10 Industry Insights From The Waitrose Food & Drink Report 2016

The fourth annual Waitrose Food & Drink Report has been released, and it highlights a significant shift in consumer attitudes towards food and wellness.

Focusing on the key food and drink trends within the UK, the report uncovers how consumers are expressing themselves through food, as a form of social currency – from healthy eating and the explosion of food photography on social media, to the desire to entertain others through cooking.

“Expressing yourself through food is not just about how your plate looks. It goes far deeper,” says Rob Collins, Managing Director at Waitrose.

“What and how we choose to eat is also an expression of our attitude towards health and wellbeing. Healthy eating is no longer a bolt-on to how we live – it’s an integral part of who we are. And, with more than 70% of us regarding healthy eating as part of our identity, it’s no longer something to be coy about.”

As with last year’s report, using a series of in-depth focus groups and comprehensive consumer research, it covers a wide range of subjects including dietary habits, social consciousness and identity. Revealing how consumer attitudes towards wellness are driving the food and beverage industry, the report predicts that in 2017 ‘lighter, fresher and healthier’ eating will shape demand, with the desire for occasional indulgence underpinning consumer choices.

Analysing shopping habits, sales data and expert insight, the report features a comprehensive overview of the British food and beverage market, but if you’re time-pressed, for a snapshot of the key trends that wellness brands should be taking note of, we’ve compiled a list below…

1. Seaweed, cactus water and ancient grains all made this year’s hit list, as health-conscious consumers rushed to purchase the latest health trends.

Buckwheat sales soared by 82%, and chia seeds sales by 62%, while cactus water followed in the footsteps of coconut water (currently worth £100m in the UK alone) as a low-sugar alternative to other juices.

“Consumers are looking for low calorie, low sugar natural hydration with benefits,” Tom Zummo, founder of one of America’s more popular cactus water brands, True Nopal told Style Caster earlier this year.

“The wonderful fruity taste and low-calorie and sugar content is converting many coconut water drinkers over,” he added.

2. According to Waitrose research, almost three-quarters of Britons now see healthy eating and looking after themselves as part of who they are, and as a way of expressing their identity. This shift in attitude has transformed the notion of healthy eating into an everyday habit.

With faddy diets in decline, healthier and simpler methods of cooking are on the rise, which is propelling sales of vacuum-packed food. According to a survey conducted by Waitrose,  six out of 10 people now eat fresher, lighter foods than they did five years ago, meaning heavy sauces are out, while simple ingredients and uncluttered dishes are in.

In addition, the demand for food products that suit a range of diets is here to stay. According to Mintel, UK-wide sales of ‘free-from’ foods (such as gluten- or lactose-free ranges) are forecasted to grow from £470 million in 2015 to £673 million by 2020, driven by health concerns, as well as the desire to maintain a healthy lifestyle.

3. As the rise of social media continues to change the relationship between consumers and food, Waitrose discovered that food is now used as a way to help people form identities, and make eating a more pleasurable experience.

“Food is about experience and emotion,” commented Natalie Mitchell, Waitrose’s Head of Brand Development. “And in a connected world, people want to share that,” she added.

In response to this transformative relationship, a growing number of brands and food outlets are creating products that are more aesthetically pleasing, with the aim of attracting a wider audience.

“Restaurants today tend to have one dish on the menu that is really Instagrammable and people often go to a specific restaurant just to say they’ve had that dish,” Rochelle Venables, editor of The Good Food Guide told Waitrose.

However, Waitrose found that a quarter of those surveyed are concerned that the increased influence of social media is preventing people from living in the moment and engaging with their eating companions.

4. With health now a high priority when making food choices, consumers are taking more time to look at the nutritional information on food and drink labelling. But, aside from demanding more transparency and simplified labelling, shoppers are becoming increasingly invested in the origins of the food they are purchasing.

25% of those questioned said that checking the origin of the food they purchased was an important decision marker, while 20% said they actively considered animal welfare standards.

5. According to Waitrose, when it comes to the environment, doing the right thing has become second nature to many. In fact, more aware of the issues concerning food and lifestyle choices, an increasing number of consumers are defining themselves by their ‘conscious consumption’.

Today, 80% of consumers actively consider how and where their food is sourced when shopping. And a third care more about the environment and society than they did five years ago, which is forcing retailers to change the way they sell food.

Waitrose argues that more packaging is being designed to prevent waste in the home, and single serving sizes are on the rise. The desire to save money, concerns about the world’s resources and the mistrust around the ability of institutions to take responsible decisions on our behalf, are all driving this change.

6.  Taking over from the juicer, the spiralizer ranked as Waitrose’ most-purchased kitchen gadget this Summer. Made popular by the Hemsley sisters, Deliciously Ella and Madeleine Shaw, the rise in popularity of the healthy contraption has seen a host of supermarket chains beginning to stock pre-spiralized vegetables in order to meet consumer demand.

According to The Guardian a number of major grocery retailers in the UK, including Waitrose have seen an increase in vegetable sales thanks to the trend. Compared to last year, Waitrose’ sales of  courgettes has risen by 13%, while Marks & Spencers’ by 20%. This increase is attributed to shoppers’ new-found love of churning out “courgetti” in their kitchens, argues Euromonitor.

7. As the line between eating out and eating in continues to blur, going out to eat is now seen as less of a treat, according to Waitrose.

The report argues that at home, consumers can set the atmosphere, curate the perfect meal, and retain control, which is leading to a rise in people creating special meals at home.

Eleni Tzirki, head chef at the Waitrose King’s Cross Cookery School, says that demand for the Couples Kitchen and Dinner For Friends courses is increasing, while Waitrose own research suggests that when people entertain at home, they see it as an event.

Surpassing $1 billion globally in 2015, the explosive growth of the at-home meal-kit market, reflects this trend, and it shows no signs of slowing.

8. Today, consumers are demanding an experience that is about more than just buying a product from a supermarket, argues Waitrose. This has led to a sharp increase in brands and retailers holding live events in which they can engage with and educate their customers.

Aiming to reduce the distance between consumers and suppliers, as well as inform shoppers about where their products come from, organic supermarket Planet Organic regularly holds in-store workshops and tasting sessions, while Waitrose itself launched a drinks festival this year, with the aim to bring together thousands of its customers and suppliers.

9. With 34% of people now committed to reducing or re-using food, the Waitrose report argues that consumers have become more conscious of waste and are actively trying to make food last longer.

Using convenience stores as they would a fridge – somewhere to ‘store’ food until needed, consumers are also freezing more food than they did five years ago, boosting sales of food storage containers by 37%.

And it’s not just consumers who are throwing away less food, retailers are also doing their bit to help lower food wastage by selling wonky fruit and veg. Earlier this year, UK supermarket chain ASDA, began trialling wonky veg boxes,  in a continued effort to tackle food waste across the supply chain and to help farmers.

10. What do watermelon water, poke, gourmet meal kits and extreme indulgence have in common? According to Waitrose, they’re all set to take the food and beverage industry by storm in 2017.

Thanks to Beyonce, who bought a stake in watermelon beverage brand WTRMLN WTR in May, the newest player in the natural hydration category is already making waves, while Hawaiian poke – a raw fish salad marinated with lime, soy and sesame, served with rice – is popping up across London.

However, with healthy eating now at the forefront of consumer’s minds, when the time comes to indulge, people are looking for extreme options like the ‘freakshake’. This Australian invention of a milkshake piled high with brownies, cream, cookie dough and marshmallows, is currently all over Instagram, but what new treats will consumers be tucking into in 2017?