Free-from claims and smaller, more convenient pack sizes are important to younger consumers, research from a 2017 Nielsen report suggests.
At the iba baking and snack trade fair, a panel of experts from the baked goods sector spoke about the importance of moving towards free-from and organic products.
The forum, which took place on the 18th of September, showed a strong need for food manufacturers to cater to an increasing desire for clean products.
The information based on a Nielsen research report from 2017, on the US market, showed that organic sales among households with a millennial head of house, were 38 per cent greater than sales among total US households.
Robb MacKie, CEO of the American Bakers Association, said despite the data being from the US market, the association’s European counterpart found similarities in the data.
“The connections between the US and the international market are very strong.
“We are seeing health and wellness claims are the fastest growing areas for sales on the retail level in the US market,” said MacKie.
There is a big trend in free-from claims, he said.
“A lot of the soy-free and some of the others are growing at a very fast rate.
“The younger consumers are gravitating the most to those health claims,” said MacKie.
“The greatest generation, which is considered to be the World War 2 generation, is not really being impacted by some of these health claims. In baby boomers you start to see some movement,” he said.
But despite people being drawn to health claims, MacKie said cream filled pies, speciality desserts and muffins are on the rise in the US market.
“Taste is still King,” he said.
The key to the success is being healthier, but still having a tasty product on offer, he said.
Corbion vice president Mark Hotze agreed that consumers still have a need for food that tastes good.
“For us to be successful as an ingredient supplier, it’s really that willingness to roll up our sleeves, partner with our customers and understand where they want to go in that space.”
The consumers need to know an item is worth the calories, said Hotze.
Brian Dwyer, vice president of bakery manufacturing at Kroger, said the supermarket chain noticed people going for smaller portions.
“The one trend that I would say I’ve seen with indulgent food is the move to smaller pack sizes. Whereas in the past our consumers would pick up a 12 inch or and 8 inch pie, we are seeing that move to a smaller size, maybe a 5 inch pie,” said Dwyer.
“What we are seeing is there’s a need for indulgent, but our consumers want to eat that and have that indulgent experience without feeling guilty.
“The health and wellness is clearly a rapidly growing segment. We are seeing a lot of activity and a lot of energy around the health and wellness sector,” he said.
Kroger’s Simple Truth and Simple Truth organic brands have been the company’s fastest growing brand ever, said Dwyer.
Research from Nielsen shows the dollar growth of grain free products in the bakery section has increased by 51 per cent from 2017.
Cruelty-free products have increased in US dollar growth by 30 per cent, and grass fed products have in increased by 28 per cent from 2017.