Start-Ups: Getting Local

With an $18 billion shift since 2011 from big food companies to small food entrepreneurs in the food and beverage industry, consumers continue to put their money where their mouth is when it comes to diversifying the products in their shopping cart and in their home.[1] Minneapolis – home to us and many of our clients – has a rich history in the food industry. That makes our backyard a hot spot for emerging trends, continued innovation, new brands, and an ecosystem that continues gaining strength.

WHY IT’S HAPPENING

Minnesota is home to 74,500 farms and the food and beverage industry employs more than 49,000 people, while contributing $4.9 billion to the state’s economy each year. We have more than 700 food companies, and many of them are Fortune 500 companies supported with incredible talent and experience.[2]

Grow North is “a central hub for resources, a mobilizing connector and ecosystem navigator” and an example of a ground-up network that has been established to drive intentional connection between entrepreneurs and organizations, in an effort to support growth in our food and beverage community. Just around the corner, the first ever Food Ag Ideas Week will take place in St. Paul and Minneapolis, a week-long platform centered around topics like sustainable agriculture, food innovation and tech, and food and society.

Minnesota isn’t the first to bring together a broad industry representation to discuss progressive topics in this space. Other innovative food hubs – Colorado, Austin, and more – also see the importance of coming together (big and small, across the industry) as a reflection of the greater social and economic role that food and beverage play in the community.

WHAT WE THINK

It’s energizing and more important than ever to keep our finger on the pulse in our local community. There is so much happening in our own backyard that it can be challenging to determine what events and activities to prioritize. So our team has committed to spending more time out in the community where the action is happening, with both big and small companies. What we’ve found so far is that there is no shortage of passion on all fronts and a united desire to support success.

WHAT’S NEXT

If the trend continues, there will be more fragmentation and even bigger demand, creating a structure that leverages knowledge-sharing and drives innovation among food and agricultural leaders. Tactically, what’s next for us is to head out to some of the many upcoming roundtables, panels and discussions.

We hope to see you at FAI! There are still spots available: Register Here

 

[1] “Millenials are driving an $18 billion food revolution.” Marinova, Polina. Fortune. October 2015.
[2] “Food & Beverage Products Made in Minnesota.” Boehm, Jessica Walker. Livability. October 2016.

Personalized Nutrition

A rapidly growing trend, personalized nutrition – unique nutrition plans for an individual – is projected to grow $17 billion over the next 4 years.[1] This is the staggering prediction shared at Datassential’s recent Foodscape event, and it drove much of the content that was shared with the 400+ attendees in Chicago. Hyper-personalization is seen as the next evolution in healthy eating and it has the potential to impact the industry from every angle.

WHY IT’S HAPPENING

Customization is ingrained and expected on many fronts – today’s consumers are used to having products tailored to their needs and desires. Consider fashion, with companies like Stitch Fix providing personal styling and wardrobe items delivered directly to your door. Or grocery, with Amazon Prime reminding you which items are likely on your list based on prior orders. Or even any of the apps that serve us personalized content every day– Spotify, Netflix, Bitmoji, YouTube and more. It’s no longer “creepy” that brands know us so well. On the contrary, it’s expected. And it’s frustrating when they get it wrong.

WHAT WE THINK

It’s no surprise that this trend is making its way to food and beverage. Beyond the obvious extensions like fast casual restaurants that serve customized frozen yogurt / burrito / personal pizza / coffee / salad / you name it, consumers are constantly hunting better choices for their individual life experience. At the same time, over the past year we have seen the growing influence that Gen Z has on all food trends – their spend and influence is growing and, as we explored earlier this year, has the most substantial impact on “what’s next”.

Taking the cross section of “customization” and “Gen Z” a step further, 60% of younger consumers are beginning to use tech for food-related personal purposes. Think fitness trackers, recipe apps, food diaries and more. While the jump might seem steep, early studies show that progressive eaters indicate their interest in personalized apps and recipes. And this is where things start to get really interesting.[2]

As consumers integrate inputs from all parts of their life to provide a full view of wellness, personalized nutrition that incorporates basic biometrics, physical activity, known health issues/tendencies and more will inevitably influence the way people shop at retail and while dining out. What that looks like will evolve over time – but it’s certainly on the horizon.

WHAT’S NEXT

Food plans tailored to an individual’s unique “data” already exist. But only a small portion of the population is engaged with nutrition at that level. We’ll need to keep an eye on how more information shapes consumers’ decision-making criteria – and what role “taste” has in the process.

 

[1] “Personalized Nutrition and Food.” Datassential. Datassential: Food with a Story. Foodscape 2. September 2018.
[2] “52 Things We Learned & Experienced at Foodscape 2.” Datassential. Datassential: Issue 57. September 2018.

Questions, comments or want to learn more? Let's connect! weshouldtalk@jtmega.com

Want to receive more Thought For Food Insights?
Subscribe Now »

Recent Posts

Start-Ups: Getting Local
Start-Ups: Getting Local

With an $18 billion shift since 2011 from big food companies to small food entrepreneurs in the food and beverage industry, consumers continue to put their money where their mouth is when it comes to diversifying the products in their shopping cart and in their home.[1] Minneapolis – home to us and many of our […]

Read More »

Tailor-made nutrition is a perfect fit.
Personalized Nutrition

A rapidly growing trend, personalized nutrition – unique nutrition plans for an individual – is projected to grow $17 billion over the next 4 years.[1] This is the staggering prediction shared at Datassential’s recent Foodscape event, and it drove much of the content that was shared with the 400+ attendees in Chicago. Hyper-personalization is seen […]

Read More »