All change ahead

At this time of the year market analyst Mintel looks ahead to see what’s in store for the food and drink industry. Here director David Jago looks into the global crystal ball

Believe it or not, those ingredient labels you are always trying to read may actually become easier to understand in 2008, according to research from Mintel's Global New Products Database (GNPD) which monitors worldwide product innovation in consumer packaged goods markets.

Mintel GNPD has also identified nine other innovative food and beverage trends, set to make it big in the New Year. These include experimenting with ancient grains, lapping up good old-fashioned tap water instead of bottled and even viewing salt in a more positive light.

Bottled water has been one of the fastest growing drinks sectors ever, with sales in the UK for example now worth five times what they were just 10 years ago. But this could all be set to change. Just recently, in the US and Europe, some restaurants have stopped serving plain bottled water. Instead they are serving a more retro drink – tap water.

Mintel predicts that 2008 will be the beginning of a significant backlash against plain bottled water, as consumers become more aware of the environmental impact of bottling and shipping water from remote locations to their local supermarket. We are likely to see companies launching more functional waters, such as those with added vitamins and calcium, while consumers will go back to the tap if all they want to do is quench their thirst.

Continuing on the environmental drive, we can expect to see major changes in the way manufacturers talk about their food miles and carbon footprints. One of the major barriers here has always been that consumers simply don't know how many miles are too many or what level of carbon footprint is an acceptable one. So for 2008, Mintel believes that manufacturers will discuss their company-wide environmental initiatives, instead of just focusing on the carbon footprint of a particular product. As a result, environmental claims will appear on company websites rather than on the products themselves.

Currently, fairtrade products are more established in Europe than in other parts of the world, but this is set to change. In 2008, we will see rising numbers of fairtrade and fairtrade-certified products appearing in the US, Latin America and Asia. While there will be more imports – for example European brands sold in those regions – and we also expect to see more activity from local companies.

Next year Mintel predicts that certain ancient grains, such as amaranth, quinoa, teff, millet and kamut, will move from niche markets to the mainstream, appearing in products from leading manufacturers.

Companies will focus on the whole grain nature of these grains and also on the fact that many are gluten free. Expect to see more everyday products appearing with these new yet old grains.

From one ancient product to another – salt. Today, products with too much salt often get a bad rap. But on a more positive note, companies may follow Campbell Soup's lead and reformulate some of their products with sea salt rather than mineral salt. In addition "place" salts, for example Hawaiian red clay salt and flavoured salts, will continue to appear more often on supermarket shelves.

Junk is described by consumer activist groups as any additives, preservatives, colours, flavours or otherwise unknown ingredients listed on food labels. While the food industry clearly understands why these ingredients are in our food, consumers do not. Increasingly, and especially in Europe, consumers are demanding that these ingredients be removed from food, particularly those products targeting children. Watch for some companies to expand their 'junk free' labelling, while others find ways to explain the importance of these misunderstood ingredients.

Closely aligned with 'junk free' foods, clean labels are those that contain ingredients easily understood by consumers. Usually, they are ingredients that mirror what we may have in our kitchen cupboard. While for some products this may be difficult to achieve, in 2008 Mintel suggests that we will see more products with ingredient labels that read like a home recipe rather than a chemists' shopping list.

Taking this trend one step further, next year will see companies providing consumers with more information than ever before.

Manufacturers will increase transparency about where ingredients come from, how they are manufactured and how they are packaged. This ties in with the trend towards more local sourcing of ingredients and a greater interest in a product's origin.

We are still a long way from being able to scan an individual's DNA to determine the correct diet and exercise regime for maximum health and well-being. But in the meantime, we do see the beginnings of companies trying to figure out ways to customise products as much as possible.

Products that are designed to be consumed all at once, like a daily shot, and that deliver a very specific, single benefit will become increasingly popular.  For example, a little bottle of drink that controls blood sugar levels for 24 hours.

In a world where you no longer just eat, you have to have a culinary experience, and in place of a gift, you often receive an experience day, we have seen a shift towards experiential shopping. In 2008, traditional supermarkets will expand the number and types of experiences they offer in store. We will see more in-store dining, warmer lighting and familiar display fixtures. We also expect more built-in sampling stations to keep consumers stimulated, interested and, most importantly, in the store longer.

This article originally appeared in the Food Development Association's fd magazine

For more information on the FDA, go to www.fooddev.co.uk/homepage.asp

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