By Denise Purcell

Consumers are losing enthusiasm for soy-based foods and drinks, according to Mintel International. Though the market continues to increase, it is at a slower pace than in recent years: between 2003 and 2004, sales were up 6 percent versus a 17 percent jump from 2001 to 2002.

While interest may have waned, shoppers are hardly abandoning soy as an alternative protein source. The market is expected to grow 20 percent in constant dollars by 2007, to $2.3 billion. Research indicates that committed soy consumers remain active, but occasional users may be reverting to traditional products. However, an increase in segments such as soy milk and energy bars suggests that people continue to seek simple ways to incorporate soy in their daily diet.

Soy products receive frequent attention for their reported health benefits for the heart and for cancer prevention and as estrogen replacement sources during menopause. While not all claims are FDA-approved, soy is associated with healthy living by consumers.

The Consumer
In 2004, 27 percent of respondents to Mintel’s research reported they are likely to buy soy foods or drinks, down from 30 percent in 2002. Females are more likely purchasers than males. Soy consumption is popular at either end of the age spectrum: about one-quarter of 18-34 year-olds report soy usage, as do 27 percent of consumers aged 55-64—probably due to soy’s potential estrogen replacement benefits.

Soy Foods Flood Mainstream Outlets
Once the domain of natural and health food stores, soy-based foods and beverages have moved into the mainstream. Sales increased 21 percent between 2002 and 2004 through traditional food, drug and mass merchant (FDM) channels, while sales through natural supermarkets increased only 1 percent during the same period.

The majority of soy product sales take place in supermarkets. Major chains have expanded their existing SKUs and promotions. For example, Bashas Supermarkets in Chandler, Ariz., ran a soy promotion in October 2004 tied to a Breast Cancer Awareness campaign. In-store promotions included endcap displays promoting soy chips, meal replacements and energy bars.

Minnesota’s Lund Food Holdings conducts quarterly cooking lessons featuring soy-based frozen desserts, edamame, pudding and custards, and soy protein powder. Lund also holds in-store soy tastings and demos on a monthly basis.

Fairway Markets in metropolitan New York City leveraged the connection between soy and health in a column called “The Joy of Soy” in its circular. As part of a health-oriented promotion, the stores displayed single-serve bags of soy crisps on endcaps in the vitamin aisle.

Denise Purcell is managing editor of Specialty Food Magazine.