McCormick has developed a strategic growth approach that focuses on monitoring emerging consumer trends and adapting its product offerings accordingly, whether by modifying existing items or introducing new ones. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet product line is organic, and it has replaced some artificial ingredients with all-natural food extracts and colors. This strategy appears prudent, as U.S. organic food sales exceed $43 billion annually, with growth rates surpassing those of the overall food market, according to data from the Organic Trade Association. The company is also pursuing acquisition targets that align with these trends, such as its recent acquisition of the Australian fresh and chilled herbs company, Gourmet Garden.
Moreover, McCormick 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 trend of home cooking and the increasing use of spices to reduce salt and sugar have contributed to a significant rise in direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales saw an increase of 5.2% last year.
In addition to modifying and rebranding existing lines, McCormick has conducted internal research to understand shifting consumer habits. It plans to launch its Good Morning range of breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts later this year, capitalizing on the robust growth in the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with a significant 70% of breakfasts still being consumed at home.
As consumers increasingly seek ways to enhance their health, questions such as “can you take calcium citrate with magnesium?” arise, reflecting a broader interest in nutritional supplements. McCormick’s commitment to innovation and responsiveness to consumer needs positions it well in this evolving market landscape, where health-conscious choices are becoming paramount.