Stand Out from the Crowd
Edible oils are a cooking staple in most American households. Global market researcher Mintel states in its July “Butter, Margarines and Oils — US” report that 93 percent of consumers report buying cooking oil (vegetable, canola or corn), and 90 percent report buying olive oil.
And since edible oils are a commodity, consumers often decide what to buy based on price, which can result in trading between oil categories such as vegetable and sunflower oil, and trading between national and store brands, states Catherine O’Connor, senior analyst for global market researcher Canadean. This lack of brand loyalty has also led to fairly high private label penetration in the United States and Canada, at 19.9 percent and 16.6 percent, respectively.
Trends with traction
Health and wellness concerns continue to play a vital role in consumer purchasing behaviors. When purchasing oils, more than half of consumers are looking for products without trans fats and additives/preservatives, and products that are all-natural, Mintel states. They’re also interested in products that are cholesterol-free or, even better, that help to lower cholesterol when used.
Olive oil, in particular, continues to remain popular among Americans because it is naturally free from trans fats and cholesterol, and is thought to decrease blood pressure and improve bone mineralization and calcification, helping to combat osteoporosis, O’Connor says.
As for packaging, PET bottling for olive oil continues to gain in popularity, says Mark Coleman, vice president, retail sales for Catania-Spagna Corp, Ayer, Mass. Not only can PET bottles be more resilient than glass, reducing damage costs, but they also present a savings in freight costs for the retailer, which can be passed along to the consumer.
Trends on the horizon
As for what the future holds, flavored oils could be the next big thing, Mintel states. Some national brands are selling olive oils infused with flavors such as basil, rosemary and lemon peel. One national brand is even selling butter-flavored olive oil for consumers who want the taste of butter without the saturated fat, sodium and cholesterol butter contains.
And while only 14 percent of consumers report wanting to see more flavored oils, consumer education could be all that’s needed to attract additional interest. If consumers were more aware of how flavored oils could accent recipes or provide flavor sensations, these products could gain significant market share, Mintel says.
Oil made from non-GMO plants is another trend that is continuing to grow in the United States, Coleman says. In Europe, all oils must be derived from such sources, and several states are looking into adopting this standard, which could force the United States as a whole to take this particular movement much more seriously.