From bone broth to grass-fed dairy, trends which start in the natural food market have the potential to move to the mainstream faster than ever before. Conventional retailers seek to get a bigger slice of the action in natural and organic foods, says a new report from investment banking firm Silverwood Partners.
According to Silverwood, the following trends are worth watching:
A sizeable amount of investment capital has recently been pumped into companies. Therefore, offering consumers new ways to access fresh, local produce, from MightyVine and BrightFarms to AeroFarms.
More big food companies are jumping on the clean label bandwagon.
‘Craft’ is gaining share in beer and soda.
Whole Foods and other natural chains are feeling pressure from conventional grocers that are upping their organic offer (Kroger, Target etc). According to BMO Capital Markets, meanwhile, only 24% of customers said organic products at Whole Foods were ‘definitely’ of higher quality than organic food at conventional grocery stores.
Consumers are more focused on real, quality food, positive nutrition, and fresh, less processed foods than dieting and calorie-counting. Meanwhile fat is back and added sugar is under fire.
Digestive health is a hot trend, probiotics are moving well beyond dairy (cf. GoodBelly, Nomva).
Gaining momentum in meat and dairy (Epic, Thew New Primal, Dreaming Cow).
Expect continued investment in plant-based proteins in particular (peas, flax, quinoa, chia), says Silverwood, although interest in insects and algae is also likely to grow.
Low carb high fat diets are getting more airtime. According to Harvard Business School, meanwhile, Paleo has benefitted from its close ties with CrossFit. Due to that, it has grown from 13 affiliates in 2005 to to 12,000 in 2015.
More capital is being pumped into nootropic foods and supplements claiming to enhance mood, cognition, memory and learning. Meanwhile, the trend for large CPG companies to invest in or acquire smaller, more innovative brands in fast-growing .
Source: Food Navigator