From Our Print Edition

With retailers and manufacturers focusing so much of their energy on lowering prices, product innovation has fallen out of the headlines lately. However, a new report from Chicago-based SPINS on CPG disruption in 2024 highlights the importance of finding new ways to meet evolving consumer needs. Yes, inflation has everyone tightening their belts… today. But what about tomorrow?

BEYOND BETTER-FOR-YOU

Traditionally, says the report, disruption came from better-for-you brands. “But as better-for-you becomes the new normal, shoppers are trending toward new/enhanced product differentiation angles.” Among those with the most potential are sustainability and international flavors. As for the former, categories such as frozen desserts, soda, hot dogs and dinner sausage — even candy — have all welcomed better-for-you offerings recently, but few new entries are focused on sustainability, creating an opportunity for forward-thinking brands to fill that gap.

How might they do that? SPINS identifies four primary paths: mission-driven, certifications, ingredients and packaging. In the frozen department, for example, functional smoothie bowl-maker Pitaya Foods spearheaded organic certification of 800+ pitaya farms, creating over 170 new jobs for Nicaraguan single mothers, a compelling narrative that resonated with consumers and helped drive significant growth. But there are countless other ways to tap into the sustainability trend — from upcycled ingredients and regenerative agriculture to recycled and recyclable packaging. SPINS says manufacturers should pay special attention to kid-positioned products, citing Once Upon a Farm as an example of a supplier doing it right.

International flavors are also key to future category disruption. In fact, says SPINS, 82% of all food and beverage growth during the past 52 weeks was driven by globally positioned brands. Mexican and other Hispanic, Italian and Asian brands own the biggest shares of the ethnic food market, “but others are on the verge of breaking out.” Korean was by far the biggest gainer, followed by Irish, Greek, Indian and Hawaiian.

Brands that want to make inroads with flavor-adventurous Gen-Zers should absolutely jump on the global flavors trend. But ethnic alone isn’t enough to win them over. Premiumization (especially in frozen burritos and pockets and breakfast entrees), convenience cooking, sustainability and better-for-you attributes are all potential paths to success.

SPINS says that significant disruption has already occurred in the soda, energy drinks, protein chips and dairy (think added probiotics) categories. But it identified several other segments it believes are “ripe for disruption,” including functional juices, pickles and pantry staples (low carb, low sugar, etc.) But we see opportunity everywhere!

A CALL FOR NOMINATIONS

This September, Frozen & Refrigerated Buyer will once again recognize an elite group of young people already making a name for themselves in our industry. Our third annual Hotshots report will feature 20- and 30-somethings who are developing innovative new products, harnessing the power of technology for the greater good, working to improve sustainability and advocating for both themselves and those less fortunate. If you know an under-40-year-old who’s doing great things, drop me a line before Aug. 2 and let me know why they represent the future of frozen and refrigerated foods.