One size doesn't fit all in the global food economy

Through its series of studies, ACNielsen has identified some over-arching key global trends relating to consumer purchases in food and beverages over the year from mid-2005 to mid-2006:

• A continued focus on health and freshness
• The need for convenience
• The continuing need for value

However, these trends do not translate into the ability to take a 'one-size-fits-all' approach in marketing products to consumers globally. While globally the fastest growth food category in the period was drinkable yoghurt, with 18% growth you really need to understand the local consumer and demographics before you flood the market with your probiotic enhanced yoghurt.

Shelf-stability is having increasing significance for many consumers but when put into a global context you end up comparing a US consumer with immediate access to supply and refrigeration with a consumer in an emerging economy for whom refrigeration is a luxury and supply is uncertain.

However, it is worth considering that today's developing markets will be tomorrow's core for fast-moving consumer goods marketers - India will overtake China in terms of population before 2050, becoming the number one and two populations in the world.

The changing of the world population affects food and beverage products.

Within markets, cities, and demographic segments, it is necessary to understand how these trends relate to the local consumer.

The ACNielsen report cites global growth in the food and beverage sector at 4%. However, the growth rates varied significantly between regions and within categories. Several top-growing categories reinforced the key themes of health, convenience and value with yoghurt, dairy, fish and salads having double-digit growth.

The only alcoholic beverage on the fast-growing list, driven mainly by increased sales in Europe, was alcoholic cider.

Ready-to-eat salad showed greater than 10% growth. Bagged salads, combining the consumer themes of fresh items in a convenient manner, showed significant growth in both the Asia-Pacific region and North America.

The survey of food and beverage products included 66 markets around the world and over 100 product categories. These markets account for 90% of the world's real GDP and 75% of the world's population, comparing mid-year 2006 with mid-year 2005. These categories have been grouped into 12 larger product areas for the purposes of this study.

This study also looks at some of the key categories within these product areas to understand the changes impacting their overall growth.

The 2006 edition of AC Nielsen's What's Hot Around the World - Insights on Growth in Food & Beverage Products looks at the fastest-growing categories and product areas across 66 key markets around the world, based on their value sales increases from mid-year 2005 to mid-year 2006.

The markets have been grouped regionally into five areas: Asia-Pacific, Emerging Markets, Europe, Latin America and North America. The report is based on purchasing information from retailers in grocery, drug and mass merchandise outlets and generally excludes kiosks or vending machines.