Food Evolution in America: Its Impact on Food Trends, Consumer Behavior, National Health, and Global Markets

1. +
Allison Kristofco
MBA 592
Dr. Jennifer Edmonds
Food Evolution in America: Its
Impact on Food Trends,
Consumer Behavior, National
Health, and Global Markets

2. +
Topics to be Covered
 Introduction
 Food trends in America over the last 50 years
 Consumer Demand
 Marketing Changes / Marketing Trends
 Impact
 Concerns / Issues / Challenges
 Conclusion

3. +
Introduction
 The American diet has changed significantly over the last fifty
years.
 Fast food
 Options in low-fat and low-carb.
 Superfoods
 Consumer demand and marketing efforts have changed along
with these markets.
 Changes in packaging
 Changes in advertising
 Creation of complementary goods and services

4. +
Introduction
 Concerns / Issues / Challenges
 Regulatory
 Labeling of GMOs
 GMOs
 Organic foods
 What we do here has a larger impact globally
 Our eating habits affect those around the globe

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How Did We Get Here?
Fast Food

6. +
How Did We Get Here?
Options in Low-Fat, Low-Carb.

7. +
How Did We Get Here?
Superfoods

8. +
Trends – Fast Food
 Emergence and expansion of fast food began in the 1950s
 McDonald’s paved the way for the industry
 By 1960 there were 100 McDonald’s locations
 By 1990 there were 11,800 McDonald’s
 6,298 Burger Kings
 3,721 Wendy’s
 In 2012, there were more than 160,000 fast food locations in
America.
 These locations feed more than 50 million Americans each day.
 They generate more than $110 billion each year.
 Inexpensive menu offerings keep consumers coming back

9. +
Trends – Fast Food
 The fast food industry made it through the Recession relatively
unscathed
 Ease and convenience
 Low menu prices = “Bang for your buck”
 In terms of calories per dollar, fast food is an incredible value
 McDonald’s Two Cheeseburger Meal  213 calories per dollar
 Taco Bell’s Chicken Flatbread Big Box  234 calories per dollar
 KFC’s Colonel’s Fully Loaded Box  257 calories per dollar

10. +
Trends – Fast Food
 Unhealthy foods are less expensive to purchase
 Their prices are less likely to increase due to inflation
 Energy-dense foods costs $1.76 per 1,000 calories
 It only costs $3.52 for 2,000 calories of energy-dense food
 Low energy-dense foods cost $18.16 for 1,000 calories
 It will cost $36.32 for 2,000 calories worth of low energy-density
food

11. +
Trends – Fast Food
 Although obesity rates have leveled off in recent years, the
number of obese people in America is staggering.
 The rates here are the highest among all developed countries
 “Roughly two out of three US adults are overweight or obese
(69 percent), and one out of three are obese (36 percent).”
 Harvard T.H. Chan School of public Health
 Obesity rates are higher in non-Hispanic Black, Hispanic, and
Mexican American adults

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Trends – Fast Food

13. +
Trends – Low-Fat, Low-Carb.
 This market emerged in the 1970s when America saw its first
dietary guidelines.
 The McGovern Report recommended that Americans eat less
fat, due to the belief that it had strong ties to heart disease.
 No substantial scientific evidence to support these claims.
 Fat has more calories per gram than protein or carbohydrates.
 The belief was that less fat would lead to more healthful
people.
 This report led to the emergence of foods that were low in fat.
 Low-carb would soon follow

14. +
Trends – Low-Fat, Low-Carb.
 These guidelines were put into place to make Americans more
health-conscious.
 Although the first dietary guidelines emerged in the 1970s, the
first Food Pyramid did not appear until 1992.
 However, there were some unintended consequences.
 Despite the decrease in the fat content in the typical American
diet, the amount of calories did not.
 Overall calories actually increased.

15. +
Trends – Low-Fat, Low-Carb.
 Fat calories that were removed from foods were replaced with
other things.
 Carbohydrates and sugar
 The calories in these “healthier” alternatives are comparable to
their “unhealthy” counterparts.
 People didn’t believe that they could cause them to gain weight.

16. +
Trends – Low-Fat, Low Carb.
 Lessening the fat in daily diets did not prove to make much of a
difference in regards to heart disease.
 Americans were cutting out all fats, even healthy ones.
 Instead, Americans were overeating foods that they believed
were to be healthier for them.
 This time frame coincides with rising obesity rates in the US.

17. +
Trends – Low-Fat, Low-Carb.
“What right has the federal government to propose that the
American people conduct a vast nutritional experiment, with
themselves as the subjects, on the strength of so very little
evidence that it will do them any good?”
– Phil Handler, prior president of the National Academy of
Sciences

18. +
Trends – Superfoods
“Modern Day Hippie”
 There are currently no set criteria for what makes a food into a
“superfood.”
 Oxford Dictionary defines a Superfood as “nutrient-rich food
considered to be especially beneficial for health and well
being.”
 Many believe superfoods to be perpetuated by marketing
efforts.
 There are many foods currently in supermarkets that have
similar benefits, but aren’t seen as superfoods because they
aren’t new and exotic.

19. +
Trends – Superfoods
“Modern Day Hippie”
 The average American is being more health-conscious today.
 Public policy has begun to attempt to influence how Americans
eat.
 Taxes on sugary drinks have been proposed
 Junk food and sodas have been taken out of schools
 Personal responsibility has become a hot topic as of late as
well.

20. +
Trends – Superfoods
“Modern Day Hippie”
 The movement toward more natural food offerings has caused
more people to speak out about food preparation.
 Genetically Modified Organisms (GMOs)
 Genetically altered seeds
 An estimated 80% of packaged food contain some form of GMO
 Organic food offerings have seen more shelf space in
supermarkets
 Grassroots campaigns are becoming more and more common
as people question the practices of the food industry.

21. +
Trends – Superfoods
“Modern Day Hippie”
 Organic farming is largely “faith-based”
 USDA has lenient testing protocols, and they actually oppose
more stringent testing and monitoring
 USDA does not require organic foods to be GMO free.
 In 2012, the USDA reported that 43% of “organic” produce
tested contained prohibited pesticide residues.
 Items were mislabeled
 Inadequately protected from prohibited pesticides

22. +
Consumer Demand – Fast Food
 Fast food popularity has grown exponentially since its
mainstream emergence in the 1960s.
 Today, there are more than 160,000 fast food locations across
America.
 Feed more than 50 million people everyday
 Generates more than $110 billion annually
 People have started demanding healthier fast food alternatives.
 Salads have been introduced, but they aren’t necessarily healthy.

23. +
Consumer Demand – Fast Food
 Fast casual restaurants have grown in popularity as of late.
 Chipotle, Moe’s, and Panera
 This market has grown 550% since 1999
 More than 10x the growth of the fast food industry during that time
frame
 People are looking for more natural food offerings
 Some fast food locations are trying to adapt to these changes.

24. +
Consumer Demand – Low-Fat, Low-
Carb.
 High level of demand since its inception.
 Americans want the things they love without all the guilt.
 There is a “healthy alternative” for almost any food offering on the
market.
 Partnerships have been created between companies to meet
current demands.
 Weight Watchers
 Heinz (Smart Ones)

25. +
Consumer Demand – Superfood
“The Modern Day Hippie”
 Consumers are looking for more healthy foods for their diets.
 Consumers are also looking to be more informed about their
food choices.
 GMOs
 Organic
 Clear Packaging

26. +
Consumer Demand – Superfoods
“Modern Day Hippie”
 Organic foods are becoming more prominent in supermarkets
today.
 The demand for natural foods causes consumers to look for stores
like Wegmans and Whole Foods.
 Americans are becoming more vocal about food processing
and genetically modified organisms
 Customer feedback has caused companies to remove
aspartame from their foods
 Diet Pepsi
 Yoplait Yogurt

27. +
Marketing Changes – Fast Food
 Fast food restaurants are striving to provide healthier options.
 McDonald’s has advertised healthier Happy Meals.
 However, 33 of 5,427 possible meals meet recommended nutrition
standards.
 Fast Food chains have begun remodeling their locations to
attract a different clientele.
 Looking to rebrand
 Change their image

28. +
Marketing Changes – Fast Food
 Many Americans are concerned about the nutritional value in
fast food, especially for their children.
 Legislation has been proposed to prohibit the inclusion of free toys
in kids meals.
 Toys can only be included if the meal meets certain nutritional
standards.

29. +
Marketing Changes – Low-Fat, Low-
Carb.
 Companies are looking for healthier ways to produce these
food offerings.
 They are advertising the wholesome aspect of their products in
the marketplace today.
 Using natural zero-calorie sweeteners
 Truvia
 Stevia
 Foods need to appear to be wholesome, especially as superfoods
continue to grow in popularity

30. +
Marketing Changes – Superfoods
“Modern Day Hippie”
 Packaging for items has changed dramatically as companies
look to go along with the current “wholesome” trend.
 Clear packaging
 Consumers believe the food to be healthier since they can see
the contents
 Believe the food to be a higher quality
 Companies are looking to influence consumer behavior
 Focusing on the origins of foods
 Whole grains
 Granolas
 “Less processed is better”

31. +
Marketing Changes – Superfoods
“Modern Day Hippie”
 Industry is seeing a “bottom-up” marketing strategy, rather than
a “top-down” movement.
 Companies are working diligently to listen to consumer
feedback for future steps.
 Commercials are showing these changes.
 Diet Pepsi and Yoplait

32. +
Impact - Consumers
 Deterioration of overall health of Americans
 Fast Food
 Low-Fat, Low-Carb.
 1950s
 Less than 10% of Americans were overweight or obese
 1970s
 Roughly 15% of Americans were overweight or obese
 2012
 An estimated 32% of Americans were overweight or obese

33. +
Impact - Consumers
 The desire for cheaper food alternatives has had a dramatic
impact on the consumers in the marketplace.
 Not one state in the US meets the Healthy People Guidelines
for obesity.
 Rates should be 15% or less
 Many states have a rate that is double this (~30%)
 In 2010, one state had a rate less than 20% (Colorado)

34. +
Impact - Consumers
 Obesity rates are creating serious health problems.
 Will be a significant expense for National Healthcare
 Obesity shortens life spans
 Also increases medical costs significantly
 Estimated that $150 billion will be spent annually on obesity-
related illnesses.
 Projected that more than $174 billion will be spent annually on
diabetes-related illnesses
 By 2022, the overweight/obesity rate could top 75% in the US

35. +
Impact - Economy
 New industries have emerged due to these to help combat
obesity.
 “Cashing in on obesity”
 Fitness trackers, fitness apps, supplements (Advocare,
Shakeology), meal plans (Nutisystem, Jenny Craig), organic
offerings, Weight Watchers.
 National Healthcare will be significantly impacted by obesity-
related illnesses

36. +
Impact - Globally
 Other parts of the world are affected as the eating patterns in
the United States change.
 “Globesity”
 Other countries are seeing rising obesity rates as their diets
become more Western in nature.
 Saudi Arabia has rates similar to that of America
 2/3 of their population is overweight or obese
 The wealth that was brought into this region from oil has changed
their lifestyle

37. +
Impact - Globally
 However, even areas of the globe that are not wealthy are
seeing similar trends in their populations.
 Obesity is no longer an affliction of the wealthy
 More people die from obesity-related illness than from malnutrition.

38. +
Impact - Globally
 Increased demand for quinoa in America has changed the
environment in Bolivia.
 It was once a dietary staple
 Locals can no longer afford to buy it
 Importing more processed foods
 Dietary quality is dropping substantially
 Land once used to produce other crops is now being used or quinoa
 Creating a quinoa monoculture

39. +
Concerns/Issues/Challenges
Regulatory
 Policy in the US is experiencing changes
 Fast food nutritional information availability
 Americans are pushing for more transparent labeling for foods
 Especially in regards to GMOs
 Can be sued for cross-pollination
 Seed technology is patented
 Farmers are forced to comply with large companies
 An estimated 80% of packaged foods contain some kind of
GMO
 85% of all corn
 91% of all soy
 90% of canola
 88% of cotton
 90% of sugar beets

40. +
Concerns/Issues/Challenges
Regulatory
 165 million acres of GMOs in the US
 420 million worldwide
 Consumers are looking to make more informed decisions
 Legislation has encountered roadblocks from companies like
Monsanto
 Threaten to sue states that look to pass legislation
 GMOs are labeled in 60+ countries and banned in 35+, so why
are they allowed in the US?
 Strong lobbying efforts
 91% of Americans want labeling

41. +
Concerns/Issues/Challenges
Regulatory
 Organic farming is largely faith-based
 USDA has lenient testing
 Cross contamination occurs very easily so many “organic” foods are
not truly organic
 In 2012, a random sample showed that 43% of “organic” foods
tested contained prohibited pesticides
 a

42. +
Conclusion
 What we do here in America has dramatic impacts domestically
as well as internationally.
 We are the frontrunners in the marketplace, and our bad habits
spread abroad.
 This has dramatically reduced the quality of food internationally, as
a whole
 Legislation needs to be overhauled in order to reverse the
GMOs and “organic” issues that we see today.
 Lobbyists have created many road blocks for public policy.

43. +
Conclusion
 I believe that the obesity rates in America will continue to
increase, even with increased consumer awareness.
 The Low-Fat/Low-Carb era coincided with increasing obesity
rates.
 The trend of superfoods will continue this.
 Whole foods can be higher in calories, even though they have
vitamins, minerals, and antioxidants.
 “Eating this won’t make me fat.”
 Whole wheat bread calories vs. white bread
 Calories still count
 National healthcare will face significant problems due to obesity-
related illnesses

44. +
Allison Kristofco
MBA 592
Dr. Jennifer Edmonds
Food Evolution in America: Its
Impact on Food Trends,
Consumer Behavior, National
Health, and Global Markets