International Markets Bureau AMERICAN EATING TRENDS REPORT Unless otherwise stated, all of the information in this report was derived from the NPD Group s National Eating Trends database, updated to November 2010, and reflects the eatings (defined by NPD as the number of times any particular category/item is eaten by an individual in a specified location or time period) of a product at home or carried away from home. These figures do not reflect purchases of food products made through foodservice establishments, or the consumption thereof. NPD monitors the eating habits and attitudes of American consumers by surveying 5000 individuals reporting on 14-day s continuous consumption of all meals and snacks. For the purpose of this report, unless otherwise specified, condiments refers only to pickles and olives. CONSUMPTION DEMOGRAPHICS In 2011, pickled products in the United States (U.S.) were valued at over US$2.3 billion. This market is expected to see slow but steady positive growth in value sales over the next few years, reaching US$2.4 billion by 2015 (Euromonitor International, July 2011). In terms of volume, pickled products, like other condiments, sauces, and dressings, are expected to see a decline, as American consumers begin to resume their pre-downturn foodservice consumption patterns (Euromonitor International, November 2011). On average, Americans have consumed 1.3kg of pickled products per capita each year since 2008. This is expected to drop slightly to 1.2kg per capita from 2013 to 2016 (Euromonitor International, July 2011). Core Markets (consumption is at least 20% above the average rate) Adults between the ages of 55-64 and 64+ (olives and pickles); Households with incomes between $40,000-$49,000 (olives), $60,000-$69,000 (olives and pickles), and $70,000 and over (olives); One-person, two-person (olives and pickles), and four-person (olives) households; White/non-Hispanic consumers (olives and pickles); Affluent singles (olives) and low/mid income singles (olives and pickles); Affluent empty nesters (olives and pickles); and Single and married active seniors (olives and pickles). Underdeveloped Markets (consumption is at least 20% below the average rate) Children (olives and pickles); Adults between the ages of 18-34 (olives and pickles); Households with incomes under $10,000 (olives and pickles), between $10,000-19,999, between $30,000-$39,999, and between $50,000-$59,999 (olives); Three-person (olives and pickles) and four-person (pickles) households; Black consumers (olives and pickles), Hispanic consumers (olives), and Asian consumers (pickles); Dual-income households without children (olives); Working or single parents (olives); and Traditional families (olives and pickles). CONSUMPTION LOCALE Both olives and pickles are mostly consumed in the home. When olives were eaten, it was usually as part of an in-home main meal (93.0% of the time), most often at dinner (50.0%), followed by lunch (41.2%) and breakfast (1.8%). Olives were consumed as an in-home snack 6.1% of the time (mostly in the morning or afternoon). Only 0.9% of the time were olives carried away from home for meals or snacks. Pickles were consumed with an in-home main meal for 87.0% of eatings. Like olives, pickles tended to most often be eaten at dinner (45.7%), followed closely by lunch (41.0%), with breakfast eatings being more rare (0.4%). Pickles were consumed as an in-home snack 7.8% of the time. Compared to olives, pickles are more commonly carried away from home as a meal or snack (5.1% of the time).
PLATE COMPOSITION Olives are consumed mostly as a side dish (43% of eatings), but are also eaten as an appetizer (20.2%) and as part of a main meal (14.9% ). Pickles are also consumed mostly as a side dish, (69.1% of eatings). They were only consumed as an appetizer 6.3% of the time, and as part of a main meal 2.7% of the time. CONSUMPTION CALENDAR Olives tend to be consumed at the end of the week, with 20.2 per cent of eatings occurring on Thursdays, while 14.0% to 17.5% of eatings take place from Friday to Sunday. Consumption on Mondays and Wednesdays accounts for 11.4% of eatings. Pickles consumption is more consistent throughout the week. They are most often consumed on Saturdays (16.4%), and least often on Mondays (11.0% ). Almost half of the occasions where olives were eaten occur in the winter months of December, January and February (45.6%). The next most popular time to eat olives is in the spring (20.2% of olive eating occasions take place in March, April, May) and summer (22.8% occur in June, July and August). Olives are consumed the least in the fall (11.4% of eatings happen in September, October, November. Pickle consumption is more evenly spread throughout the year, (28.2% of eatings in the fall, 26.9% in the winter, 23.6% in the summer, and 21.3% in the spring). PREPARATION METHODS Olives and pickles are consumed without the use of an appliance or further preparation method about 60% of the time. They are often consumed chilled (25.4% of the time for olives and 35.2% of the time for pickles). Olives were more likely to undergo a warm preparation method, with 2.6% of eatings, compared to 1.2% of eatings for pickles. CONSUMPTION BY REGION Pickles tend to be most popular in the East North Central region while olives are most popular in the Pacific region. Source: U.S. Census Bureau. Eatings by U.S. Region (%) Olives Pickles East New England 2.6 4.0 Mid-Atlantic 8.8 11.2 Central East North Central 16.7 25.9 West North Central 5.3 14.5 South South Atlantic 12.3 14.9 East South Central 6.1 4.2 West South Central 7.9 9.9 West Mountain 17.5 8.0 Pacific 22.8 7.4 Source: NDP Group. PAGE 2
CANADA U.S. TRADE Since 2001, Canadian exports of pickled cucumber/gherkin products (pickles) to the continental U.S.¹ have largely declined. Canada exported about C$2.6 million of pickled cucumbers/gherkins in 2010, compared to around C$15.9 million in 2001. Pickled cucumber/gherkin products account for the largest share of Canada s pickled product exports. More recently, in 2011, Canadian exports of pickled cucumbers/gherkins to the continental U.S. totalled C$2.8 million, and other pickled exports were valued at C$2.6 million. C$ millions 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Canadian Pickle² Exports to the U.S. by Region, 2001 and 2010 2001 2010 West Central East South Region Other³ Canadian Pickled Exports to the U.S. by Region, 2001 and 2010 1,000 2001 2010 800 C$ thousands 600 400 200 0 West Central East South Region Source for both: Statistics Canada. ¹ For the purposes of this report, the continental U.S. does not include Maryland, Washington D.C. or Delaware, to remain consistent with NPD data collection. The regions in this graphic are defined by Statistics Canada as per the U.S. Census Bureau. A breakdown by state is available at www.census.gov/geo/www/us_regdiv.pdf. Population shares for the regions were as follows: 2001: North East 19%, Central 23%, South 36%, West 23%. 2010: North East 18%, Central 22%, South 32%, West 23%. ² Specifically, cucumbers and gherkins that are prepared or preserved by vinegar or acetic acid. ³ This includes vegetables, fruits, nuts, and edible parts of plants, not elsewhere specified, that have been preserved with vinegar or acetic acid. It does not include pickled cucumbers/gherkins or pickled onions. PAGE 3
PRODUCT POSITIONING According to Mintel s Global New Products database, between August 2011 and July 2012, there were approximately 76 pickle products launched in the U.S. Of these products, 30 were completely new products, 29 were new varieties or range extensions, 16 had new packaging, and 1 was a re-launch. 35 Top 5 Claims for Pickle Products Launched in the U.S., August 2011-July 2012 Number of Products 30 25 20 15 10 5 0 Kosher Source: Mintel GNPD, 2012. Environmentally friendly package Low/no/reduced allergen Claims Gluten free Between August 2011 and July 2012, there were approximately 63 olive products launched in the U.S. Of these products, 33 were new products, 19 were completely new varieties or range extensions, 8 had new packaging, and 3 were re-launches. Organic 25 Top 5 Claims for Olive Products Launched in the U.S., August 2011-July 2012 Number of Products 20 15 10 5 0 Kosher Environmentally friendly package On the go Low/no/reduced calorie Ease of use Claims Source: Mintel GNPD, 2012. PAGE 4
PRODUCT POSITIONING (continued) The majority of both pickle and olive new product launches were shelf-stable. Kosher and environmentally friendly packaging stood out as the top claims for both products as well. It should be noted that kosher can also refer to a type of garlic pickle, and all products with this claim may not necessarily be prepared according to specific religious dietary requirements (Mintel, 2010). NEW PRODUCTS The following are some examples of new pickle and olive products launched between August 2011 and July 2012: Hotties Spicy Sriracha Pickle Chips were launched by Rick s Picks in March 2012. This shelf-stable product is made with in-season vegetables from local farms and claims to be low in sodium, cholesterol-free, fat-free, and gluten-free. Van Holten s Dill Pickle was repackaged and launched in February 2012. It now comes in a transparent, flexible stand-up pouch containing one jumbo, dill flavoured pickle. This shelf-stable product claims to be kosher-certified. Gordy s Pickle Jar Sweet Cucumber Chips were launched in February 2012. This product claims to be handcrafted in Washington, D.C., and made entirely from all-natural, organic ingredients. This shelf-stable product also comes in the following flavours: Jalapeño Pickle, Sweet Chili Pickle, and Thai Basil Pickle. Giant Queen Green Olives were launched by Kvuzat Yavne Food Products in October 2011. This shelf-stable product claims to be kosher-certified and to contain no preservatives. CreSpo Les Olives du Marché Pitted Market Olives were launched by Transmed Foods in February 2012. This product contains 10 ready-to-eat, single-serving snack pouches, each containing one of the following five flavours: pitted green olives with herbs and garlic; pitted green olives with chili peppers; pitted mixed cocktail olives; pitted mixed cocktail olives with chili peppers; and dried black olives with herbs. This shelf-stable product claims to be low in fat, cholesterol-free, and easy to use. Star Farmer s Market Spanish Manzanilla Olives stuffed with minced pimiento were launched with new packaging by Borges USA in June 2012. Now in a resealable, flexible stand-up pouch, this product claims to be convenient and appropriate for snacking, picnicking, tailgating, or for use with pizza and pasta dishes. Manzanilla olives are known for their firm texture and rich flavour. This shelf-stable product claims to have only 25 calories per serving, and is cholesterol and gluten-free, for a perfect healthy snack. Source for all: Mintel GNPD, 2012. PAGE 5
MARKET OPPORTUNITIES Adults, often with larger household incomes, are a core market for pickles and olives. To retain and extend this market, companies will have to address how their product is perceived in terms of health and wellness. Olives, in particular, have the potential to offer additional health benefits as they are rich in antioxidants and are often associated with the healthy Mediterranean diet (Mintel, 2010). While some consumers perceive these products to be a way of increasing the vegetable and nutritional content of a meal, the high-sodium content of condiments can minimize their health benefits. Manufacturers can appeal to health-conscious consumers, including parents and affluent households, by using organic ingredients and reducing allergens, sodium, and caloric content, where possible. However, it should be noted that while consumers are interested in products with increased health benefits, they are not willing to sacrifice taste (Mintel, Jan. 2011- Jun. 2011). Condiments such as pickles and olives can be positioned as easy ways to add flavour to a meal, appealing to consumers who seek convenience, such as working parents and adults between the ages of 18 and 34. In addition, these condiments can be a way of recreating restaurant-style dishes at affordable prices. Companies could provide recipes or usage ideas on the packaging to highlight the versatility of these products (Mintel, 2010; Mintel, Jan. 2011- Jun. 2011). To extend the market to younger consumers, companies could try formulating these traditional products with new, trendy, and innovative flavours, an approach already taken by the mustard and traditional sauces category (Mintel, Jan. 2011-J un. 2011). New flavours may also attract consumers from different ethnicities. Offering products in a variety of sizes, from single-serving snacks to bulk formats, will appeal to both large and small households, as well as to value-oriented consumers (Mintel, Jan. 2011- Jun. 2011). KEY RESOURCES Euromonitor International (July 2011). Packaged Food: Market Sizes. Euromonitor International (November 2011). Sauces, Dressings and Condiments in the US. Mintel Global New Products Database (2012). Mintel Group Ltd. (January 2011- June 2011). Category Insight:Table Sauces and Seasonings. Mintel Group Ltd. (July 2010). Condiments. The NPD Group National Eating Trends database, for the year ending November 2010. Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food Canada (2012). The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada assumes no liability for any actions taken based on the information contained herein. For more information, or to request additional copies or an alternate format of this publication, please email infoservice@agr.gc.ca or contact the International Markets Bureau - Agriculture and Agri-Food Canada, 1341 Baseline Road, Tower 5, 4th floor, Ottawa, ON Canada K1A 0C5 PAGE 6