In a category where the latest innovation defines segment growth on the whole, shelf-stable meal products that truly innovate have a strong chance at success, however fleeting that may be in this evolving category.
Despite being borne of the convenience trend, breakfast cereals have found themselves outpaced in that regard by other, quicker alternatives. As the population of young people in the U.S. is predicted to grow minimally over the next several years, manufacturers face a shrinking market of consumers that have traditionally been their stronghold.
F&B manufacturers have attempted various methods, products and rationales to cater to the fairer sex. Women are an important purchasing power, and show concern for their family's health. Men, on the other hand, rarely are targeted, and virtually none of their products address health concerns.
Major food and beverage companies have brought innovative products to all corners of the world. In the process, these locales have proven their worth both as a testing ground for innovative ideas and as viable markets in and of themselves.
By racing to bring innovative new products to store shelves, developers of consumer packaged goods (CPG), such as food processors, fail to get the most out of their R&D investments, according to a white paper issued by Pittiglio Rabin Todd & McGrath (PRTM) Management Consultants (Waltham, Mass.).
Originally associated with the extreme sports phenomenon, energy drinks have managed to endear themselves to mainstream consumers, much like sports beverages. Whereas sports drinks were once a hallmark of serious athletes, the on-the-go consumer has embraced them as a convenient alternative to soft drinks.
Consumer confusion has been a barrier to widespread growth of functional foods, but manufacturers have an opportunity to communicate the benefits of the market.
New beverages lead the way in sales, as product introductions decline for the first time in two years, setting the stage for a bump due to low-carb launches next year.
McDonald's (Oak Brook, Ill.) supersize demise (announced in early March and expected to eliminate the extra-large fries and beverages from the chain's menus by 2005) may have garnered the chain unwanted attention.