food evolution in america: its impact on food trends, consumer behavior, national health, and global...

+

Allison KristofcoMBA 592

Dr. Jennifer Edmonds

Food Evolution in America: Its Impact on Food Trends,

Consumer Behavior, National Health, and Global

Markets

+ Topics to be Covered

Introduction Food trends in America over the last 50 years Consumer Demand Marketing Changes / Marketing Trends Impact Concerns / Issues / Challenges Conclusion

+ Introduction

The American diet has changed significantly over the last fifty years. Fast food Options in low-fat and low-carb. Superfoods

Consumer demand and marketing efforts have changed along with these markets. Changes in packaging Changes in advertising Creation of complementary goods and services

+ Introduction

Concerns / Issues / Challenges Regulatory

Labeling of GMOs GMOs Organic foods

What we do here has a larger impact globally Our eating habits affect those around the globe

+ How Did We Get Here?

Fast Food


Options in Low-Fat, Low-Carb.


Superfoods

+ Trends – Fast Food Emergence and expansion of fast food began in the 1950s

McDonald’s paved the way for the industry

By 1960 there were 100 McDonald’s locations By 1990 there were 11,800 McDonald’s 6,298 Burger Kings 3,721 Wendy’s

In 2012, there were more than 160,000 fast food locations in America.

These locations feed more than 50 million Americans each day.

They generate more than $110 billion each year. Inexpensive menu offerings keep consumers coming back

+ Trends – Fast Food

The fast food industry made it through the Recession relatively unscathed Ease and convenience Low menu prices = “Bang for your buck”

In terms of calories per dollar, fast food is an incredible value McDonald’s Two Cheeseburger Meal 213 calories per

dollar Taco Bell’s Chicken Flatbread Big Box 234 calories per

dollar KFC’s Colonel’s Fully Loaded Box 257 calories per dollar


Unhealthy foods are less expensive to purchase Their prices are less likely to increase due to inflation

Energy-dense foods costs $1.76 per 1,000 calories It only costs $3.52 for 2,000 calories of energy-dense food

Low energy-dense foods cost $18.16 for 1,000 calories It will cost $36.32 for 2,000 calories worth of low energy-

density food


Although obesity rates have leveled off in recent years, the number of obese people in America is staggering. The rates here are the highest among all developed

countries

“Roughly two out of three US adults are overweight or obese (69 percent), and one out of three are obese (36 percent).” Harvard T.H. Chan School of public Health

Obesity rates are higher in non-Hispanic Black, Hispanic, and Mexican American adults

+ Trends – Low-Fat, Low-Carb.

This market emerged in the 1970s when America saw its first dietary guidelines.

The McGovern Report recommended that Americans eat less fat, due to the belief that it had strong ties to heart disease. No substantial scientific evidence to support these claims. Fat has more calories per gram than protein or

carbohydrates.

The belief was that less fat would lead to more healthful people.

This report led to the emergence of foods that were low in fat. Low-carb would soon follow


These guidelines were put into place to make Americans more health-conscious.

Although the first dietary guidelines emerged in the 1970s, the first Food Pyramid did not appear until 1992. However, there were some unintended consequences.

Despite the decrease in the fat content in the typical American diet, the amount of calories did not. Overall calories actually increased.


Fat calories that were removed from foods were replaced with other things. Carbohydrates and sugar

The calories in these “healthier” alternatives are comparable to their “unhealthy” counterparts. People didn’t believe that they could cause them to gain

weight.

+ Trends – Low-Fat, Low Carb.

Lessening the fat in daily diets did not prove to make much of a difference in regards to heart disease.

Americans were cutting out all fats, even healthy ones. Instead, Americans were overeating foods that they

believed were to be healthier for them. This time frame coincides with rising obesity rates in

the US.

+ Trends – Low-Fat, Low-Carb.“What right has the federal government to propose that

the American people conduct a vast nutritional experiment, with themselves as the subjects, on the strength of so very little evidence that it will do them any good?”

– Phil Handler, prior president of the National Academy of Sciences

+ Trends – Superfoods“Modern Day Hippie”

There are currently no set criteria for what makes a food into a “superfood.”

Oxford Dictionary defines a Superfood as “nutrient-rich food considered to be especially beneficial for health and well being.”

Many believe superfoods to be perpetuated by marketing efforts.

There are many foods currently in supermarkets that have similar benefits, but aren’t seen as superfoods because they aren’t new and exotic.


The average American is being more health-conscious today.

Public policy has begun to attempt to influence how Americans eat. Taxes on sugary drinks have been proposed Junk food and sodas have been taken out of schools

Personal responsibility has become a hot topic as of late as well.


The movement toward more natural food offerings has caused more people to speak out about food preparation.

Genetically Modified Organisms (GMOs) Genetically altered seeds An estimated 80% of packaged food contain some form of

GMO

Organic food offerings have seen more shelf space in supermarkets

Grassroots campaigns are becoming more and more common as people question the practices of the food industry.

+ Trends – Superfoods “Modern Day Hippie”

Organic farming is largely “faith-based” USDA has lenient testing protocols, and they actually

oppose more stringent testing and monitoring USDA does not require organic foods to be GMO free. In 2012, the USDA reported that 43% of “organic”

produce tested contained prohibited pesticide residues. Items were mislabeled Inadequately protected from prohibited pesticides

+ Consumer Demand – Fast Food

Fast food popularity has grown exponentially since its mainstream emergence in the 1960s.

Today, there are more than 160,000 fast food locations across America. Feed more than 50 million people everyday Generates more than $110 billion annually

People have started demanding healthier fast food alternatives. Salads have been introduced, but they aren’t necessarily

healthy.

+ Consumer Demand – Fast Food Fast casual restaurants have grown in popularity as of

late. Chipotle, Moe’s, and Panera

This market has grown 550% since 1999 More than 10x the growth of the fast food industry during

that time frame

People are looking for more natural food offerings Some fast food locations are trying to adapt to these

changes.

+ Consumer Demand – Low-Fat, Low-Carb.

High level of demand since its inception. Americans want the things they love without all the

guilt. There is a “healthy alternative” for almost any food offering

on the market.

Partnerships have been created between companies to meet current demands. Weight Watchers Heinz (Smart Ones)

+ Consumer Demand – Superfood“The Modern Day Hippie”

Consumers are looking for more healthy foods for their diets.

Consumers are also looking to be more informed about their food choices. GMOs Organic Clear Packaging

+ Consumer Demand – Superfoods

“Modern Day Hippie” Organic foods are becoming more prominent in supermarkets today. The demand for natural foods causes consumers to look for

stores like Wegmans and Whole Foods.

Americans are becoming more vocal about food processing and genetically modified organisms

Customer feedback has caused companies to remove aspartame from their foods Diet Pepsi Yoplait Yogurt

+ Marketing Changes – Fast Food Fast food restaurants are striving to provide healthier

options. McDonald’s has advertised healthier Happy Meals.

However, 33 of 5,427 possible meals meet recommended nutrition standards.

Fast Food chains have begun remodeling their locations to attract a different clientele. Looking to rebrand Change their image

+ Marketing Changes – Fast Food Many Americans are concerned about the nutritional

value in fast food, especially for their children. Legislation has been proposed to prohibit the inclusion of

free toys in kids meals. Toys can only be included if the meal meets certain

nutritional standards.

+ Marketing Changes – Low-Fat, Low-Carb.

Companies are looking for healthier ways to produce these food offerings.

They are advertising the wholesome aspect of their products in the marketplace today. Using natural zero-calorie sweeteners

Truvia Stevia

Foods need to appear to be wholesome, especially as superfoods continue to grow in popularity

+ Marketing Changes – Superfoods

“Modern Day Hippie” Packaging for items has changed dramatically as companies look to go along with the current “wholesome” trend. Clear packaging

Consumers believe the food to be healthier since they can see the contents

Believe the food to be a higher quality Companies are looking to influence consumer behavior

Focusing on the origins of foods Whole grains Granolas “Less processed is better”

+ Marketing Changes – Superfoods

“Modern Day Hippie” Industry is seeing a “bottom-up” marketing strategy, rather than a “top-down” movement.

Companies are working diligently to listen to consumer feedback for future steps.

Commercials are showing these changes. Diet Pepsi and Yoplait

+ Impact - Consumers Deterioration of overall health of Americans

Fast Food Low-Fat, Low-Carb.

1950s Less than 10% of Americans were overweight or obese

1970s Roughly 15% of Americans were overweight or obese

2012 An estimated 32% of Americans were overweight or obese

+ Impact - Consumers

The desire for cheaper food alternatives has had a dramatic impact on the consumers in the marketplace.

Not one state in the US meets the Healthy People Guidelines for obesity. Rates should be 15% or less Many states have a rate that is double this (~30%) In 2010, one state had a rate less than 20% (Colorado)

+ Impact - Consumers

Obesity rates are creating serious health problems. Will be a significant expense for National Healthcare Obesity shortens life spans

Also increases medical costs significantly

Estimated that $150 billion will be spent annually on obesity-related illnesses. Projected that more than $174 billion will be spent annually

on diabetes-related illnesses By 2022, the overweight/obesity rate could top 75% in the

US

+ Impact - Economy

New industries have emerged due to these to help combat obesity. “Cashing in on obesity” Fitness trackers, fitness apps, supplements (Advocare,

Shakeology), meal plans (Nutisystem, Jenny Craig), organic offerings, Weight Watchers.

National Healthcare will be significantly impacted by obesity-related illnesses

+ Impact - Globally

Other parts of the world are affected as the eating patterns in the United States change.

“Globesity” Other countries are seeing rising obesity rates as their

diets become more Western in nature. Saudi Arabia has rates similar to that of America

2/3 of their population is overweight or obese The wealth that was brought into this region from oil has

changed their lifestyle

+ Impact - Globally However, even areas of the globe that are not wealthy

are seeing similar trends in their populations. Obesity is no longer an affliction of the wealthy More people die from obesity-related illness than from

malnutrition.

+ Impact - Globally Increased demand for quinoa in America has changed

the environment in Bolivia. It was once a dietary staple Locals can no longer afford to buy it Importing more processed foods Dietary quality is dropping substantially Land once used to produce other crops is now being used

or quinoa Creating a quinoa monoculture

+ Concerns/Issues/ChallengesRegulatory

Policy in the US is experiencing changes Fast food nutritional information availability Americans are pushing for more transparent labeling for foods Especially in regards to GMOs

Can be sued for cross-pollination Seed technology is patented Farmers are forced to comply with large companies

An estimated 80% of packaged foods contain some kind of GMO 85% of all corn 91% of all soy 90% of canola 88% of cotton 90% of sugar beets


165 million acres of GMOs in the US 420 million worldwide

Consumers are looking to make more informed decisions Legislation has encountered roadblocks from companies like

Monsanto Threaten to sue states that look to pass legislation

GMOs are labeled in 60+ countries and banned in 35+, so why are they allowed in the US? Strong lobbying efforts 91% of Americans want labeling


Organic farming is largely faith-based USDA has lenient testing Cross contamination occurs very easily so many “organic”

foods are not truly organic In 2012, a random sample showed that 43% of “organic”

foods tested contained prohibited pesticides

a

+ Conclusion

What we do here in America has dramatic impacts domestically as well as internationally.

We are the frontrunners in the marketplace, and our bad habits spread abroad. This has dramatically reduced the quality of food

internationally, as a whole

Legislation needs to be overhauled in order to reverse the GMOs and “organic” issues that we see today.

Lobbyists have created many road blocks for public policy.

+ Conclusion I believe that the obesity rates in America will continue

to increase, even with increased consumer awareness. The Low-Fat/Low-Carb era coincided with increasing

obesity rates. The trend of superfoods will continue this. Whole foods can be higher in calories, even though they

have vitamins, minerals, and antioxidants. “Eating this won’t make me fat.”

Whole wheat bread calories vs. white bread Calories still count National healthcare will face significant problems due to

obesity-related illnesses

+

Allison KristofcoMBA 592

Dr. Jennifer Edmonds

Food Evolution in America: Its Impact on Food Trends,

Consumer Behavior, National Health, and Global

Markets