MINTEL GLOBAL NEW PRODUCTS

Household Paper Products

Market Overview

The household paper market grew by 20.9% in 2020, only to drop by 12.3% in 2021 as supply came into sync with demand and consumers realized that shopping behavior in 2020 was more emotionally driven than need-based.

One-third of U.S. consumers say that they’re stocking up on toilet paper to prepare for future shortages. While Mintel projects that product usage and market growth will remain above pre-pandemic levels well into the recovery, it will take more than five years before category sales reach the $23.6 billion posted in 2020.

Nearly half (45%) of female consumers say that they’re drying their hands more often with paper towels to reduce the spread of germs.

Key Issues

One area of opportunity involves widening the grey area between paper towels and higher-margin wet wipes. Natural-fiber wipes highlight the competitive threat, because they use a similar fiber source and are targeted at the paper towel consumer who believes that polypropylene-containing wipes aren’t eco-friendly. According to Mintel, one-third of all consumers believe that paper towels are more eco-friendly than disposable cleaning wipes. This suggests that paper towel brands have an opportunity to reduce this threat and grow their profit margins by making paper towels more like wet wipes.

As irreplaceable as the toilet paper segment seems now, the pandemic has accelerated consumers’ adoption of bidets. As this happens, consumers are learning that these products can save them money because they reduce toilet paper use by up to 80%, saving the average U.S. consumer up to $182 per year. If U.S. consumers adopt these devices at the same rate as Japanese consumers do, the market could see strong disruption. Toilet paper brands may have opportunities to control the disruption on their end by acquiring bidet brands. FOR MORE INFORMATION, VISIT WWW.MINTEL.COM OR CALL 800-932-0400

What Consumers Want, and Why

While the pandemicinduced growth spurt has largely ended, brands have consumers’ attention like never before. Over the next year, consumers will be more receptive to innovations that save time, improve health, and make e-commerce greener, more efficient and more affordable.

Mintel believes that due to the emotional imprinting of the pandemic, consumers will remain vigilant against COVID-19 and unknown viral threats still to come. Yet, as of January 2022, there are signs that COVID-19 may be transitioning from pandemic to endemic. As a result, many consumers will embrace a return to normalcy.

Rampant inflation has made consumers more cost-conscious, and many consumers trialed store brands for the first time when their regular brands were out of stock. This has created an environment that will continue to tip consumer opinion toward the name-brand equivalency of private label.

Managing Health Conditions

GROCERY STORES CAN BE AN IMPORTANT RESOURCE FOR SHOPPERS LIVING WITH CHRONIC DISEASES.

t may be hard to believe, but 60% of Americans suffer from a chronic disease. Chronic disease is defined as a condition that lasts one year or more, and requires ongoing medical attention or limits activities of daily living, or both. According to the Centers for Disease Control and Prevention (CDC), a staggering four in 10 of us have two or more chronic diseases. These medical conditions, along with short-term health problems, leave customers confused about what foods align to the possible dietary restrictions that accompany certain health issues. A retailer can potentially be the health care destination of choice by not only offering health events and pharmacy, clinic and dietitian services, but also by featuring products to suit shoppers’ health needs right on the shelves.

Heart Disease

Heart disease continues to push forward as the No. 1 killer in the United States. Two ways to abate risk for this condition are keeping a lid on blood lipids (including triglycerides and cholesterol) and blood pressure. One in two of us has high blood pressure, and this is largely a result of modifiable risk factors such as low physical activity and a diet high in saturated fat and/or sodium. Work with your pharmacy department to offer free or discounted heart-health screenings, coupled with product coupons that can support lowering shoppers’ numbers, such as low-fat yogurts, lean plant proteins and no-added-salt canned vegetables.

Diabetes

There are three forms of diabetes: type 1 (insulin-dependent), type 2 and gestational. Type 2 diabetes makes up more than 90% of all diabetes cases. One of the top nutrition recommendations for prediabetes and diabetes is a controlled and consistent intake of higher-fiber carbohydrates like whole grains, fruits, vegetables, beans, lentils, nuts and seeds. Ask your chefs to prepare innovative recipes using these core ingredients, and invite your dietitians to calculate nutrition facts and tips to distribute in print or digital form to customers.

Digestive Disorders

Digestive health has been, and continues to be, a popular topic. Many shoppers are afflicted by minor tummy woes like gas and constipation; others, however, may have clinical problems such as irritable bowel syndrome (IBS), diverticulitis or gastroesophageal reflux disease (GERD). These issues might have customers seeking anything from low-“FODMAP” products to probiotic supplements, lower-acid alternatives and higher-fiber foods. Invite CPGs that represent these brands to hold an event at your stores to showcase their gut-friendly products, with the help of your marketing team.

Overweight

The primary reason that a client books a visit with a dietitian is related to weight control. Being overweight (a body mass index, or BMI, of 25 or higher) or obese (a BMI of 30 or higher) is associated with increased risk of chronic disease. America’s waistline is a public health concern and might be a personal journey for your customers. Support their efforts by offering individually packed snacks like carrots with ranch dip, string cheese, crackers and peanut butter, or apples with caramel dip to draw attention to wholesome foods that will improve satiety while also being portion-controlled.

A retailer can potentially be the health care destination of choice by not only offering health events and pharmacy, clinic and dietitian services, but also by featuring products to suit shoppers’ health needs right on the shelves.

Food Intolerances

From lactose intolerance to an egg allergy to celiac disease, shoppers have their own reasons to find products that suit their unique dietary needs. Customers with food sensitivities, intolerances or allergies gather groceries from all corners of the grocery store as other patrons do, so offering products that highlight “free-from” ingredient lists are helpful for increasing these shoppers’ basket size. Be sure to stock items like nondairy milks, egg-free noodles and gluten-free buns in prominent places so they’re not missed. Also, engage your retail dietitian team to curate pamphlets for educating shoppers on how to shop for these products, including a sample meal plan and grocery list for common food intolerances.

Molly Hembree, MS, RD, LD, is a registered dietitian for Kroger Health.

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Global Growth

Multicultural grocers drive sales by catering to an increasingly diverse America.

By Gina Acosta

If you walk into the Fiesta Mart grocery store just north of the main campus of the University of Texas in Austin, you might just see a Vietnamese man shopping for a piñata. Or a Filipina picking up a package of freshly diced Mexican cactus (nopales) for her stir-fry recipe. Or a Thai restaurant owner looking for a deal on fresh cilantro (in July, three bunches were selling for a mere 88 cents).

Now more than ever, Houston-based Fiesta Mart, one of the largest Hispanic-focused U.S. supermarket chains, with 63 locations, is attracting not just Latino shoppers, but also many customers with non-Hispanic backgrounds looking for the freshest produce and meats at a good value during a historic inflationary period. In addition to offering great buys on fresh herbs, many multicultural grocery stores are also thriving as the United States grows significantly more diverse.

The U.S. Census Bureau reported last year that the populations of people identifying as Hispanic and Asian have surged. People who identify as white now make up just 58% of the population, down from 64% in 2010 and 69% in 2000. The Census Bureau estimates that the United States will be a multicultural-majority nation by 2044.

Capitalizing on the multicultural opportunity are pure-play grocers such as Fiesta Mart, H

Mart, 99 Ranch Market, Northgate Gonzalez

Market and many others, all of which offer many items central to cultural cuisine that aren’t found in a lot of traditional grocery or natural food stores.

These food retailers are growing revenue and footprints as demographic changes and younger consumers’ interest in global cuisines drive multicultural grocery shopping. The multicultural grocery market is estimated at $50 billion and growing by nearly 2% a year, positioning these retailers to be a major area of growth in the supermarket industry for years to come.

However, for Northgate Market, which spoke

Key Takeaways

Multicultural grocery chains are keeping shoppers loyal by stocking shelves with fresh ingredients, flavors, brands and authentic products. Multicultural shoppers are young and have $3.9 trillion in buying power. Hispanics and Blacks are most likely to shop for groceries online; Asians are most likely to shop for personal care items online.

Houston-based Fiesta Mart is celebrating its 50th anniversary this year. The chain, with 60-plus stores in Texas, describes itself as "a truly unique global shopping experience." Fiesta Mart is owned by Mexican grocery company Chedraui, which also owns El Super and Smart & Final.

Authenticity rules the day at Fiesta Mart, where shoppers have a variety of international baked goods to choose from. Tortillas are griddled fresh daily, and cakes are made and decorated to order. The bakery also features French breads and custard desserts.

exclusively to Progressive Grocer, being a great merchant for the multicultural consumer is more about traditions and trends than it is about cheap cilantro.

“Northgate Market has always strived to deliver several specific experiences for our customers — hometown assortment and quality,” said Mike Hendry, head of marketing and sales at Anaheim, Calif.-based Northgate Market. “Being a great merchant for us is about understanding what our target customer is looking for — a combination of trends and traditions — what is important to them and delivering it with the highest quality.”

A Changing Shopper

The Northgate target customer Hendry mentions is more than likely young and multicultural, with $3.9 trillion in buying power, according to a 2021 shopper insights report from sales and marketing agency Acosta.

“Multicultural households continue to be a driving force of purchasing power and will account for half of the U.S. population in less than 25 years,” observes Colin Stewart, EVP, business intelligence at Jacksonville, Fla.-based Acosta. “This means understanding multicultural consumers and their shopping habits is key for grocery retailers to connect with an emerging group and provide a more personalized customer experience.”

When it asked consumers about their levels of enjoyment while shopping for groceries, Acosta found that multicultural households were far

At the Fiesta Mart near UT-Austin, foodservice takes the form of a taquería featuring tacos, burritos, tortas, pupusas, quesabirrias, ceviche and aguas frescas. Shoppers can also buy hot food by the pound, including steak fajitas, stews and carne asada.