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Following her presentation at the Food Technology Innovation & Safety Forum 2010, Euromonitor Research Analyst, Svetlana Uduslivaia, gives an overview of the packaged food industry and how it benefited from the recession.
The packaged foods market performed relatively well considering more consumers were cooking and eating at home rather than going out to restaurants. In fact, the packaged food market grew in 2008 and 2009 despite the economic downturn.
Private label packaged foods have also increased in sales during the recession, given the trend of consumers trading down. Recession or not, private label developers are looking to expand product offerings to keep this growth going – especially in premium segments.
The trend of health and wellness in packaged food is reflected in the sales of functional food and beverages. However, some countries such as Canada have passed restrictive legislation on these products due to health claims, resulting in limitations on product development. The European Union is following suit.
Looking ahead, functional food and beverage industry participants have to keep in mind that regulatory challenges are not going to disappear. Consumers are becoming more skeptical of the benefits of such products, therefore, more information and better communication must be provided.
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