

“there are probably more harmful

or excess ingredients in food than

manufacturers are telling us”

36% of German adults

avoid foods that contain

artificial sweeteners,

additives or

preservatives

42% of UK adults who

do not drink sports

drinks avoid the

category because they

feel the drinks contain

too many artificial

ingredients or colorants

5

Global use of artificial ingredients is declining

Source: Mintel GNPD

0%

4%

8%

12%

16%

20%

2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015

North America Latin America Asia Pacific Middle East &Africa

Europe

Use of artificial ingredients in global food and drink launches, by regions, 2013-15

Artificial Colours Artificial Flavouring Substance Artificial Non-nutritive Sweeteners

6

Is ‘Nothing Artificial’ the new natural?

Healthy Choice Café Steamers

Simply Grilled Chicken &

Broccoli Alfredo, US

Made with real ingredients that

are minimally processed and

contains nothing artificial

Charlie’s Honest Fizz

Raspberry, Australia

Carbonated soft drink made

with real fruit, free from

preservatives and contains

nothing artificial.

Love Child Organics Oaty

Chomps, Canada

Contains no GMOs, no

added sugar or salt, and

nothing artificial.

Source: Mintel GNPD

7

Butter makes a comeback as consumers prioritize natural ingredients

Source: Mintel GNPD

Clover Buttermilk Fat

Spread was relaunched

with a new formulation with

no artificial ingredients;

made with naturally low fat

buttermilk and half of the

saturated fat of butter (UK)

Migros Bio Organic

Yogurt Butter contains

79% butter and 21%

full fat bifidus yogurt

(Switzerland)

Synnøve Berit Nordstrand

Smarte Nytelser

Spreadable Rapeseed-

Coconut Spread is dairy-

free and is made with

rapeseed, shea and coconut

oils, Sweden

8

Based on a True Story Consumers have been romanced by the stories

products are telling about their origin, ingredients or

inspiration, but confusion arises when similar claims

are being made by legitimately hand-crafted products

as well as mass-produced food and drink.

9

Consumers are increasingly curious and caring

Sources: Lightspeed GMI/Mintel

of UK adults ages 16+ say, ‘I would expect food produced

by smaller companies to generally be more ethical’ 42%

of Italian consumers aged 16+ claim that they are buying

more food and drink products made with extra care and

attention (e.g. small batch, hand-made, artisan) 23%

of German consumers aged 16+ claim that milk packaging

should have more information about where the milk came

from (e.g. dairy farm/farmer) 40%

10

Global food and drink launches using ‘craft’ in product description with word variants,

by top 10 categories, 2015

“Craft” claims spreading across the categories

Source: Mintel GNPD

34%

10%

9%

7%

6%

5%

4%

4%

4%

3%

Alcoholic Beverages

Bakery

Dairy

Snacks

Chocolate Confectionery

Hot Beverages

Sauces & Seasonings

Side Dishes

Meals & Meal Centers

Processed Fish, Meat & Egg Products

11

James Whelan Roasting Bacon

Chops, Ireland

‘Craft’ innovation plays on both quality and emotion

”LOVINGLY COLD-CRAFTED”

Invo coconut water: “Lovingly

cold-crafted”, UK, Spain

“HAND PREPARED, CLOSE TO THE FARM”

12

Consumers seek unique and meaningful stories…

FROM PURE FACTS

Source: Mintel GNPD

TO EMOTIONAL STORY,

SUPPORTED BY STRONG FACTS

Carroll's Hand Crafted

Slow Cooked Smoked Tullamore Ham, Ireland

‘Our grain-fed pigs live in a superior environment

in Ireland, which we believe produces a higher

quality and better tasting ham’

Froh Natur

Premium Beer Ham, Germany

‘made from meat from animals

whose welfare is taken in to

consideration’

13

…and are attracted by stories with history

Tapped birch water, UK

Birch water is celebrated as the new coconut water

Harvested by “tapping” wild, mature birch

tree trunks, and is only produced in early

spring thaw after a winter freeze…

14

From the Inside-Out As the adage goes with beauty, “It’s what’s on the

inside that counts,” and more consumers are

recognizing that their diets can connect with the

way they look and feel, creating a market for

products enhanced with everything from collagen

to probiotics.

15

Looking for natural health and beauty boosters

Source: Lightspeed GMI/Mintel

of British women aged 16+ believe that diet is an important

factor in determining the appearance of their facial skin. 66%

of Italian internet users aged 16+ agree that it is better to

get vitamins from a healthy diet than to rely on

vitamins/minerals/supplements. 62%

of Polish internet users ages 16+ who eat yogurt/drink yogurt

drinks think that yogurt and yogurt drinks are a good way to

support digestive health 82%

16

Three claims lay groundwork for understanding of “from within” products

Soupologie Beetroot and

Pomegranate Detox Boost

Soup, Ireland

Contains beetroot to help

detoxify chemicals and toxins

in liver, pomegranate to work

as antioxidants and pink

Himalayan rock salt

Pack’d Defence Smoothie

Kit, UK

It is “packed with vitamin C, A

and copper, which contribute to

the normal functioning of the

immune system and high in

manganese, which contributes

to the protection of cells from

oxidative stress.”

Staropolanka Balance Pure

Collagen Collagen Enriched

Lemon and Mint Flavoured Still

Water, Poland

‘Contains collagen which is said to

positively influence the youthfulness,

firmness, smoothness and elasticity

of the skin’

DETOX DEFENSE BEAUTY

Source: Mintel GNPD

17

Oils popular in beauty sector cross over to food

Positions itself for dual use

either in cooking or as a

beauty moisturiser and

hair conditioner

‘has a soft nutty flavour

and is also suitable for

dry and sensitive skin

care’

‘contributes to the

maintenance of a normal

cholesterol level in the

blood. It can also be used for

baking and for skin care’

Vita Coco Coconut Oil, UK Urtekram Organic Hemp

Seed Oil, Finland

Ölmühle Solling Chia Oil,

Germany

Source: Mintel GNPD

18

Aubrey Chia Salt Spray,

Netherlands

Includes organic chia seed oil,

organic quinoa proteins and an

antioxidant tea blend

NIP+FAB Soften Kale Fix

Moisturiser, UK

Packed with superfood

ingredients kale and watercress

to reinvigorate skin

Ella Baché Tomato Cleansing

Oil, France

Based on organic tomato, grape

seed and rice bran oils

Beauty products use food as ingredients

Source: Mintel GNPD

19

Alternatives Everywhere Veggie burgers and non-dairy milks have

escaped the realm of serving as substitutes

primarily for people with dietary concerns,

consumers with allergies and followers of

vegetarian or vegan diets – and now have

broader appeal.

20

More consumers are interested in vegetarian options

Sources: US, Italy and Spain – Lightspeed GMI/Mintel; Brazil – Ipsos Observer Brazil/Mintel

of US internet users who eat/use meat alternatives excluding

eggs occasionally like to have meat-free days, such as

“Meatless Mondays.” 29%

of Italian and 27% of Spanish adults ages 16+ are

incorporating more vegetarian foods into their diet

compared to 2014. Yet, just 7% of respondents from each

country are vegetarians. 28%

of Brazilian internet users ages 16+ who have eaten out or

ordered takeouts in the first three months of 2015 like eating

at places where they offer special menus (eg vegetarian

menu, menu for people with food intolerance/allergy, lactose-

free, gluten-free dishes). Agreement rises to 34% among

Brazilians ages 55+.

24%

21

Multiple factors drive growth of ‘animal-free’ diets

Recent food

safety scandals

Rise in allergies

and intolerance

Gluten-free

Lactose-free

Dairy-free

Ethics & Environment

Health & Wellness

Superfruits

Supergreens

Supergrains

Raw food…

22

Two in five British consumers report food avoidance

3% 3% 5% 5% 6% 6%

3% 5% 4%

13% 10%

8% 8% 6% 5% 8% 5% 6%

Redmeat

Soya Gluten Fish /shellfish

Lactose Dairy Poultry Wheat Nuts

Avoidance, as part of a general healthy lifestyle

Avoidance because I/a member of household have a food allergy/intolerance

Types of food/ingredients avoided, UK, 2015

Base: 2,000 internet users aged 16+

Source: Free-from Foods - UK - January 2016

23 Source: Mintel GNPD

Europe is a hotbed for plant-based protein innovation

Global launches of food and drink products with plant-based protein ingredients, by region,

2015 (includes vegetable protein or cereal protein and all children ingredients)

27%

42% 13%

12%

8%

24

Like Meat Schnitzel

(Germany)

Campina Valess Smoked

Sausages (Netherlands) Vegetarian Plus Vegan

Whole Turkey (US)

Meat substitutes ride the flexitarian boom with ‘meaty’ formats

Source: Mintel GNPD

‘a 100% vegetarian cutlet

coated with breadcrumbs just

like a Schnitzel’

‘vegetarian smoked sausages on

the basis of dairy and chicken egg

protein with added iron’

Imitation turkey with vegan

gravy and vegan stuffing

25

Plant-based protein:

The Protein Ball Co. Goji +

Coconut, UK

Rice, pea and hemp protein

Marine protein:

Lifefood CRAWnchies Sea

Lettuce, Finland

Contains 18g protein in 100g

serving

Emerging protein sources

Source: Mintel GNPD

Insect protein:

Chapul Aztec Bar, US

Made from cricket flour

26

Harvest Moon Coconut

Milk Yogurt, Germany

Made with coconuts from

controlled organic farming

Pacific All Natural Hemp

Non-Dairy Beverage, US

Made with shelled hemp

seeds and sweetened with

brown rice syrup

Lantmännen GoGreen

NutDrink Smoothie, Sweden

Made with cashew nut milk

Cow’s milk alternatives transcend soy and even almond

Source: Mintel GNPD

27

Eat with Your Eyes Flavor has long been the focus of innovation, but

our more visual and share-focused society calls

for innovations that are boldly colored, artfully

constructed and sometimes just cool.

28

Food is a common topic on social media

Source: Lightspeed GMI/Mintel; Ahalogy 2015 Pinterest media consumption study, Twitter

is #2 Pinterest’s most browsed category by active and

daily users (’pinners’) after DIY & Crafts. Food&Drink

of UK internet users ages 16+ who have eaten in a

restaurant or ordered takeaway/home delivery from

November 2014-February 2015 and who are social media

users have interacted with and/or posted about a food or

drink venue on social media. 39%

people are following on Twitter UK’s competitive cooking

reality show ‘MasterChef’. 236k

29

Ruf Rainbow Cake Baking

Mix, Germany

‘with natural pink and green

colour mix’

Provence Chips La Chips

d'Allauch Salted Blue

Crisps, France

Made with Vitelotte, a French

variety of blue-violet potato

Blk. Premium Alkaline

Water, USA

Naturally black due to the

reaction of trace minerals with

the purified water

Colour disrupts traditional perceptions

Source: Mintel GNPD

30

Shape also another format ready for more innovation

Source: Mintel GNPD

Kelly's Bull's Head, Austria

Extra crispy bull-shaped three-dimensional

snack, intensively seasoned with an aromatic

steak flavour and aimed at 'real men'

Hans Freitag Anita’s Own Likies Sweet

Cookies, Germany

‘Thumbs up’ shaped cookies can be given to

someone who you ‘like’ or want to thank

31

Frucht Mit Nuss Apricot &

Hazelnut Spread, Germany

Fruit spread with hazelnut

bits

Walkers Mixups Spicy

Flavor, UK

Mix of Wotsits, Monster

Munch, Doritos, French Fries

Texture changes up the norm

Source: Mintel GNPD

Enervit Pre Sport Orange

Flavoured Energy Jelly,

Italy

32

What it means

Consumers are worried about products with long ingredient

lists full of unfamiliar ingredients, showcasing the

importance of free-from formulations Fear-free

Craft Honest communication about inspiration that went into

making, packaging and selling a product can connect with

consumers

Consumers are interested in new sources of protein,

suggesting new sources have a ready audience

360° Consumers are looking for holistic approaches to health and

wellness, creating opportunities for products that start

working from the inside out

See Our documentation-focused culture has made the visual

appeal of food and drink not only appealing, but a “must-

have”

Novel

© 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel. mintel.com

THANKS, GET IN CONTACT

Katya Witham

Senior Food & Drink Analyst

Tel: +44 (0)20 3416 4353

Email: kwitham@mintel.com

mintel.com