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.
Issue link: https://www.e-digitaleditions.com/i/725016
HERE ARE SOME DISCOVERIES about the purchasing behaviors, habits, and attitudes of today's specialty food consumers that can help retailers and producers better posi- tion and grow their businesses. SEVEN INSIGHTS FROM THIS YEAR'S REPORT Parental influence. The core millennial consumers are starting families, positioning parents to be a new key demographic. Though not tabulated in this year's report, respondents indicate that being a parent is a driver for increased specialty food consumption. Close to half (48 percent) of food dollars spent by parents is on specialty food. They buy across specialty food categories, but particularly in child-friendly ones like baking mixes, candy, pasta, and salty snacks. Parents are also big online shoppers, and about half say they are using or looking for an online grocery delivery service. Prioritizing health. In the past two years, specialty food consumers have been more likely to cite dietary or health reasons as drivers to try specialty foods. This shift indicates how well the industry has incorporated better-for-you products with decadent foods and beverages. The market for nutritionally superi- or food, healthier takes on familiar foods, and functionally enhanced products will grow, even in non-traditional catego- ries like chocolate. The powerful male shopper. Last year was the first time men surpassed women as the more likely to buy specialty foods, and the gap widened in 2016. Male influence in food decisions is up: men now account for 43 percent of primary shoppers and 46 percent report helping with meal preparation. Men have emerged as a significant consumer group to reach. Conversion opportunities. According to this year's report, 40 percent of consumers don't purchase special- ty foods though, of these, 54 percent say they know what specialty products are. This translates into 22 percent of consumers who may be good targets to try to convert. Even consumers who are designated as "light" buyers, still buy specialty foods, especially treats like cookies, frozen desserts, and chocolate. Retailers could draw them in by merchandising indulgences, which often act as gateway products to further purchases. Online takes off. This year's respondents were more likely than ever to say they've made specialty food purchases online. Millennials are the most likely to shop for specialty foods online: 75 percent of respondents report doing so, followed closely by Gen Xers. The convenience and savings of e-commerce both draw in consumers earning $25K to $50K, much less affluent than the typical specialty food consumer. As online shop- ping becomes the norm, it opens an avenue to reach new consumer groups. Shifting shopping channels. Beyond burgeoning online sales, other non-traditional stores are becom- ing go-tos for specialty foods. This move- ment is largely driven by millennials, who are not loyal to a particular retailer and will shop in the widest array of stores. Specialty food sales in club stores, convenience stores, mass merchandisers, department stores, home stores, and gift stores are all growing as a result, as these stores begin to carry larger sets of specialty products. Education craving. Even consumers who do the heavi- est specialty food purchasing would benefit from more guidance. Fewer than half say it is easy to identify specialty foods in the stores where they shop. Educa- tion, shelf signage, and staff knowledge could be an opportunity to garner even more sales from the biggest shoppers. TODAY'S SPECIALTY FOOD CONSUMER 2016 C3