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www.fbreporter.com FOOD & BEVERAGE REPORTER | JANUARY/FEBRUARY 2016 | 9 In a fragmenting world ... Small is the new big F ragmentation in consumer beliefs and choices about food is breaking apart traditional food and drink markets, and opening the door for start-ups and small brands, according to leading consultancy New Business Nutrition (NBN) in its recent report, 10 Key Trends in Food, Nutrition and Health 2016. Says report author Julian Mellentin: “The fragmentation of eating habits is happening against the backdrop of what, according to consultancy firm PWC, has become the defining force of food and beverage strategy: in both developed and emerging markets there is a wider variety (of products) available to consumers now than at any time in the recent past. PWC calls it the Great Fragmentation. “We’re all food explorers now, looking for novelty and variety,” says Mellentin, adding that “the quest for novelty is producing a proliferation of niches that smaller companies and new brands – often premium – are perfectly placed to serve.” But, he cautions: “There are companies where the directors and shareholders still believe that their business teams must look for new high- volume opportunities. Out of touch with the reality of a changed marketplace, they do not understand – and cannot believe – that high-volume opportunities are becoming scarcer. In some markets they may already be history.” Finely targeted niches Mellentin argues that mass-market brand launches will become rare, and companies will build portfolios of small brands, finely targeted at an ever-more fragmented consumer market. “A few of these will become big brands, some will be big niche – but most will remain niche.” The market-redefining power of the Great Fragmentation will also have an impact on another key trend, plant-based foods and beverages. The report cites the example of non- dairy plant “milks” such as almond milk, which have increased in sales by 20% in Spain and by 50% in the US. “We’re all flexitarians now, using cows’ milk on our cereal, almond milk in our smoothies and coconut milk in our cooking as it suits us. And the halo of health and sustainability around plant- based foods means consumers feel good about their choices,” says Mellentin. The report says beverage giants’ sales have peaked, soft drink sales are plunging and fruit juices are struggling. In contrast, niche drink brands are reshaping the market, and plant waters such as coconut water are meeting consumers’ desire for products that are naturally healthy. TRENDS 2016 Air Liquide - Fresh ideas for preserving food & beverages consumed Air Liquide Southern Africa Tel: +2711 389 7000, IM Business Development Or contact us online at www.airliquide.co.za There is an Air Liquide solution that is right for you. Consumer trends indicates a clear need for agricultural, food and beverage products that are fresh, safe and healthy, with the added convenience of a longer shelf life. With Air Liquide’s innovative and custom made food-grade gas solutions, you can meet and exceed these requirements and at the same time you can optimise your production costs. AIr LIquIDe gas applications include: • MAP (Modified Atmosphere Packaging) • Fruit ripening • Controlled Atmosphere Storage • Cold Transportation • Cryogenic Freezing and Cooling • Protective Atmospheres, sparging, blanketing, pressurised transfer & inerting • Pressurising and Inerting thin walled aluminium cans & PeT bottles AL15210 Tel: +27113897000, IM Business Development