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Supermarkets' generation gap. Traditional supermarkets, long the top
channel for specialty food sales, are experiencing a generation gap that could
shift the market in time. While Boomers far and away prefer supermarkets to
buy specialty food and beverages, the channel sees a significant drop with
Gen-Xs, and gradually diminishes in popularity with younger generations.
Convenience, discounters, clubs, and wine and liquor ventures are on the rise,
a situation that will grow as more Gen-Zs reach adulthood. Supermarkets that
flourish are likely those focused on convenience, local, and small formats.
Generational messaging. Specialty brands should tailor and emphasize
messaging to di€erent generations. Older generations want to hear more about
products' quality ingredients, while younger generations resonate with new and
interesting innovations. Choosing products with health in mind is universally
important to all generations, even more so as a result of the pandemic.
Impulsiveness lives. Specialty food makers and retailers shouldn't
underestimate the "X" factor—impulse purchasing. Even in a year
that severely impacted food discovery, with consumers reducing
shopping trips, limiting browsing, and curtailing time to be curious,
some 30 percent of SFCs made impulsive specialty purchases.
Numbers have consistently risen over the last four years.
New online audiences. The online grocery consumer landscape shifted in 2021
to bring in many more mature adults. Specialty brands must modify their
marketing focus online beyond Gen-Zs and Millennials. Gen-Xs are a
generation to focus on. They upped their online orders significantly during
COVID, and likely have the greatest need for online ordering over the next year.
Diversity and sustainability support. Younger consumers care deeply about
products from diverse suppliers, including women-, BIPOC-, LGBTQ- , veteran,
and disabled-owned businesses, as well as those that are better for the
environment (sustainable, upcycled, etc.), and they show it with their food dollars.
OK Boomers! Boomers' buy-in has been strong during the last two
years. While it's true that they're less likely than others to be SFCs,
when they do engage, they're among the most likely to buy given
categories at least occasionally. Targeting Boomers is an under-tapped
opportunity for specialty companies, with so much emphasis often
placed on young generations.
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Takeaways and
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Order
HEALTHY
QUALITY
NEW!
BUY
THIS!
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