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News & Notes BRIEFS GOURMET NEWS DECEMBER 2017 www.gourmetnews.com NEWS & NOTES 6 Global Natural Food and Drinks Market Expected to Reach Nearly $200 Billion by 2023 According to a new report published by Al- lied Market Research, titled "Natural Food & Drinks Market by Product and Distribu- tion Channel: Global Opportunity Analysis and Industry Forecast, 2017-2023," the global natural food and drinks market was valued at $79.137 billion in 2016, and is es- timated to reach $191.973 billion by 2023, registering an annual growth rate of 13.7 percent from 2017 to 2023. Natural food & drinks refer to food products that are that are manufactured without the use of hormones, antibiotics, or artificial flavors. Stringent regulatory standards do not exist for natural food and drinks in most of the countries in the world. Thus, natural labels are normally used by manufacturers across the globe due to lack of adequate guidelines. Natural food & drinks are available at several stores that sell organic food products. In 2016, the su- permarkets/hypermarkets segment ac- counted for around two-fifths share of the global market. According to Eswara Prasad, Team Lead, Chemicals & Materials at Allied Market Re- search, "From freshness to health ingredi- ents and eco-conscious business models, today's core consumer values increasingly center around offerings of the natural food and drinks market." The global natural food and drinks market is driven by growing consumer preferences for foods with non-genetically modified ingredients. Increasing demand for "clean label" products is due to in- crease in awareness and media coverage around GMOs. The "clean label" trend has also been recently pushed into the mainstream market by popular books, tel- evision shows, and celebrity endorse- ments. However, higher costs of natural food and drinks, as compared to conven- tional food products, are expected to hamper the market growth. Among the key findings of the study are that in 2016, North America dominated the global market, constituting around two- fifths share of the global market. The U.S. was the leading consumer of natural food and drinks globally in 2016, and the Amer- ican market for these products is expected to grow at an annual growth rate of 13.4 percent. The natural food segment is esti- mated to grow at a rate of 13.9 percent from 2017 to 2023, with fruits and vegetables ac- counting for one third of the share of the global market. Supermarkets' and "hyper- markets'" sales for natural foods and drinks are expected to grow at a rate of 13.3 per- cent. In 2016, North America dominated the global market. However, Asia-Pacific is ex- pected to witness the highest growth rate from 2017 to 2023, owing to rise in con- sumer inclination towards wellness and rapid growth in the food & drinks industry in countries such as China, Japan, India and Australia. Europe was the second lead- ing region geographically, and is expected to grow at an annual growth rate of 13.1 percent from 2017 to 2023. The key companies profiled in the report include Archer Daniels Midland Company, Bunge Ltd., Earths Best, Amy's Kitchen, Nestle S.A., 365 Everyday Value, Organic Valley, ConAgra Foods, Dean Foods, and General Mills. GN Frozen Food Section Heats Up From frozen desserts to appetizers and meals, the frozen section in U.S. grocery stores has the ability to be a one-stop shop for consumers on the go. Twenty-six per- cent of total U.S. grocery shoppers are shopping in the frozen foods department more frequently than last year, and it's being led by Millennials and households with children, according to Acosta, a full-service sales and marketing agency in the consumer packaged goods (CPG) industry, and the company's latest report, "The Future of Frozen." This research and insights report released by Acosta focuses solely on the frozen category and shoppers' be- haviors and preferences in these aisles. "Frozen food is certainly its own umbrella category, but its versatility allows it to span multiple mealtime occasions, which is why there has been a lot of room for growth and innovation across items and brands," said Colin Stewart, Senior Vice President at Acosta. "Competition in the category is heating up as fast-paced Millen- nials, who often take greater interest in the health benefits of food than older genera- tions, look to frozen as a way to eat well in a convenient and hassle-free manner." Fresh foods continue to reign supreme in the grocery store, but attitudes toward frozen products might be thawing out as the category is starting to prove itself as stiff competition for the store perimeter. In particular, although most shoppers feel fresh food is healthier than frozen, each generational demographic has reported buying more frozen food than last year, in- cluding 43 percent of Millennials; 27 per- cent of GenXers; 19 percent of Baby Boomers; and 19 percent of Silents. For shoppers purchasing more frozen foods this year, the following factors are ranked as most important in making purchasing decisions: No antibiotics (76 percent); hormone free (76 percent); all natural (73 percent); sustainable (71 percent); and low sodium (69 percent). Among respon- dents who anticipate buying more frozen foods in the coming year, 41 percent cite convenience as the reason why, while 32 percent of shoppers said they were expect- ing to purchase more in the frozen food aisle because those products don't spoil as quickly as fresh foods. "Retailers and brands should keep in mind that a majority of consumers are looking for quick and easy options, while continuing to search for products that pro- vide variety and health benefits to their households," said Stewart. "However, frozen foods are one of the few categories that are still more frequently purchased in store than online, so these items just might be the key to drawing shoppers from the perimeter into center store, as shoppers can check many items off their grocery lists at once. Retailers should ensure the frozen section is easily navigable, and should keep end-cap freezers stocked with a variety of teaser items as to what else is available down the aisles." GN Nominations Open for 2018 Produce Excellence in Foodservice Awards Program United Fresh has opened the nomination period for the 2018 Produce Excellence in Foodservice Awards Program which honors the foodservice in- dustry's most innovative produce performers. Winners will be selected by a panel of United Fresh member representatives. Nominations must be submitted by January 19, 2018. The eight win- ning chefs and their corporate executives receive complimentary airfare, hotel accommodations and registrations to United Fresh 2018, June 25-27, 2018 in Chicago, and will be recognized at the event's Retail-Foodservice Celebration. Ahold USA Earns Top Marks In 2018 Corporate Equality Index Ahold USA, parent company of leaders in supermar- kets and e-commerce, received a perfect score of 100 percent on the 2018 Corporate Equality Index (CEI), a national benchmarking survey and report on corporate policies and practices related to les- bian, gay, bisexual, transgender and queer (LGBTQ) workplace equality, administered by the Human Rights Campaign Foundation. The 2018 CEI report evaluates LGBTQ-related policies and practices including non-discrimination workplace protections, domestic partner benefits, transgender-inclusive health care benefits, compe- tency programs and public engagement with the LGBTQ community. Ahold USA's efforts in satisfying all of the CEI's criteria results in a 100 percent rank- ing and the designation as a Best Place to Work for LGBTQ Equality. New Guide Helps Consumers Identify Humanely Produced Food The ASPCA ® (American Society for the Prevention of Cruelty to Animals), Food Chain Workers Alliance, GRACE Communications Foundation, and the Nat- ural Resources Defense Council have released the "Good Groceries Guide," a digital resource to help consumers buy food that supports a healthier, more humane and fair food system. The Good Groceries Guide helps consumers dif- ferentiate between meaningful and meaningless la- bels when it comes to animal welfare, health, the environment, and worker treatment. The guide also provides suggestions on how to help reduce food waste, the importance of buying in-season produce, and how to demand more humane, fair, and healthy options at grocery stores, among other topics. Mindful Choices the Key Food Driver for 2018 The increasingly thoughtful and mindful consumer will continue to catalyze changes in the way that companies produce, package and label their prod- ucts. More conscious than ever about making re- sponsible food choices, four in 10 US and UK consumers increased their consumption of "healthy foods," seven in 10 want to know and understand the ingredient list, one in five in the US are most in- fluenced by "real" ingredients, and ethical claims on packaging are top of mind. In response, better-for- you claims continue to be on-trend, having in- creased their market penetration from 42 percent in 2012 to 49 percent in 2017 (year to date), accord- ing to market research firm Innova Market Insights.

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