Consumer Trends and Drivers in Baked Goods InternaBonal Baking Industry ExposiBon October 2013
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1 Consumer Trends and Drivers in Baked Goods InternaBonal Baking Industry ExposiBon October 2013 David Sprinkle Publisher and Research Director, Packaged Facts
2 When shopping for groceries, do you seek out food products with any of these characterisbcs or package labels/claims? Whole grain 45% High fiber 34 MulB- grain 34 Low- sugar/sugar- free 30 Local 29 Natural 28 No trans fat 28 Organic 24 Low- fat/non- fat 25 Low/no cholesterol 22 Low- salt/salt- free 21 Source: Packaged Facts Shopper Insights Survey, February 2013
3 Selected Global Top 50 New Product Claims, May May 2013 Ethical/EF Packaging 10.1% 9.3% 9.6% 10.0% Vitamin/Mineral ForBfied Vegetarian Seasonal Organic Ethical/EF Product Gluten Free Kosher High AnBoxidant Premium Limited EdiBon Low/No/Reduced Sugar All Natural Convenient Packaging Halal Low/No/Reduced Fat Economy GMO Free On- the- Go Low/No/Reduced Trans Fat Source: InternaBonal Dairy- Deli- Bakery AssociaBon, What s In Store 2013 (October 2013); Mintel Global New Product Database.
4 DATASSENTIAL MENUTRENDS Database: US Chains & Independents TIME TREND, '13 vs. '09 Organic 10.8% 14.2% 17.6% 63.0% Gluten Free 1.4% 2.4% 9.1% 550.0% Multi Grain 5.4% 6.1% 6.7% 24.1% Low Fat 6.8% 6.7% 6.4% -5.9% All Natural 3.4% 4.3% 6.3% 85.3% Fat Free 6.1% 6.1% 5.6% -8.2% Whole Grain 4.0% 4.2% 5.0% 25.0% Sugar Free 3.3% 3.8% 3.8% 15.2% Free Range 2.6% 2.7% 3.2% 23.1% Low Carb 3.3% 2.9% 2.4% -27.3% Farm Raised 2.7% 2.4% 2.2% -18.5% Low Calorie 1.6% 1.5% 1.6% 0.0% Cholesterol Free 1.3% 1.3% 1.3% 0.0% Grass Fed 0.3% 0.6% 1.1% 266.7% Antioxidant 0.7% 1.0% 1.1% 57.1% Omega 0.5% 0.5% 0.7% 40.0% Dairy Free 0.6% 0.6% 0.7% 16.7%
5 Percent of Grocery Shoppers, 2013 I seek out multi-grained breads and baked goods Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree 24% 34% 23% 10% 10% I seek out natural breads and baked goods Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree 14% 27% 30% 16% 13% I seek out organic breads and baked goods Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree 12% 14% 23% 25% 26% Source: Packaged Facts June 2013 Food Shopper Insights Survey
6 Types of Bread Eaten Most Oden By Consumers Who Eat Bread: By Product Type, (percent) Whole Wheat 47.0% 50.2% 52.2% 55.3% 54.5% White MulB- Grain French/Italian Raisin Potato Sourdough Cinnamon Oat Rye/ Pumpernickel Pita Bran Other Source: Experian Marke1ng Services, Winter Winter 2013 Simmons NCS Adult Study 12- Month. Base: Popula1on Copyright: Experian Informa1on Solu1ons, Inc. All rights reserved.
7 BRAN OTHER OAT PITA RYE/PUMPERNICKEL 10.8% 9.3% 11.8% 9.9% 15.5% 10.7% 19.4% 15.6% 20.8% 21.4% Types of Bread Also Eaten by Consumers of White Bread, 2004 vs Simmons NCS Spring surveys (household weight) SOURDOUGH 24.4% 23.9% POTATO 27.5% 26.4% CINNAMON 29.5% 24.6% 2013 RAISIN MULTI- GRAIN 30.6% 27.7% 26.0% 40.6% 2004 FRENCH/ITALIAN 45.1% 43.4% WHOLE WHEAT 64.8% 74.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
8 Usage Indexes by Type of Bread: By Household Income Bracket Indicator White MulB- Grain Whole Wheat Pita French/ Italian Raisin Rye/ Pumpernickel Sourdough Potato Under $25K $25K- $49K $50K- $74K $75K- $99K $100K- $149K $150K Source: Experian Marke1ng Services, Winter 2012/2013 Simmons NCS Adult Study 12- Month. Base: Popula1on. Copyright: Experian Informa1on Solu1ons, Inc. All rights reserved.
9 I am cutting back on breads and baked goods because of concerns about wheat flour Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree 11% 17% 25% 23% 23% I am cutting back on breads and baked goods because of concerns about gluten Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree 8% 15% 24% 24% 30% Source: Packaged Facts June 2013 Food Shopper Insights Survey Year Sales Growth 2012 $4,150 24% U.S. Retail Sales of Gluten- Free Foods (in millions of dollars) , , , , Source: Packaged Facts, Gluten-Free Foods & Beverages in the U.S. (October 2012)
10 Gluten-Free Food Products: Motivations for Purchase/ Use, August 2012 (percent agreeing)
11 Culinary Trend Mapping Report CCD InnovaBon & Packaged Facts Health & Wellness Growing respect for natural nutri1on in agricultural foods AuthenBc/ArBsan Appeal, Realness Tradi1onal, interna1onal, regional, local, seasonal & fresh food offerings; fueled by farmers markets & street foods Refined Indulgence Insistence on product freshness, integrity & quality; por1on/calorie control
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15 Selected Attitudes of Grocery Shoppers Toward Processed Foods, 2013 (percent of grocery shoppers) Grocery manufacturers oden mislead consumers by highlighbng only the posibve nutribonal qualibes in their products, not the negabve ones Agree Neither Agree/ Disagree Disagree 57.8% 34.2% 8.0% Prefer to buy packaged groceries that have fewer simpler ingredients Don t like processed foods that are remade as lower- fat, lower- sugar, lower- sodium, etc. 55.6% 34.9% 9.5% 50.0% 32.4% 17.6% Source: Packaged Facts February/March 2013 Food Shopper Insights Survey and Future of Food Retailing in the U.S. (July 2013)
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