Foodnavigator-usa Podcast

Organic sales continue to reach unprecedented highs as consumers gravitate to options they perceive as healthier for them and the planet, but the segment faces significant headwinds that are slowing growth and will demand ongoing flexibility, innovation and education about organic’s value proposition for the category to maintain relevancy – especially as the economy tightens.

Natural Products Expo East may not be as big as its West Coast counterpart, but the 18,500 registered attendees and more than 1,200 exhibitors who convened in Philadelphia earlier this month for the annual conference were just as enthusiastic and the innovations they showcased revealed what is most important to natural and organic shoppers: products that are better for people and the planet.

As consumers navigate rising inflation, out-of-stocks due to lingering supply chain and labor challenges and contemplate the potential impact of their purchases on the environment and workers, they are more willing to push aside old loyalties and try new brands – opening the door for savvy small and mid-sized brands to earn their business.

Plant-based meat alternatives continue their downward slide with sales, units and volume all dropping in July from a year ago – a trajectory that IRI data crunched by 210 Analytics shows was set in motion months ago, but which doesn't shake at least one investment analyst's faith in the category's potential.

Knowing entrepreneurs often dramatically underestimate the time it takes to validate their business models, are more likely to lose money or break even than make a profit and face abysmal failure rates, one successful founder is offering a helping hand with the launch of a new accelerator program.

Every day Americans drink an estimated 517 million cups of coffee, according to the most recent consumer research from the National Coffee Association, which found that while nearly one in five savor a classic black cup with no adornments, the percentage who reach for specialty coffee is on the rise – opening opportunities across categories and channels.

While sales of refrigerated plant-based meat may be slowing, shares of some plant-based milk brands are slipping and consumer response to a handful of new products are tepid at best, industry leaders argue the party is far from over for the overall plant-based segment.

As Americans continue to adjust to post-pandemic life and mounting economic uncertainty, consumer research from Mintel shows that many believe there is no going ‘back to normal’ and as such are changing the way they think about, budget and shop for, and ultimately prepare food at home.

Calls for more diversity, equity and inclusion in the food and beverage industry – and in particular the natural and organic sector – have grown steadily louder in recent years as has consumer interest in supporting minority-owned brands, and yet funding for underrepresented founders remain woefully low and other barriers overwhelmingly high.

As consumer interest in ‘plant-based’ products has grown in recent years, so too have products proudly proclaiming their status as such – but what does the term actually mean, and how influential is it really?

Something is rotten in the coffee industry, and it is holding back the crop from reaching its full potential and contributing to the climate change that threatens future production of the popular beverage and the economic livelihoods of the farmers who produce it.

As noted in the opening session of the IFT FIRST conference in Chicago last week, the food that brought us together during the pandemic and which fuels us everyday is in a crisis as climate change intensifies – pushing companies to weave sustainability more aggressively and creatively into every aspect of their businesses.

After being demonized as high-carb and maligned with foggy grain-brains and gluten sensitivities, pasta consumption, which had been flat and declining for years pre-COVID, bounced back during the pandemic with unprecedented growth as consumers looked for convenient, comforting and versatile dishes to cook at home.

To offset the threat of commoditization and keep consumers from trading down or stepping away from the dairy case to save money as the economy tightens, specialty cheesemakers are moving beyond traditional formats, flavors and packaging that may be intimidating or come off as overly stuffy or only for special occasions.

Between cows’ burps and manure and their land, water and feed requirements, the dairy industry is often blamed for adding substantial greenhouse gases to the atmosphere, and contributing to monocropping, soil degradation and water pollution.

Where the food and beverage industry was once flush with funding from venture capitalists drawn to fast-growing businesses and from strategics eager to pay high multiples for innovative start-ups, money is now harder to come by as inflation, supply chain disruptions and labor challenges hinder companies’ ability to meet expectations and has many players paring back.

They may not be magic, but mushrooms – at least medicinal ones – are having a moment as consumer demand for functional benefits, such as clarity, calm, digestive support and enhanced immunity, are driving discovery and sales of the versatile, easy-to-you ingredients and products featuring them.

Being an entrepreneur can feel desperately lonely – especially in the early days when budgets are tight, days are long and challenges crop up constantly – but as romantic as the idea of buckling down and becoming ‘self-made’ may be, few founders actually succeed long-term by stubbornly going it alone.

More consumers are factoring sustainability into their purchase decisions, according to data from NielsenIQ, but effectively and efficiently communicating a product’s environmental impact in less than the 10 seconds most shoppers spend deciding what to buy is challenging.

As rising temperatures push American spinach farmers farther north, late blizzards threaten US corn and soy crops and a prolonged drought in the southern plains weakens wheat production and pushes up prices, it is clear that BlackRock CEO Larry Fink was right when he told executives in 2020 that “climate risk is an investment risk.”