Specialty Food Magazine

Summer 2018

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://specialtyfoodmagazine.epubxp.com/i/986636

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iGen included starting in 2018 *Survey dates: July 2015, July 2016, January 2018 Source: Mintel 4 SHARE OF CONSUMERS BUYING SPECIALTY FOODS, BY GENERATION sunflower butter d a i r y N O N - Green Planet Co. 18-23 24-41 42-53 54-72 iGens Millennials Gen Xers Baby Boomers 79% 65% 78% 67% 47% 61% 65% 2015 2016 2018 35% 44% 60% F e e d H o m e l e s s t h e B I K E P O W E R E D L O C A L SPECIALTY FOOD CONSUMERS— WHO ARE THEY, WHAT DO THEY WANT? Millennials, ages 24 to 41, comprise the bulk of these consumers. But, the younger iGens have arrived. While millennials are dipping slightly in overall purchase likeli- hood, iGens rank high. iGens aren't shopping as many categories or spending as much on specialty food, but they are aware and engaged in the market. Millennials' dip in purchase likelihood could be because those on the older side of the generation are maturing and aligning more with Gen Xers in terms of their attitudes and behaviors. Despite this, millennials still purchase across the most specialty food categories, classifying them as strong specialty food consumers (SFCs), those who drive the momentum of the specialty food industry versus lighter, lower volume buyers. As has been the case for several years, core specialty food consumers trend younger and more affluent. They tend to be concentrated in the Northeast and on the West Coast and other urban areas. "Light" specialty food consumers follow many of the same patterns as strong ones, just less so. But they represent the majority of SFCs. According to Mintel, 56 percent of SFCs are classified as "light," shopping in five or fewer categories. Strong or "heavy" SFCs, shopping in six or more categories, comprise 44 percent of consumers. Engaging light buyers to increase their purchasing occasions and spending opens opportunity. Here are key interests or points of differentiation that can be capitalized on: INSIGHTS FOR REACHING LESS-ENGAGED SPECIALTY FOOD CONSUMERS This group is likely to cook from scratch using a shortcut like a meal kit, or to use an ingredi- ent-delivery service like Blue Apron. Either selling into these channels, or educating at retail about how specialty foods can be used as ingredients, can drive purchases. These consumers care about how companies are working to eliminate discarded food and other waste. Light buyers prioritize this higher than strong buyers. Relating the story and philosophy and people behind individual products engag- es them. The same holds true at retail. They tend to shop where they know the owner, a sweet spot for smaller independent stores. Light buyers mostly use these products for everyday meals, snacks, and treats for themselves. Showing how specialty foods can be used for parties, gifts, to bring to the office, and so on, will help expand their thinking. 3. TOUT YOUR FOOD WASTE REDUCTION. 1. MARKET SPECIALTY FOODS FOR ENTERTAINING AND SHARING WITH OTHERS. 2. TELL THE STORY OR HERITAGE BEHIND A BRAND AND THE COMPANY VALUES. 4. TEACH ABOUT SPECIALTY FOODS AS INGREDIENTS. STATE OF THE SPECIALTY FOOD INDUSTRY 2018 S5

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