Mintel Predicts 2011 Consumer Packaged Goods Trends

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November 9, 2010

Mintel has predicted core consumer packaged goods trends that will impact product development in 2011, spanning across categories from health and wellness, the environment and demographics to marketing and media, convenience and indulgence.

Lynn Dornblaser

“These annual predictions represent continuations of current big-picture trends, rather than major changes in the marketplace and what companies are doing,” noted Lynn Dornblaser, director of innovation and insight at Mintel. “Understanding the major trend areas and how they change from year to year is essential for companies to be successful when developing and launching new products.”

The six core trends, according to Mintel, are:

• Quiet reduction: Sodium, sugar and high fructose corn syrup (HFCS) are three well-known ingredients that appear to be experiencing covert reductions in product formulations. While sodium reduction has long been the focus of “quiet reduction,” sugar and HFCS are jumping on board. As the media continue to demonize HFCS, what may start as covert reduction is likely to end up as a key labeling issue, in the same way trans fat-free has become the norm in some parts of the world. The European region still awaits approval of stevia, but we should expect to see sugar and stevia used in conjunction to achieve an overall lower sugar content in new products. However, stevia will not always be part of the overt communication. Instead we’ll see messaging like “naturally sweetened” or “reduced sugar.”
• Redefining natural: Get ready for a “natural shakedown!” While all types of natural claims have grown in importance in all regions, and across all product categories, the term “natural” is still ill defined. Terms that are vague or not well understood will come under fire and we are due to see an intervention of regulatory bodies. Also, expect to see a new focus on accentuating the positives of what is in a product, rather than emphasizing what it does not contain.
• Professionalization of the amateur: Mainstream brands are getting into a more serious “professional” arena, by bringing into the home what used to require a specialist service. This trend arguably has its origins in personal care markets, with “salon-style” hair treatments for home use, but continues to expand to include household (“professional strength” cleaning products) and food (chef-endorsed, restaurant-style meals).
• Sustainability remains focused on the basics: Sustainability is not slipping down the priority list, but instead of seeing new developments, expect to see a continuation of what we have seen, with a few twists. There will be a greater focus on reduced packaging that promotes environmental responsibility in combination with uniqueness, such as boxless cereal bars or more cereals without the inner bag. Also, expect water usage to become a hot, consumer-facing issue in 2011. Companies will be looking for ways to conserve water and change their consumption habits so that there is enough world supply.
• Blurring categories: How much more innovation can you get out of a category? Manufacturers’ response to consumer needs is the driver to developing hybrid products. Consumers don’t necessarily view products as being in one category or another, rather they look for solutions that meet their needs, and that may be something that straddles multiple categories. Sparkling beverages are appearing more and being positioned as a source of refreshment, as well as sophistication. Beyond hybrid forms, we also see a blurring of how consumers use products –– with beverages consumed as snacks, snacks as meals, and personal care and home care products that do more than one thing, as well.
• New retro: Over the last year, we have seen more big brands that revitalize old products and old ad campaigns, tapping into the escalating trend of nostalgia. We anticipate more of these in 2011. Companies are returning to a time when life seemed somehow easier, whether that’s the 1980s for consumers in their 20s, or the 1970s or 1960s for older consumers. We’ll see this with brands using old formulations, old package designs, and reruns of advertising campaigns or new ads with a retro feel.

SBD Views: Reviewing entries in the 2010 Store Brands Decisions Retailer Innovation Awards program, it’s clear that innovative store brand product development is front and center for many retailers. It will be interesting to see how many entries in the 2011 Awards program reflect the CPG trends noted in this Mintel report. -- John Failla for Store Brands Decisions.

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