The consumer packaged goods (CPG) landscape in 2024 is marked by significant disruption driven by innovative brands that are challenging traditional market leaders. These disruptions are not only transforming product categories but also reshaping consumer expectations. The evolution from “better-for-you” products (BFY) to those emphasizing sustainability and international flavors is a testament to this shift. As BFY becomes the norm, consumers are seeking products with enhanced differentiation. This report delves into the key trends driving these changes, highlighting the importance of sustainability and the growing appeal of global flavors in creating new market opportunities.
IN THIS REPORT YOU’LL LEARN:
- Key trends driving CPG disruption in 2024, including sustainability and international flavors.
- How mission-driven brands with sustainable practices and high-impact certifications are creating new opportunities.
- The role of values-driven innovation and how brands can leverage consumer demand for enhanced value propositions.
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CPG Disruption in 2024
Where Disruption Happened, What’s Next, and What’s Driving Change
EXECUTIVE SUMMARY
Table of Contents
Key Disruption Trends
1.
Disruption occurs when a brand with a unique or differentiating value prop claims significant market share from traditional leaders and forces category evolution.
2.
Disruption traditionally came from “better-for-you” (BFY) brands, but as BFY becomes the new normal, shoppers are trending toward new/enhanced product differentiation angles.
3.
Two notable enhancements we see brands showcasing are sustainability and international flavors
1.
What Is Disruption
2.
The 2024 Disruption Landscape
3.
Sustainability
4.
International
5.
Key Takeaways
CHAPTER 1
What is Disruption?
What is disruption in CPG?
WHAT IS DISRUPTION?
What is Disruption, What Does it Look Like?
Brand launches a product that bringssomething novel in one of many ways. Think better-for-you (BFY) positioning, a new flavor, improved packaging, a moreconvenient form, etc.
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INNOVATION
At first, the new brand only wins asmallproportion of market share. Yet, whenranking the category’s top brands by absolute dollar growth,the disruptor often breaks into the top 10.
SURPRISING GROWTH
This disruptive brand grows large enough to claim a significant amount of market share, leading to the disruption of the category.
MARKET PENETRATION
Disruption is when emerging brands or products with new attributes gain market share from the traditional leader and drive marketplace evolution. That path to disruption often comes in three stages.
TOTAL CATEGORY
New brand/ product
Traditional Leaders
ENHANCEMENT
DISRUPTORS
CLASSICS
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WHAT IS DISRUPTION?
The Evolution of CPG: Values-Driven Innovation
The Evolution of CPG:
Values
–
Katz
Made gluten-, dairy, nut-, and soy-free desserts for specific diets and allergens.
Poppi
Utilized digestive health craze from VMS to find success in Beverage
Applegate
Brought healthier options to dinner sausages.
Smart Sweets
Developed low-sugar products that gave consumers a healthier way to indulge
ENHANCEMENT
DISRUPTORS
CLASSICS
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A box of apple pies
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WHAT IS DISRUPTION?
The Evolution of CPG: Values-Driven Innovation
Naturally positioned products have become the new standard in CPG. These brands have all disrupted their category by taking advantage of BFY trends.
Beyond conventional classics and natural disruptors, shoppers are starting to look for products that provide enhanced values like sustainability or an international bend that broadens their horizons.
ENHANCEMENT
DISRUPTORS
CLASSICS
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A label of a product
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WHAT IS DISRUPTION?
The Evolution of CPG: Values-Driven Innovation
Regional ingredients harvested in the great pacific northwest
Handmade pies, fresh to frozen
Beyond conventional classics and natural disruptors, shoppers are starting to look for products that provide enhanced values like sustainability or an international bend that broadens their horizons.
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Grass-fed & pasture-raised
Conservation focused
Non-irradiated spices
Labeled Organic and Non-GMO
Flavors like Tom Yum “Shrimp,” Spicy “Beef”
High protein and plant-based diet friendly
Labeled non-GMO
immi Creamy “Chicken” Noodle Cup – Delivered In As Fast As 15 Minutes | Gopuff
Japanese barbecue sauce
Miso and yuzu flavors
Labeled Organic, Vegan, Preservative, and BPA-Free
Miso Japanese Barbecue Sauce …
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SUSTAINABLE
The Evolution of CPG:
CHAPTER 2
The 2024 DisruptionLandscape
Where disruption has already occurred and where it will likely happen next.
THE 2024 DISRUPTION LANDSCAPE
Already Disrupted
The template for disruption can be found in categories that have already experienced shakeups. In particular, soda, energy drinks, protein chips, and dairy have seen significant changes based on recent trends.
Soda
From diet soda to digestive health soda.
Energy Drinks
Not just for night owls! Now fitness friendly.
Protein Chips
High protein snacks no longer limited to bars.
Dairy
Probiotic dairy beyond the yogurt aisle.
Sodas have been around for a long time and havegone through a few iterations. First, the replacement of sugar with ingredients like aspartame gave birth to diet soda.
Then, naturally sweetened sodas came along after brands like LaCroix had shaken up the sparkling water category with their zero sugar products. Brands realized that perhaps there are consumers looking for flavor that isn’tstrong sweetness.
Right now, we’re seeing disruption in the soda category again with digestive health sodas in the limelight. This interest in digestive health is not new as seen with the popularity of kombucha.
So, we’ve seen this rising interest in digestive health migrate into soda successfully.
Soda
From high sugar to digestive health, the reinvention of soda in the modern age.
Diet Coke Soda Can Diversion Safe Secret Hidden Compartment Stash Can – Picture 1 of 1
Cola
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Sparkling Water
Kombucha
+ Natural
+ Biotics
Regular Soda Category
+5%
Diet & Alt Sweetened Soda
+11%
Naturally Sweetened Soda
+5%
Digestive Health Sodas
+174%
gone through a few iterations. First, the
replacement of sugar
DISRUPTION LANDSCAPE—ALREADY DISRUPTED
Energy drinks were for many years the only high sugar, high caffeine beverages associated with partying/nightlife, but that has changed recently.
In the 2010s, we saw new entrants to the energy drinks space bring in products that match a fitness lifestyle instead–bringing new customers into the category.
Performance brands had turned their pre-workout powders into energy drinks, and we saw brands introduce zero sugar energy drinks. This fitness lens suddenly made it okay for consumers to drink energy drinks before a workout and it was soon part of their daily routine sans workout.
Then, we saw brands bring nostalgic flavors to beverages–a trend that really started in the supplements space—which once again expanded the audience.
Energy Drinks
From “rough night?” to a replacement for coffee, energy drinks have been integrated into the daily routine
Energy Drinks25g Sugar or More
-5%
Energy Drinks –
Zero Sugar
+9%
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+ Zero Sugar & Performance
+ Nostalgic
Flavors
—
Potato Chips
+4%
Chips*,
Protein 15g to <25g
+27%
DISRUPTION LANDSCAPE—ALREADY DISRUPTED
Consumers have been gravitating towards high protein products over the years. Snack bars were one of the first products to take the high protein route and created a new category: protein bars.
Similarly, the chip category, which wasn’t inherently functional, followed the protein bar route to create the protein chips category. Now we see many high protein chip brands on market, allowing consumers a different way to get protein.
The next evolution of the protein chips category is one with simple ingredients, where brands display that the protein in the chips is from “real” food.This follows the same playbook we saw in the bar category.
Protein Chips
High protein consumption continues to be a growing trend and consumers are looking for more ways to incorporate it into their diet
Quest Tortilla Style Protein Chips, Nacho Cheese Flavor, Gluten Free, Single Bag, 1.1 oz
SPINS: Natural, MULO (powered by Circana); 52 Weeks Ending 04.21.2024 Chips: SS Chips Veg & Other Alt., SS Potato Chips, SS Tortilla & Corn Chips
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+ Protein
DISRUPTION LANDSCAPE
Dairy
+2%
Dairy (Excluding Yogurt), Probiotics – Yes
+54%
DISRUPTION LANDSCAPE—ALREADY DISRUPTED
From the previously mentioned digestive health sodas to beyond, gut health and all things pre-and probiotic have seen a rise in consumer interest lately. As consumers begin to learn more about the microbiome and its impact on overall health, they appear to be looking for more ways to incorporate biotics into their diet—and dairy brands have noticed.
Yogurt and yogurt-derived products were traditionally the only products in the dairy set that had probiotics, but we’ve seen it expand to numerous dairy subcategories that are not yogurt related. From cottage cheese to milk to sour cream and so much more.
Dairy—Expansion of Probiotics
Probiotics used to be limited to yogurt, but we’ve seen it expand into the rest of dairy–from cottage cheese to milk and beyond
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+ Probiotics
Dairy (Excluding Yogurt),
Probiotics
–
THE 2024 DISRUPTION LANDSCAPE
Ripe for Disruption
Evolving consumer preferences create opportunities for innovative brands. Look out for a rise in functional juices, pickles, and other pantry staples
Organic Ultimate Immune – 52oz
Spicy Kosher Dill Pickle Chips in a Jar
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Functional Juice
Wellness-oriented, not sugar bombs.
Pickles
Probiotics give pickles premium positioning.
Pantry Staples
Low carb, low sugar, but high opportunity.
RIPE FOR DISRUPTION
In recent years, the juice categoryhas experiencedsome backlash as people have pointed out its high sugar content mightnot be all that “good for you.” Asmore brands use juice to sweeten products, its images gets more complicated.Will consumers begin tothink ofjuice as a sweetener versus a healthy beverage?
In the beverage world, the juice category is one that has not seen high innovation, but perhaps brands could take a page from the functional beverage category. A breakthrough product could shift consumerattention back to the wellness lens.
The juice category could reinvent itself by doubling down on immunity or by adding popular functional ingredients like ashwagandha inwellness shots andother functionalbeverages.
Functional Juices
Juice has seen its health halo shine dim over the years, but can it regain its halo?
Organic Ultimate Immune – 52oz
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Organic Probiotic Juice Shots | So Good So You
strawberry rose Mood | Recess
Juice
+0%
+ Immunity,
Functional
Ingredients
Is SunnyD Really Orange Juice?
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Pickles
+3%
+ Probiotics
Spicy Kosher Dill Pickle Chips in a Jar
RIPE FOR DISRUPTION
Pickles have established themselves a popular, reliable snack. A pickle is a pickle; it does the job but is rarelyexciting. Some pickles are pickled via vinegar, while some follow a lactic acid fermentation, which has never been the focal point of messaging… until now.
Products like kimchi, which is essentially fermented cabbage, has seen great success over the years because of its flavor as well as its gut health benefits with many highlighting the fact that it is fermented.
We’ve seen pickle brands get the clue and include callouts to probiotics on their packaging.Perhaps with the rise of gut health, playing up the fermented attribute to attract customersmight be smart. The further snackification and premiumization of pickles can only bring the category higher.
Pickles
Pickles have established themselves a
Pasta
Other Pantry Staples
EARLY
MATURE
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RIPE FOR DISRUPTION
Looking at the center store aisles, we’ve seen a category like pasta go through disruption multiple times now. From whole wheat pasta to zucchini noodles (aka zoodles) to the new wave of pastas made with chickpeas, the category is still evolving.
Early innovations in the pasta category were simple switches like whole flour for wheat flour. Still,each evolution brought more to the category,like how chickpea pasta added proteins and fiber and removed carbs. Then we saw sourdough pasta bring an interesting flavor alongside gut health via fermented grains.
Other pantry staples, however, are still nascent in their journey. For example, pancake mixes and baking chocolate chips are currentlyfocused on lowering carbs and sugar.
Pantry Staples
While some subcategories, such as pasta, are far along in the disruption journey,other pantry staples are just beginning.
CHAPTER 3
Sustainability
Mission-driven brands with high-impact certifications and sustainable ingredients and packaging create enhanced disruption opportunities.
SUSTAINABILITY
Sustainable Paths to Disruption
Sustainable brands are well set up for disruption to the inherently differentiated focus of their products. There are four primary avenues sustainable brands emphasize within the market:
Mission-Driven
Not just commodities, these brands resonate with shoppers on a personal level.
Certifications
New certifications are increasing shopper awareness and driving differentiation.
Ingredients
Seaweed and honey are finding their way into more products as stars or support.
Packaging
Brands of all sizes are using less plastic and more paper to increase recyclability.
Frozen, Refrigerated, and Grocery Departments $ % Chg YA. 52 weeks ending04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Home – Big Tree Farms
Home – Big Tree Farms
SUSTAINABILITY
Mission-Driven Brands: Commodity to Value-Add
Meal Elevation: Sauces
Big Tree Farms uses regenerative farming to restore soils and stay true to ancient practices, and it has now blossomed into the world’s largest and most sustainable coconut supply chain.
Sustainably focused brands have found ways to be more than a commodity. Their sustainable practices have become a value-add thatprovides both convenience and a brand story that resonates with a values-oriented consumer.
Expanding from sugar into a growing category, sauces and condiments, Big Tree Farms utilized their label claims and core ingredient base to innovate.
Condiments & Sauces
+6%
TOTAL CATEGORY
Frozen, Refrigerated, and Grocery Departments $ % Chg YA. 52 weeks ending04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Amazon.com: Pitaya Foods – Organic Ripe Jackfruit Bite-Sized Pieces, Pre-Packaged Frozen Fruit, No Added Sugar or Preservatives, Good Source of Fiber, Antioxidants, & Calcium, 100% Fruit, Non-GMO (12 oz, 8-Pack)
Pitaya Foods Dragon Fruit, Coconut, Acai, Jackfruit, and Passion Fruit
The Organic Seal | Agricultural Marketing Service
Organic Acai Berry Smoothie Packs
SUSTAINABILITY
Mission-Driven Brands: Commodity to Value-Add
Ready-to-Eat Breakfast: Smoothie Bowls
Pitaya Foods has spearheaded the USDA Organic certification of 800+ Pitaya farms, creating over 170 new jobs for local Nicaraguan single mothers.
Sustainably focused brands have found ways to be more than a commodity. Their sustainable practices have become a value-add thatprovides both convenience and a brand story that resonates with a values-oriented consumer.
Developing their brand from frozen fruit to frozen smoothies, landing on ready-to-eat frozen smoothie bowls for the upmost convenience, all while bringing unique wellness ingredients across frozen subcategories.
Frozen Smoothies
+>200%
TOTAL CATEGORY
Quote Source: https://www.patagoniaprovisions.com/pages/our-impact
Frozen, Refrigerated, and Grocery Departments $ % Chg YA. 52 weeks ending04.21.2024. Total US- Natural Channel and MULO powered by Circana.
The Pilot Program has Launched, a New Leader is in Place
SUSTAINABILITY
Mission-Driven Brands: Commodity to Value-Add
Sustainably focused brands have found ways to be more than a commodity. Their sustainable practices havebecome a value-add thatprovides both convenience and a brand story that resonates with a values-orientedconsumer.
Leading the way in sustainable tinned fish and better-for-you crackers, Patagonia Provisions demonstrated their trail blazer ability. The brand continues to innovate with sustainable ingredients and certifications to a meal staple category; pasta.
Shelf Stable Pasta
+3%
TOTAL CATEGORY
Lemon Pepper Wild Sockeye Salmon – Patagonia Provisions
Patagonia Provisions Sourdough Sea Salt – 4.4oz : Target
Nutritious Staple: Pasta
Quote Source: https://www.patagoniaprovisions.com/pages/our
Hot Sauce +9% leveraging the growth of spicy in snacking
Salmon +145% in dinner sausages & +9% in SS jerky and meat snacks
Refrigerated and Grocery Departments $ % Chg YA. SPINS PI: Certifications. 52 weeks ending 04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Goodfish
Blue Circle Foods Salmon Sausage, Original – 12 oz | Meijer
YA
L52W
+36%
Upcycled Certification — Upcycled Food Association
SUSTAINABILITY
Upcycling: Critical Solution for Food Waste
High-Impact Certifications
Certifications, like Upcycled and Regenerative Organic, are increasing visibility of sustainable food options
Hot Sauce +9%
leveraging the growth of spicy in snacking
Probiotics +2% across Refrigerated and Grocery departments as shoppers continue to find ways to elevate their digestive health with a “better for the planet” approach
Refrigerated and Grocery Departments $ % Chg YA. SPINS PI: Certifications. 52 weeks ending 04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Big Picture Foods Organic Pitted Kalamata Olives | FreshDirect
YA
L52W
+30%
The Pilot Program has Launched, a New Leader is in Place
Ancient Nutrition Once Daily Probiotics 30 Capsules
SUSTAINABILITY
Regenerative Farming:
Good for Animals, People, and Planet
High-Impact Certifications
Certifications, like Upcycled and Regenerative Organic, are increasing visibility of sustainable food options.
With regenerative organic agriculture, we can rehabilitate soil, respect animal welfare, and improve the lives of farmers. We can sequester carbon, build healthier communities, and reap more nutritious and abundant yields.
Probiotics +2%
20 Things You Didn’t Know About … Algae | Discover Magazine
Wakame-Sesame Salad with Pickled Onion Garnish
SUSTAINABILITY
Ocean Superfoods
Kelp grows naturally in the ocean and grows in abundance. Kelp is shown to ease digestion, reduce hair loss, treat ulcers, promote weight management, and aid diabetes symptoms.Seaweed is in the algae family, while kelp is the largest subgroup of seaweed.
Seaweed is not only beneficial for human health but can also be used for food grade, plastic free packaging and to reduce methane, capturing carbon, and absorbing phosphate. Seaweed is essentially a tool to save the planet while fueling people with nutrients.
Hero to Supporting Ingredient: Sustainability of the Sea
From seaweed snacks to kelp chili crisp, this powerful ingredient has room to grow across categories.
A bowl of green seaweed
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ALGAE
SEAWEED
KELP
Kelp + Mushrooms
Seaweed in Beverage
Seaweed + Limeade, Seaweed + Green Tea
Kelp + Mushrooms
For a superfood and superseedy cracker
Grocery and Vitamin & Supplement Departments $ % Chg. 52 weeks ending 04.21.2024. Total US- Natural Channel and MULO powered by Circana. Source: https://algae.culturedsupply.com/
SUSTAINABILITY
Hero to Supporting Ingredient: Sustainability of the Sea
Spirulina is the most commercially known seaweed.Itis a micro algae and has been used as a natural coloring agent and alternative protein for years.
The area for innovation is focused as a supporting ingredient
FUTURE
PRESENT
PAST
Growth of the condiment furikake signals a promising future of seaweedas a supportingingredient that can be incorporated across categories.
Main Ingredient
+24%
+20%
Elderberry & Seaweed Supplements
+18%
Chips/Snacks
Sea Moss Powder with Elderberry Immune Boost Elderberry Juice – Elderberry Supplements Elderberry Drink Mix Vegan Elderberry Superfood Powder …
A bag of seaweed snacks
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Free AKUA Kelp Burgers After Rebate – Free Product Samples
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A box of crackers
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+22%
Furikake
Furikake Recipe
Refrigerated and Grocery Departments $ % Chg YA. 52 weeks ending04.21.2024. Total US- Natural Channel and MULO powered by Circana.
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THE NEW TIKTOK LOGO PNG 2023
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Save The Bees Honeycomb Pride Bumper Sticker – Honey Bee Premium Vinyl Decal 3 x 3″ | for Cars Auto-mobiles Windows Bottles Mirror Outdoor Queen Bee …
SUSTAINABILITY
Honey: Leverage as a Sweetener
Tik Tok Campaign
+136K posts with @savethebees
Honeybees can reduce the need for artificial fertilizers through pollination.
“Save the Bees” Campaigns drove honey growth into new categories.
One #savethebee leader received 4.9M likes on just one video of her saving a beehive from an old compost otherwise being destroyed.
Refrigerated and Grocery Departments $ % Chg YA. 52 weeks ending04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Sue Bee Honey Barbecue Sauce Original
Primal Kitchen A Tad Sweet Squeeze Ketchup – Sweetened With Honey 18.5 oz bottle on a white background
American Raw Buckwheat
SUSTAINABILITY
Honey as a Sustainable Cross-CategorySweetener
Condiments and Sauces
Honey is used as a natural sweetener to enhance flavor in sauces.Primal Kitchen markets and labels their ketchup as “A Tad Sweet Ketchup.”
By using honeybees to both produce raw honey sweeteners and to fertilize surrounding plant life, we have already made an environmentally sound decision. The CPG industry can build on that eco-friendly foundation by incorporating honey in products across categories.
Buckwheat
As buckwheat continues growing amongst sustainable grains, the paring of buckwheat and honey expands across categories like crackers and honey.
Beverage
Honey continues to expand its presence across the entire beverage department as a staple sweetener.
Wild Tonic Organic Mango Ginger Jun Kombucha, 12 Fluid Ounce — 12 per case
+1%
Honey in Condiments & Sauces
+7%
Buckwheat
+31%
Honey in Water & +33% in RF Juices
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Homemade BBQ Sauce
Glass packaging promotes
TerraCycle
Source: Carlsberggroup.com , consumergoods.com, celestialseasonings.com, wanderingbearcoffee.com, epacflexibles.com
*SUSTAINABLE PACKAGING = CAN. GLASS, CARDBOARD BOX, ALUMINUM BOTTLE, AND ASEPTIC CARTON
White Leaf Provisions Organic Biodynamic 6+ Months Baby Food Mango Carrot Banana Pear
Reimagine Waste This Holiday Season With TerraCycle®
Globowl: internationally-inspired baby and toddler food
SUSTAINABILITY
Packaging Reinvented
Best-in-Class Recycling
Brands are demonstrating their priority to evolve sustainability efforts by making products that are recyclable, compostable, digitally printed, and setting goals towards net zero greenhouse gas emissions.
Elevating Recycling
Choosing plastic over glass, or providing better recycling options for consumers, are just a few ways to support more sustainable packaging
Removing the Wrap
Celestial Tea removed its plastic wrap from their tea boxes in 2023 to eliminate an estimated 165,000lbs of plastic annually.
A fiber bottle, putting a bio
Snack pouch made from 100%
Source: Carlsberggroup.com , consumergoods.com, celestialseasonings.com, wanderingbearcoffee.com, epacflexibles.com
*SUSTAINABLE PACKAGING = CAN. GLASS, CARDBOARD BOX, ALUMINUM BOTTLE, AND ASEPTIC CARTON
SUSTAINABILITY
Packaging Reinvented
Innovative Materials
Brands are demonstrating their priority to evolve sustainability efforts by making products that are recyclable, compostable, digitally printed, and setting goals towards net zero greenhouse gas emissions.
European Union impact
Advancement in sustainability regulations = advancement in packaging.
Packaging Beyond the Standard
100% compostable
100% recyclable
Cold Brew Coffee (12 Cartons 11oz) – Straight Black #1
Kraft Heinz tested a paper
Nestle piloted paper
Kellogg partnered with Albertsons on an
Source: Carlsberggroup.com , consumergoods.com, celestialseasonings.com, wanderingbearcoffee.com, epacflexibles.com
*SUSTAINABLE PACKAGING = CAN. GLASS, CARDBOARD BOX, ALUMINUM BOTTLE, AND ASEPTIC CARTON
SUSTAINABILITY
Packaging Reinvented
Future Forward
Brands are demonstrating their priority to evolve sustainability efforts by making products that are recyclable, compostable, digitally printed, and setting goals towards net zero greenhouse gas emissions.
Big CPG Leading New Initiatives
With large sustainability goals in the next 25 years, big CPG brands are testing new innovations in packaging.
kit kat paper packaging
Kernza
Cascara
Apricot Kernal
Flax Seed
Pumpkin Seed
SUSTAINABILITY
Predictions: What to Watch Out For
The Next Wave of Beverage: Sustainable Fruit, Seeds, & Perennial Grains
As almond production has earned a negative reputation for its environmental impact — from causing water shortages to using pesticides that kill native bees —more sustainable ingredients are gaining popularity. The growth and innovation you’ll see in beverage categories will come from sustainable fruits (such as cascara made from the coffee cherry), perennialgrains (likeKernza), and sustainable seeds (likeflax and apricotkernels)
Sustainable Fruit, Seeds, & GrainsAdvancing Beverage
Refrigerated and Grocery Departments $ % Chg YA. Top 5 Kids Categories is Frozen, Refrigerated, and Grocery by $ % Chg YA, Dollar Sales >$50K. SPINS PI: Age Group for Baby and Kids 52 weeks ending 04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Kid-PositionedProduct Growth
A purple carton of juice
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Apricot Kernel Drink 24 x 300ml
A pile of almonds and a half of apricot
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A pile of food on a white background
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A carton of milk with a bird on a branch
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A pile of seeds on a white background
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A couple wooden spoons with seeds in them
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A carton of milk with a splash of milk
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Kernza Lager — Aslan Brewing Co.
SUSTAINABILITY
Predictions: What to Watch Out For
The Future of Your Family: Kid-Positioned Growth
Many families enter the natural and sustainable market through their children as consumers look amongst “better for you” for their family and then continue to invest in better for the planet.
Refrigerated and Grocery Departments $ % Chg YA. Top 5 Kids Categories is Frozen, Refrigerated, and Grocery by $ % Chg YA, Dollar Sales >$50K. SPINS PI: Age Group for Baby and Kids 52 weeks ending 04.21.2024. Total US- Natural Channel and MULO powered by Circana.
Serenity Kids® Baby Food // Because Every Bite Counts
Top 5 Categories by $ % Chg
Kid Positioned Products
>200%
Frozen Pizzas
RF Plant Based Milk
Fz Pies & Baked Goods
RF Cookie & Pastry Dough
Wellness Bars & Gels
Upcycled Certified continues to grow in children’s snacks to provide healthy and sustainable options for kids; like squeezable smoothies.
Innovative kids brands are leaning in on regenerative farming practices and educating their consumer on their mission for a better planet with healthier food options for your children.
Once Upon a Farm expanded categories from frozen entrees to refrigerated smoothies as Regenerative Organic Certified products via their partnership with Alexandre Family Farms dairy.
Upcycled Certification — Upcycled Food Association
A group of juices in a row
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The Pilot Program has Launched, a New Leader is in Place
New
Sustainable Fruit, Seeds, & GrainsAdvancing Beverage
Kid-PositionedProduct Growth
CHAPTER 4
International
Global flavors are bringing cross-category disruption.
Source: SPINS Natural & MULOCombinedChannels, Last 52 WeeksEnding04-21-2024 (Grocery, Refrigerated, FrozenDepartments; International Attribute)
Total Sales Volume Growth
% Sales Growth vs Yago
STATE OF INTERNATIONAL
State of Global Brands & Foods
Globally positioned brands are growing more quickly than their non-global counterparts in food and beverage, taking 82% of all growth in food and beverage categories over the past 52 weeks.
How does SPINS define a Global brand?
These are brands that are dedicated to a particular cuisine type. They can be culturally-relevant imported brands or domestic brandsinspired by heritage or thecuisine itself.
INTERNATIONAL
Dollars
% Market Share, International
$ %Growth, Yago
CAGR, 3yr
HISPANIC / SOUTH AM – MEXICO
$11,893,099,970.96
26.98%
4.86%
5.96%
EUROPE – ITALY
$8,650,629,866.92
19.62%
3.19%
4.56%
HISPANIC / SOUTH AM – GENERAL / NON SPECIFIC
$4,109,076,433.90
9.32%
8.58%
8.29%
ASIA – GENERAL / NON SPECIFIC
$4,096,596,143.92
9.29%
1.03%
5.83%
ASIA – JAPAN
$2,860,460,763.61
6.49%
0.39%
1.71%
UNITED STATES – HAWAII
$922,551,554.37
2.09%
8.89%
6.88%
EUROPE – GENERAL / NON SPECIFIC
$885,547,589.92
2.01%
2.19%
4.31%
MID EAST / MEDITRN – GENERAL / NON SPECIFIC
$870,095,803.42
1.97%
6.63%
-4.01%
EUROPE – UNITED KINGDOM
$843,242,796.39
1.91%
8.72%
5.12%
MID EAST / MEDITRN – GREECE
$785,232,655.66
1.78%
10.74%
6.91%
UNITED STATES – CAJUN / CREOLE
$745,048,083.44
1.69%
0.98%
2.41%
EUROPE – FRANCE
$726,339,531.95
1.65%
-2.75%
0.87%
UNITED STATES – SOUTHWEST
$705,931,733.10
1.60%
0.69%
3.06%
EUROPE – IRELAND
$600,334,000.59
1.36%
11.19%
9.74%
UNITED STATES – SOUTHERN / SOUL
$508,901,998.63
1.15%
-0.31%
2.46%
KOSHER
$479,221,651.13
1.09%
-5.53%
-1.17%
OCEANIA – AUSTRALIA / NEW ZEALAND
$361,256,094.02
0.82%
-2.17%
0.13%
ASIA – KOREA
$360,476,931.28
0.82%
49.51%
26.53%
EUROPE – GERMANY
$339,901,529.27
0.77%
0.40%
2.39%
ASIA – INDIA
$315,780,407.30
0.72%
9.89%
8.94%
OCEANIA – GENERAL / NON SPECIFIC
$294,854,505.58
0.67%
-5.28%
-0.42%
ASIA – THAILAND
$241,964,123.61
0.55%
4.28%
4.45%
EUROPE – SWEDEN
$232,869,551.09
0.53%
-5.64%
-1.71%
INTERNATIONAL
$202,301,512.62
0.46%
0.65%
1.23%
EUROPE – POLAND
$159,370,041.76
0.36%
5.32%
5.10%
Performance of Top 25 International Segments by Total Sales Volume
We Rub You Korean BBQ Marinade Original
Bibigo Korean Style Crunchy Chicken Sweet & Spicy Sauce, 18.0 oz
Masala Mama Almond Korma
Source: SPINS Natural & MULOCombinedChannels, Last 52 WeeksEnding04-21-2024 (Grocery, Refrigerated, FrozenDepartments; International Attribute)
STATE OF INTERNATIONAL
What to Watch
Korean-centric brands continue to gain market share, clearly outperforming in the top 25 over the past 3 years.
Performance Breakdown of Global Foods and Beverages
Mexican, General Hispanic, and Italian brands continue to dominate market share, but others are on the verge of breaking out.
Brands focused on the vibrant and diverse flavor profiles of Indian cuisine continue on a steady path of near-double digit year-over-year growth.
HISPANIC / SOUTH AM – VENEZUELA
76.88%
HISPANIC / SOUTH AM – URUGUAY
29.93%
HISPANIC / SOUTH AM – COSTA RICA
19.88%
HISPANIC / SOUTH AM – ECUADOR
19.74%
HISPANIC / SOUTH AM – GUATEMALA
19.70%
HISPANIC / SOUTH AM – OTHER SPECIFIC
19.37%
HISPANIC / SOUTH AM – COLOMBIA
19.12%
HISPANIC / SOUTH AM – CHILE
14.25%
HISPANIC / SOUTH AM – EL SALVADOR
12.35%
HISPANIC / SOUTH AM – GENERAL / NON SPECIFIC
8.58%
HISPANIC / SOUTH AM – PERU
7.95%
HISPANIC / SOUTH AM – MEXICO
4.86%
HISPANIC / SOUTH AM – BOLIVIA
3.28%
HISPANIC / SOUTH AM – NICARAGUA
1.71%
HISPANIC / SOUTH AM – ARGENTINA
-9.23%
HISPANIC / SOUTH AM – BRAZIL
-20.61%
Top Categories
(of Regional groups in Bold)
$35.8m | -13.9%
SHELF STABLE COOKIES & SNACK BARS
$20.6m | +24.0%
SHELF STABLE CHIPS & SNACKS
$25.6m | +13.9%
SHELF STABLE JUICES
$24.5m | +5.6%
SHELF STABLE CRACKERS & CRISPBREADS
$23.8m | +44.0%
SHELF STABLE BAKING & ING & FLOUR
$17.6m | +16.7%
SHELF STABLE MEAT POULTRY & SEAFOOD
Source: SPINS Natural & MULOCombinedChannels, Last 52 WeeksEnding04-21-2024 (Grocery, Refrigerated, FrozenDepartments; International Attribute)
STATE OF INTERNATIONAL
With a growing and diverse population movement across the United States, regional Hispanic brands focused on pantry staples and comfort foods are seeing an increase in both sales and distribution.
While some traditional grocery outlets have picked up on this trend, the convenience channel has also helped fuel part of this early-stage growth.
Regional Hispanic Brands on the Rise
Leveraging SPINS’ granular International attribute values, we’re able to see a remarkable trend occurring with Hispanic brands.
Premiumization:
As the presence of global brands grows in a subcategory, premiumization of that global segment helps fuel subcategory innovation and reinvigorates shopper interest.
Sustainability & BFY:
Global and heritage brands are learning to flag what makes them good for people, planet, and health while also meeting the demands for convenience.
Convenience Cooking:
Global and heritage positioned brands have inspired packaging type evolutions across the store aisles – resulting in the mainstreaming of convenience formats.
GLOBAL & HERITAGE BRANDS
Global and Heritage Brands Lead with Innovation
Global and heritage brands dominate the market through their ability to introduce innovation while also meeting the taste and convenience profiles sought after by shoppers. Why? Convenience allows for easy adoption of new concepts and tastes, and younger shoppers are driving consumption in these areas.
WHAT TO WATCH FOR
1. https://www.foodbeverageinsider.com/market-trends-analysis/keys-to-food-beverage-product-success-for-gen-z
“Findings indicate half of Gen Zers surveyed said they’d like to have As the presence of global brands grows in a subcategory,
Source: SPINS Natural & MULOCombinedChannels, Last 52 WeeksEnding04-21-2024 (Grocery, Refrigerated, FrozenDepartments; International Attribute)
PREMIUMIZATION
Premiumization of Global Brands
+4.11%
Total Growth (YoY)
Of Global Brands
The global and heritage brand market is undergoing a pivotal stage of evolution where premiumization, clean label, and better-for-you concepts are commanding a greater share of shoppers’ dollars. By leveraging, SPINS Positioning Group–an attribute that incorporates these premiumization concepts–we can gain an understanding of the disruptive growth and future potential of premium global and heritage brands.
Ayo West African Foods Groundnut Stew with Chicken, 10 oz Box
Conventional Functional
Specialty Natural
Known For: Brand ethos focused on premium ingredients, craft, and clean label concepts such as sustainability or organic ingredients
$3,672M|+13.7%
Natural Standards
Known For: Brand ethos focused on elite better-for-youand clean label concepts
$511.0M|+6.2%
Naturally Perceived
Known For: Brand ethos focused on basic clean label concepts with other basic elements to cater toward the BFY shoppers
$332.8M|Premiumization
¡Ya Oaxaca! Mole Coloradito in a heat and serve jar.
Domestic Stalwarts . gourmet/chef-driven products . premium heritage
& familiar brands and BFY
Source: SPINS Natural & MULOCombinedChannels, Last 52 WeeksEnding04-21-2024 (Grocery, Refrigerated, FrozenDepartments; International Attribute)
PREMIUMIZATION
WHAT TO WATCH:
1.
Savvy premium & BFY global brands like Siete are expanding into categories where premiumization & BFY gaps exist.
2.
Imported/familiar global brands are often first surface in some subcategories, like mayonnaise, where the presence of global brands was non-existent.
3.
Look for premium & BFY global brands to explore untraditional subcategories (like bbq sauce and dressings) – bringing a fresh take on flavor profiles that will be welcomed by shoppers.
Premiumization in Condiments and Dressings
As the presence of global brands grows in a subcategory, premiumization of that global segment helps fuel subcategory innovation and reinvigorates shopper interest.
$39.6m | +183%
Domestic Stalwarts
Source: SPINS Natural & MULOCombinedChannels, Last 52 WeeksEnding04-21-2024 (Grocery, Refrigerated, FrozenDepartments; International Attribute)
PREMIUMIZATION
Global Brand Premiumization Opportunities
By breaking down global brands in a subcategory by positioning group, we can see where opportunities for BFY and premiumization exist for global brands.
For example, while premium and BFY global brands have a strong presence in FZ MEALS & ENTREES and FZ CONVENIENCE BREADS, subcategories such as FZ BURRITOS & POCKETS and FZ BREAKFAST ENTREES are strong candidates for global brand premiumization in the future.
A graph of a group
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Cup Noodle Original – Nissin Food
Matcha Latte Oatmeal Cups – Yishi Foods
Chocolate Fudge Brownie Cup | Delicious and Nutritious Treats by Kodiak®
Bean Salsa Roja Tamales – FILLO’S
PACKAGING TYPE
Food in a cup has undergone a transformation from snack to meal. Starting with Cup Noodle and inspired by convenience, accessibility, and better-for-you options, this disruption has come full circle back to noodle cups.
Today’s food-in-a-cup options are found across aisles and intended to be eaten for breakfast, lunch, dinner, and any snack in between.
What’s next in convenience cooking? Keep an eye out for better-for-you innovations and other on-the-go and handheld formats.
Convenience Cooking — Cups
Packaging types that originated in international and heritage positioned brands have inspired evolutions across the store aisles over the decades–resulting in the mainstreaming of convenience formats.
immi Creamy “Chicken” Noodle Cup – Delivered In As Fast As 15 Minutes | Gopuff
Convenience Cooking — Squeezables
Original convenience packaging made condiments easier and more accessible with no clean up required
Further adoption of squeezables in the market, encouraged by the home chef kitchen and sustainability innovations
Relaunch in popularity as a Premium product, not just convenient. Started by Bachan and adopted by non-international brands
Convenient squeezable packaging has undergone a premiumization, led by international and heritage-inspired brands and carried through by the wave of “Yes, Chef!” kitchen pantry staples.
Bachan’s Original Japanese Barbecue Sauce, 17 oz Bottle – Walmart.com
Kewpie Mayonnaise | Kewpie Singapore
Mild BBQ Sauce – Kinders
1958
1983
2019
2023
Global Blend Medium Chef’s Bottle | California Olive Ranch
New Graza refills in aluminum beer style cans
DRIZZLE REFILL CAN, 16.3 fl oz at Whole Foods Market
SIZZLE REFILL CAN, 24.5 fl oz at Whole Foods Market
PACKAGING TYPE
Convenience Cooking
—
Squeezables
CONCLUSION
Key Takeaways
What to pay attention to as disruptors continue changing the market.
CONCLUSION
What to Keep in Mind Going Forward
Disruption Across Aisles
Disruption is happening in every category as tradition industries react to modern trends.Pickles are gourmet, and healthy milk doesn’t just mean “low fat.”
Don’t be disrupted—keep an eye on the market to make sure you’re a disruptor who keeps the industry moving forward
Beyond Better-For-You
BFY products are table stakes, shoppers are looking for enhanced value props from their purchases like sustainability or an international angle.
New Trends to Watch
Sustainable products and international flavors are becoming increasingly common. Learn from the leaders and don’t risk falling behind.
Innovate with Confidence
Have a real view of shelf
Size category opportunities
Make data part of the story,
To learn more, reach out to [email protected]
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