Food Trends

One of the major trends that I’m observing as I travel around the country is the number of entrepreneurial companies that are being started up in the food business. Many of these companies are small, but are in niches that could have huge potential in the long-term. Here are some of the trends in this area:

1. Food Incubators—I saw my first one in Athens, OH two years ago. Since then I’ve seen or learned of over a half dozen others that are being started. These futuristic ventures allow small, local entrepreneurs to have the advantages of big companies in producing their product.

2. Organic is growing at double digit rates. It is starting to spread from the coasts into the heartland.

3. Drive thru coffee shops—I’ve seen them in virtually every small town in WA and OR. They will be coming to a town near you. Great area for entrepreneurial activity. What other food items could have a convenience component added to them, like drive thru coffee?

4. Local & sustainable production—Again a trend from OR that could grow as fast as the organic one. Help your local farmers to get onto this new market with local supermarkets and farmers markets.

5. Chocolate—Local candy shops are hot, making the candy on premises. Dark chocolate is supposed to lower your LDLs and prevent arterial plaque, which is the excuse of why to consume, but it is the taste that keeps them coming back. Super-premium hot chocolates in exotic flavors is another niche.

6. Combination shops of chocolate, coffee and red wine cafes. Add super premium sandwiches and you’ve got a great snacking niche.

7. Bison is the new health food for carnivores.

8. Cheese—I’m looking for the region that picks up the concept of becoming the next Napa Valley of Cheese. It should be in VT or WI but might develop somewhere else.

9. Specialized niche production—Whether it is lavender in Sequim, WA; pistachios in Wilcox, AZ; blueberries in Urbana, OH or Olive Oil in Rutherford, CA, I’m seeing America’s farmers finding unique products to grow and market. There is a much bigger future in these specialized crops for most farmers, rather than trying to be the low-cost commodity producer. Check out the Agricultural Marketing Resource Center (AGMRC) at Iowa State (www.agmrc.org), which is developing various economic models for these niche producers.

10. Ethnic Trends—When we moved home 25 years ago we couldn’t find a flour tortilla, now there are numerous varieties and brands to chose from at our local grocery store. Marsha Laux of AGMRC said it best, “Don’t forget the influence of the changing demographics on food trends….Ethnic foods will mean we need to meet the needs of new food consumers. Goat meat is a very good example of this—the growth and interest has been amazing.”

What are you doing to help get entrepreneurs started in this rapidly growing area? Let me know.