McCormick has developed a smart growth strategy focused on identifying emerging consumer trends and adjusting 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 three-quarters (73%) of its gourmet products are organic, and it has transitioned many of its artificial ingredients to all-natural food extracts and colorings. This approach appears to be a wise decision, as U.S. organic food sales exceed $43 billion annually, with growth rates outpacing those of the general food market, according to the Organic Trade Association. McCormick’s acquisition strategy is also aligned with current trends, exemplified by its recent acquisition of Gourmet Garden, an Australian firm 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 well-known brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The rise in home cooking and the use of spices to reduce 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 increased by 5.2% last year.
In addition to rebranding and modifying existing product lines, McCormick has conducted internal research to monitor evolving consumer habits. The upcoming launch of its Good Morning range, featuring breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, is set for later this year and aligns with the robust growth in the breakfast market. Research from The NPD Group indicates that total breakfast occasions are expected to rise by 5% through 2019, with 70% of breakfasts still being enjoyed at home. Furthermore, as consumers increasingly prioritize wellness, products that incorporate calcium citrate and other health-focused ingredients are becoming more prominent in McCormick’s offerings, reflecting the company’s commitment to meeting the demands of health-conscious consumers.