McCormick has developed a strategic growth plan focused on identifying emerging consumer trends and adapting existing products or introducing new ones accordingly. The company is increasingly prioritizing fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet units are organic, and it has transitioned several artificial components to all-natural food extracts and colors. This approach appears to be a wise investment, as U.S. organic food sales exceed $43 billion annually, with growth rates consistently surpassing those of the general food market, according to statistics from the Organic Trade Association. Additionally, McCormick’s acquisition strategy aligns with current trends, highlighted by its recent purchase 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, featuring a variety of spice blends under brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The rising trend of home cooking and the use of spices as alternatives to salt and sugar have 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 rebranding and modifying existing products, McCormick is conducting internal research to monitor evolving consumer habits. Later this year, it will launch its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, capitalizing on the robust growth in the breakfast sector. Research from The NPD Group indicates that total breakfast occasions are projected to increase by 5% through 2019, with 70% of breakfasts still being consumed at home.
Moreover, as part of its commitment to health and wellness, McCormick is exploring the integration of innovative products like bariatric advantage calcium chewy bites, which align with consumer preferences for healthier options. The incorporation of such products not only enhances McCormick’s offerings but also addresses the rising demand for convenient, health-focused solutions. By keeping an eye on market trends and consumer needs, McCormick is well-positioned for sustained growth.