Market

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Tuesday, May 3, 2011

DECLINE OF PROCESSED FOOD INDUSTRY ON THE CARDS?-INNOVATE OR PERISH!

There are dire predictions that processed food industry would not survive the present "crisis of confidence" prevalent amongst consumers in many affluent countries. But does the consumer has an alternative? The new movements promoting organic foods, local foods, whole foods etc have limited clout and the mainstream consumer will continue to depend on processed foods because of compulsions of the life style. A trend is slowly emerging where consumers are becoming more and more demanding and if the major industry players do not respond adequately there could be new players willing to radically change the profiles of products to be more healthy and wholesome. Here is a commentary on the changes that are taking place in the US and what needs to be done if industry is not to stagnate, threatening its very survival.

Speaking at the Nutracon conference in Anaheim, California last month, CEO and president of Blue Pacific Flavors Donald Wilkes said that the future of food formulation lies in clean labels and nutritious, whole food ingredients. Wilkes predicts that concern about food from farm to table will intensify, as part of what he calls 'the whole foods movement'. And he suggested that with an increased interest in whole foods and whole ingredients, the supplements industry could also find itself in a difficult position. "The processed food industry, and anything that has a functional ingredient, is under question from consumers right now, and it's not going away; it's only going to get bigger," Wilkes said. "…I think today is the age of the unthinkable for the processed food industry, unless the industry reacts." He urged food manufacturers to move toward simpler products, and to communicate health benefits of foods and supplements within the context of a whole-food based, balanced diet, and an exercise regime. "So many food manufacturers want to put structure/function claims on food products these days, but it is a barrier to consumption," he said. "People don't want their diet to be a medicine chest…If you want to talk about health benefits, talk about them as part of health and wellness, rather than death and disease."

The million dollar question is whether the food industry will ever take the cue and mend itself for becoming more consumer friendly not in terms of taste and flavor of its products but tune to their well being. The dramatic growth of organic food industry and the specialty products industry during the last decade sends a strong message that in order to survive, the main stream food industry must change its present mindset, focused on profit and in stead replace its product basket presently predominated by calorie dense, fat rich, sugary and salty foods with more healthy alternative ones without sacrificing the eating quality drastically.

V.H.POTTY

http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

1 comment:

Anonymous said...

i find it as a miracle we want to join to create this miracle in india to grow up our farmers.
with regards ,
selvendran chairman ,
kodaikanal rural development association , tamil nadu.