Specialty Food Magazine

Summer 2020

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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S8 | THE STATE OF THE SPECIALTY FOOD INDUSTRY Young consumers ages 18-25 are likely specialty food consumers, which is positive for the industry. As a generation, Gen Zs are as young as 13 years old in 2020 and each year more are entering Mintel's survey age range of 18+. Their attitudes and behaviors are evolving and growing, and the data points to some interesting factors that makers, buyers, and marketers should know. Gen Zs like to shop for specialty foods in convenience stores, home stores, and department stores, o ering a glimpse of future shifts in the retail landscape. Along with millennials, Gen Zs are the most likely generation to say they've made meals from scratch in the last month. These younger consumer groups are the most likely to say they've used specialty foods to improve the taste of takeout/delivery food. Gen Zs are the most likely to say they follow a plant-based diet at least occasionally or more often. They were the first generation to be exposed as children to the concept of a "flexitarian" diet, a habit that may be ingrained in the lifestyles of many Gen Zs. Despite being early in their earning years, Gen Zs are willing to pay more to upgrade menu options. They are likely followers of many diets, especially dairy-free. Specialty Food Consumers— Who Are They, What Do They Want The Specialty Food Consumer of the Future Gen Zs: Shopping Booms The specialty online food and beverage channel has grown rapidly in the past two years. Sales grew 55 percent in 2018 and 50 percent in 2019 to $5.4 billion. Gains with Amazon's Prime memberships and auto replenishment; greater competition, which is resulting in lower delivery fees and/or minimum orders; a ordable home delivery options; and increased click-and-collect availability among brick-and-mortar retailers across the U.S. are all driving the jump. The Impact of COVID-19 helped spike online grocery sales growth, but the industry is cautious about the future. "I do believe that folks are going to become more comfortable with ordering online and it will ultimately continue to grow and shift, but I see Amazon and how they acquired Whole Foods and you look at the combination of assets. Brick-and-mortar locations and [e-commerce] give consumers as many options as they want," says a national account manager, e-com- merce for a 35-year-old family-run specialty food brand. Online K ET O G LU TE N FR EE N N O N - D A I R Y

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