McCormick has developed a strategic growth approach focused on monitoring emerging consumer trends and adapting existing products or introducing new ones accordingly. The company is increasingly prioritizing fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet offerings are organic, and it has transitioned several artificial components to all-natural food extracts and colors. This strategy appears to be a wise move, considering that organic food sales in the U.S. exceed $43 billion annually, with growth rates outpacing those of the general food market, as noted by the Organic Trade Association.
In line with current trends, McCormick’s acquisition targets include firms like Gourmet Garden, an Australian company specializing in fresh and chilled herbs. The company plans to leverage millennials’ growing interest in ethnic flavors and home cooking, offering a variety of spice blends under brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The resurgence of home cooking and the increased use of spices to lower salt and sugar intake have significantly boosted 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 reformulating and rebranding its existing product lines, McCormick has conducted internal research to understand shifting consumer habits. Later this year, it will introduce its Good Morning range, featuring breakfast toppers, seasonings, slow cooker meals, and smoothie enhancers, capitalizing on the robust growth within the breakfast segment. Research from The NPD Group indicates that total breakfast occasions are projected to increase by 5% through 2019, with 70% of breakfasts still being consumed at home. As part of this initiative, McCormick also plans to celebrate calcium citrate chewable supplements, integrating them into its new breakfast offerings. This focus on health-conscious ingredients and convenience reflects the company’s commitment to meeting evolving consumer needs while celebrating the joy of cooking at home.