FoodNavigator-USA Podcast

Alongside falling sales, volume and units, plant-based meat has slid into the trough of despair, also known as valley of disillusionment or sorrow, and while it is unclear if the category has hit bottom yet, many stakeholders already are looking for a way up the other side where the promise of full integration, success and fulfilment wait.

Most Americans think about food in terms of servings, but Johns Hopkins-trained cardiologist Elizabeth Klodas talks about the snack bars, pancake mix, granola-like sprinkles and packets of oatmeal she offers under her brand Step One Foods’ in terms of ‘doses.’

As frozen pierogi maker Mrs. T’s celebrates 70 years of tucking ‘the stuff you love’ into a soft pasta pockets shaped ‘like a smile,’ the founder’s son and now company president reflects on what it takes to not only survive but thrive for seven decades in the highly competitive food and beverage industry.

Born out of the pandemic when product availability was unpredictable or limited and when a premium was placed on immunity-boosting, consumers in 2023 increasingly are seeking positive nutrition – both for themselves but also for the planet and workers across the value chain.

The idea of food as medicine is as old as food itself, but only recently has the mainstream US health care system begun to take notice, and action, as community-directed efforts to prevent, manage and treat diet-related illnesses through nutrition education and more equitable access to healthy food generate positive health outcomes and reduced health costs.

While consumer spending remained strong through the holidays despite rising prices, the new year may bring a new level of financial scrutiny as more Americans consider budget limitations and what is essential – altering when, how and where they shop and what they buy.

After a scathing review published earlier this month by the Reagan-Udall Foundation criticized FDA for its scattered and inefficient approach to food safety and applied nutrition, the agency says it is committed to “building a world-class human foods program” that can “more quickly adapt to an ever-changing and evolving environment.”

The “three-headed monster” of rising inflation, product shortages and labor challenges continues to wreak havoc across the food industry with little sign of relief on the horizon – prompting many consumers to shift their shopping habits and forcing manufacturers and food service providers to rethink how and what they offer.

Sales of non-dairy yogurt – like those of most plant-based products – have sharply declined in the past year, but a few bright spots revealed by consumer research and recent innovations by players in the space suggest the category could turn around with help from a few tweaks in product formulation, platform innovations and marketing shifts.

The stressful one-two punch of pandemic lockdowns followed by runaway inflation has many consumers looking for comfort and escapism from their food and beverages, which industry leaders say is driving demand for new flavor combinations that are nostalgic, whimsical and so hyper-saturated that they overwhelm their concerns.

While not a panacea for all the challenges facing the grocery industry, one stakeholder argues a less is more approach in 2023 may help ease the ongoing burdens of inflation, supply chain woes, and labor shortages as well as rapidly shifting shopper preferences that are intensifying competition.

Between Americans’ hectic on-the-go lifestyles pre-COVID, the pandemic prompting everyone to hit pause followed by hybrid work schedules, inflation rates at 40-year highs, and increased expectations that food not only nourish the body but also the soul, how and what Americans eat is in a constant state of flux.

Despite efforts to brand fruit ‘as nature’s candy,’ celebrity endorsements by the likes of Jessica Alba designed to make vegetables ‘sexy,’ and many retailers selling fresh produce at a loss to improve access and drive foot traffic – the vast majority of Americans do not eat the daily recommended amount of either.

Despite efforts to brand fruit ‘as nature’s candy,’ celebrity endorsements by the likes of Jessica Alba designed to make vegetables ‘sexy,’ and many retailers selling fresh produce at a loss to improve access and drive foot traffic – the vast majority of Americans do not eat the daily recommended amount of either.

Between the supply chain challenges and product shortages that marked the beginning of the pandemic and rising food prices due to inflation continuing to push some products out of consumers’ financial reach, many Americans are being forced to try new brands – creating opportunities and challenges for companies vying for their dollars and long-term loyalty.

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?