McCormick has developed a strategic growth approach focused on identifying emerging consumer trends and adapting its product offerings accordingly, whether by modifying existing items or introducing new ones. The company is increasingly prioritizing fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet products are organic, and McCormick has transitioned several of its artificial components to all-natural food extracts and colors. This strategy appears to be a wise move, especially considering that U.S. organic food sales exceed $43 billion annually and are growing faster than the overall food market, as reported by the Organic Trade Association. Additionally, the company’s acquisition targets are aligned with current trends, including the recent acquisition of Australia’s Gourmet Garden, a fresh and chilled herbs firm.
McCormick aims to leverage millennials’ growing interest in ethnic flavors and home cooking, offering a variety of spice blends under brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The trend toward home cooking and the use of spices to reduce salt and sugar intake has significantly boosted direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales increased by 5.2% last year.
In addition to updating and rebranding existing products, the company has conducted internal research to monitor changing consumer behaviors. Later this year, McCormick plans to launch its Good Morning line, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, tapping into the strong growth in the breakfast segment. Research from The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with 70% of breakfasts still being enjoyed at home.
As consumers become more health-conscious, discussions around magnesium citrate vs calcium citrate are becoming increasingly relevant. McCormick recognizes the importance of catering to health-focused trends, and by integrating these considerations into their product development, they are well-positioned to meet evolving consumer needs, particularly in the context of enhancing culinary experiences with nutritious and flavorful options. Ultimately, McCormick’s ability to adapt to changing tastes while focusing on quality ingredients will likely be a key driver of their future success in the marketplace.