SPINS Insights: Innovation Is Driving the Natural Channel

The rate of product innovation hitting store shelves can be as overwhelming as it is exciting. According to SPINS data from 2022, more than 22,000 new SKUs were launched in the last year, including:

  • 15,000+ new grocery products (candy being the most)
  • 3,000+ new frozen items (meat, poultry and seafood being the most)
  • 3,000+ new refrigerated products (entrees and cheese being the most)

Within the natural channel, new items resonated with shoppers and drove much of the channel’s growth. To help navigate the quickly changing natural product landscape, SPINS looked at the array of new natural items over the last year and spotlighted some of the ones to watch.

Breakfast Cereal Shifts Toward Health

Although nutritious breakfast cereals have been around for some time, the space still has boxes of sugary treats that are more akin to desserts than hearty meals. However, last year saw shoppers choose cold cereal options that are free of grain and sugar, as seen with high-performing brand Magic Spoon. Over a four-week period, cold cereals grew 34% in dollar growth, but the picture was even rosier for some attributes:

  • Labeled grain free grew 90.9%
  • 10g of protein or more grew 108.0%
  • 0g sugar grew 148.2%

Plant-based Seafood Is a Rising Star

Seafood alternatives had a breakthrough year as they proved that plant-based shoppers are looking for more than chicken and beef options. Brands like TMRW (with their ocean cakes made from jackfruit and a protein blend) replicate seafood flavors, nutrition and textures that have historically been overlooked in plant-based options. Shoppers are clearly excited for that innovation. Within plant-based meat alternatives:

  • Seafood led in sales growth of all types with a 354.7% increase
  • Chicken alternative sales grew 24.1%
  • Beef alternative sales grew 19.3%

High-protein Items are Driving Plant-based Growth

While seafood is expanding the plant-based market, nutrition demands are changing the plant-based market overall. Impossible and Beyond Meat have been recent category leaders, and they are continuing to boost year-over-year sales by bringing high-protein items to shoppers with items like plant-based steak. For sales within plant-based frozen and refrigerated meat alternatives:

  • Products with 25 to < 30g of protein are up 220.3%
  • Products with 15 to < 20g of protein are up 236.7%
  • Products with 10 to < 15g of protein are up 75.7%

Frozen Pizzas are Going Gourmet

One guaranteed staple in every freezer, from busy households to college dorms, is frozen pizza. While the simple classics are not going away, a new crop of gourmet pizzas is shaking up the freezer aisle. Innovative offerings with a variety of crusts, including Neapolitan-style fire-baked crusts, flatbread and thin crusts, abound in the latest batch of frozen pizza innovation. This, along with high-quality ingredients, is gaining traction with shoppers — even at a higher price point. Over the last year, the number of items brands introduced were:

  • 13 thin-crust products
  • 9 fire-baked crust products
  • 5 flatbread crust products

For example, premium pasta sauce brand Rao’s introduced a line of pizzas that is performing well, with a fire-baked crust and heating instructions for discerning shoppers who prefer to use a pizza oven.

What to Expect in 2023

Health and wellbeing will remain center stage for shoppers who still want convenience alongside high-quality ingredients and nutrient-dense options. The natural channel has long been where food and beverage innovation and trends first appear. The amount and type of new items launched in the past year illustrate how brands are updating classic items to meet shopper preferences. Emerging trends data will help you understand how shopper needs are evolving and point to the products to keep on shelves. Watch for more from SPINS in 2023!

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