SKUFood trends for 2023

December 19, 2022
/ SKUBlog
/ By Susan Sipos

Not sure about you, but the fourth quarter seems to have flown by! As we all move around more and get busy with travel, activities, work and everything else the weeks come and go. Our industry continues to evolve at an accelerated pace with inflation dominating the shopping experience. We see retailers like Walmart offering holiday items at 2021 prices and the No Name price freeze from Loblaw. One thing that does not change is consumers can vote at the cash register each week. We have to stay on top of the changes and look to the future to ensure your food and beverage business is positioned for the future.

We have some trends for you to consider as we get into 2023. We approach this a bit differently than some of the other trend reports you see out there, as our trends are developed for suppliers in the food and beverage industry. They are based on what we learn talking to different retailers, suppliers and stakeholders in the industry.

Our top 10 trends for suppliers in food and beverage for 2023

Calm focus on the priorities: Everyone has endured 2-3 years of upheaval and challenges to get products produced. Retailers are looking to work with suppliers who are focused on how they can get it done as opposed to the reasons why they can’t.
Sales growth is key: With consumers returning to food service, retailers are facing negative comparable sales. Any supplier who delivers positive year over year growth will be ahead of many.
Stability in product cost: Food inflation is a big issue and retailers are eager to work with suppliers who find a way to keep their costs in line and deliver stability.
Local products that sell: Retailers have allocated more space and resources to regional and local brands. Now they need to see them deliver sales.
Sustainability matters: Sustainable packaging, reduced food waste and your environmental footprint all matter. They can be a path to the shelf or your route off the shelf if someone else in your category figures it out.
Next generation of plant-based products: It has been enough to be plant-based, now the products need to taste good and sell. There are opportunities for products that perform like the products they are designed to replace. Plant-based is not enough anymore.
Reduce logistics costs: Products need to get from where they are produced to the shelf and it is costing more all the time. Retailers might entertain creative solutions such as fewer deliveries of more products, to share some benefits.
Accountants will have more input: Retailers are facing higher interest rates like everyone else. The cost of inventory and when it is paid for will be under more focus and pushed to the limits.
Communication is evolving: Some retailers are back with in person meetings and others prefer video. Keep an open mind. Remember they are all different.
Watch your category: With sales declines in retail, food inflation and focus on inventory, a lot might change. There could be a lot of pressure to drive private label, reduce SKUS and focus on items that sell. Spend time in the stores and talk to your customers about how to deliver sales growth.

With next week being a very busy week in the food and beverage industry we will take the week off with our SKUFood newsletter. In the first 10 weeks of 2023 we will provide more insights and explore our trends.

If you have any questions about our SKUFood trends, you can always send me an email peter@skufood.com or call me at (902) 489-2900.

Peter

More trends for you to consider

Nourish Food Marketing from Toronto does considerable work in the food and beverage space. They release trends each year that are more consumer focused.

Nourish Marketing- Trend Report

Phase 1 of single use plastics ban in Canada comes into effect

The timelines for the implementation of the federal government’s single use plastic ban were impacted by the pandemic. Next week a number of initiatives outlined in this article come into effect.

The change will be more apparent at food service and we already see a lot of new products in these establishments. As outlined in our 2023 trends sustainability is not going anywhere and regulators, driven by consumers are demanding change.