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« FDA News Digest July 21, 2008
IFT July 23, 2008


Prime Time for Fancy Foods
A State-of-the-Industry Report

With consumers watching more cooking shows, U.S. gourmet food sales topping $63 billion, and celebrity chefs creating personal empires, the “foodie” revolution shows no signs of slowing down.

So despite a sluggish economy, high gasoline prices, and a weakened U.S. dollar, specialty foods will likely continue to enjoy strong sales. In fact, historically, when times get tough, consumers turn to food as an affordable luxury and view fancy foods as a way to add a bit of adventure to daily life.

More than 39 million consumers tried to eat gourmet every day last year. Nearly three-quarters already purchase specialty foods, almost two-thirds buy such products to treat themselves, and 64% use them in everyday meals at home.

Moreover, the industry will get an additional push from the nation’s 72 million Gen Yers ages 15–30, who are now entering the workforce and becoming consumers in their own right. Those ages 18–24 and 25–34 rank equally as the top purchasers of specialty foods, spending 30% of their weekly food dollars on specialty items.

Gen Yers have the highest preference for gourmet, ethnic, and natural foods and for viewing food as an art form. They’re also the most likely to try new foods, drinks, and health food items.

With specialty foods setting the pace for the consumer food products industry, it’s ironic that two mainstream megatrends—convenience and health—are creating lucrative new opportunities in the fancy food world.