By Harry Overly, President and CEO, Flagstone Foods

From delicious plant-based eating on the go to craveable global flavors, consumers’ appetites for distinct varieties of nuts will be taking center stage in 2024. But flavors aren’t the only new twist in snacking nuts; eco-friendly and allergy-inclusive efforts are making headlines as well. 

The world goes nuts for nuts

In 2022, the global market size for snacking nuts was estimated at more than $59 billion. By 2032, the market is expected to top more than $101 billion, according to Precedence Research. It’s no surprise given the widespread availability of nuts and their historical significance. 

Nuts have been a part of the human diet since our distant ancestors lived in caves. They were used as medicine and widely believed to have a variety of health benefits. Nuts are the subject of countless legends and are imbued with symbolism across centuries. Our love of nuts carries through to today – from grabbing a handful of lightly salted peanuts as a snack to enjoying a better-for-you sweet, glazed treat. 

Plant-based with a pop 

Snackers have spoken – at least one in five are interested in trying plant-based proteins, according to Mintel.

Meat-free eating is growing, especially with younger consumers. “Nuts have been a vital part of the diet of humans for more than 700,000 years, they’re a reliable source of nourishing plant-based protein,” said Lana Simon, Flagstone Foods SVP of Marketing & Innovation. “When consumers aren’t eating meat, they shouldn’t have to settle for mediocre food.” 

Beyond basic nutritional value, at least 59% of consumers say they want snacks that contain additional health benefits such as antioxidants and micronutrients, according to Circana. A variety of tree nuts contain the highest antioxidant content of edible plants and nuts in general are a good source of a wide variety of essential vitamins and minerals. 

Consumers are looking for flavor

According to Mintel, 67% of the snacking nut consumer audience wants great tasting, flavorful roasted nuts. However, even in the same household, there is a good amount of overlap between consumers who enjoy straightforward nuts or nut mixes and those who are ready to amp up their experience with flavors. 

Eighty-three percent of consumers want snacks that have a flavor they prefer, according to Circana, and bold flavors are snacking fan favorites. Look for game day snack swaps with flavors traditionally reserved for sticky coated wings. In 2024, people will be adding some punch to lunch with flavors such as Nashville Hot Honey, Mango Habanero, and Sweet Heat snack mix. Zingy nuts are an easier, more affordable sporting snack. 

The household penetration (76% in 2022, according to Circana) of snacking nuts is high. Now brands and retailers are focusing on expanding consumption, and these types of products pop. 

Global bites

Globally inspired flavors are gaining in popularity. Millennial and Gen Z consumers, in particular, have an elevated interest in diverse flavors and ingredients, particularly Asian and Latin cuisines, according to Mintel. 

Nuts are the perfect crunchy canvas for adventurous global flavors. Look for Korean BBQ trail mix with spicy sweet gochujang chili glazed cashews, dark chocolate Japanese matcha green tea with earthy green tea-tossed cashews, elote Mexican-style street corn almonds, and Thai Sweet Chili nuts. 

Tastes of regional cuisines, such as from southern Mexico as well as the Caribbean, are places (and seasonings) to watch in 2024. 

Make snacking count 

Trending nut flavors feel indulgent, but consumers want to feel good about making a more wholesome choice. Increasingly, younger people such as Millennials are eating nuts, seeds, and trail mix in the morning, opening up day part innovation opportunities. 

Flavors such as tropical Hawaiian trail mix, kettle-glazed candied nuts like cinnamon churro peanuts, and even cinnamon swirl raisin trail mix mimic extravagant flavors, but in a better-for-you form. 

Seasoned nuts have, of course, been around for a long time. But now brands and retailers are innovating with unique flavors and formats that are appealing to new consumer segments that allow them to treat themselves in a way that feels much more wholesome. 

Better for you, better for the planet

Healthy snacking and snack nuts have a strong future, but in order to remain that way, we recognize we need to offer more inclusive options, as well as make eco-friendly updates to be gentler on the Earth. 

Sustainable sourcing practices, such as bee-friendly almonds, allow tree nut crops to grow while nurturing pollinator populations. Additionally, more than 70% of consumers actively choose products based on their sustainable or recyclable packaging options, according to the 2023 Buying Green Report from Trivium Packaging. 

Working to balance product protection and greener packaging, recyclable nut packaging film and canisters made with post-consumer recycled content help keep soda and water bottles out of landfills and reduce carbon footprint. Many snack nut packaging options are now recyclable using the store drop-off option while still offering packaging that looks good and performs well. 

Many of us are familiar with signs in schools and workplaces declaring, “peanut and tree nut free zone” due to the presence of serious food allergies. A growing aspect of the category are allergen-free snack pack options. With more than 3 million Americans suffering from nut allergies, this is a part of the snack category in general that will continue to grow. When marketed in the correct section along with other allergen-free options, consumers will be delighted to see expanded safer snacking options that include items like dried fruit, pretzels, chocolate drops, or even fun, fizzy candy clusters. 

Nutty new year

With increasing interest in plant-based options and consumers willing to mix nuts into every part of their day, the outlook for snacking nuts is impressive. Look for bold flavors with spices and seasonings from across the globe, crossover flavors from other popular snacks like chicken wings, and better-for-you options that still feel decadent. 

Add more sustainable packaging options, a lighter eco footprint, and expand your core consumers to include those previously unable to enjoy the snacking nuts category, and 2024 is looking like the year to increase share of shelf for nuts. 

Harry Overly is the President & CEO and member of the Board of Directors of Flagstone Foods, the nation’s premier snack nuts, trail mix, and dried fruit retailer-brand supplier. In addition to his responsibilities at Flagstone Foods, Overly serves as the Executive Chairman of the Board at Sun-Maid Growers of California, where he was President & CEO. Overly has also held leadership positions at Deoleo, Treehouse Foods, Kraft Foods, The Wm. Wrigley Jr. Co, and BestSweet, Inc. 

In light of current economic conditions, nearly three-quarters (72%) of consumers are changing their grocery shopping habits, according to the results of a new survey from Divert, Inc. 

Not surprisingly, grocery prices are the driving force behind changing behaviors. One in four consumers are worrying more about whether they’ll be able to afford food within the next three to six months. And 51% of survey respondents report cutting back in other areas to cover grocery costs. 

Other ways consumers have been dealing with grocery prices include:

Not wanting to waste food, 17% of respondents said they’re eating more food that’s past its prime. Having to throw out food is a major concern — 63% are disposing of more food than they want to. 

The majority of respondents (85%) believe food insecurity has worsened since the onset of the pandemic, with 63% saying it’s at higher levels (16%+) than reported by the USDA (12%+). 

See the full report for more insights into consumer grocery shopping behaviors this holiday season. 

More than three in four (76% of) manufacturers have implemented a digital transformation program across multiple departments, according to the latest State of Manufacturing report from Parsec Automation Corp., and 71% of these manufacturers feel positively about the outcomes of their digitalization initiatives.

However, Parsec’s survey of over 500 manufacturing professionals in North America found that despite adopting new technologies, 31% of manufacturers who say they’ve completed their digital transformation initiatives are still collecting most or all of their data manually.

Most (52% of) manufacturers believe it’s “very” or “extremely” important for artificial intelligence (AI) and machine learning (ML) to be standard features of enterprise software solutions. However, just 34% say they’re “very” or “extremely” prepared to leverage AI/ML tools. 

For 46% of manufacturers, not having the right experience and knowledge on their team is impeding their adoption of AI and ML solutions. Half of survey respondents report that their most challenging staffing issue is a lack of skilled applicants. 

Half of manufacturers also say that it’s most difficult to fill line worker positions, followed by quality technicians (32%), maintenance technicians (30%), and technical staff (26%). 

Aside from skilled labor shortages, other commonly cited barriers to AI/ML adoption include:

Finally, supply chain issues are still “very” or “extremely” challenging for 36% of manufacturers, with more than half (53%) reporting that their company is “hardly” or “somewhat” prepared to address these challenges. However, among batch manufacturers, including those producing food products, only 29% define their supply chain issues as “very” or “extremely” challenging.

For more insights on digital transformation, workforce challenges, and supply chain management in the manufacturing industry, see Parsec’s full report.  

By Bob Grote, Chief Executive Officer, Grote Company

As incredible as it sounds, 2023 has nearly come to a close. As time marches along, those in the food processing business face new challenges, even as some obstacles they anticipated having to grapple with have gone by the wayside.

What might 2024 have in store for manufacturers in the food processing sector? Here are eight trends to keep an eye on. 

1. Regardless of recession and inflation, the food processing industry remains robust

Despite all the talk about a possible recession – Were we in one? Is there still one coming? – food processing manufacturers seem to manage to find the silver lining. Even in the UK and Europe, where there were official recessions, spending in the food sector remained strong.

Maybe it’s because consumers have to eat – so buying food will always be a necessity. Whether they cook at home or dine out, food is a constant need for everyone.

Are there trends in the food industry that processors need to be aware of? Absolutely. But we can count on the fact that people will always spend money on food. That won’t change, regardless of the economic factors at play.

2. The way people consume food has changed 

The trend of eating more meals at home that began during the pandemic continues. Consumers aren’t dining out as often. ALL food is more expensive; however, restaurant prices are rising faster than the cost of purchasing food and preparing it at home.

Regardless of where they eat, consumers are paying significantly more for their food and, in some cases, changing what they buy. As the packaged foods sector experiences growth, prestige brands may experience a decline in popularity as a result of higher grocery prices.

3. Inflation isn’t evening out anytime soon

As much as consumers wish inflation would level out, signs tell us that it will be sticking around for a while. Why? One major factor is the price of oil.

As demand for oil continues to grow, prices continue to rise. Meanwhile, there is less oil to be had, as supplies have decreased. This supply and demand trickles through everything. High oil prices dictate inflation.

Even as the energy sector gradually transitions to a greener approach, it will still take time for any changes to be felt industry-wide. This isn’t necessarily a negative for the industry, even if it may be for the consumer.

4. Automation helps food processors address the labor shortage

It has ALWAYS been challenging to find enough people to fill certain roles within food processing plants. Some jobs entail standing on your feet for hours in a less-than-desirable environment. The temperatures inside some of the plants must be kept cooler. The work is tedious. All of these factors make working conditions less than hospitable.

Another factor to consider here is that as workers age out and retire, finding replacements is next to impossible. As a whole, the manufacturing industry won’t be able to find the workers to fill these open roles.

Yet another consideration is the lack of technical, maintenance, and engineering resources that are available. 

The labor shortage is an irreversible challenge. The demand for workers will only increase.

Enter automation. If you can’t find someone to hire, you may think, “How can I automate this process?”

Food processors are buying equipment that can do the jobs that go unfilled. As more automation enters the picture, other jobs will be created for human workers, upskilled jobs that will be less mundane.

Automation helps food processors remain competitive. Finding partners that have the capability to provide the technological advances to make it faster and easier to produce is at the top of many processors’ priority lists.  

5. Technological advances help processors stay ahead

The industry is notoriously slow when it comes to embracing technology advancements. Technology is proven first in other sectors and is then adopted by processors.

We’re now at a time when supply and demand dictate the need to adopt more technology. Once the industry gets on board with a technological trend, it can quickly pick up steam. For example, robotics has now been integrated into most processors’ facilities on the packaging side, and it’s starting to ramp up on the high-care processing side.

Processors are looking for cradle-to-grave support for their equipment. Forming alliances with partners they trust can help them maintain their equipment and ensure it lasts as long as it possibly can. 

They want support through the entire lifecycle of the product line, such as:

Technological trends on the horizon include more on the data acquisition and analysis front. Equipment must integrate technology that enables this. The more processors can learn by analyzing the data collected by the equipment, the more efficiency they can build into their plants.

6. Continued focus on operational optimization

As processing plants are tasked with maximizing production as efficiently, cheaply, and safely as possible to keep margins high, they’re looking to optimize operations.

Processors’ primary focus is to sell more of whatever they’re producing, so partners who can help them do that by removing hurdles for them as they continue to grow are invaluable.

One way to ensure uptime is by leveraging automation (for example, if a worker is out ill, that can hold up the line). There’s also less chance of contamination when using a machine versus a human. Of course, maintaining a sanitary environment and rigid cleaning practices are of the utmost importance in any food processing facility.

7. Consolidation within the industry continues 

The major players in the industry will keep acquiring the smaller ones, leaving fewer and fewer independents. Food is recession-resistant, so expect this trend to continue.

One challenge here will be that there are fewer viable brands for the more prominent players to scoop up. On that note, while acquisition is often the goal for startup brands, those entering the market now may need more time to build a brand big enough to be of interest to a larger processor.

8. Equipment suppliers who provide development will be in demand

Processors also require continued development. They’re always thinking about what’s on the horizon, even three or four years out. Equipment suppliers are anticipating those needs and working on the developments that will help them get there.

Much of the expertise needed to keep technologically advanced equipment up and running isn’t available in-house. If those who serve these processors can fill those gaps, they’ll strengthen that relationship. 

Look for food processors to continue to perform well in 2024

In spite of any challenges food processors may face, business continues to move forward. Overall, the sentiment seems to be that processors and their suppliers will continue to perform well.

The industry is resilient, even in the face of changing consumer behavior, economic challenges, the pains of labor versus automation, and rapidly changing technology. Evolve or be left behind is a phrase we must all adhere to.

Bob Grote is the chief executive officer of Grote Company. An engineer by schooling, a salesman by nature, and a businessman by practice, he joined Grote Company in 2000, became CEO in 2008, and now spends his time developing industry partnerships and seeking the latest food technologies. During his tenure, Grote has overseen the acquisition of industry pillars, including PFI, Vanmark, Advanced Food Technology, GME International, and Pizzamatic. He serves as Director at Large of the FPSA (Food Processing Suppliers Association) and sits on various industry and non-profit boards. 

This is a past event that is now available on demand.

Register now for next week’s webinar, Taste the Future: 2024 Food and Beverage Trends and Outlook, sponsored by Aptean.

Join us for an insightful webinar where Aptean will delve into the latest trends and innovations shaping the food and beverage industry in 2024.

Aptean, a leader in software solutions for the food and beverage industry, will explore the key findings and highlights from the “2024 Food and Beverage Trends and Outlook.”

In this dynamic session, they’ll focus on what’s shaping the industry’s future based on key findings from their annual survey.

They will answer these 3 questions:

Join food and beverage expert, Jack Payne, as he shares actionable insights and real-world examples to help you stay ahead in this ever-evolving sector.

Don’t miss your chance to prepare for the future of food and beverage.

Join us on Tuesday, October 31 @ 1 PM EDT / 10 AM PDT. If you’re not sure if you can make it, simply register and we’ll be sure to send you a recording.

Save Your Seat

Register now for next week’s webinar, Taste the Future: 2024 Food and Beverage Trends and Outlook, sponsored by Aptean.

Join us for an insightful webinar where Aptean will delve into the latest trends and innovations shaping the food and beverage industry in 2024.

Aptean, a leader in software solutions for the food and beverage industry, will explore the key findings and highlights from the “2024 Food and Beverage Trends and Outlook.”

In this dynamic session, they’ll focus on what’s shaping the industry’s future based on key findings from their annual survey.

They will answer these 3 questions:

Join food and beverage expert, Jack Payne, as he shares actionable insights and real-world examples to help you stay ahead in this ever-evolving sector.

Don’t miss your chance to prepare for the future of food and beverage.

Join us on Tuesday, October 31 @ 1 PM EDT / 10 AM PDT. If you’re not sure if you can make it, simply register and we’ll be sure to send you a recording.

Save Your Seat

It’s that time of the year again — time to take a look at the trends shaping the food industry in the year ahead. To give you a picture of what consumers will be craving, we’ve rounded up some of the latest predictions for the biggest food trends of 2024.

ADM named four trends that will impact flavors and colors in 2024:

Read more

The experts of Whole Food’s Trends Council came up with 10 trends that will win over consumers next year, including a back-to-basics approach to plant-based foods, a focus on water conservation efforts, “little luxuries” that make indulgences more affordable, and coffee with benefits. 

Read more

From beverage innovation, to cell-based products, to specific flavors like peach, Calabrian chili peppers, and tahini, the Trendspotter Panel at the Specialty Food Association announced several trends to watch for the year ahead. Value is among these trends, too, which will force brands to prove that they’re worth the cost. 

The panel also included some of this year’s trends that will carry over into the new year, such as global flavor exploration, convenience without sacrifice, and prioritizing environmental impact. 

Read more

More than half of Americans (57%) believe ultra-processed foods have a negative impact on health. But two-thirds would eat more and even pay more for ultra-processed foods that contain more nutritious ingredients or offer added health benefits, according to a survey by plant cell technology company Ayana Bio.

Ayana Bio asked 2,000 American adults about their attitudes toward ultra-processed foods (UPFs), which the company defined as “foods that have gone through multiple levels of processing and contain additives such as preservatives, sweeteners, sensory enhancers, colorants, flavors, and processing aids.” More than eight in 10 survey respondents said UPFs are currently a part of their diet and cited several reasons for choosing these foods, including:

They would, however, like the UPFs they consume to be healthier. Most survey participants (64%) said they consider foods to be healthier if they’re more nutritious, and 68% would pay up to $3.00 more for UPFs that feature more nutritious ingredients. More than half of respondents would eat more UPFs if they contain higher quality ingredients. 

Added health benefits would also drive more Americans toward UPFs. Most survey respondents (74%) would try an UPF that helps improve cardiovascular or brain function, promotes better sleep, or boosts immunity or energy. 

Whether due to environmental (59%), social (52%), or financial (70%) concerns, nearly all (98% of) consumers are actively trying to cut down on food waste, according to new research from Kerry. More than 5,000 consumers across 10 countries participated in the study, sharing their thoughts on food waste and its potential solutions.

Nearly 70% of surveyed consumers said they were interested in purchasing products formulated to minimize food waste. Most (72% of) consumers feel that products with a longer shelf life help reduce waste, and one-third would switch to brands or products with better shelf-life.

Consumers also shared their opinions on preservatives, with nearly three in four ranking this an important factor in their purchasing decisions. Half of consumers said they were okay with buying food that contains artificial preservatives, but the majority (82%) would accept natural preservatives. 

Whether it’s buying smaller amounts, checking expiration dates, or going so far as to switch brands, 91% of consumers are changing their purchasing habits to cut back on food waste. This presents an opportunity for brands to change packaging sizes and extend product shelf life to avoid lost customers.  

“Our research clearly demonstrates that consumers have a strong desire to reduce food waste in their own homes, and they increasingly recognize the role of preservation in achieving this goal,” said Bert de Vegt, VP of Food Preservation and Protection, at Kerry in a press release. “As inflationary pressures remain, preventing products from going to waste has become more crucial than ever.”

Changing consumer behaviors, labor shortages, and pressures to be profitable as costs remain elevated have led to a pessimistic outlook for the grocery industry — two out of three grocery and consumer packaged goods (CPG) executives expect that their growth will be slower this year than in 2022, according to a new report from McKinsey.

Based on responses from multiple consumer surveys and interviews with 30 grocery and CPG CEOs, McKinsey’s latest report identifies some of the biggest trends shaping the present and future of the industry.

Creating products for value-seeking consumers

Though inflation is now well below its 2022 peak, consumers are cutting costs regardless of their income level. Six in 10 consumers said they’re trying to find ways to save money, a 13% jump from 2022, and the percentage of those who traded down to less-expensive products rose 4% this year to 66%.

This shift has driven growth for private label brands over the past two years. One of those ways is switching to private brands — 44% of consumers say they plan to buy more private label products this year, which is almost double last year’s percentage. And many consumers believe products from private brands are equal to or better than those of big-name brands in terms of quality (83%) and value (89%), suggesting that this preference for private label will likely outlive challenging market conditions.

To keep up this momentum, it falls on food retailers and manufacturers to deliver private label products that can compete with national brands on price while appealing to current customer values.

Meeting expectations for sustainability

McKinsey’s research uncovered a connection between consumer spending and a brand’s environmental, social, and governance (ESG) initiatives — products that boast ESG-related claims have a 1.7% sales growth edge over products that don’t. 

Overall, 28% of consumers say they’re willing to pay more for environmentally friendly products, with Gen Z (49%) and Millennial (48%) consumers even more likely to do so. Being able to recycle the goods they purchase is the most important sustainability factor to shoppers. However, demand for recycled plastic well surpasses supply, and McKinsey notes that the amount of recycled plastic in the market has remained stagnant for the last 20 years. 

In response to sustainability demands, 87% of food retailers and 91% of food suppliers have made ESG a priority for their organization. And grocers are addressing packaging waste through initiatives like Beyond the Bag. 

For more insights into the state of grocery this year, see McKinsey’s full report.