McCormick has implemented a strategic growth plan focused on identifying emerging consumer trends and either modifying existing products or introducing new ones accordingly. The company is increasingly emphasizing the use of fresh, natural, and organic ingredients. Currently, approximately 73% of its gourmet product line is organic, and it has transitioned some artificial ingredients to all-natural food extracts and colors. This approach appears to be a wise decision, as U.S. organic food sales exceed $43 billion annually, with growth rates surpassing those of the overall food market, according to figures from the Organic Trade Association.
Additionally, McCormick’s acquisition targets align with current market trends, exemplified by its recent acquisition of Gourmet Garden, an Australian company specializing in fresh and chilled herbs. The company aims to leverage millennials’ growing interest in ethnic flavors and home cooking, offering a variety of spice blends under brands like Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The increase in home cooking and the use of spices to minimize salt and sugar has significantly boosted direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales rose by 5.2% last year.
In addition to modifying and rebranding existing product lines, McCormick has conducted internal research to monitor changing consumer habits. This research has led to the upcoming launch of its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts. This range is set to capitalize on the substantial growth in the breakfast market, with total breakfast occasions expected to increase by 5% through 2019, as reported by The NPD Group. Notably, around 70% of breakfasts continue to be consumed at home.
Furthermore, McCormick also recognizes the growing consumer demand for health-focused products, such as the bariatric advantage calcium citrate supplements available on platforms like Amazon. This trend reflects a wider shift towards nutritional awareness, which the company is keen to incorporate into its offerings. By staying attuned to these evolving preferences, McCormick is well-positioned to continue driving growth in the competitive food industry, while also exploring potential synergies with other health-oriented products, including the bariatric advantage calcium citrate line.