Spice blend sales surge as consumers seek flavorful solutions for easy home cooking, reinventing leftovers, McCormick executives say

By Elizabeth Crawford

- Last updated on GMT

Source: Getty/	Image Source
Source: Getty/ Image Source
Flavor exploration remains essential for consumers as they look for ways to manage their food budgets amid ongoing inflation, including by investing in herbs, spices and flavor blends that help them cook at home more and reinvent leftovers to reduce waste and cost, according to executives with spice and extract giant McCormick & Co.

Even though inflation is slowing, consumers, “definitely remain challenged,” and “when they are [financially] pressured, they tend to cook at home more often,” which means they are looking for more spices, herbs and blends to keep their meals interesting, McCormick & Co. CEO Brendan Foley said earlier this month at Barclays 17th  ​Annual Global Consumer Staples Conference.

“During the pandemic, consumers really did learn how to cook, because they had to in a lot of ways, and also they are still cooking a lot more right now, because there is this period of high inflation. As savings were depleted and stimulus was depleted, we definitely see that behavior still happening. I think overall still, and this has been a pretty consistent number for the past two years, about 86% of meal occasions are happening at home, which is still about two points higher than it was pre-pandemic,” he said.

Likewise, he said, many value-seeking consumers are relying on leftovers that previously might have been wasted, but they are reimaging them into new meals with different spices.

“Even during this time of value, flavor exploration still remains an active part of our category. We just have to make sure that we have all different forms of value for that consumer, and we have the innovation agenda to match that right,” Foley said.

To this end, he said, McCormick is “definitely seeing accelerated growth … because you have got to flavor that broccoli, got to flavor that chicken. You are not buying things already prepared or made, and you are not going out to eat, necessarily, as frequently as you used to. And so that tends to benefit our categories.”

Size matters: packaging innovation meets range of consumer needs

Foley explained consumers seeking savings on spices tend to gravitate to two ends of the spectrum: They either buy in bulk for lower cost per serving or they buy “mini” sizes with a lower price per unit.

“I am seeing a little bit more movement and shift towards larger sizes, which had decreased, then it stayed flat for awhile, and now we are starting to see it reappear again,” he said. “And then, ironically really small sizes are starting to grow fast, too. You are starting to see that there is an opportunity in mini or trial sizes … to try new flavors. So, that lowers the barrier of trial for people. Even though they are not going to spend a lot, it shows they still want innovation.”

Consumers also are gravitating to McCormick’s “Recipe Mixes,” or seasoning packets, which are “a real value for the consumer” because for $1.29 to $1.49 they can flavor an entire meal, Foley said.

Gen Z opts for premium blends

While McCormick’s Gourmet spice blends are more expensive than its typical assortment of “Recipe Mixes,” Foley said sales of the premium line is accelerating and resonating with younger consumers, who favor “higher quality and more expensive items in terms of flavor.”

“Gen Z is playing. Their cooking skills are not where they need to be. They are still building their own homes or apartments or whatever it might be. So, we see a lot of growth right now in the seasonings blends, and that really the fastest growing area of the spices and seasonings category, and that is because it is a flavor hack,” Foley said.

He explained, “Typically, when you are cooking with herbs and spices, you might start your meal prep with that or use it throughout the meal prep. But if you do not know what you are doing, they are adding this at the end of the meal as a way to flavor that meal. So, we are seeing a lot of seasoning blends' growth within this cohort.”

McCormick recently launched a new line of Flavor Makers spice blends to appeal to younger consumers who are learning how to cook or building out their kitchen but maybe cannot afford more premium lines.

The line features playfully named blends that also are clearly labeled for the types of dishes they support. For example, the line includes Let’s taco-bout it – a taco night topping seasoning – and You guac to be kidding avocado topping seasoning. Other blends, such as I can be you gyro (a mediterranean topping seasoning) and Everything’s gonna be all-rice (an Asian rice bowl topping) also cater to younger consumers’ desire for more global cuisines.

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