From matcha lattes to Dubai chocolate – how supermarkets fight to cope with TikTok trends

TruthLens AI Suggested Headline:

"Supermarkets Adapt to TikTok Trends Amidst Agricultural Challenges"

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TruthLens AI Summary

TikTok's influence on consumer behavior has dramatically reshaped the landscape of food trends, as supermarkets now find themselves reacting to viral sensations rather than setting them. Zoe Simons, a brand development chef at Waitrose, notes that the power dynamics have shifted; previously, supermarkets relied on restaurant trends or delayed data to inform their product offerings. Today, the immediacy of social media platforms like TikTok and Instagram allows supermarkets to respond to trends with remarkable speed. Popular items such as matcha lattes and the viral 'Dubai chocolate' bar exemplify this phenomenon. Matcha lattes have become ubiquitous across major chains, while the Dubai chocolate bar, featuring a unique pistachio cream filling, has garnered over 120 million views on TikTok, leading to a surge in demand that has prompted supermarkets to launch their own versions of the treat.

However, this rapid shift in consumer preferences has not come without challenges, particularly for agricultural producers. The recent spike in popularity of the Dubai chocolate bar has contributed to a significant increase in pistachio prices, which have risen by nearly 35% in the past year. This rise occurs despite the US being the largest producer of pistachios, accounting for 43% of global production. Similarly, the matcha market is facing its own supply issues, with Japanese producers imposing purchase limits due to overwhelming demand. Entrepreneurs like Hanife Hursit, who opened a matcha and coffee shop in London, are experiencing these challenges firsthand, as rising wholesale costs hinder the ability to introduce new products. Furthermore, the environmental implications of rapidly expanding crop production driven by social media trends raise concerns about sustainability, water usage, and the potential for ecological harm through monoculture farming practices. As trends come and go, the long-term effects on both the agricultural sector and the environment remain uncertain.

TruthLens AI Analysis

The article highlights the significant shift in how consumer trends are emerging, particularly in the food industry, driven by social media platforms like TikTok. It emphasizes the role of supermarkets as reactive entities rather than trendsetters, showcasing how they now leverage digital trends to cater to consumer demands rapidly.

Impact of TikTok on Consumer Trends

The article illustrates the profound influence TikTok has on food preferences and consumer behavior. As noted by Zoe Simons from Waitrose, the traditional model of supermarkets relying on restaurant trends has been upended; they now harness immediate data from social media. This shift signifies a transformation in the marketing and product development strategies of supermarkets, with a newfound agility in product launches.

Rapid Product Development

The mention of AI tools being utilized by supermarkets to track online recipes and social discussions indicates a technological advancement in how these businesses respond to trends. With product development timelines shrinking from months to weeks, the agility in introducing new items like the Dubai chocolate bar reflects a significant adaptation to consumer demands. This rapid response mechanism may create a competitive edge in a fast-paced market.

Cultural and Economic Implications

Supermarkets capitalizing on viral trends can have broader cultural implications, promoting certain foods and culinary traditions to a wider audience. The mention of items like matcha lattes and Dubai chocolate showcases a blending of cultural elements that could influence consumer habits. Economically, this trend might encourage increased sales and innovation in food products, potentially impacting stock performance for companies in the food retail sector.

Target Audience and Community Support

The article seems to resonate more with younger demographics, particularly Gen Z and millennials, who are active on social media platforms. These groups are likely to be more influenced by viral trends and might appreciate the rapid availability of trendy food items. By appealing to these communities, supermarkets can strengthen their brand loyalty and consumer engagement.

Potential Market Influence

The focus on these emerging trends could affect stock prices of companies involved in food production and retail. Brands that successfully capitalize on viral trends may see a boost in their market performance, making this news relevant for investors in the food industry.

Geopolitical Context

While the article primarily addresses consumer behavior, there are underlying elements that touch upon global trade and cultural exchange. The mention of the Dubai chocolate bar ties into a larger narrative of globalization and cultural fusion, which might resonate in discussions about international markets and trade relations.

Artificial Intelligence Utilization

The article hints at the involvement of AI in trend analysis, suggesting a modern approach to understanding consumer behavior. While it does not specify the models used, the reference to AI indicates that data-driven decision-making is becoming integral to marketing strategies in the food sector. The efficiency of AI in predicting trends may enhance the market's responsiveness to consumer desires.

The article does not appear overtly manipulative, but it does frame the narrative in a way that emphasizes the positive outcomes of embracing social media trends. This could create a perception that supermarkets are proactive and innovative, which may not fully encompass the complexities of market dynamics.

Overall, the reliability of the article seems high, as it presents factual trends and insights from industry professionals. However, it may selectively highlight success stories without addressing potential downsides, such as the sustainability of rapidly changing consumer preferences.

Unanalyzed Article Content

TikTok’s algorithm is one of the great mysteries of the modern age. What it deems to be interesting is fed to millions of users, giving it huge cultural sway, from fashion to music and politics. It is also increasingly influencing what we eat.

Supermarkets were once the trendsetters, studying popular items on restaurant menus and recreating them on their shelves. Now the big shops are the ones being influenced, says Zoe Simons, a brand development chef at Waitrose.

“The power has flipped,” she says. “Before, we relied on what was popular at restaurants or we had to wait months for data to come through. Now, because of TikTok andInstagram, our accuracy has gotten so much better.”

It is not hard to spot this influence in action: matcha lattes, made from Japanese green tea, have exploded in popularity on social media, and now feature on menus at Pret a Manger, Starbucks and Gail’s. This week, Britain’s biggest bakery chain, Greggs, attributed better sales growth toa mac and cheese that “went viral on TikTok”, with a video of the snack played more than 3m times.

Perhaps most notably: the “Dubai chocolate” bar, invented by Sarah Hamouda, a British-Egyptian living in Dubai, became a huge viral hit. Onevideoof a food influencer eating the bar, which contains a filling of pistachio cream and tahini with knafeh (a traditional Arab dessert), has more than 120m views on TikTok, which is owned by China’s ByteDance.

Now supermarkets are using artificial intelligence tools that track online recipes, social media discussions and restaurant reviews to react faster to these trends. Where product development projects used to take months, products can hit the shelves in as little as a few weeks.

The Dubai chocolate bar, for example, has inspired a range of pistachio treats from big shops in the UK. Lidl launched its own version, as did Lindt, and whenWaitrose launched it in March it imposed on customers a two-bar limit.

But in the fields of the global agricultural sector – far from screen-addicted British shoppers, UK supermarkets or even TikTok’s headquarters in Singapore – producers are struggling to cope with the sudden, huge spikes caused by rapid food trends.

The popularity of the Dubai chocolate bar has already contributed to a shortage in the green nut. In the past year, pistachio kernel prices have risen from €6.65 (£5.59) a pound to €8.96 a pound, an increase of nearly 35%, according to the data monitor platform Tridge. It is on track to hit €10.80 a pound by the end of the year, Tridge said.

That is despite the fact that production of the nut has expanded rapidly. The US is now the biggest producer of pistachios in the world. American pistachio farms, which are mostly in California, collectively account for 43% of global production, making an even larger contribution in its category than America’s market share in its traditional agricultural exports such as corn, cheese and beef.

It is a similar story in the matcha industry. A spike in demand for the green powder prompted tea companies Ippodo and Marukyu Koyamaen in Kyoto toimpose purchase limitslast year. That was again despite huge ramp-ups in production in an attempt to meet demand: Japan produced 4,176 tonnes of matcha in 2023, nearly three times the quantity in 2010.

The shortage has not been easy to navigate for Hanife Hursit, a 25-year-old who three weeks ago opened a matcha and coffee shop with her father, Ram, in King’s Cross, London.

“Right before my first stock, my suppliers said we might have to wait for a while,” she says. “The shortage is a big issue, it’s blown up everywhere.”

But the opening of Frothee, Hursit’s cafe, attracted a huge queue of customers, mainly young women, on the first day.

The young entrepreneur, who used to work as a social media manager and has a personal following of more than 19,000 accounts on TikTok, has built her menu around drinks and flavour combinations trending online. They include strawberry, brown sugar and jasmin-flavoured matcha lattes.

“I knew how much it had blown up online and I knew it was going to reach a peak where everyone loved matcha,” she says. Many of the drinks have been inspired by at-home recipes trending on TikTok, she adds. “Earl grey matcha is our bestseller by far,” she says. “Whatever I put on the menu was crafted by my For You page and also by what I love.”

The temptation to add pistachio flavours on her menu has been strong, but rapidly rising wholesale costs have been a barrier. “I said to our baker: ‘Should we try a pistachio product?’ But it’s just too expensive, even at wholesale prices.”

The environmental cost may also prove to be another barrier for sellers in the future, Mzingaye Ndubiwa, a market analyst at Tridge, adds.

“The pistachio nut is a water-intensive crop cultivated mainly in California or Iran, which are known for their drought-torn regions,” he says. “Ultimately leading to the overuse of groundwater, the increased demand from the international market puts immense stress on water systems that are already scarce.”

There are fears too that rapidly expanding the cultivation of a single crop, driven by social media trends, could contribute to deforestation for monoculture farming, which in turn harms wildlife. “Because of this, there is an increased reliance on herbicides and pesticides, which contaminate soil and water systems,” he said.

“Trends steered by social media can fuel environmental decline if it disappears as quickly as it appeared.”

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Source: The Guardian