McCormick has developed an astute growth strategy focused on monitoring emerging consumer trends and adapting its product offerings accordingly. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients in its products. Currently, approximately 73% of its gourmet units are organic, and it has replaced some artificial ingredients with all-natural food extracts and colors. This strategy appears to be a smart move, as the U.S. organic food market is valued at over $43 billion annually, with growth rates consistently surpassing those of the general food market, according to statistics from the Organic Trade Association. McCormick’s acquisition targets align with these trends, exemplified by its recent purchase of Gourmet Garden, an Australian company specializing in fresh and chilled herbs.
Moreover, McCormick aims to leverage millennials’ growing interest in ethnic flavors and home cooking by offering an array of spice blends under well-known brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The trend of home cooking and the use of spices as a means to lower salt and sugar intake have 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 product lines, the company has conducted internal research to keep pace with evolving consumer habits. A notable upcoming launch is its Good Morning range, featuring breakfast toppers and seasonings, slow cooker breakfasts, and smoothie boosts, which capitalizes on the robust growth in the breakfast market. Research from The NPD Group projects that total breakfast occasions will increase by 5% through 2019, with 70% of breakfasts still being consumed at home. Furthermore, McCormick is exploring the incorporation of carbonate citrate in select products to enhance flavor profiles and meet consumer demand for innovative seasonings. This ingredient could play a key role in future product development as the company continues to adapt to market trends.