Macro Trends from Expo West (April 2015)

Trends from Expo West

April 2015

Introduction

Trend 1: Protein Everything

Trend 2: The Ethics Imperative

Trend 3: What’s Old is New

Things to Watch

What We’ll Cover

Introduction“Natural” is becoming one of the most alluring terms for both consumers and marketers. As more people seek to lead healthier lives, they’re increasingly turning to toxin-free, natural products. Indeed, the market for natural products has surged in recent years and continues to grow: U.S. consumer sales of natural, organic and healthy products are forecast to grow 64% from $153 billion in 2013 to $252 billion in 2019, a rate nearly double that of mainstream consumer packaged goods, according to New Hope Natural Media, the organizer of Expo West. The meaning of “natural,” however, has become significantly more nuanced and complex in recent years. Increasingly, “natural” is being applied across categories, appearing on beauty products, pet products, cleaning products and elsewhere. At the same time, consumers are becoming increasingly skeptical of this claim, placing the term under greater scrutiny. This report is based on findings from Expo West, the world’s largest natural, organic and healthy products event. Expo West, which took place March 4-8 in Anaheim, California, brought together more than 71,000 industry members and over 2,700 exhibiting companies. With dozens of panels and hundreds of networking events, Expo West is ground zero for emerging trends and innovative products. This report touches on three overarching themes from the show, as well as things to watch for the future.

Introduction

Protein Everything

Image credit: Stocksy

62% Of People make it a point of

getting plenty of protein*

*Source: Packaged Facts, ‘14

Protein Everything

People are paying more attention to protein thanks to a

growing belief in its ability to aid weight management

and muscle recovery, as well as its role in satiety.

According to a 2014 survey by Nielsen, nearly one third

of people globally view protein as a very important

attribute in the snacks they eat. Plus, with more people

adopting the protein-heavy paleo diet (2013’s most

Googled diet), protein products have added appeal. No

surprise, then, that the number of products launched in

the US with both a high-protein and vegan claim

increased 54% between 2008 and 2012, per 2013

research by Mintel.

Image credits: Chapul; Exo

Crickets As Protein

One increasingly attractive source of sustainable protein

is insects, particularly crickets. Growing evidence of the

nutritional benefits of crickets, paired with mounting

concerns over the environmental consequences of meat

production, are pushing environmentally conscious food

brands to embrace the ingredient. Exo, a brand that

produces snack bars made of cricket flour, claims that

dried crickets are 69% protein, while sirloin steak is only

29% protein. Chapul also showcased snack bars that

blended cricket flour with ingredients like cocoa, coffee

beans, dates, ginger and lime. Other brands, like Six

Foods and Bitty Foods, are also using cricket flour as a

sustainable source of protein. In the U.K., Grub sells

freeze-dried crickets, grasshoppers and worms.

Image credits: Pro-nrg; Powerful Yogurt; Blu-Dot;Forte

Protein Products Proliferate

Brands are also finding unexpected ways to provide

people with protein. Other protein-infused products on

the floor included chips (Quest), water (Protein Water),

yogurt (Powerful Yogurt), tea (Blu-Dot) and even ice

cream (Forte).

Image credit: Taco Bell

16% Of British consumers are

upping their protein intake by seeking out groceries that are high in protein*

*Source: Canadean, ‘15

Opportunity Areas

Consumers’ growing demand for protein presents an

opportunity for brands to build out the nutritional power

of their products. Restaurants have been adding protein-

packed items to their menu. The Protein Bar, which

launched in Chicago and now has several locations

across the U.S., focuses on convenient grab-and-go

protein dishes. Last year, Taco Bell gave its Cantina Bell

menu a protein-focused spin, renaming it “Cantina

Power” and adding burrito and bowl with additional meat

and fewer calories. The brand also tested a Power

Breakfast menu, which included items like Power Greek

Yogurt and a Power Breakfast Bowl of steak, pico de

gallo, cheddar cheese and eggs.

As more people seek alternatives to meat protein, plant-

based protein will surge. Plus, since Millennials are the

most adventurous, open-minded and sustainability-

focused generation, insect protein also has a chance to

find mainstream adoption.

The Ethics Imperative


IntroductionStrong ethics is becoming a keystone of building a successful business. Consumers’ mounting expectations of brands mean that placing ethics at the core of business practices is becoming a necessity, rather than a luxury. With the surge in mission-driven companies that place a commitment to social change at the heart of their business, the imperative for brands to foreground ethical practices is only growing stronger.

96% of Millennials believe brands need to think about the long-term social and environmental consequences of their actions Source: MBG Health & Happiness Survey, ‘14

The Ethics Imperative

Image credit: B Corporation

B Corps

As part of ongoing efforts to make businesses better for

everyone, more companies are becoming certified “B

Corps,” an official certification given by the nonprofit B

Lab to companies that have passed an assessment of

their overall impact.

There were more than 60 Certified B Corps at Expo

West, including brands like Method, Numi Tea, Seventh

Generation and Cabot Creamery.

Image credits: One Percent for the Planet; Make a Stand

Revenue Shares

Brands are also officially setting aside part of their

revenue for social good. Several companies are official

members of For The Planet, which means pledging to

give 1% of sales to nonprofit organizations dedicated to

protecting the environment. Lemonade brand Make A

Stand goes even further, donating 5% of total annual

revenue to select nonprofit organizations.

Image credits: This Bar Saves Lives; Bixbee;

Buy One, Give One

Another way brands are embracing a commitment to

social change is by adopting a buy one, give one away

model: donating one product to those in need for every

one purchased. Snack bar brand This Bar, for example,

has a mission to save lives by donating one nutritional

bar to hungry children in Africa for each item purchased

by consumers. Bixbee will donate a schoolbag with

supplies to kids in need for every backpack purchased.

And, as part of its BuyOne:FeedOne campaign,

Yumbutter promises to partner with nonprofits to “feed a

child in need” for every portion of nut butter purchased.

55% of global online consumers are willing to pay more for products and services from companies that are committed to positive social and environmental impact

Source: Nielsen, ‘14

Image credit: Sir Richard’s Condom Company

It’s clear that doing good for the world can also be good

for companies’ bottom line: Nielsen showed that the

percentage of people willing to pay a premium for

products and services from companies that are

committed to positive social and environmental impact

grew 10% between 2011 and 2014.

Among Millennials in particular, there is a growing

recognition that making a profit and improving the world

are synergistic, rather than mutually exclusive.

Though Tom’s Shoes pioneered the concept, the buy

one, give one model has been adopted across

categories, including food, fashion and even condoms.

For example, Sir Richard’s Condoms donates one

condom to charity for each one sold.

Opportunity Areas

Image credit: How Good

A new suite of smartphone apps gives consumers

the power to scrutinize how ethical a product

really is, placing even greater pressure on brands to

operate sustainably. How Good, for instance, is an

independent organization that rates a product’s

environmental and social impact based on

sourcing standards, processing practices and

company conduct, then translates this research

into easy-to-read ratings. Smartphone users can

use an app to scan a product’s barcode and

quickly pull up its rating. How Good also works

with stores to display product ratings on shelves. In

fact, How Good found that implementing and

displaying its rating system in-stores contributed to

nearly a $40,000 increase in weekly sales.

Opportunity Areas

Image credit: Dave’s Killer Bread

Brands can also take a stand by rethinking their hiring

initiatives or launching advocacy campaigns. For

example, Dave’s Killer Bread, now one of the largest

bread manufacturers in the U.S., promises to help former

convicts reintegrate by ensuring at least a third of its

employees are ex-prisoners. The brand also hosts a

Second Chance Summit, which explores how business

leaders can hire people with criminal backgrounds.

Opportunity Areas

What’s Old Is New


IntroductionThe move toward raw, vegan and paleo products has driven demand for natural foods. More people are looking to the past for sources of inspiration, embracing ancient ingredients as the new superfoods. For instance, the growing popularity of “ancient grains,” a term used to refer to Old World staples like farro, barley and teff, points to surging interest in nutritional mystery, archaeological discovery and anthropological interpretations of diet and lifestyle.

What’s Old Is New

363% Sales growth of

“ancient grain” spelt between

July 2013 and July 2014*

159% Sales growth of

“ancient grain” freekeh between

July 2013 and July 2014*

*Source: Spins, ‘14

Image credits: Ancient Harvest; Nature’s Path

Ancient Grains

“Ancient grains” were common ingredients in many

products at Expo West. While the term is still up for

definition, it largely refers to neglected staples like farro,

barley, quinoa and teff.

Organic chip brand Que Pasa showcased Ancient Grains

Tortilla Chips, a product set to debut later this year that

includes buckwheat, quinoa-amaranth and chia. Gluten-

free baking mix brand Amazing Foods for Health also

tapped into the trend, advertising products made with

ancient grains. Ancient Harvest offers pastas, cereals,

flour, quinoa and other items made from grains like

quinoa, millet and amaranth.

Image credits: Temple Turmeric; Tu Me Beverages;

Turmeric

Turmeric was another forgotten food that has recently

surfaced. A spicy herb similar to ginger, turmeric is said

to have anti-inflammatory properties, as well as the

ability to treat heartburn and upset stomachs. Some

research suggests that aromatic-turmerone, a

component of turmeric, might even protect the brain by

repairing stem cells.

After reportedly receiving a $3 million investment from

Boulder Investment Group, beverage brand Turmeric:

Elixir of Life re-launched as Temple Turmeric, a line of

juices, smoothies and tonics that promise “positive

inflammation response” and other health benefits. And

TuMe is a turmeric-infused water that claims to aid post-

workout recovery.

Image credits: Teapigs;

Matcha

Matcha, a finely ground powder made from green tea

leaves that has been used for centuries in traditional

Japanese tea ceremonies, appears to be growing in

popularity. It reportedly offers a natural energy and

metabolism boost, as well as improved mental alertness

and focus. British tea brand Teapigs launched a range of

matcha products in the U.K. last year, including

powdered green tea and a trio of green tea drinks made

of spring water, juice and matcha. Teapigs is set to

launch matcha products in the U.S. later this year.

Image credit: Cheerios

Growing interest in natural products, coupled with a fascination with

our past, is driving a desire to rediscover once-forgotten ingredients.

Teff, cultivated in Ethiopia and Eritrea for more than three millennia, has

also been touted as the next superfood thanks to its high protein, fiber

and calcium content.

Major brands are starting to incorporate ancient grains into their

products. In January, Cheerios debuted a version of its breakfast cereal

called Cheerios + Ancient Grains, which included small amounts of

quinoa, Kamut wheat and spelt.

Brands can also build out the ritualistic component of their food

products. Matcha, for instance, is famous for the ritual of whisking the

ingredients together to create a foamy green beverage.

Opportunity Areas

Things To Watch

Nuts Are the New DairyWith more people going dairy-free, nuts are becoming an increasingly attractive alternative to cow’s milk. Almond milk sales in the U.S., for instance, reached nearly $738 million in July 2014, a 46% increase from the previous year, according to Nielsen. The beverage has now replaced soy as America’s favorite plant-based milk. At Expo, ZaZa showcased a line of rich cheesecake desserts made from ingredients like cashews, almonds, coconut oil and dates. Treeline Cheese demoed spreadable cashew-based cheeses.

Image credits: Treeline Cheese; ZaZa

Things To Watch

Water 3.0Coconut water radically changed the beverage market when it went mainstream several years ago. Now, a new crop of beverages is redefining water again. Maple water has already been hailed as the next big thing, but there were even more options at Expo West. A few standouts included Blossom Water, which blends natural fruit and flower extracts; Caliwater, a blend of water with prickly pear cactus extract and juice; alcohol-free Hopwater, made from fermented hops, water and cane sugar; and even Arty artichoke water.

Image credits: Arty; Blossom Water; Caliwater

Things To Watch

Algae EverywhereInterest in algae is surging thanks to mounting mainstream evidence of its health properties and antioxidant content. Spirulina and chlorella, two kinds of edible algae, were popular ingredients. Carmit Candy offered chocolate coins infused with algae, while Japanese brand Sun Chlorella showcased chlorella tablets and granules, which are said to deliver 22 vitamins and minerals, as well as vegan-friendly vitamin B12.

Image credits: Carmit; Sun Chlorella

Things To Watch

Guys’ Grooming Grows UpThe market for men’s grooming products is booming, as more men become comfortable with what was once considered a feminine activity. Men’s grooming products are one of the beauty industry’s most rapidly growing segments, with global sales rising by an average of 6% a year since 2006, per Euromonitor International. The company forecasts that in the U.S. alone, men’s grooming sales will reach $6.5 billion in 2018. With demand for men’s grooming products growing, the number of natural options is also expanding. Przman showcased a line of all-natural products, free of parabens, GMOs, artificial fragrances and colors. Thrive demonstrated a line of natural grooming products made in sustainable partnership with farmers in Costa Rica.

Image credits: Przman; Thrive

Things To Watch

About MBGenhance Enhance is MindBodyGreen’s in-house consulting practice that helps brands understand and

respond to rapidly changing attitudes toward health, happiness and well-being. With our

community of more than 2,500 influencers and a readership of more than 15 million

worldwide, we are uniquely attuned to shifts in culture and consumer mindset. We pull out the

signals from the noise, and translate this into intelligence and insights that can be harnessed to

drive business gain.

About MindBodyGreen MindBodyGreen is the world’s leading destination for Millennials who want to discover and

share content about health, happiness and well- being. With our community of 15 million

monthly unique readers, we are at the forefront of a fundamental shift in the way people lead

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Macro Trends from Expo West (April 2015)

Health & Medicine

Transcript of Macro Trends from Expo West (April 2015)