SPINS Predictions: Five Trends to Watch in 2023

As we end yet another eventful year when day-to-day habits continued to shift in a post-lockdown world and major economic influences affected everyone, it’s time to look ahead to 2023. Shoppers will continue to pursue wellness in their own individual ways, and they’ll be looking to their favorite retailers to provide them with the products that will help them achieve it.

Here are five trends to watch in 2023:

Private Label

Several factors are coming together to raise private label’s profile. First, many retailers have upped the quality and diversity of their private label offerings, with organic, plant-based, conventional and other options that are just as flavorful and high quality as their big-name counterparts. Also, inflation concerns continue to make private labels’ lower prices attractive to budget-conscious consumers. Finally, the ongoing supply chain concerns are leaving many shelves bare and forcing consumers to consider available options. According to SPINS Natural + Conventional data, in grocery, refrigerated and frozen, consumers have helped push private label growth more than 50% ahead of national brands. These factors are not subsiding anytime soon, and private label products will continue to reap the rewards.

Sustainability

Sustainability is a hot topic every year, but it seems poised for a breakthrough in 2023 as shoppers become more intentional about how their purchases affect the environment. One survey suggests 74% of shoppers consider environmental health important. Today, sustainability means more than whether packaging is recyclable — although that is still important. It meant animals raised humanely and fed ingredients that don’t harm the planet; products that don’t travel too far to get from production to the store, thereby increasing pollution; and packaging that can be recycled or upcycled to avoid single-use waste. Shoppers want to support brands and retailers that align with their values, and the health of the planet will likely remain a top priority for the foreseeable future.

Non-alcoholic Beverages

Many shoppers are choosing to avoid alcohol for a variety of reasons — if they’re the designated driver, partaking in Dry January, or living a sober lifestyle. Until recently, zero-proof options were limited to beers, sparkling ciders and water. Now, alcohol-free shoppers can buy ready-to-drink mocktails, mixers and liquors that have the flavor and aromas of their traditional counterparts. Brands like Ritual and Hiyo have created packaging that is sleek and appealing and fits in comfortably on store shelves and home bars.

Performance Nutrition

Vitamins and supplements focused on athletic performance have expanded beyond the pros and gym goers and become part of everyday nutrition for the average shopper. This year at Expo East, for example, several performance nutrition brands unveiled their hydration tablets and powders formulated to be sipped throughout the day, as opposed to just used to replenish electrolytes after a hard workout. In the Natural Channel, hydration and electrolyte products experienced 122.9% year-over-year dollar growth, while pre-workout products were up 39.7%. Wellness is at the forefront of shoppers’ minds as they strive to live a healthy life even if they are not serious athletes.

Better-for-You Sweets

Even the most wellness-focused shopper has a sweet tooth now and then, and brands are realizing the untapped potential of the candy aisle and dessert freezer. Yumy Candy’s plant-based gummies are vegan, low in sugar, naturally sweetened, high in fiber and free from major allergens, making candy an option for shoppers who often can’t or don’t want to consume their conventional counterparts. Non-dairy ice cream alternatives made from soy or oat are also letting lactose intolerant and vegan shoppers enjoy a classic dessert. Perhaps most importantly, these innovative offerings come in a variety of flavors and textures that compete with the real thing. Shoppers are looking for products that let them indulge now and then without veering away from their preferences and values.

In 2023, anticipate seeing these trends in the food industry at large, on dinner tables, in lunch boxes and on store shelves. Over the last year, cost and value have become more important to food and beverage shoppers. Today’s shoppers are increasingly exploring money-saving strategies, choosing lower cost items and cooking from scratch. But they also remain determined to sample new products, ensure personal wellbeing and support planetary health. It will be important to deliver value while still meeting these wider shopper expectations.

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