Make It New
According to the November 2012 “American Eating Trends” report from Canada’s Agriculture and Agri-Food website, sales of pickled products — including olives — are expected to reach $2.4 billion by 2015. This figure represents a very modest increase over the $2.3 billion in sales that occurred in 2011.
However, olives, along with pickles and relish, continue to lead the condiment category with 26.1 percent of condiment sales, global market researcher Mintel states in its August 2012 report, “Condiments — US,” likely because of the variety of options offered to consumers.
Trends with traction
According to Robert Goldin, executive vice president of Chicago-based Technomic, trends such as authentic ethnic flavors and affordable indulgence have spilled over from the foodservice industry into the retail industry — including the olives category — in recent years. Whether the olives are flavored with lemon and garlic or stuffed with anchovies, consumers have come to expect premium offerings and affordable prices from both national and store brands.
To continue attracting shoppers, therefore, retailers should look to increase their premium olive offerings, as well as natural and refrigerated olive varieties. And consumers’ ongoing interest in health and wellness should help retailers succeed here.
“I believe that the trend to more varieties [of olives] will continue as the consumer continues to become more educated about the health trends of olives and the Mediterranean diet,” says Dan Kelly, vice president of sales for Tracy, Calif.-based Musco Family Olive Co.
The core markets for olive consumption — where consumption is at least 20 percent above average — continue to be adults aged 55 or older, affluent households and whites/non-Hispanics, “American Eating Trends” states. Retailers should continue to market to these consumers while keeping in mind the need to constantly cultivate new shoppers.
Trends on the horizon
Despite olives’ healthful reputation, consumers appear to be concerned when it comes to sodium content. In fact, 52 percent of respondents to a 2012 Mintel survey said either “low-sodium” or “sodium-free” was an important health claim for condiments such as olives, as were claims such as “natural” and “free-from artificial additives/preservatives.” Going forward, retailers have an excellent opportunity to revamp their private label olive options with these qualities proudly displayed on the packaging for consumers to see.
The “American Eating Trends” report also notes that olives are consumed as an in-home snack only 6.1 percent of the time and are carried away from the home to serve as a meal or snack only 0.9 percent of the time. So retailers also have a prime opportunity to introduce packaging that promotes snacking on olives, both in the home and on the go.
“Portable packaging will continue to develop; however, product quality and aesthetics will be critical in making portable packaging, like pouches, stick,” Kelly adds.
Additionally, the report reveals that American consumers tend to eat olives mostly during the winter (45.6 percent of the time) and least often during the fall (11.4 percent of the time). Perhaps by placing a heavy emphasis on promotions during the fall season, retailers would be able to increase sales and consumption of whole olives during this relatively slow period.