Dietary lifestyles and food consumption in the USA

New food trends in America: organic and healthy are the Millennials' watchwords

The new food consumption trends in America are influenced by the choices of "Millennials," individuals born between the late 1980s and early 2000s. These emerging preferences—natural, healthy, genuine, hormone-free, preservative-free, organic—are boosting the consumption and sales of international specialty foods in the United States.

This is an opportunity not to be missed for international exporters. It requires the ability to tap into the trends of new American consumption models through marketing, communication, and the intelligent use of online media typical of the "new" generations of consumers. Consider Breann Tierschel. She has eliminated "Lucky Charms" cereal from her family's table in favor of oatmeal. The 30-year-old accountant, who lives on the East Side of St. Paul with her husband and daughter, has dramatically revamped her family's eating habits over the past six months. Carbohydrates and sugars are being jettisoned in favor of a protein-rich diet. It's all part of a healthier approach to food.

"We need a change in what we put on our table."

Consumers across the United States are spending more time on the "periphery" of the supermarket—where meats, fresh produce, and dairy products are located—and less in the central aisles, where ready-made and canned foods from American food giants like Heinz and General Mills are typically found.

Organic, protein, fresh: the new trends among Millennials in America

A fundamental shift in American consumer tastes

Consumers are choosing organic products, niche brands, and proteins, focusing on health and well-being, instead of carbohydrates and canned goods that were staples of American grocery shopping until 5 or 6 years ago.

The forerunners of this food movement are the so-called Millennials, or Generation Y, born between the late 1980s and early 2000s. "Millennials are more concerned about food and health," says Alexia Howard, an equity analyst covering the packaged foods sector. "The younger generation doesn't seem to have the same brand loyalty to mass-market products." The "food values" of American consumers are changing.

The latest evidence could be the quarterly financial results of General Mills: a 4% decline in sales and a 10% drop in operating profits. In light of poor performance and awareness that Americans' food preferences are shifting, General Mills is closing two plants, one in California and one in Massachusetts, eliminating about 575 jobs.

Earlier this year, General Mills paid $820 million to acquire Annie's Inc., best known for its organic mac and cheese. The deal strengthens General Mills' presence in the organic food sector, complementing their previous acquisition of the Cascadian Farm brand. This move aligns perfectly with the evolving food preferences in America. "I'm glad they made this purchase. I've been buying Annie's for years," says Craig Fink, a 46-year-old entrepreneur in Pequot Lakes. "With two kids, you eat a lot of mac and cheese. Annie's had pretty much become a staple in our household."

Checking food labels is becoming essential in America

Changes in the U.S. food industry are reshaping the rules of the game

"The more I learn about how our food is produced, the more I think about changing what I buy for myself and my kids," says Fink, who has also eliminated all carbonated beverages and started purchasing only organic meat. [In the United States, it is legal to use hormones to fatten cattle, a practice banned among organic meat producers.] "I’ve learned to read and understand nutrition labels. If a product has 52 ingredients, it can’t be healthy food."

It seems that America has recently reached a turning point in its consumption habits, where demand for processed food products is significantly declining, while demand for healthier and simpler products is experiencing strong growth.

Protein snacks and the shift toward protein-based diets are the new trends

"The new wellness goals of consumers have pushed them away from conventional grain-based foods," according to a report by David Palmer, a food industry analyst with RBC Capital Markets. Sales of cold cereals in the United States are declining. Even flagship products like General Mills' Cheerios, the number one cereal brand in America, have seen sales drop significantly over the past year.

The rise of protein-based diets in America

The Greek Yogurt Phenomenon in the United States

Breakfast in America now offers several high-protein alternatives to traditional breakfast cereals. Chief among these is yogurt. Greek yogurt, known for its high protein content, has captured nearly half of the yogurt market in the United States in less than a decade. Sales of traditional yogurt, such as General Mills' Yoplait brand, have plummeted. The rise in Greek yogurt sales in the United States has been driven by Chobani, a brand that emerged almost out of nowhere about ten years ago.

Facebook, Instagram, and social media in America

The New Frontiers of Marketing for the U.S. Food Industry

The success of smaller niche food brands and the rise of Chobani exemplify the growing influence of Millennials in the U.S. packaged food market and the power of the Internet as a marketing tool. Chobani and other emerging brands have captured the loyalty of American consumers through low-cost marketing tools such as Facebook and digital marketing in general.

For example, Chobani has used Facebook and YouTube from the very beginning to spread its message. Food bloggers quickly picked up on the trend, amplifying it across all social media platforms. Social media, Twitter, and specialized websites and blogs are changing how Millennials and young mothers gather information about what to eat and what to avoid. Television, once the preferred tool of big brands, no longer holds the same influence it once did.