• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Nutraceuticals
    • Markets
    • Health
    • Jobs
    • Events
    • Buyers' Guide
    • Showcases
    • More
  • Magazine
  • News
  • Exclusives
  • Nutraceuticals
  • Markets
  • Health
  • Jobs
  • Events
  • Buyers' Guide
  • Showcases
  • Current & Past Issues
    Features
    Columns
    Editorials
    Digital Edition
    Subscribe Now
    Advertise Now
    eNewsletter
    Editorial Guidelines
    Top Features
    Nutraceuticals for Men: Muscle Health and Performance Nutrition

    Aging in Place: Healthy Lifestyles Supplement Science-Based Solutions

    Getting an Edge in Esports: Meeting the Health Needs of Competitive Gamers

    Beyond CBD: Cannabis Compounds Warrant Recognition and More Research

    Leveling Out the Energy Segment for Mainstream, and Rethinking Caffeine
    Breaking News
    Certifications, Approvals and Patents
    Exclusives
    Industry & Market News
    People
    Products
    Regulatory
    Research
    Supplier News
    Supplier Insights
    Live From Shows
    Top News
    Thorne Relaunches Gut Health Test with Microbiome Wipe

    Alkemist Labs Announces Alkemist Assured Seal and Next Generation Transparency Reports

    GC Rieber Foundations Expand Philanthropic Efforts

    Danone Celebrates 10th anniversary of Grant Program for Probiotics Research

    Stratum Nutrition’s Patent Portfolio Grows to Europe and Canada
    Exclusives
    Blogs & Guest Articles
    Health E-Insights
    Area Code 420
    eBook
    Antioxidants
    Dairy-Based Ingredients
    Enzymes
    Fatty Acids
    Fiber & Carbohydrates
    Green Foods
    Herbs & Botanicals
    Marine Nutraceuticals
    Minerals
    Omega 3s
    Probiotics & Prebiotics
    Proteins, Peptides, Amino Acids
    Sweeteners
    Vitamins

    GC Rieber Foundations Expand Philanthropic Efforts

    Danone Celebrates 10th anniversary of Grant Program for Probiotics Research

    Botanical Ingredient MorActive Evidenced to Relieve Back Discomfort

    Cargill’s Stevia Sustainability Program Benchmarked by FSA

    GOED Creates Infographic Highlighting Omega-3 Health Claims Approved in Europe
    Consumer Trends
    Contract Manufacturing
    Cosmeceuticals / Nutricosmetics
    Delivery & Dosage Technologies
    Dietary Supplements
    Flavors & Colors
    Functional Foods & Beverages
    Healthcare Trends
    Medical Nutrition
    Mergers & Acquisitions
    Natural/Organic
    Nutrition Bars
    Packaging
    Pet Nutraceuticals
    Quality & Safety
    Regulations
    Research
    Testing
    World Markets

    Thorne Relaunches Gut Health Test with Microbiome Wipe

    Alkemist Labs Announces Alkemist Assured Seal and Next Generation Transparency Reports

    GC Rieber Foundations Expand Philanthropic Efforts

    Danone Celebrates 10th anniversary of Grant Program for Probiotics Research

    Stratum Nutrition’s Patent Portfolio Grows to Europe and Canada
    Bone & Joint Health
    Cancer Risk
    Cardiovascular Health
    Cognitive Function
    Diabetes & Blood Sugar Management
    Digestive Health
    Energy
    Eye Health
    Healthy Aging
    Immune Function
    Infant & Children's Health
    Inflammation
    Men's Health
    Mood Health & Sleep
    Oral Health
    Sexual & Reproductive Health
    Skin Health
    Sports Nutrition
    Weight Management/Weight Loss
    Women's Health

    Thorne Relaunches Gut Health Test with Microbiome Wipe

    Danone Celebrates 10th anniversary of Grant Program for Probiotics Research

    Beyond Raw Launches Concept X Pre-Workout Line

    Botanical Ingredient MorActive Evidenced to Relieve Back Discomfort

    Kyowa Hakko Appoints Dr. Colin Hill to Immuse Scientific Advisory Board
    Industry Events
    Live From Show Events
    Webinars
    All Companies
    Categories
    Trade Associations
    Company Capabilities
    International Buyers Guide Companies
    PhytoGaia Inc

    Ecuadorian Rainforest

    Botanic Healthcare LLC

    Atlantia Clinical Trials

    Gencor
    Companies
    Product Releases
    News Releases
    Literature / Brochures
    White Papers
    Jobs
    VIdeos
    Services
    Add New Company
    International Buyers Guide Companies
    PhytoGaia Inc

    Ecuadorian Rainforest

    Botanic Healthcare LLC

    Atlantia Clinical Trials

    Gencor
    • Magazine
      • Current / Back Issue
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers' Guide
      • All Companies
      • Categories
      • Trade Associations
      • Company Capabilities
    • Nutraceuticals
      • Antioxidants
      • Dairy-Based Ingredients
      • Enzymes
      • Fatty Acids
      • Fiber & Carbohydrates
      • Green Foods
      • Herbs & Botanicals
      • Marine Nutraceuticals
      • Minerals
      • Omega 3s
      • Probiotics & Prebiotics
      • Proteins, Peptides, Amino Acids
      • Sweeteners
      • Vitamins
    • Markets
      • Consumer Trends
      • Contract Manufacturing
      • Cosmeceuticals / Nutricosmetics
      • Delivery & Dosage Technologies
      • Dietary Supplements
      • Flavors & Colors
      • Functional Foods & Beverages
      • Healthcare Trends
      • Medical Nutrition
      • Mergers & Acquisitions
      • Natural/Organic
      • Nutrition Bars
      • Packaging
      • Pet Nutraceuticals
      • Quality & Safety
      • Regulations
      • Research
      • Testing
      • World Markets
    • Health
      • Bone & Joint Health
      • Cancer Risk
      • Cardiovascular Health
      • Cognitive Function
      • Diabetes & Blood Sugar Management
      • Digestive Health
      • Energy
      • Eye Health
      • Healthy Aging
      • Immune Function
      • Infant & Children's Health
      • Inflammation
      • Men's Health
      • Mood Health & Sleep
      • Oral Health
      • Sexual & Reproductive Health
      • Skin Health
      • Sports Nutrition
      • Weight Management/Weight Loss
      • Women's Health
    • Online Exclusives
    • Webinars
    • Slideshows
    • Blogs & Guest Articles
    • Health E-Insights
    • Videos
    • Podcasts
    • Infographics
    • eBook
    • Whitepapers
    • Research
      • TrendSense
      • Monograph Center
      • White Papers
      • Research News
    • Jobs
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Supplier Showcases
      • Companies
      • Product Releases
      • News Releases
      • Literature / Brochures
      • White Papers
      • Jobs
      • VIdeos
      • Services
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    U.S. Consumers Demand Both Nutrition and Indulgence

    Functional beverages among the hottest CPG categories in 2016.

    U.S. Consumers Demand Both Nutrition and Indulgence
    Related CONTENT
    • Danone Celebrates 10th anniversary of Grant Program for Probiotics Research
    • Mintel Highlights New Product Trends and Consumer Research
    • Take Caution: Top Nutraceutical Trends to Reassess in 2022
    • Consumer Confidence Bounces Back: Pet Parents Increase Spending on Animals
    • Cybersecurity Risks Discussed at Roundtable on Remote Regulatory Assessments
    03.06.17
    In an otherwise lackluster year for U.S. sales of consumer packaged goods (CPG), many of the industry’s top performers in 2016 generated growth by satisfying two seemingly contradictory desires of American consumers—for convenient nutrition and for indulgences such as confections and alcohol. This was among the findings of research released by The Boston Consulting Group (BCG) and IRI.
     
    Companies such as Blue Diamond, BodyArmor, Califia Farms, Bragg, and The Wonderful Company, which market convenient foods and “functional” beverages that contain plant-based ingredients that promote nutrition or aim at boosting energy, were among the CPG growth leaders in 2016. Also among the industry’s best performers were companies that derive much of their sales from indulgences, such as Mars, Hershey's, PepsiCo, Hostess, and Constellation Brands. Sales of ice cream, spirits, wine, and salty snacks all grew by 4% to 5%—about three times faster than retail sales in the U.S. CPG industry overall.
     
    Other CPG industry best performers were large and midsize companies, such as Johnson & Johnson and Unilever, which acquired small makers of health-minded foods and beverages and even personal care products containing natural ingredients. Indeed, the research found that health and beauty aids that convey “wellness” were one of the strong CPG growth categories in 2016.
     
    "Our research shows that the growing popularity of convenient nutrition and wellness remains one of the most powerful trends in the U.S. consumer packaged goods industry," said Jim Brennan, a BCG partner and co-author of the study. "But this does not mean that American consumers' craving for indulgences has diminished." 
     
    "Sales growth in these product categories is projected to remain strong," said Krishnakumar (KK) Davey, president of IRI Strategic Analytics. “As long as the products are used for human consumption, we expect these bifurcated trends—demand for health and wellness products as well as for indulgence products—to continue, irrespective of whether they are bought in traditional stores or via an intelligent personal digital assistant like Alexa on Amazon.”
     
    The findings are based on the fifth annual analysis by BCG and IRI of the growth performance of more than 400 CPG companies with annual U.S. retail sales of more than $100 million in measured retail channels. The channels include grocery, drug, mass-merchandise, and convenience stores. The study includes both public and private CPG companies and focuses on what consumers actually bought in measured channels, as opposed to what factories shipped. Companies are ranked on a combination of three metrics: dollar sales growth, volume sales growth, and market share gains. The study also analyzes the trends driving performance in the sector.
     
    IRI and BCG generated three lists of growth leaders: small companies ($100 million to $1 billion in IRI-measured retail sales), midsize companies ($1 billion to $5.5 billion), and large companies (more than $5.5 billion).
     
    The research revealed that U.S. CPG retail sales in measured channels rose by only 1.4%, to $681 billion, compared with 3% in 2015. The sluggish sales growth was due primarily to price deflation—rather than lower unit sales. Price growth dropped to 0.8% overall in 2016, largely because of shifts in prices for commodities, such as milk and eggs, after rising to 2.3% on average in the previous four years. Rising online purchases also contributed to slower CPG sales growth in conventional retail stores.
     
    The growth leaders were able to boost their revenue with higher unit sales, as well as through pricing strategies and management of their product mix. In the rest of the CPG industry, by contrast, unit sales fell.
     
    Reynolds American, which recently acquired Lorillard, tops the CPG growth-leader list of large companies for the second year in a row, followed by Johnson & Johnson, Tyson Foods, Grupo Bimbo, and Mars. The leaders among midsize companies are Chobani, Hostess, Energizer Holdings, Constellation Brands, and Starbucks. Topping the growth-leader list of small companies are BodyArmor, Idahoan Foods, Bragg, Bai Brands, and Daisy. The research also found that companies with sales of less than $1 billion boosted their share of the U.S. CPG market from 25.0% in 2015 to 25.6% in 2016. Over the past five years, large companies have ceded over three percentage points in share—or around $20 billion in industry sales—to small ones.
     
    There was significant overlap between IRI/BCG growth leaders and CPG companies that are among the best performers in delivering total shareholder return (TSR), which measures the combination of the change in share price and dividend yield for a company’s stock. Of the top five U.S. CPG companies in BCG’s most recent Value Creators report, which ranks companies by TSR over a five-year period, four are also on the IRI/BCG growth-leader lists: Constellation Brands, Monster Energy, Reynolds American, and Tyson.
     
    “Functional beverages”—non-alcoholic drinks promoted as having a purpose, such as improving health, boosting energy, or managing weight—was one of the hottest categories of 2016. The best performer among small CPG companies, for example, was BodyArmor, a premium sports drink brand in which basketball legend Kobe Bryant is a major shareholder. Plant-based food and beverage brands also are well represented on the lists of growth leaders. Califia Farms, for example, markets beverages with ingredients such as almond and macadamia milk, ginger, turmeric, and Central American coffee sourced by direct trade.
     
    The research found that the desire for wellness was also a growing trend in personal care and household products in 2016. Aveeno Active Naturals skin and hair care products, for example, helped Johnson & Johnson become a growth leader in 2016. Huggies Nature Care diapers contributed to the strong performance of Kimberly-Clark. Personal care and household products with whole, natural ingredients are projected to continue growing at a compound annual rate of 7% to 9% through 2020—roughly double the expected growth rate for personal care products overall.
     
    One important trend in 2016 was that large and midsize companies acquired personal care and food and beverage brands with wellness themes. Unilever, for example, bought Seventh Generation, a brand of eco-friendly cleaning and personal care products. Johnson & Johnson bought OGX, whose line of personal care products includes ingredients such as coconut oil, bamboo fiber, and tsubaki blossom. Dr. Pepper Snapple Group recently completed the acquisition of Bai Brands, whose line includes enhanced water, carbonated flavored water, coconut water, and premium ready-to-drink teas. 
     
    “Even in a sluggish market, the CPG growth leaders show that opportunities abound for companies that understand evolving consumer preferences and build a strategy to capture the opportunities,” said Peri Edelstein, a BCG partner and a coauthor of the study. “The key to sustained success in this rapidly evolving market is to follow consumers around the clock and compete in the marketplace with the mentality of a startup.” 
    Related Searches
    • Natural
    • Teas
    • Drink
    • Beverage
    Related Knowledge Center
    • Consumer Trends
    • Natural/Organic
    • Functional Foods & Beverages
    Suggested For You
    Danone Celebrates 10th anniversary of Grant Program for Probiotics Research Danone Celebrates 10th anniversary of Grant Program for Probiotics Research
    Mintel Highlights New Product Trends and Consumer Research Mintel Highlights New Product Trends and Consumer Research
    Take Caution: Top Nutraceutical Trends to Reassess in 2022 Take Caution: Top Nutraceutical Trends to Reassess in 2022
    Consumer Confidence Bounces Back: Pet Parents Increase Spending on Animals Consumer Confidence Bounces Back: Pet Parents Increase Spending on Animals
    Cybersecurity Risks Discussed at Roundtable on Remote Regulatory Assessments Cybersecurity Risks Discussed at Roundtable on Remote Regulatory Assessments
    Deerland Probiotics & Enzymes Launches Website for Probiotic DE111 Deerland Probiotics & Enzymes Launches Website for Probiotic DE111
    Better Juice Raises $8 Million in Seed Round Investment Better Juice Raises $8 Million in Seed Round Investment
    An Interview with Erika Lepczyk, CEO & Co-Founder, Memore An Interview with Erika Lepczyk, CEO & Co-Founder, Memore
    Supporting CBD Science: The Path to Claims Supporting CBD Science: The Path to Claims
    ICYMI: What People Were Reading on NutraceuticalsWorld.com in February 2021 ICYMI: What People Were Reading on NutraceuticalsWorld.com in February 2021
    BioCell Collagen®: Leveraging Decades of R&D to Deliver Added Value to CPG Brands BioCell Collagen®: Leveraging Decades of R&D to Deliver Added Value to CPG Brands
    AIDP, Inc. Retains Debbie Wildrick to Lead their Beverage and Natural Food Expansion AIDP, Inc. Retains Debbie Wildrick to Lead their Beverage and Natural Food Expansion
    Global Overview of  Naturally Healthy Beverages Global Overview of Naturally Healthy Beverages
    Organic Sales Reach $47 Billion in U.S. Organic Sales Reach $47 Billion in U.S.
    Gottlieb Confirmed to Lead FDA Gottlieb Confirmed to Lead FDA

    Related Content

    • Digestive Health | Immune Function | Probiotics & Prebiotics | Research
      Danone Celebrates 10th anniversary of Grant Program for Probiotics Research

      Danone Celebrates 10th anniversary of Grant Program for Probiotics Research

      Two graduate students were awarded $50,000 in grants from the annual gut microbiome, yogurt, and probiotics-focused program.
      05.24.22

    • Breaking News | Consumer Trends | Flavors & Colors | Healthcare Trends | Industry & Market News
      Mintel Highlights New Product Trends and Consumer Research

      Mintel Highlights New Product Trends and Consumer Research

      Lynn Dornblaser discussed consumer need for control, experimentation, and climate complexity at a NYIFT meeting.
      By Mike Montemarano, Associate Editor 02.07.22

    • Consumer Trends | Dietary Supplements | Functional Foods & Beverages | Healthcare Trends | Herbs & Botanicals | Proteins, Peptides, Amino Acids | Sports Nutrition
      Take Caution: Top Nutraceutical Trends to Reassess in 2022

      Take Caution: Top Nutraceutical Trends to Reassess in 2022

      Misconceptions about the power of individual market segments, motivators, and influencers are putting companies on a precarious path in some cases.
      By Dr. A. Elizabeth Sloan & Dr. Catherine Adams Hutt, Sloan Trends, Inc. 12.03.21


    • Breaking News | Consumer Trends | Industry & Market News | Pet Nutraceuticals
      Consumer Confidence Bounces Back: Pet Parents Increase Spending on Animals

      Consumer Confidence Bounces Back: Pet Parents Increase Spending on Animals

      Pet product sales see highest growth since 2017, according to IRI data.
      08.03.21

    • Dietary Supplements | Functional Foods & Beverages | Quality & Safety | Regulations
      Cybersecurity Risks Discussed at Roundtable on Remote Regulatory Assessments

      Cybersecurity Risks Discussed at Roundtable on Remote Regulatory Assessments

      Information-sharing at voluntary, remote inspections can be valuable, but must guard against cyber threats.
      By Mike Montemarano, Associate Editor 07.14.21

      Trending
      • Leaven Essential To Launch Branded Botanical Extracts To Global Markets | Nutraceuticals World
      • Oregon Files Lawsuit Against GNC | Nutraceuticals World
      • Coca-Cola To Phase Out Honest Tea Brand By Year’s End, Citing Supply Chain Challenges | Nutraceuticals World
      Breaking News
      • Thorne Relaunches Gut Health Test with Microbiome Wipe
      • Alkemist Labs Announces Alkemist Assured Seal and Next Generation Transparency Reports
      • GC Rieber Foundations Expand Philanthropic Efforts
      • Danone Celebrates 10th anniversary of Grant Program for Probiotics Research
      • Stratum Nutrition’s Patent Portfolio Grows to Europe and Canada
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Aging in Place: Lifestyle Supplements Science-Based Solutions
      • Getting an Edge in Esports: Meeting Health & Nutrition Needs
      • Nutraceuticals for Men: Muscle Health and Performance Nutrition

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      Thorne Relaunches Gut Health Test with Microbiome Wipe
      Alkemist Labs Announces Alkemist Assured Seal and Next Generation Transparency Reports
      GC Rieber Foundations Expand Philanthropic Efforts
      Coatings World

      Latest Breaking News From Coatings World

      What are You Reading this Week?
      Nippon Paint Automotive Americas Appoints Robert Angart CEO and President
      Sustainability, Economy are Focus of BCF’s Annual Conference
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      MPO's Most-Read Stories This Week—May 28
      New Breast Implant Surgery Guidelines to Enhance Patient Safety
      Rhythm Management Group Debuts RhythmSynergy Tech Platform
      Contract Pharma

      Latest Breaking News From Contract Pharma

      iECURE Enters Agreement with Center for Breakthrough Medicines
      CPDC Enters Clinical Manufacturing Deal with CellBion
      Olon to Build New R&D Center in Italy
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      K-Beauty Brand Siita Shares Plastic Decomposition Technology with the Beauty Industry
      Shellworks Raises $6.2 Million in Seed Funding
      Ulta Beauty Reports Record First Quarter 2022 Results
      Happi

      Latest Breaking News From Happi

      Global Skincare Treatment Devices Market Expected to Grow at Over 11.5% CAGR Rate Through 2028
      Technology Cuts Plastic Decomposition from 500 Years to Three Months
      Honeywell Addresses Critical Issues Such as Sustainability, Workforce Training and Digitalization
      Ink World

      Latest Breaking News From Ink World

      Weekly Recap: Flint Group, New Inks from Siegwerk and Zeller+Gmelin Lead This Week’s News
      Orion to Finish Gas Black Expansion in Germany by Early 2023
      Richard Childress Racing Shows Off New Wraps for 2022 NASCAR Season
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      UPM Raflatac accelerates label growth with acquisition
      Labelexpo Asia 2022 postponed
      Teklynx software helps Top Clean Injection validate labels
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Rael Raises $35M in Series B Funding
      Schobertechnologies Offers Rotary Web-fed Converting Solutions
      Thorne Relaunches Gut Health Test with Microbiome Wipe
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      ODT's Most-Read Stories This Week—May 28
      Toetal Solutions Raises $1.02 Million in New Financing
      ManaMed's ManaSport Wearable Ultrasound Earns FDA Nod
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Weekly Recap: OPV’s Future, Graphene Flagship and Japan Display Top This Week’s Stories
      SEMI Foundation Receives $1.5 Million Grant to Bolster Michigan’s Semiconductor Talent Pipeline
      onsemi Recognized by Fortune 500 for Its Transformation Journey

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login