September 26, 2014 - Blog
U.S. consumers spend approximately $760 billion food and beverages each year, so understanding your target market is critical to any new product launch. This means food and beverage marketers have to know what consumers want, whether it be organic, sustainable, nutritious or indulgent.
Just look at the organic industry—what began as a niche industry a decade ago, accounted for more than $32 billion in retail sales in 2013. The same can be said for the specialty foods sector that has experienced a rebound as the economy picked up and consumers are willing to spend a little extra money on something indulgent.
According to the “Today’s Specialty Food Consumer Report 2014" from the Specialty Food Association and Mintel International, the specialty foods sector is thriving, experiencing nearly an 8-percent jump in annual sales over last year. In 2014, 145 million people—59 percent of U.S. consumers—purchased specialty foods.
Consumer engagement in specialty foods is broad. Overall, specialty food shoppers are spending 1 in 4 of their food dollars on specialty food, up from 1 in 5 in 2013. At least 1 in 5 specialty food consumers have recently purchased products in each of the total 34 specialty food categories included in the 2014 survey.
Core specialty food consumers are ages 18 to 44 years, earning more than $75,000 annually. Of those consumers, 42 percent said they try new foods in order to eat healthier; 71 percent support companies that practice sustainability; and women are more likely than men to purchase specialty food products. Younger adults report spending more on specialty food than baby boomers and those older, and older consumers buy specialty foods more for everyday cooking at home versus snacking.
Chocolate, olive oil and other specialty oils, and cheese remain the top three categories purchased, with more than half of specialty food consumers buying these products. Tea is a new entrant to the top 10 categories purchased this year, up from No. 15 in 2013.
According to the survey, supermarkets remain the prime location for specialty food consumers to buy specialty foods, largely due to convenience. About one-third of consumers frequent natural food stores and mass merchandisers, while one-quarter of specialty food consumers shop at farmers markets and specialty stores.
“Overall, specialty food consumers have these foods and beverages on hand for regular usage, whether as an everyday snack or meal or as a treat," said Denise Purcell, senior director, content development for the Specialty Food Association. “This daily engagement bodes well for the market as a whole."
The top 10 categories for specialty food sales include chocolate, olive oil/other specialty oils, cheese, coffee, salty snacks, frozen desserts/ice cream, meat/poultry/seafood, non-alcoholic beverages, bread/baked goods and tea. Food and beverage makers have a tremendous opportunity to grow the specialty foods sector with creative new product launches targeting the right demographic. What's more, retailers have a tremendous opportunity to promote specialty food products in a creative and eye-catching manner to attract more consumer interest.
U.S. consumers spend approximately $760 billion food and beverages each year, so understanding your target market is critical to any new product launch. This means food and beverage marketers have to know what consumers want, whether it be organic, sustainable, nutritious or indulgent.
Just look at the organic industry—what began as a niche industry a decade ago, accounted for more than $32 billion in retail sales in 2013. The same can be said for the specialty foods sector that has experienced a rebound as the economy picked up and consumers are willing to spend a little extra money on something indulgent.
According to the “Today’s Specialty Food Consumer Report 2014" from the Specialty Food Association and Mintel International, the specialty foods sector is thriving, experiencing nearly an 8-percent jump in annual sales over last year. In 2014, 145 million people—59 percent of U.S. consumers—purchased specialty foods.
Consumer engagement in specialty foods is broad. Overall, specialty food shoppers are spending 1 in 4 of their food dollars on specialty food, up from 1 in 5 in 2013. At least 1 in 5 specialty food consumers have recently purchased products in each of the total 34 specialty food categories included in the 2014 survey.
Core specialty food consumers are ages 18 to 44 years, earning more than $75,000 annually. Of those consumers, 42 percent said they try new foods in order to eat healthier; 71 percent support companies that practice sustainability; and women are more likely than men to purchase specialty food products. Younger adults report spending more on specialty food than baby boomers and those older, and older consumers buy specialty foods more for everyday cooking at home versus snacking.
Chocolate, olive oil and other specialty oils, and cheese remain the top three categories purchased, with more than half of specialty food consumers buying these products. Tea is a new entrant to the top 10 categories purchased this year, up from No. 15 in 2013.
According to the survey, supermarkets remain the prime location for specialty food consumers to buy specialty foods, largely due to convenience. About one-third of consumers frequent natural food stores and mass merchandisers, while one-quarter of specialty food consumers shop at farmers markets and specialty stores.
“Overall, specialty food consumers have these foods and beverages on hand for regular usage, whether as an everyday snack or meal or as a treat," said Denise Purcell, senior director, content development for the Specialty Food Association. “This daily engagement bodes well for the market as a whole."
The top 10 categories for specialty food sales include chocolate, olive oil/other specialty oils, cheese, coffee, salty snacks, frozen desserts/ice cream, meat/poultry/seafood, non-alcoholic beverages, bread/baked goods and tea. Food and beverage makers have a tremendous opportunity to grow the specialty foods sector with creative new product launches targeting the right demographic. What's more, retailers have a tremendous opportunity to promote specialty food products in a creative and eye-catching manner to attract more consumer interest.
