Innovation and Market Drivers in Bakery and ... - Business Insights

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Innovation and Market Drivers in Bakery and Cereals Fast growth markets and strategies for adding value Key issues... Impact of changing population profiles. The older population (aged 65 and over) provides a key opportunity for bakery and cereals manufacturers to address products which directly target the nutrient needs of older needs, as this population is increasing rapidly. Increase in Private Label products. The increase of private label in bakery and cereal products has increased the pressure for manufacturers to differentiate their brands, especially in growth areas such as healthy and convenient bakery products. NPD in bakery and cereals market. This market is still being dominated by health concerns, including increasing diabetes and obesity rates, particularly among children. The health trend is overlapping both indulgence and convenience trends as consumers drive innovation in healthy indulgent and healthy convenient products. Special K Crackers, Kellogg, 2008 “Crackers increased their share of products launched from 8.6% in 2005 to 9.3% in 2008. Crackers have benefited from innovation in formulation to develop healthy and nutritious crackers. A number of leading companies have launched products in this area including Kellogg’s which in January 2009 launched a new range of savory snacks under the Special K brand to target health-conscious consumers and women in particular...“ The growth of Premiumization. In mature markets, where artisanal bakery takes a very low share, there is significant activity in very premium artisanal bakery – as more affluent consumers turn away from industrially produced bread and purchase high end bread as a treat, fostering a new wave of premiumization in in-store bakery as it tries to compete. Your questions answered... • How can bakery and cereals manufacturers minimize the threat of private label brands? • Who are the key players in the bakery and cereals market? • What were the most innovative new bakery and cereals products launched in the last year? • What are the key trends likely to impact bakery and cereals NPD over the next three years? • How are leading bakery and cereals manufacturers reacting to ethical issues such as sustainability and recyclable packaging? • How can bakery and cereals manufacturers position their products to reflect changing consumer demands?
Innovation and Market Drivers in Bakery and Cereals Fast growth markets and strategies for adding value Sample Information Chapter 6: Conclusions Indulgence Flavors Consumers increasingly have less disposable income due to the current economic downturn; however many are not prepared to compromise on the quality and origin of the ingredients used. Bakery and cereals manufacturers should continue to develop premium products with added value such as high quality and tasty ingredients. Figure 6.38: Me & Goji, 2008 Consumers are constantly seeking new and different flavors and textures in food and drink products, and this is evident tin the bakery and cereals market. Bakery and cereals manufacturers can develop Business Insights innovative products with original flavor and texture combinations. In particular, exotic fruits (such as starfruit) and ethnic influences (Indian spices such as massala) will be important flavors in NPD in the coming years. Personalization Foods and beverages continue to become customized, with food and drinks being tailored to fit consumer’s lifestyles. Flavors, colors, functional, and health ingredients are often used as brands try to maximize the appeal of their product and appeal to consumers by targeting a specific need. Bakery and cereal manufacturers can capitalize on this trend by providing consumers with product formats which they can personalize to provide them with the additional health, indulgent or ethical benefits they require. A number of bakery and cereals companies allow customers to custom design their products in order to meet their taste and nutrition requirements. As an example in the cereals area, online American company “me & goji” allows you to design your own cereal mix from thirty all natural and organic ingredients, adding each to the bowl, dragging it across the web page. The nutrition stats of your custom cereal immediately update with each ingredient added or removed to the “compost bin”. This is an example of how bakery and cereals manufacturers can add value by adding health, indulgence and ethical benefits to a product. - 101 -
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