the new normal: navigating social, behavioral ...€¦ · • 18% of category buyers bought their...

The New Normal: Navigating Social, Behavioral & Opportunity Shifts

June 2020

Confidential and proprietary business information of ADM

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COVID-19 Has Heightened Health Concerns, But Now Economic Worries Are Also Having Impact

57%of consumers are worried

about the public health crisis

2/3 of Americans are concerned about their personal health

These concerns must now be balanced with income stressors as 43% of consumers are also worries about the economic crisis.

Sources: Datassential, May 2020 | FMCG GURUS: Twelve Step Guide for Addressing COVID-19 in 2020 and Beyond, April 2020


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Consumers Are Now Shopping Differently, And Some Of Those Behaviors Are Here To StayAs consumers balance health and economic concerns, we expect three behaviors to become the new normal:

1. Increased pantry staple purchases2. Trade-down to private labels and value retailers3. Reduced consumption of non-essential, premium products

Sources: Euromonitor Passport - The Impact of Coronavirus on Hot Drinks, April 2020


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Mental health is a heightened issue, and protecting it will be just as important as physical health.

Many consumers are dealing with stress by turning to comfort food, leading to concerns about weight gain and metabolic health.

Immune function is taking center stage, driving purchase of healthy foods that support it.

57% of consumers are more

concerned about their immune system

77% of consumers say they will

make greater attempts to stay healthier in the future

While Trade-Down Behavior Takes Hold, Specific Health Concerns Are Causing Priority Shifts

Sources: ADM OutsideVoiceSM Proprietary Research, April 2020 | FMCG GURUS: Twelve Step Guide for Addressing COVID-19 in 2020 and Beyond, April 2020


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will purchase more items related to

health and nutrition

will exercise more in the next six months and

beyond

believe everyone is different, requiring a mix of foods and

exercises customized to unique needs

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Health And Wellness Spending Will Increase As Consumers Become More Proactive About Their Health

48% 57% 49%

Sources: ADM OutsideVoiceSM Proprietary Research, April 2020


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What We Can Expect:

• Back-to-Basics Shift—consumers will look for center-of-the-store pantry staples as they seek out comfort food, find strength in iconic brands and shop value with store brands

• Health and Wellness Emphasis—consumers will look for new ways to protect health, especially mental health, weight management and immunity

What We Can Do:

• Leverage these ideals by bridging the gap between “basics” and “health” with functional food and beverage products

Bridging Conflicting Urges

Implications and Inspiration


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While consumers anticipate buying 1/3 more fresh meat, seafood and produce in the next six months, meat alternatives are also growing in popularity.

• 18% of category buyers bought their first plant-based meat alternative during COVID-19, citing health as the number one reason

• 92% of first-time buyers are likely to continue buying

A Shift To “New” Basics

Sources: ADM OutsideVoiceSM Proprietary Research, April 2020


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Consumers will take greater interest in everyday foods that offer functional health benefits as the need for convenience shifts to better-for-you innovations and permissible indulgence.

Nutrition-Forward Benefits Move To Everyday Categories

↑ 10%Retail sales of cookies and

crackers

↑ 4% Retail sales of snacks

Source: IRI, US P4WE 5/3/20


.Case Study

Immune Support GummiesA delicious treat that offers a boost of acerola vitamin C extract, beta carotene and vitamin E.

Features:• 100% RDI vitamin A• 25% RDI vitamin C• 100% RDI vitamin E• Colors from Nature®• Vegan


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Immune Function Support Takes Center Stage

Innovation Starter

62% of consumers are willing to pay a premium for

products with proven efficacy

A claim of immune function support is not enough—spotlighting ingredient efficacy encourages product purchase and justifies premium price.

Consumers’ individualized immune function needs provide an opportunity for targeted solutions.

Sources: Houlihan Lokey proprietary consumer survey, April 2020


.Case Study

Cozy Banana Bread BitesDelicious, nutritious and convenient. These bites contain the comforting flavors of banana bread with the added benefits of DHA, fiber, protein and the good fats you need for a strong start to your morning.

Features:• Good source of protein• 6 grams of fiber per serving• 32mg of DHA per serving for

brain health


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Mental Wellbeing And Self Care Are A Driving Force

Innovation Starter

Consumers will take greater control over their mental wellbeing, especially when they can’t control the larger circumstances affecting it.

• 85% of vitamin and supplement users are interested in supplements that support mental health

Top areas of focus include:

• Anxiety• Stress relief• Mood• Balance

• Cognitive performance

• Relaxation• Sleep

Source: The Future of Nutrition, Health and Wellness: Mintel, February 2020


.Case Study

Metabolic Wellness CookieA healthy dessert option that meets consumer demand for a delicious snack they can feel good about eating.

Features:• Contains 10 billion heat-

treated Bifidobacterium lactis BPL1 postbiotics per serving

• 3 grams of fiber per serving


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Metabolic Health And Biomarkers In Focus

Innovation Starter

Consumers are beginning to recognize the link between obesity and vulnerability to illness, which will result in a heightened commitment to proactive health maintenance.

In-demand products will focus on:

• Vascular health• Blood glucose health• Heart health• Weight management


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While the effects of Covid-19 continue to drive shifts in consumer needs, we’re starting to see some clear trends emerge.Those trends present opportunities around:

Breaking Through

Immune Function & Metabolic Health

Nutrition and Wellness

Permissible Indulgences


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Foods and beverages with proven efficacy that align with consumer’s changing needs are the key to breaking through.

ADM is at-the-ready with tailored solutions that address all areas of focus, including nutrition, functionality, taste and texture.


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Consumer Validation

15Confidential and proprietary business inform

ation of ADM.

ADM understands your consumer’s needs and your formulation-specific challenges better than anyone in the industry.Our unique advantage — our product development capabilities leverage our industry-leading portfolio of ingredients

in conjunction with our deep formulation expertise supported by our global supply chain and technical support — gives you an edge in this highly-competitive marketplace.

TextureStarchesEmulsifiers & StabilizersSweetening Solutions FloursNuts & SeedsAncient GrainsBeans & Pulses

ADM Pantry Solutions

Nutrition

NutritionBioactivesNatural AntioxidantsPlant ExtractsFibersFunctional BotanicalsWhole Grain FloursAncient GrainsNuts, Seeds & FruitsVegetable PowdersBeans & Pulses

TasteTaste ModifiersSeasonings Natural FlavorsSynthetic FlavorsDistillates & ExtractsOils & FatsSweetening SolutionsFood BasesVegetable Powders

FunctionOils & FatsNatural PreservativesStarchesPlant-Based ProteinsEmulsifiers & StabilizersFlours & MixesAcidulants

ColorColors From NatureVegetable PowdersPulses

ADMSingle Solutions

Partner

Consumer Insights

Formulation Expertise

Global Supply Chain

Go-to-Market Support

Thank You

the new normal: navigating social, behavioral ...€¦ · • 18% of category buyers bought their...

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