Top product categories in demand: Insights from Mike McGrath, Kwayga CEO

With over 15 years of experience in food sector sourcing and procurement, I’ve observed more significant shifts in supermarket buyer priorities in the last 2 years, than in the combined 13 years prior to that. As we look at 2024, a few key product categories are emerging, providing valuable opportunities for suppliers and retailers to align with market needs and capitalise on growing trends.

1. Chocolate and Chocolate Alternatives: Responding to Supply Chain Disruptions

Chocolate and chocolate-rich products continue to be in high demand, irrespective of the season or economy. However, the cocoa supply chain has been severely impacted by climate disruptions in major production regions like West Africa, where erratic weather patterns have reduced yields and driven up prices. Supermarkets are increasingly looking for solutions that can provide the taste and texture of chocolate while avoiding these price surges. This has sparked demand for chocolate alternatives, where suppliers can innovate by offering products that contain less cocoa or are sourced from alternative suppliers at lower prices.

Many retailers are exploring products that use sustainable cocoa or even chocolate substitutes like carob and cacao-free options, as consumers are open to new tastes that align with ethical and budget-conscious values.

2. Healthy Habits: High-Protein Products and No- and Low-Alcohol Beverages

The demand for products that align with healthy habits continues to grow, with significant growth since the Covid Pandemic. The developed world has a particular focus on high-protein products and no- and low-alcohol beverages.

High-Protein Products

Consumers are increasingly interested in the benefits of protein in their daily diets. High-protein products are seen as essential for promoting muscle health, satiety, and general wellness, making them especially popular among health-conscious shoppers. Supermarket buyers are responding to this demand by seeking high-protein options across various categories. On Kwayga, we’ve recently seen interest in high-protein ice creams, which allow consumers to indulge in treats while still receiving the added health benefits of protein.

High-protein versions of baked goods, meats, dairy products, and even beverages are becoming commonplace. Consumers are increasingly looking for products that offer these nutritional benefits without sacrificing flavour or convenience, creating an exciting opportunity for suppliers who can meet these evolving needs.

No- and Low-Alcohol Beverages

The no- and low-alcohol trend, often referred to as the "mindful drinking" movement, is gaining momentum globally. With consumers becoming more health-conscious, many are choosing beverages that reduce alcohol intake while still offering a premium experience. The overall no/low-alcohol segment showed volume growth of 47%, 2022 to 2023 in the UK, with forecast volume CAGR of +19%, 2023 to 2028. Low-alcohol volume sales almost doubled in 2023 and it’s expected considerable growth over the next few years, particularly driven by low-alcohol beer.

On Kwayga, we’ve seen increased demand for low-ABV products, such as 2.5% ABV cider and low-ABV IPAs. These products cater to consumers who want to reduce their alcohol consumption without compromising on taste or experience. Millennials and Gen Z are particularly driving this trend, as they prioritise wellness and seek premium non-alcoholic options that incorporate bold flavours.

3. Sustainable Habits: The Rise of Alternative Proteins

The growing consumer focus on sustainability is driving demand for alternative proteins. These proteins offer a solution to environmental concerns around traditional animal farming, while also meeting consumers’ evolving dietary preferences.

The market for plant-based proteins continues to expand, with consumers looking for more environmentally friendly and health-conscious alternatives to animal products. 48% of meat consumers in the UK say that they have reduced their annual meat intake. Products like tofu, tempeh, and plant-based burgers are now mainstream, and the demand for innovative plant-based options is only growing.

At the same time, insect-based proteins are gaining traction as a sustainable and nutrient-rich alternative. Insects require minimal resources to farm compared to traditional livestock and offer a high protein content, making them a promising solution for both human consumption and animal feed. Though still in the early stages in Western markets, this trend is expected to accelerate as consumer awareness increases​.

4. Ethnic and Foreign Foods: Catering to a More Diverse Consumer Base

As migration continues to rise across Europe, supermarkets are increasingly stocking foreign food products to cater to a more diverse and multicultural consumer base. Many supermarkets are looking for foods that appeal to new immigrant communities while also resonating with more adventurous consumers who are eager to explore global flavours. Supermarkets are particularly interested in products that maintain authenticity, from traditional spices to ready-to-eat ethnic meals. This trend is expected to continue expanding, especially in urban centres across Europe.

Conclusion

At Kwayga, we’re seeing these trends reflected in the purchase requests from supermarket buyers on our platform. Kwayga’s game-changing supplier sourcing technology is being used by proactive grocery buying teams throughout the UK and Ireland, to ensure suppliers are onboarded quickly for evolving consumer demands. Supermarkets are more focused than ever on meeting the changing preferences of their consumers, and suppliers that can innovate and provide scalable solutions in these key categories will find themselves well-placed to build strong partnerships with retailers across the UK and Europe.