The events of the past two years changed many aspects of consumers’ lives, including what, where and how they eat—all of which impacted sweets and snacks.

An important aspect of consumers' lives is managing one’s health. The good news is the pandemic sharpened consumers’ focus on their health, and their confidence in managing it well. In November 2021, more than half of consumers reported they felt more in control of their health—up from 45% in November 2020, according to Mintel research on health management trends. Also of note, fewer consumers reported feeling “less in control of their health” in 2021 than the year before.

With this increased focus on health and wellness, one may think sales of snacks and sweets were down during the pandemic, but actually the opposite is true. According to Mintel Market Size, estimates of 2021 U.S. sales in the snacks and sweets categories were up 6% from 2019, and up 1% from 2020. This data includes chocolate confectionery, snack bars, snack food, and sugar and gum confectionery. Of those four groups, chocolate confectionery showed the greatest increase in sales, while snack bars declined. Mintel forecasts continued steady increases in sales in each of these four areas of sweets and snacks in the next five years.

Two factors appear to be driving sales and new product introductions: the sometimes-competing trends of health and indulgence. Indulgence in these products is assumed—consumers enjoy the experience of a unique chocolate bar or classic fried salty snack. But increasingly, these two attributes are converging, yielding unique new product development.

A look at the new product introduction numbers provides insight into what is happening in the market. During the last two years, new product introductions of sweets and snacks in the U.S. have seen declines, according to Mintel Global New Products Database (GNPD). Total new product introductions in these categories were down 26% in 2021, compared to 2019. The reasons for the decline are many. They include supply chain issues (including a focus on stabilizing supply of top sellers and core products), reduced consumer need for sharing and giving and fewer in-person gatherings. Among those types of products that showed the greatest declines during the pandemic were chewing gum (less need for it if a person is home all the time), popcorn (people were popping their own), snack/cereal/energy bars (no need to take food on the go as much) and seasonal chocolate (fewer holiday parties). But a number of categories showed increases including nuts and snack mixes (with their healthy halo attributes), classic potato and corn-based snacks (choosing the comfort of what one has always eaten), and hot snacks (because many people were home most of the time).

Product claims that work

Digging deeper into the Mintel GNPD data, a fascinating pattern emerges. Many of the product claims that showed increases in 2019 and 2020 in the U.S. were ones aligned with wellness or natural attributes. Two significant claims stand out as showing increases in introductions and in offering potential growth for the future: plant based and no added sugar. While these two claims are relatively small, appearing on about 4% of product introductions in these categories, they both have shown significant increases in new product introductions during the pandemic. We expect both claims to continue to increase, across product categories, in the next few years.

To continue reading this article in its entirety, check out the “Sweets & snacks: Formulating for the mindful consumer” digital magazine.

Lynn Dornblaser brings more than 30 years of product trend knowledge to her work at Mintel, which she joined in 1998. She applies her unique perspective on the market and new product development to tailored client research and extensive public speaking. Previously, Dornblaser covered new product trends at several trade magazine publishing companies, as editor and editorial director of publication New Product News. She has been quoted by major U.S. news organizations, including The Wall Street Journal, USA Today, The New York Times and CNN.  She can usually be found in the aisles of a supermarket somewhere in the world.

Chapman replaces outgoing CEO and Executive Director Laura Batcha who late last year announced her decision to leave the association. Batcha joined the staff of OTA in 2008 and has served as CEO and executive director for nine years.

“I couldn’t imagine a better, more experienced person for this role than Tom,” Batcha said. “Tom has been contributing to the advancement of the organic industry for nearly 20 years, and has led many different aspects of the work, which gives him a great sense of the entire organic tapestry. With Tom at the helm and working alongside our capable staff and dedicated members, OTA and organic will continue to thrive.”

Chapman has a long history of service to the organic industry including a five-year stint on the National Organic Standards Board (NOSB). He has helped to advance certification and compliance, successfully managed global supply chains and managed multi-million-dollar contracts. He has worked closely with diverse brands, growers and other organic stakeholders. He has significant experience building relationships from the ground up and nurturing public-private partnerships. Chapman is also a skilled policy setter with years of experience at both the state and national levels.

Most recently, Chapman served as senior director of supply chain at Kinder’s Sauce and Seasoning. Prior to that, he worked with OTA members Clif Bar and Quality Assurance International. He’s also served as a board member with OTA members Mercaris and California Certified Organic Farmers, as NOSB Chair from 2015-2020, and as a member of the California Organic Products Advisory Committee at the California Department of Agriculture from 2007-2016.

“I am honored to be joining the Organic Trade Association,” Chapman said. “More and more, Americans are looking for products that protect the environment, that make positive impacts on climate change and that enhance their communities – choosing organic achieves all that and more. I am thrilled to be leading an organization with such incredible staff who are ready to champion organic causes on behalf of our members.”

The findings of a new study suggest healthy lifestyle factors adopted by people who habitually drink moderate amounts of alcohol keep their hearts strong—not the alcohol itself (JAMA Netw Open. 2022;5[3]:e223849). These findings challenge past observational studies that repeatedly show a lower risk of cardiovascular disease (CVD) with light to moderate alcohol intake, compared with people who drink heavily or not at all.

The cohort study evaluated the effects of all levels of alcohol consumption on CVD risk in 371,463 individuals of European genetic ancestry. Specifically, researchers focused on the impact of alcohol consumption on hypertension, coronary artery disease, myocardial infarction, stroke, heart failure and atrial fibrillation. Variables such as blood pressure, low-density lipoprotein (LDL), high-density lipoprotein (HDL) and C-reactive protein level were also examined.

For the study, participants were grouped into one of five categories: abstainers (0 drinks/week), light (>0 to 8.4 drinks/week), moderate (>8.4 to 15.4 drinks/week), heavy (>15.4-24.5 drinks/week) and abusive (>24.5 drinks/week).

Researchers assessed the prevalence of CVDs within each drinking group and evaluated potential differences in lifestyle factors, including smoking frequency, body mass index (BMI), self-reported physical activity, cooked vegetable intake, red meat consumption and self-reported health by drinking category. After adjusting for the measured lifestyle factors, researchers re-estimated CVD hazards.

Researchers also studied human genetic data, tapping traditional mendelian randomization and nonlinear mendelian randomization to assess for potential causality and association.

Similar to findings of prior studies, researchers found lower risk of hypertension, coronary artery disease, myocardial infarction, stroke, heart failure and atrial fibrillation among light and moderate alcohol drinkers, with increased risk among people who abstain or drink heavily. However, individuals in the light and moderate consumption groups reported healthier lifestyle behaviors than abstainers, including lower rates of smoking, lower BMI, higher physical activity and higher vegetable intake.

When researchers adjusted for healthy lifestyle factors, cardioprotective associations with modest alcohol intake were null.

“For each condition, all amounts of alcohol consumption were associated with an increased risk of disease,” researchers wrote. “Furthermore, increased alcohol consumption was associated with increases in disease risk that were exponential and unequal in magnitude, even when comparing light and moderate levels of consumption (i.e., between one and two drinks per day).”

The study also showed substantial differences in heart health risk across levels of alcohol consumption, marking potentially important implications for public health recommendations. Current guidance from the 2020-2025 Dietary Guidelines for Americans advises limiting alcohol intake to two drinks a day for men and one drink a day for women.

“Specifically, our results suggest that consuming as many as seven drinks per week is associated with relatively modest increases in cardiovascular risk,” researchers wrote. “However, nonlinear modeling uncovered unequal increases in cardiovascular risk when progressing from 0 to 7 vs 7 to 14 drinks per week in both men and women. Although risk thresholds are inherently somewhat subjective, these findings again bring into question whether an average consumption of 2 drinks per day (14 drinks per week) should be designated a low-risk behavior.”

Rachel Adams joined Informa’s Health & Nutrition Network in 2013. Her career in the natural products industry started with a food and beverage focus before transitioning into her role as managing editor of Natural Products INSIDER, where she covered the dietary supplement industry. Adams left Informa Markets in 2019.

The data released March 24 by PBFA, The Good Food Institute (GFI) and SPINS found despite turbulent economic conditions amplified by the pandemic, supply chain issues and inflation, plant-based food and beverage sales grew three times faster than total food retail sales, with most plant-based categories outpacing their conventional counterparts. Further, sales of plant-based food and beverages have increased 54% in the past three years.

“The sustained rise in the market share of plant-based foods is remarkable and makes it clear that this shift is here to stay,” said Julie Emmett, PBFA senior director of marketplace development. “More and more consumers are turning to plant-based options that align with their values and desire to have a positive impact on personal and planetary health.”

Plant-based milk growth continues to drive category

Plant-based milk sales grew 4% to $2.6 billion in 2021, while sales of animal-based milk sales declined 2%. According to the report, plant-based milk sales growth added $105 million to the market, while conventional milk sales declined $264 million. Plant-based milk now accounts for 16% of the milk category’s dollar sales and 20% of the category’s dollar growth in the past three years.

Over three years, plant-based milk sales increased 33%. In the Natural Enhanced Channel, plant-based milk represents 40% of all milk sold, up from 34% in 2018. Forty-two percent of households purchase plant-based milk, and 76% of plant-based milk buyers purchased it multiple times in 2021.

Almond milk remains the category leader and accounts for 59% of the total category. Oat milk is the second-largest segment, growing more than 44 times in the past three years, now making up 17% of category sales, up from only 0.5% in 2018. Plant-based milk now serves as the innovation leader in the milk category, supported by key advancements in ingredient diversification and product development to improve taste, functionality and nutrition.

Plant-based dairy poised for innovation

The success of plant-based milk has laid the groundwork for major increases in sales of other plant-based dairy products, which reached $2.1 billion in total sales in 2021. Categories like ready-to-drink (RTD) beverages, and plant-based creamers—which now has a 9% share of all creamers sold— experienced rapid growth.

Across the store, plant-based dairy sales are growing faster than those of many conventional animal products. In 2021, plant-based yogurt sales grew 9%, three times the rate of conventional yogurt; plant-based cheese sales grew 7%, while conventional cheese sales declined 2%; and plant-based ice cream and frozen desserts grew 31% over the past two years to reach $458 million. In the Natural Enhanced Channel, dollar share of plant-based creamers grew to 33% of all creamers sold, while plant-based yogurt grew to a 21% share of all yogurts.

Plant-based meat laps a record year

Plant -based meat—the second-largest plant-based category—remained strong at $1.4 billion in 2021, with sales growing 74% in the past three years, outpacing conventional meat sales by almost three times.

In 2021, plant-based meat’s dollar share was 2.7% of retail packaged meat sales, or 1.4% of the total meat category. Each of these plant-based meat share numbers increased 19% over the last two years. What’s more, 19% of households purchased plant-based meat in 2021, up from 18% in 2020, with 64% of buyers purchasing plant-based meat more than once throughout the year.

Plant-based burgers continue to lead the plant-based meat category as the top-selling product type. The fastest-growing plant-based meat product types in 2021 were plant-based meatballs, chicken nuggets, tenders and cutlets, and deli slices. Plant-based chicken was a growth leader in 2021 as more products that match the taste, texture and appearance of animal-based chicken hit retail shelves. There remains a significant ongoing opportunity in plant-based seafood, which grew 14% to $14 million, but accounts for just 1% of the plant-based meat market, compared to conventional seafood composing a fifth of total meat and seafood sales.

Sales of conventional meat increased three times faster than unit sales, indicating the growth in that category is driven by price increases as supply chain disruptions continue. IRI's inflation index shows conventional retail meat prices were 13% higher in March 2022 than in March 2021.

Plant-based eggs continue rapid growth

The plant-based egg category also grew rapidly in 2021 with a 42% increase in sales. In the past three years, plant-based egg sales have grown more than 1,000%. And with conventional egg sales declining by 4% in 2021, plant-based eggs have grown to earn a nearly 0.6% share of the total egg market, compared to a 0.05% share three years ago.

Plant-based consumers wield purchasing power

According to the data, 62% of U.S. households are now buying plant-based products, up from 61% in 2020. Increased repeat rates in plant-based foods across numerous record-breaking years illustrate strong consumer commitment and interest—the percentage of consumers purchasing multiple times within the plant-based category grew from 78% in 2020 to 79% in 2021.

Millennials and Gen Z, which compose 47% of the population and will continue to grow in their spending power, have particularly high demand for plant-based foods. These generations are also increasing their ecommerce spending the most—and ecommerce sales of total plant-based foods grew 47% in the last year to $351 million, up from $240 million in 2020. Consumers, particularly Millennials and Gen Z, are motivated by an interest in foods that are better for their health and deliver on positive environmental impact and social responsibility.

Ukraine and Russia are large producers of agricultural commodities, including wheat, drawing concerns that disruptions to harvesting and other activities caused by Russia’s invasion of Ukraine could adversely impact prices of commodities and the world’s supply of food.

White House Press Secretary Jen Psaki was asked this month by a reporter about disruptions to wheat supplies from Russia and Ukraine, and the potential danger of a breakdown in food supplies to large parts of the world, including Africa.

In a March 16 briefing, Psaki said the Biden administration is “very closely” monitoring the situation and is concerned regarding “how the wheat supply could impact … less the United States and more other parts of the world.”

Ukraine, however, could affect the U.S. since it is a large producer of fertilizer, she said, adding the U.S. Department of Agriculture is taking steps to address the issue.

Ukraine and Russia are some of the largest exporters of certain agricultural commodities, including wheat, maize, grapeseed, sunflower seeds and sunflower oil, the Food and Agricultural Organization (FAO) of the United Nations said. Russia also is the world’s leading exporter of nitrogen fertilizers, second-leading supplier of potassium fertilizers and third-largest exporter of phosphorous fertilizers, according to FAO.

“Ukraine, known globally for its wheat production, for being a ‘bread basket’ for the world, obviously is very much hindered in its ability to do that during this harvest season given the fact that you have Russian tanks rolling across Ukrainian fields and you have Ukrainian farmers who have taken up arms to defend their country,” a senior Biden administration official said in a March 24 press call.

The official said the U.S. would provide more than $11 billion over the next five years to tackle food security threats and malnutrition across the world, including in countries susceptible to increases in food and fertilizer prices.

FAO has raised questions about whether Ukraine will be in a position to harvest existing crops or plant new ones.

“The conflict has led to port closures, the suspension of oilseed crushing operations and the introduction of export licensing restrictions and bans for some crops and food products,” FAO noted in a March 25 report, which assessed the war’s impact on food security in Ukraine.

Meanwhile, Ukranians face “severe shortages of food, water and energy supplies” as Russia continues to bomb and encircle cities, the report added.

As of March 23, more than 3.6 million people in Ukraine have fled across the borders to safety while millions of other Ukrainians have been internally displaced, according to FAO.

“The violence has escalated rapidly, and it remains extremely difficult to predict the evolution of the conflict and its effect on lives, livelihoods, food security and nutrition,” FAO stated in its report. “It is clear that the war has resulted in a massive, and deteriorating, food security challenge. It has already significantly disrupted livelihoods during the agricultural growing season, through physical access constraints and damage to homes, productive assets, agricultural land, roads and other civilian infrastructure.”

FAO cautioned economic sanctions imposed on Russia that adversely affect food exports could hurt farmers’ incomes and negatively impact their future planting decisions.

“Economic sanctions imposed on the Russian Federation could also disrupt its imports of agricultural inputs, notably pesticides and seeds, on which the country is highly dependent,” FAO stated in an executive summary of a March 25 update, which assessed the Ukrainian and Russian agricultural markets and risks associated with the present conflict. “This could result in less plantings, lower yields and lower qualities, exposing the Russian agricultural sector and global food supplies, at large, to non-negligible risks.”

The war in Ukraine and growing humanitarian crisis has led many U.S.-based companies—including fast food restaurants and CPG firms—to suspend their activities in Russia, but not everyone has pulled out. In a March 11 statement, Cargill said it would continue to operate its “essential food and feed facilities in Russia.”

“Food is a basic human right and should never be used as a weapon,” Cargill proclaimed. “This region plays a significant role in our global food system and is a critical source for key ingredients in basic staples like bread, infant formula and cereal.”

Asked on March 21 whether some companies such as ADM and Cargill should leave Russia, Psaki said the Biden administration has not specifically requested any company implement such measures.

“We have applauded those who have made that decision, and they are going to have to make decisions of their own regard,” she said in the press briefing.

 

Healthy men who consumed the equivalent of a 100-gram serving of cranberries daily as whole cranberry powder experienced improved vascular function, according to 2022 research shared in an advance article.

In the study, a double-blind, parallel-group, randomized controlled trial published in Food & Function, 45 healthy men consumed 9 g whole cranberry fruit powder (equivalent to 100 g fresh cranberries and 525 mg total polyphenols) or control daily for one month. Researchers assessed the acute (2 hours post-consumption on day one) and chronic (after one month of daily consumption) effects of cranberry consumption on flow-mediated dilation, pulse wave velocity, aortic augmentation index, blood pressure, heart rate, blood lipids and blood glucose, and analyzed polyphenol metabolites in plasma and urine before and after treatment.

Results showed a significant increase in flow-mediated dilation with both acute and chronic consumption, as well as significant increases in some plasma and urinary metabolites. Specifically, 13 plasma and 13 urinary metabolites increased 2 hours post-consumption on day one, while four plasma and 13 urinary metabolites increased after one month of cranberry consumption, compared to control.

“The most abundant compounds found in plasma after cranberry powder consumption included hippuric acids, benzoic acids and cinnamic acids derivatives,” researchers wrote. “Cranberry powder had a significant main effect on the changes (2 hour, 1 month or 1 month/2 hour values minus baseline) of 28 metabolites.”

Researchers pointed to specific metabolites as independent predictors of flow-mediated dilation effects at the acute and chronic level.

“To our knowledge, this is the first study to investigate improvements in vascular function after daily whole cranberry powder intake in healthy humans,” researchers wrote. “The association between specific metabolites and improvements in flow-mediated dilation may help to gain insight into potential mechanisms of action of cranberry (poly)phenols. While association is not causation, our data can form the basis of hypotheses to be tested in future studies.”

Cranberry consumption did not improve pulse wave velocity, aortic augmentation index, blood pressure, heart rate, blood lipids or glucose, study results showed.

Heart disease is the leading killer of men in the U.S., causing about 1 in 4 deaths, according to CDC. Incorporating research-backed, heart health-boosting ingredients like cranberries into foods and beverages can help consumers get the nutrition they need for a heart-healthy lifestyle.

 Rachel Adams joined Informa’s Health & Nutrition Network in 2013. Her career in the natural products industry started with a food and beverage focus before transitioning into her role as managing editor of Natural Products INSIDER, where she covered the dietary supplement industry. Adams left Informa Markets in 2019.

Ardent Mills opens $100 million flour mill

Ardent Mills opened its new state-of-the-art 150,000-square foot Port Redwing Mill in Gibsonton, Florida. The mill, capable of producing up to 1.75 million pounds of flour per day, delivers real-time near-infrared analysis, automation enhancements and bolstered food safety capabilities to further enhance efficiency and product consistency for customers.

Strategically located for rail, ocean and truck access, the facility’s 10 acres encompass a mill, grain storage elevator and cleaning house in addition to an office, and multiple packaging, warehouse and storage locations.

The Port Redwing facility produces all-purpose, whole-wheat, high-gluten, cake and bread flours. The site also features on-site storage capacity of up to 4.1 million bushels and issue management technology to assess and correct production line issues with minimal downtime.

Nestlé invests $675 million to build Arizona beverage factory

Nestlé USA is investing $675 million to build a new beverage facility in Glendale, Arizona. The factory, slated to open in 2024, will produce creamers including the Coffee mate, Coffee mate natural bliss and Starbucks brands, with the ability to expand to additional beverages in the future.

“Beverages play an increasingly important role in the lives of consumers, a trend that’s been accelerated by the pandemic and is expected to continue to grow,” said Daniel Jhung, president, Beverage, Nestlé USA. “This investment illustrates our continued commitment to leading and growing categories where we play, providing consumers with a variety of high-quality, innovative products to meet their needs.”

Over the past two years, Nestlé in the U.S. has invested nearly $3 billion to enhance its manufacturing footprint and in-house capabilities—from new factories and expansions to operational changes that help meet its sustainability targets. The facility will be designed with sustainability at the forefront including: a water recycling process to reduce water usage, zero waste to landfill and fully recyclable product packaging made from food-safe recycled plastic. In support of the company's ambition for zero environmental impact in its operations by 2030, the facility will strive for 100% renewable energy by 2025.

Roquette targets polyols market with $28 million investment

Roquette is investing approximately $28 million for for liquid and powder polyols between 2022 and 2024 at its site in Lestrem, France. The investment will establish a strong reliable supply in the long run and strengthen Roquette’s position as a leader in polyols.

Roquette’s site in Lestrem is the largest polyol plant in the world offering a wide variety of products. This investment will improve equipment efficiency and increase safety standards, and also help to standardize some industrial operations contributing to an overall production performance improvement. The investment will ensure a sustainable supply in the market and meet the customers’ increasing expectations for greater flexibility.

Polyols are produced from plant-based raw materials such as maize or wheat and are principally used as sugar alternatives in food products like sugar-reduced or sugar-free confectionery, chocolate, chewing gum, baked goods or snacks.

BENEO invests $8.5 million in new warehouse for improved efficiency

BENEO invested $8.5 million in its Offstein facility in Germany to improve its efficiency and strengthen the company’s business contingency resilience. The new high-bay warehouse, which opened in February, allows for increased storage of BENEO’s crystalline functional carbohydrates Isomalt, Palatinose and galenIQ and allows the ingredient producer to improve its supply chain robustness and reduce transport.

The new warehouse has a storage capacity of more than 8,500 Euro pallets and is located close to both the packaging and shipment operations at the production site in Offstein. Together with external warehouses worldwide, the addition of storage capacity in Offstein further supports BENEO’s multi-storage strategy for improved business contingency. Transport is also reduced as a larger proportion of functional carbohydrates is now stored on-site than in external warehouses.

In their crystalline form, BENEO’s functional carbohydrates store well in humidity and temperature monitored facilities, such as the new warehouse. The fully automated high-bay facility allows for a higher proportion of direct loading and is freeing up personnel from the storage and retrieval process to be used more efficiently in other onsite activities.

Cargill acquires 24.5% stake in aquaculture firm

Cargill has agreed to purchase 24.5% of the shares of Salmones Multiexport S.A. (Multi X), the subsidiary of Multiexport Foods S.A., a pioneer and leader of salmon farming in Chile.

“Adding Cargill as a new partner of Multi X will be a strategic and decisive step in the next stage of development of the company and its purpose to win over the world’s consumers with high-quality, value-added, sustainable products sold under our brands Multi X, Arka and Latitude 45,” said José Ramón Gutiérrez, Chairman of Multiexport Foods S.A.

Global consumption of salmon is expected to continue growing, driven by an increase in population and heightened consumer awareness of its health and sustainability benefits. Responsible aquaculture will play an important role in meeting that increasing demand for salmon while helping address the critical challenge of climate change.

“This partnership is an important next step in the development of our seafood strategy and will leverage our capabilities across the value chain, including consumer insights, culinary innovation, value-added processing know-how, risk management, and fish nutrition and health solutions,” said Tim Noonan, managing director for Cargill’s seafood business. “As a result, we hope to provide more customers and consumers with access to Multi X’s high-quality portfolio of private label and branded salmon products.”