June 2013
USA FOOD & BEVERAGE MARKET STUDY
OFFICIAL PROGRAMME
USA FOOD AND BEVERAGE MARKET STUDY
Language: English Number of pages: 167 Author: Global Strategy, Inc. 4250 Alafaya Trail, Ste. 212 Oviedo, FL 32765 USA Tel: +1 407 951 6750 www.consultgsi.com Other Reports: Are you interested in Reports for other sectors and countries? Please find more Reports here: www.switzerland-ge.com/study
Contents
5.4. The Internet and Consumer Empowerment: Social Media29
1. EXECUTIVE SUMMARY _______________________6 2. INTRODUCTION _____________________________8
6. SPECIALTY AND GOURMET STORES __________ 34 6.1. Overview ______________________________ 34
3. GENERAL COUNTRY INFORMATION AND FOOD
6.2. Key Drivers_____________________________ 34
INDUSTRY OVERVIEW__________________________9
6.3. Current Performance ______________________ 35
3.1. Country Information _______________________ 9
6.4. Specialization and Competition _______________ 36
3.2. Food Industry Overview ____________________ 12
6.5. Outlook _______________________________ 37 6.6. Growth and Competition ___________________ 37
4. REGULATORY ENVIRONMENT________________15 4.1. Authorities _____________________________ 15 4.2. Labeling _______________________________ 16 4.3. Certifications ____________________________17
6.7. Life Cycle ______________________________ 38 6.8. Products and Services _____________________ 38 6.9. Competitive Landscape ____________________ 40
4.4. Facility Registration _______________________ 18
7. ORGANIC AND NATURAL FOOD ______________ 41
4.5. Nutritional Analysis _______________________ 18
7.1. Regulations and Labeling ___________________ 41
4.6. Shelf-Life Study __________________________ 18
7.2. Market Size and Trends ____________________ 42
4.7. Bar Code Registration______________________ 18
7.3. Market Dynamics ________________________ 44
4.8. U.S. Agents _____________________________ 19
7.4. U.S. – EU Organic Equivalence Agreement _______ 45
4.9. Canned Foods ___________________________ 19 4.10. Seafood & Juice (HAACP) __________________ 20 4.11. Food Ingredients & Food Additives (GRAS) Notifications _______________________________ 21 4.12. Color Additive Requirements ________________ 21
8. DAIRY ____________________________________ 51 8.1. Life Cycle ______________________________ 52 8.2. Products and Markets _____________________ 52 8.3. Locations ______________________________ 54
4.13. EPA and Pesticide Regulations _______________ 22
9. FUNCTIONAL FOOD ________________________ 56
4.14. Food Safety Modernization Act (2011) __________ 23
9.1. Industry Overview ________________________ 57
4.15. Further Information ______________________ 24
9.2. Industry Dynamics _______________________ 58 9.3. Key Players, Categories and Emerging Products ____ 59
5. FOOD INDUSTRY ___________________________25 5.1. Sales and Sales Growth _____________________ 25
9.4. Key Factors to Drive Demand of Functional Foods __ 61
5.2. Industry Structure ________________________ 26
10. PROCESSED FOOD ________________________ 62
5.3. Trends and Developments ___________________ 27
10.1. Top-Line Drivers ________________________ 62
Contents
10.2. Segments _____________________________ 62
14.2. Restaurant Cuisine and Menu Trends __________ 94
10.3. Top 20 Food Processing Companies ___________ 63
14.3. Restaurant Health & Wellness Trends __________ 95
10.4. Market Demand _________________________ 67
14.4. Snack & Beverage Restaurants _______________ 95
10.5. Issues Affecting the Industry ________________ 69
14.5. Fast Food & Convenience Stores ______________ 96 14.6. Foodservice Contractors ___________________ 97
11. SAVORY SNACKS _________________________70 11.1. Market Size and Value _____________________ 70
15. INNOVATION ____________________________ 101
11.2. Market Segmentation ______________________71
15.1. Industry Innovation ______________________ 101
11.3. Market Share ____________________________71
15.2. Innovation Case Study: US Food Processor_______103
11.4. Key Drivers ____________________________ 72
15.3. Innovation Case Study: European Food Processor _ 104
11.5. Demand ______________________________ 73
15.4. Food Industry Innovations _________________105
11.6. Outlook _______________________________ 73
15.5. Open Innovation in the Food Industry __________ 107
11.7. Barriers to Entry _________________________ 73
15.6. Food & Beverage Innovation and Trends websites _ 108
11.8. Imports _______________________________ 74
16. INDUSTRY TRENDS _______________________ 109 12. BEVERAGES ______________________________75 12.1. Competitive Landscape ____________________ 75 12.2. Sectors _______________________________ 76 12.3. Product Segments and Major Market Brands _____ 78
17. CONSUMER TRENDS _____________________ 113 17.1. Consumer/Cultural Trends__________________ 113 17.2. Food, beverage and ingredient trends __________ 114
12.4. Products, Operations and Technologies _________ 80
18. DISTRIBUTION AND MARKETING ___________ 117
12.5. Sales & Marketing _______________________ 81
18.1. Food Distribution Channels _________________ 117
12.6. Indicators and Trends _____________________ 82
18.2. Other Distribution Issues __________________ 118
12.7. Opportunities __________________________ 83
18.3. Marketing Strategies______________________ 118 18.4. Route to Market Considerations ______________ 125
13. PRIVATE LABEL ___________________________84 13.1. Food _________________________________ 85 13.2. Beverages _____________________________ 86 13.3. Consumer Insights _______________________ 88
14. FOODSERVICE ____________________________92 14.1. Restaurant Sector Insights __________________ 92
18.5. Marketing Agreements and Strategic Partnerships _ 126 18.6. Contract and Tort Issues ___________________ 126 18.7. Exploring and Evaluating Market Opportunities ___130 18.8. Marketing Agreements ____________________ 131 18.9. Cooperation with U.S. Companies _____________ 132
Contents
19. CHALLENGES AND OPPORTUNITIES FOR SWISS FOOD SUPPLIERS ___________________________134 20. HOW TO ENTER THE MARKET ______________136 20.1. Importing into the USA ____________________136 20.2. Company Assessment _____________________143 20.3. Competitive, Customer and Market Landscape Assessment ________________________________143 20.4. Branding _____________________________143 20.5. Pricing, Promotion and Competitiveness ________144 20.6. Market Analysis_________________________ 145 20.7. Logistics ______________________________ 145 20.8. Pricing _______________________________146
21. SUMMARY _______________________________147 22. AUTHORS OF THIS STUDY _________________148 APPENDIX: TRADE EVENTS, ASSOCIATIONS, AND PUBLICATIONS _____________________________149
1. Executive Summary The United States is the world’s largest national economy, with a per capita GDP of $48,387 in 2011. The country has a population of 311.9 million, with over 20 percent of the population living in the top eight urban centers. The Food and Beverage industry is both large and extremely complex, consisting of multi-tiered supply chains. It is also subject to extreme competition and a heavy regulatory burden. Keeping track of industry and consumer trends is critical. A well-informed management team is the first line of defense in such an environment. The industry is fragmented, with production divided among all types of companies. Product Categories In 2011, packaged food sales totalled US$331.86 billion in the United States. The top five categories were bakery, accounting for 21 percent of total packaged food sales, dairy (16 percent), frozen processed food (10 percent), confectionery (10 percent) and sweet and savory snacks (10 percent). The fresh food market had a total volume of 77.5 million tons in 2011. Meat products dominate the market with 31 percent market share, followed by vegetables (25 percent), fruits (23 percent), starchy roots (7 percent) and eggs (6 percent). During 2006-2011, the U.S. fresh food market was stagnant with a CAGR of 0.1 percent The organic food market in the United States accounts for over 45 percent of the global organic food market. Organic food sales totalled $29.2 billion in 2011, representing a CAGR of 9.7 percent between 2006 and 2010. Fruit and vegetables dominate the market, with 38 percent share, followed by prepared food products (21 percent), dairy (15 percent), beverages (13 percent), bread and grains (11 percent) and meat, fish and poultry (2 percent). In 2012, the total U.S. dairy market was estimated at $89.3 billion and is projected to grow moderately during the five years to 2017, with revenue rising at an annualized rate of 0.7% to $92.3 billion. The dairy market in the United States accounts for 15 percent of the global dairy market. Cheese dominates the market, with 40 percent share, followed by milk (34 percent), yogurt, cream cheese and cottage cheese (12 percent), spreadable fats (8 percent), cream (5 percent) and chilled desserts (1 percent). Distribution Channels Grocery retail sales were valued at $571 billion and foodservice sales were estimated at $477 billion in 2011. In 2010, supermarket sales dominated the grocery retail market, with 36 percent share, followed by supermarkets (29 percent). Grocery retail sales grew by a 2.2 percent CAGR between 2006 and 2011. In 2010, approximately 46 percent of the foodservice market composed of fast food establishments and 49 percent of fullservice restaurants. The foodservice market was stagnant, with a CAGR of 0.6 percent during 2006-2011. However, this was an improvement from the recession when the foodservice market was hit particularly hard. Primary Demand Drivers Demographics (particularly trends in population, age, household size, and disposable income) Consumer trends Profitability Drivers Good product mix Efficient operations Superior service Effective marketing
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Market Potential Total food consumption is forecast to increase by a CAGR of 3 percent during the five years to 2016, due to the growing U.S. population. Food consumption in the U.S. is expected to reach $968 billion by 2016.
Canned food value sales are forecast to grow by a CAGR of 3.6 percent to 2016, driven by increasing consumer demands for convenience. There is high demand for frozen food products, particularly from supermarkets and restaurant chains. The frozen food market is forecast to grow at an average annual rate of 1.5 percent, reaching $96.4 billion in 2016. The organic food market is forecast to grow by a 9.7 percent CAGR between 2011 and 2016. The market is forecast to reach $46.5 billion by 2016, which is an increase of > 50 percent since 2010. The growth of the dairy market is forecast to slow, with a CAGR of 3.6 percent between 2011 and 2016, reaching $89.3 billion in 2013. The dynamic yogurt sector in the United States is expected to continue to grow, due to the on-going trend towards healthier options. The grocery retail market is expected to grow by a CAGR of 3.5 percent to 2016. The foodservice sales are expected to grow by a 3.2 percent CAGR to 2015, reaching $562.5 billion. The highest growth is forecast in foodservice establishments in travel locations (i.e. motorway service / rail stations).
Import Trends Top food and beverage imports to the United States include beverages, with 17 percent share, fish (12 percent), fruit (10 percent), coffee, tea and spices (8 percent) and vegetables (7 percent). Canada was the United States’ largest import source, with 18 percent share, followed by Mexico (15 percent), China (5 percent), Brazil (4 percent) and Thailand (4 percent).
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