What’s your function?

Have you had pH balanced water recently? Or added a teaspoon of collagen to your coffee? Maybe enjoyed a beverage with probiotics like kombucha? While not everyone has jumped on this trend, the functional food market is growing rapidly, with revenue projected to reach over 440 billion dollars by 20221.

Referring to food and drinks that serve a greater health benefit, functional products are making their way to a broader range of formats. Brands look to sync added value with convenience and impact to win consumers over, as many of these products aim to be part of a daily routine.

WHY IT’S HAPPENING

The growing awareness of the direct links between diet and type 2 diabetes, coronary heart disease and cancer are clear drivers of the growing interest in functional foods. With the increasing presence of lifestyle diets that align with the same qualities, the focus on consumers’ health and well-being is creating a demand for food that does more than just satisfy hunger—essentially, consumers want more bang for their calorie.

Functional beverages were the first in this arena, from sports and energy drinks to a wide range of probiotic mixes. In fact, as many as 24% of juice and juice drink products now feature a functional claim1.

This has paved the way for functional ingredients that show up in a variety of formats to take center stage at shows like Expo West and retailers like Whole Foods. Primal Kitchen is a brand that offers a wide range of products that are Paleo, Primal, Keto-friendly, Whole-30 approved and “uncompromisingly delicious and nutrient dense”. They feature a wide range of formats of collagen—with benefit claims for bone health, joints, and skin.

WHAT WE THINK

Consumers are looking for ways to “strive” rather than “survive”—and while it might be difficult to anticipate which functional products stick, the mindset will continue to grow.

We understand that consumers are becoming savvier and that some of these products have much stronger benefit claims than others. It is likely that many of the products we see today may be short-lived as consumers decipher which have the greatest impact (and which fit within their lifestyle). But the mindset is indicative of where the food industry is heading. Value matters.

WHAT’S NEXT

Functional food and beverages are making a more direct and intentional connection between what consumers put in their body and the benefits they expect when it comes to their health and well-being. As studies begin to shed light on the mind-body connection, the proliferation of functional foods will gain momentum. While the range of available products broadens, consumers are going to have to decipher what to prioritize—if they don’t reach decision fatigue first.

Brands are going to be faced with the challenge of making their functional products easy to understand—with real, reliable links to health benefits. Perhaps the biggest battle they will face is breaking through the benefit clutter.

Just some Thought for Food™

[1] “U.S. Functional Foods Market – Statistics & Facts.” The Statistics Portal. https://www.statista.com/topics/1321/functional-foods-market/

Big Game. Bigger Opportunity.

This Sunday, as we watch the country descend on our snowy metropolis for Super Bowl LII, nearly 50 million Americans are expected to partake in a sacred tradition: purchasing takeout/delivery fare.

1.35 billion chicken wings will be spiced, sauced and devoured1. Domino’s and Pizza Hut will bake off 33 million slices of pizza2. And party guests will shell out $58 million on grocery deli sandwiches and another $10 million on grocery deli dips to go along with their potato chips3.

Why settle for a snack stadium when you can build your own Viking-inspired snack ship?

Why settle for a snack stadium when you can build your own Viking-inspired snack ship with this video-tutorial, courtesy of  Minneapolis/St. Paul Magazine.

But with Sunday’s big event comes an often-missed marketing opportunity: takeout/delivery packaging.

WHY IT’S HAPPENING

The consumer demand for more delivery and takeout options is a fairly recent phenomenon, with Uber Eats making its first delivery in 2014. Unfortunately, the packaging world has found itself scrambling to develop travel-friendly containers that not only maintain temperature, but also control humidity.

David Chang, world-famous chef of Momofuku and founder of Ando–a delivery-only restaurant in New York City–spent two years trying to solve this mystery and redefine restaurant delivery. He developed a travel-friendly menu and experimented with different packaging methods for improved transport. Yet Chang and his team consistently struggled to ensure hot, fresh food arrived to its customers. Industry analysts believe it was a contributing factor in Chang’s decision to let Uber Eats acquire Ando last month.

Because the functionality of takeout and delivery packaging has yet to be solved, marketing and branding opportunities have largely taken a back seat.

WHAT WE THINK

As packaging becomes more important in the food delivery/takeout space, it’s likely consumers will pay closer attention to its features and benefits as well.

Just as packaging innovations are made to improve food quality and portability, branding and storytelling opportunities must also be addressed. While consumers largely overlook the containers, boxes and bags today, companies will begin to differentiate their brand with packaging through functionality, storytelling and play. 

WHAT’S NEXT

Here are three examples of how we see companies utilizing delivery/takeout packaging with customers in the near future:

Functionality

Responsive packaging systems react with stimuli in the food or environment to enable real-time food quality and food safety. While this coffee lid turns red to alert a consumer that their beverage is too hot to drink, this concept could be used for quality assurance purposes. Packaging could use the color-changing technology to indicate whether food is still hot and fresh upon delivery.

Responsive packaging systems react to stimuli in the food or environment to enable real-time food quality and food safety.

Storytelling

Innovative companies will reimagine boxes and carrying containers as a canvas for branded storytelling. A 2017 campaign for Pizza Hut Malaysia by Ogilvy Malaysia demonstrates the power of narratives on the pizza box itself to showcase popular reasons why customers order a pizza for delivery. In this case, the all-too-familiar dinner fail.

A 2017 campaign for Pizza Hut Malaysia by Ogilvy Malaysia highlights storytelling on the pizza box.

Interactivity & Play

Other brands will use packaging as a way to interact and engage with customers. In celebration of the McFlurry’s 22nd Birthday, McDonald’s Canada collaborated with the University of Waterloo to create a limited-edition drink-tray boombox that works with any standard smartphone. In addition to being portable, the tray-based sound system is 100% recyclable.

McDonald's Canada collaborated with the University of Waterloo to create a limited-edition drink tray boombox that worked with customers' smartphones.

Just some Thought for Food

1 “Wing-Onomics.” National Chicken Council. 29 January 2018.
2 “The Staggering Amounts of Food Eaten on Super Bowl Sunday.” ABC News Online. 2 February 2017.
3 “From Live TV to the Grocery Aisles, Americans are Prepping for Super Bowl 51.” The Nielsen Company. 30 January 2017.

Don’t Just Cook. Cook Different.

In his September 2017 Harvard Business Review article, author Eddie Yoon grabbed the food industry’s attention with the headline “The Grocery Industry Confronts a New Problem: Only 10% of Americans Love Cooking.” In the opening paragraph, he asserts:

“Although many people don’t realize it yet, grocery shopping and cooking are in a long-term decline. They are shifting from a mass category, based on a daily activity to a niche activity, that a few people do only some of the time.”

Yoon contends there are three categories of consumers when it comes to cooking based on his research:

Consumer cooking attitudes

In an already challenging environment for grocery retailers and CPG companies, this new research felt like another kick in the gut.

Good thing Yoon got it (mostly) wrong.

WHY IT’S HAPPENING

In many ways, scratch cooking has transitioned from necessity to luxury. With competing demands for time and resources, a seemingly endless host of options–takeout, delivery, meal kits and retail prepared foods–allow consumers to forgo cooking on a regular basis.

But all this evidence ignores a key consumer need: the emotional connection we have when preparing and sharing a meal with loved ones. Consumer insights firm Iconoculture asserts that cooking hits on key consumer values important to all generations–particularly millennials: creativity, sharing, discovery and tradition.

What we’re seeing is not a dramatic decline in the desire to cook; but rather, the misalignment in the value of cooking versus the act of cooking.

WHAT WE THINK

As food and beverage manufacturers, we must embrace and celebrate how modern consumers really cook.

Apple was successful in revolutionizing the mobile tech world because they focused first on the customer’s need to communicate better, not the phone itself. What Yoon’s research illuminates is a truly unique business opportunity for food manufacturers and retailers–if we’re willing to think differently.  We should focus on the basic human desire to prepare and share a meal, letting go of rigid definitions of what cooking is and isn’t. Retail products, prepared foods, meal kits and foodservice aren’t competing channels; but rather, cooking tools that can be wielded in any combination to help modern consumers put a meal on the table.

WHAT’S NEXT

Traditional cooking will never completely go away; there are celebrations and occasions where scratch-cooking is expected and sought after. But for the other 360 days of the year, we can help consumers leverage both retail and foodservice solutions to prepare an easy meal without sacrificing freshness, quality or that coveted emotional connection.

Encourage Fake-It-From-Scratch

Iconoculture’s recent consumer research shows that even the youngest consumers know cooking is an important life skill. Encourage customers with even basic kitchen abilities and limited time to be a fake-it-from-scratch cook. Demonstrate how one or two prepared items and a few simple ingredients can create a delicious weeknight meal, like this 10-Minute-Taco-Tuesday recipe:

Pork Tacos with Mango Salsa and Lime-Cilantro Crema

Promote Cooking-Less Celebrations

One of the key instances where consumers want to cook is when they’re entertaining family and friends. And sharing food with people we love is what it’s all about. But hosting a dinner party is a daunting task.  I’m a huge fan of Kitchn’s 5 Rules For Hosting a Crappy Dinner Party (And Seeing Your Friends More Often), especially Rule #2:

The 5 Rules of a Crappy Dinner Party:

Ready to plan your own? Here’s how to do it:

  • No housework is to be done prior to guest’s arrival
  • The menu must be simple and doesn’t involve a special grocery trip
  • You must wear whatever you happen to have on
  • No hostess gifts allowed
  • You must act like you’re surprised when your friends or family just happen to show up at your door (optional)

This is an ideal opportunity to demonstrate how to use foodservice–especially delivery–along with ingredients already in the kitchen to craft a crowd-pleasing menu. 

And rather than focusing on traditional gatherings like housewarming or birthday parties, brands should encourage consumers to celebrate unconventional milestones like adopting a pet, paying off student loans or seasoning a newly purchased grill.

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

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