McCormick has developed an astute growth strategy focused on monitoring emerging consumer trends, allowing the company to either modify existing products or introduce new ones accordingly. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet product line is organic, and it has replaced some artificial ingredients with all-natural food extracts and colors. This approach appears to be a wise investment, as U.S. organic food sales exceed $43 billion annually, with growth rates consistently surpassing those of the general food market, according to data from the Organic Trade Association.
Additionally, McCormick’s acquisition targets align with current trends, including its recent acquisition of the Australian fresh and chilled herbs company, Gourmet Garden. The brand has demonstrated its intention to leverage millennials’ growing interest in ethnic flavors and home cooking, offering a variety of spice blends under labels such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The trend towards home cooking and utilizing spices to reduce salt and sugar intake has resulted in a significant increase in direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales rose by 5.2% last year.
In addition to modifying and rebranding existing products, McCormick has conducted internal research to keep pace with changing consumer behaviors. The upcoming launch of its Good Morning range—featuring breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts—aims to capitalize on the robust growth in the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to rise by 5% through 2019, with 70% of breakfasts still consumed at home. Furthermore, as consumers seek healthier options, incorporating products like calcium citrate tablets into their routines has become increasingly common, reflecting a broader trend towards health-conscious eating. McCormick’s strategy not only aligns with these dietary shifts but also emphasizes the importance of innovative products that resonate with today’s health-focused consumers.