NASFT Study Confirms What We Suspected
I read with great interest a recent report by the National Association for the Specialty Food Trade, www.specialtyfood.com that reveals, among other things, that the recession has induced the majority of consumers of specialty food to cook more often at home and to plan more meals ahead of time. Despite the ongoing economic downturn, they are also continuing to treat themselves to small indulgences like chocolate and cheese. These are some of the findings presented in “Today’s Specialty Food Consumer 2009,” the NASFT’s annual report on consumer spending habits and trends. (The research was conducted in July 2009 by Mintel International and Greenfield Online based on a survey of 1,500 adults aged 18 and older.)
There can be no doubt, however, that the slow economy across Canada and America has clearly impacted the $65 billion specialty food industry. According to new research from the National Association for the Specialty Food Trade, Inc., 57 percent of specialty food consumers say they have cut back or changed their spending over the past year, and 52 percent said they will continue to do so in the next year. Nearly half of all Canadians and Americans purchase specialty foods, but numbers declined in the past year. In 2009, 46 percent of consumers said they purchased specialty foods within the past six months.
Many of the survey respondents indicated that they have reduced their spending on specialty foods due to job losses and / or pay cuts. Interestingly, however, they still look to gourmet foods for entertaining, and for gifts. They also indicated that their reluctance to buy specialty foods is temporary and that they are eager to keep these foods as part of their daily food consumption patterns. Overall, an estimated 155 million North American consumers are purchasing specialty food on a regular or quasi-regular basis.
Q4 Holiday Sales Still Critical To Industry Success
Fourth quarter sales have always been absolutely critical to our own company’s growth and ongoing success. We have always found that regardless of how slow the economy is, people still have to eat and they still want to have some small indulgences. By enjoying some gourmet foods, they can achieve both. They may delay purchasing a new car or going on an expensive holiday, bu they still want some “small reward” for their daily travails. In the report, Ron Tanner, Vice President, Communications and Education for the NASFT, confirms what our own findings at our company, www.epicureanfoods.com indicate.
“With the holidays approaching, specialty foods are in a good position to attract discerning consumers who are looking for new gift ideas and distinctive foods and drinks to share with guests.”
New Opportunities for Gourmet Food Companies
This increase in eating at home creates a unique opportunity for specialty food retailers and manufacturers such as our company, www.epicureanfoods.com. For example, the NASFT survey indicates that approximately 82 percent of gourmet food consumers indicate that they are cooking more often at home. As well, those specialty food purchasers with above-average incomes are more likely to give specialty foods as gifts and to keep on hand at home for unexpected guests. Interestingly, those specialty food purchasers with lower incomes utilize gourmet foods to impress their friends and families.
Coffee, Cheese, Chocolate & Olive Oil Tops for Gourmet Food Purchases
Again, our own experience at Epicurean Foods is consistent with many of the findings of this highly regarded Association. Coffee, cheese, chocolate and olive oil are among the most popular product categories for specialty food purchasers (both for their own consumption and for gifts for others.)
Here are some of the most interesting findings of the study:
- Gourmet food consumers spend $111 per week on food on average.
- Individuals aged 18 – 34 are most likely to purchase specialty foods.
- 19 percent of specialty food consumers buy specialty food online and this channel is growing.
- The Food Network is by far the most popular cooking show destination, and is viewed by approximately 90 percent of gourmet food purchasers.
- Organic foods have the greatest appeal to consumers aged 35 to 44.
- Women are spending 7% more on weekly gourmet food purchases than in 2007; men are spending about 7 % less.
It is with these interesting facts in mind that we will continue to grow our business by selecting only those products that we believe are excellent value and that have above-average taste profiles. As always, however, we welcome comments and suggestions on how we can better serve our customers.
Greg Sprout, Co-Founder,