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Wednesday, 8 April 2009
Food drink categories thriving in recession
Food drink categories thriving in recession

By FoodWeek Online @ 9:23 AM 0 Comments Article Rating Research and Foodscience-Trends
 

While many markets struggle with the sluggish economy, others thrive, says Mintel, the global supplier of consumer, product and media intelligence.

Mintel has reviewed and re-forecasted its research reports from the past two years, identifying which food and drink markets were being improved by recessionary woes.
"Over the past year, we've seen people trying to save money on food by either dining out less, cutting supermarket bills, or both. More people cook at home now, but they still want healthy, convenient, tasty food and drink for their dollar," said Bill Patterson, senior analyst at Mintel.

"As consumers spend less and stay in more, certain food markets are benefitting. These recession-proof, or rather recession-fueled, industries are destined to do well throughout the economic downturn, but it will be interesting to track their sales after the nation recovers," Patterson said.

He said Mintel saw the bread market faring through the recession quite well. Originally predicted to grow 2.1% in 2008, Mintel's latest figures showed the bread market had grown 7%. Mintel now predicted higher growth for bread through 2013.
Patterson said America's quintessential lunch - the PB&J - performed strongly during recessionary times.

A healthy, cheap source of protein, peanut butter would drive sweet spread sales to increase 26% from 2008-2013, up substantially from Mintel's initial prediction of 12%.
Convenient, available in family-sized servings, filling and often inexpensive, frozen meals would also undoubtedly benefit from the recession. Mintel expected a total sales increase of 4.5% in 2008, a jump from its original -0.3% expectation, Patterson said.

More people were cooking at home, but small conveniences like ready-prepared side dishes were not out of the question for many families.
Patterson said Mintel only expected the side dish market to grow 2.3% in 2008, but in fact, it grew more than 5%, driven by increased sales of basic comfort foods such as mac and cheese.

He said the $4 latte was finally going out of fashion. More adults were making their coffee at home, causing the retail coffee market to grow 6% in 2008, a substantial jump from Mintel's original forecast of 2.4%. Mintel expected this market to enjoy continued success in the future, though recent, less expensive coffee drink launches from Dunkin Donuts and McDonald's would compete with at-home coffee sales.
Patterson said these recession-proof food and drink markets shared commonalities.

"These products often fall into the comfort/simple food categories and can be purchased at a general supermarket for a relatively low price. Then at home, they can be prepared and enjoyed with relative ease," he added.

 

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