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Twenty global trends for food in 2015

What and how will we eat in 2015? A list of the 20 most important trends in the food sector has been published by the “Arabian Gazette” for the Gulfood 2015fair, to be held at the Dubai World Trade Centre (DWTC) from 8 to 12 February, global node of food product trade to emerging economies. We leave (literally) our backyard and go to see what happens in the global market and the Arabian high-end markets, which can also be of interest to our own food industry which is in extremely high demand. Many of these trends are also already arousing interest in the more receptive target markets at our latitudes. Here they are.

Gluten free – analyses to discover gluten intolerance, and consequently diagnoses, are on the increase. Packed gluten free products or the alternatives (cereals such as quinoa or amaranth) are becoming popular in all markets.

Clear labels – an increasing number of consumers are not content with vague claims of naturalness of a product: they demand clear and understandable labels, with nutritional and origin information. Not always do the laws (EU for example) support this desire. Apps for smartphones, on the other hand, do. From those for health to those which calculate the calories and nutritional aspects of a product by scanning the bar code.

Vegan and raw food – two food philosophies that will continue to influence restaurant menus (and supermarket shelves with the proposal of fresh produce and vegan friendly products)

4 “Good” fats and carbohydrates – goodbye to unsaturated and trans fats, olive oil and omega 3 fatty acids are increasingly entering the diet of those who care about their health. Blacklisted are also simple (refined) carbohydrates and artificial sweeteners. Among the emerging products is coconut sugar.

Fermented food – the health benefits of fermented foods, rich in live bacteria, will decree the growing success of yoghurt, kefir and fermented vegetables such as kimchi and sauerkraut. On the beverages front there are fermented teas such as kombucha

Alternative proteins – OK, we have always eaten them, yet in an effort to find alternative sources to meat protein, are insects really ready for global popularity? A lot of people are talking about them, from “Forbes” to the “Daily Mail”. Meanwhile, many are opting for more affordable algae, whey, legumes and timeless soy beans.

Smoking  – hot or cold smoking with various types of wood migrates from meat to other foods: butter, cheese, vegetables, cocktails and even salt, sugar and paprika

Alchemy of spices – the diffusion of cuisine from around the world and the desire to limit salt intake (due to hypertension) has pioneered the use of spices and mixes to provide flavour and taste to dishes. Old and new: cumin, saffron, cardamom, but also harissa, sumac, zaatar, Aleppo pepper and Marsh pepper.

Seeds and nuts – as an ingredient in the kitchen or in snacks and bars, or in the form of flour as an alternative to wheat or to create vegetable cheeses (with almond flour for example), nuts are the protagonist since they are rich in minerals, vitamins, protein and omega 3 fatty acids.

10 Fusion of flavours – to stimulate demanding and bored consumers, manufacturers are trying out unusual flavour combinations. From the now classic (here with us) chilli and chocolate and cinnamon and orange, to wasabi and chocolate, sea salt and caramel, strawberries and beans, oysters and kiwi…

11 Matcha – the Japanese green tea, known for centuries, which comes as an extra-fine powder. It is rich in antioxidants and beta-carotene, so its use will leave the ghetto of Japanese restaurant green ice-cream to become the queen of hot or cold health drinks, also in canned, carbonated or milk-based beverages

12 … water – fizzy and sugary drinks, among the leading causes of obesity, especially in children, have long been under the crossfire of doctors and nutritionists. The world is looking for healthy alternatives. After coconut water, maple, cactus and watermelon waters, rich in minerals and vitamins and low in sugar and calories, will flood the market.

13 Consistency is taste – fragrant, soft, pulpy, in varying combinations in the same product: this is also how to conquer the consumer of 2015 (and beyond)

14 The packaging revolution – requirements are increasing: not only safety and hygiene, new packaging must be sustainable, recyclable, contain all the required information on the content, transmit the product history, ensure new features and create new experiences

15 Convenience foods – Urbanisation and the increase in the work force in emerging economies will also lead to a demand for prepared and packed food, lacking the time to cook at home

16 Food of animal origin from sustainable sources – top restaurants in Gulf countries are already meeting the desires of an international clientele.

17 Halal – already counts for one fifth of global food trade and in 2018 should be worth 1.6 billion dollars. Not just meat but also tinned and dairy products can be halal.

18 Local, zero kilometre ingredients – from meat to seafood to fruit, where possible it will be locally grown.

19 Health and organic – With increasing prosperity the diseases of affluence will also increase, and hence the demand for healthy, natural food, without additives: an industry that by 2018 will be worth $1.5 billion in emerging economies.

20 More meat. Hard to subscribe to, with all the alarms of doctors and nutritionists, but the demand for high-protein food such as meat and dairy products will increase in emerging economies, as too will the demand for halal meat slaughtered according to the dictates of Islamic law.

Savings and quality drive the purchases of private label products

From the Nielsen Global Survey on Private Label and Premiumization Trends, conducted by interviewing over 30,000 internet users, two main common aspects in all 60 countries surveyed emerge: price is the primary driver for the majority of consumers (70% of respondents in fact say they buy private label products to save money), but the appeal of private label goes beyond price and also involves quality.

But have these consumer attitudes, the report asks, turned into sales? The answer depends on the latitude. While in Western countries the share in value of private label products is around 15% or higher (with peaks of over 40% in Europe), in the East, Latin America and Asia it is less than 10% (but in China and Brazil it is 5% or less). The survey points out, however, that there is no unique recipe, even though the reasons for success in one market may drive other markets: the growth of private label in fact requires approaches tailored to individual markets.

Also for Italians (in 66% of cases) the main reason for purchasing private label products is to save money, meaning the possibility of being able to spend less for the same benefits offered by branded products: the price-quality ratio of private label products is in fact considered to be excellent by 67% of consumers. This figure is in line with the European average, although not yet at the level of countries such as Germany, where it reaches 79%.

Price, says the survey, is not an irresistible element of differentiation. Psychological factors can be very powerful, especially in certain categories. For example, in health and beauty private labels have not had a strong impact, despite a price advantage of up to 40%. Even in the most difficult periods, consumers have the desire to indulge occasionally and are willing to pay more for their favourite brands.

“Private label products – pointed out Jean-Jacques Vandenheede, Director of Nielsen Retail Industry Insight – are not naturally predestined to grow, contrary to branded products. Commitment to innovation, analysis and marketing are effective strategies to maintain and increase sales. Aggressive promotional activity, as we have seen in the UK, can also help to consolidate the growth of private labels, but these responsive price measures are not sustainable in the long run”.

The comparison between private label and industrial products is constant and continuous on the part of the consumer, both in terms of the savings offered and product quality. 56% of Italians believe that private labels have a quality comparable to that of branded products (compared to 23% in 2010) and 47% believe that some are superior to industrial brands.

The products for which the consumer is willing to spend more for the quality offered are especially fresh food, particularly fresh or frozen fish and meat (46%), bread and bakery products (33%), cheese (32%), milk (26%) and eggs (21%). Followed by personal and home care products.

But what do Italians want in terms of range, prices, display and performance? First of all, 51% of Italians say that they would buy more private label products if there was more variety. 61% of respondents would like to have them alongside branded products for easier comparison of characteristics and prices. Moreover, the majority of consumers (62%) requests a complete offer that ranges from entry-level to high-end products, including domestic brands: maintaining a balance between the two types of brands on the shelf therefore becomes a key strategy.

Despite the very positive attitude of consumers and the significant growth of private label products in recent years, in 2014 they suffered a setback. Their share of total Grocery turnover YTD September 2014 remained at the same level as 2013 (18.4%) and for the first time sales did not support growth in the consumer segment: -1.5% for private label compared to -0.9% for the other brands.

 

Home delivery issues for one in five, click and collect preferred

The german company allyouneed.com is coming to expand his operations in Europe

It’s easy to say e-commerce: as convenient and economical as it may be, this way of shopping has an Achilles heel: home delivery. Causing problems to one in five Europeans last year, according to a survey by JDA. Delivery delays or no delivery at all are the most frequent complaints, with variations depending on the country in question. Almost half of Swedish customers (47%), for example, reported delivery delays. The UK, on the other hand, has the unenviable record of no delivery at all, as declared by more than a quarter (28%) of respondents.

Perhaps this is why click and collect and click and drive are becoming so popular, i.e. online order with collection in the store or directly loaded in the car. Almost one in two British people have already tried it (48%) in the last 12 months. But this approach is also growing in France (31%), Sweden (28%) and Germany (19%). Cost and convenience are the reasons for choosing the alternative to “pure” e-commerce. What is certain is that shopping online (including home delivery and/or “Click and Collect”) will continue to gain popularity. over two thirds (67%) of European consumers said that within five years the majority of their purchases will be online.

Willing to pay as long as it arrives immediately

That delivery is a crucial issue of all online sales is demonstrated by the fact that over one third (37%) of respondents are willing to pay a premium to get same-day delivery. And it is precisely for food items that fast delivery is of most interest and for which it is worth spending a little more: it is requested by 63% of Germans, 48% of Swedes and 40% of British people, while the French are more willing to pay a premium for fast delivery of electrical and entertainment equipment (33%).

Returns remain the main source of dissatisfaction for over half (53%) of consumers, disgruntled by having to pay postage and packing for return items. Other frustrations concern the inconvenience of returning items by mail or having to wait for a courier (35%) and the impossibility to return items collected at the store (21%), which also in this case is a fundamental issue for any multichannel strategy.

And Italy? For now it is looking on and experimenting…

The results are based on the combined data of the JDA Customer Pulse Reports 2014, involving 8,177 consumers between 16 and 54 years of age in the United Kingdom, France, Germany and Sweden. Excluding Italy, therefore, which in fact is still a long way behind, especially in certain areas, such as large-scale distribution as far as e-commerce is concerned.

“Based on our experience, Italian retailers are very interested in the omni-channel approach which, compared to the UK, is certainly still in the early stages. Operating in omni-channel mode makes it even more important to focus on the delicate balance between service and margins. As highlighted by our research in a number of European countries, also in Italy we expect that the hybrid models of online shopping and order collection in a physical place – store, dark store, drive – will become increasingly popular. This scenario requires retailers to rethink supply chain processes in a strategic manner in order to drive innovation in customer services, managing to balance operational excellence with profitability” says Stefano Scandelli, JDA Vice President Sales South Europe.

 

 

 

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