Clean label’s influence on the beverage and food industry grew, as evidenced by Mars accepting the trend early in the year. Health continues to be a factor in consumers’ choices. The announcement of a sugar tax that will be imposed on drinks across the UK has compelled the industry to review sweetening strategies. These trends will continue into 2017, and many innovations are the direct result of manufacturers, consumers, and suppliers of ingredients striving to keep up with the times.
Cocoa ingredients cross an unsustainable level in the US.
Cocoa ingredients faced adversity within the US between 2010 and 2015. As the year ended, cocoa consumption decreased by more than 55,000 tonnes. The most critical area of production of chocolate confectionery was responsible for 44% of all cocoa consumption in 2015. However, it is increasingly being replaced by substitutes, including dairy products or snacks like Kind and Cliff, in an effort by consumers for ways to reduce fat and sugar consumption. If there is a war over sugar, cocoa is a collateral injury.
Chocolate confectionery, and in turn, the situation of cocoa is different from it will improve anytime soon, with Euromonitor International’s food forecast model predicting an annual decline in volume CAGR of one percent between 2016 and 2021. The fear of the upcoming Trump Presidency has resulted in GDP per capita being revised downwards for 2017. The growth of chocolate confectionery is heavily affected by the growth of GDP per capita, a general adjustment downward in consumption volume is not surprising, and the increase in product cost could hinder growth. However, unlike other categories, chocolate confectionery is impacted by a pincer trend because these economic forces combine with the soft-driven consumer lifestyle changes and the growing use of substitutes. The reluctance of consumers to consume high-sugar products is expected to grow due to the FDA’s recent modification that requires US brands to list the added sugar content, which is likely to increase awareness of the problems that come with products that contain high sugar levels. The US is the largest consumer of cocoa ingredients worldwide, and 2017 is a critical year for companies that need to maximize their use in other applications to avoid being stuck in the anti-sugar crossfire.
US Chocolate Confectionery Growth Drivers, (2013). – 2021
A greater emphasis is placed on production and processing.
In 2016, PepsiCo’s Quaker Oats and General Mills’s Nature Valley products were the subject of lawsuits for using the term “100% natural”. The complaint was based on the use of trace quantities of glyphosate, a chemical resulting from pesticides that were applied to the oats before harvest. These incidents reflect that consumers are now considering the ingredients list they see on the packaging and are seeking more information about the entire process that culminates in the food they put before them. With the price of “all-natural” claims in drinks and food set to rise to US$42 million by 2017, there is likely to be more inspection of manufacturing processes, and if they are not in line with the standards consumers are seeking, the manufacturers may be faced with negative press that could make their products unsustainable.
Companies are aware of the importance of non-GM ingredients.
Manufacturers of goods, particularly in the US, are now looking to convince consumers of the importance of labeling with non-GM claims. Moreover, ingredient suppliers are also getting on board, and signs of this are beginning to appear in 2017. For instance, in the year that ended, Cargill announced the expansion of its Emulsifiers, which include lecithin from canola seeds. The equivalent of 133,521 tonnes was consumed globally in 2016, with the main ingredient coming from soybeans. Lecithin from soya beans is often derived from GM crops, and, therefore, the addition of canola could increase supply for those who would like to promote GM non-GMO credentials. However, they do not need to look for another source to be compliant. Ingredion announced in early 2017 that it would add nine more examples to its collection of non-GMO certified ingredients, bringing the total to 57 and following Cargill at the close of the year. Ingredients companies recognize the importance of supplying their customers with ingredients that allow for the product to make claims, and the number of ingredients that are certified can be anticipated to increase in 2017, which will allow the variety of products that claim as “all-natural” or “non-GM” to grow as well.