Some food markets won’t be hit hard by recession
Not all food markets will have the same experience during this recession. While some are being hit hard by the downturn, others, says U.S.-based market research firm Mintel, will thrive.
Mintel has reviewed and re-forecasted its research reports from the past two years to better reflect market expectations in the next five years. The company found that consumers are trying to save money on food, eat out less and cut their supermarket bills, but they still want convenient and healthy options.
This trend has created a boon for products such as breads, sweet spreads, frozen meals, side dishes and coffee.
Here’s how Mintel expects these food markets to fare over the next few years:
– Bread was originally predicted to grow 2.1% in 2008. Mintel’s latest figures show the bread market has grown 7% and the company predicts higher growth for bread through 2013.
– Peanut butter has seen a surge in growth. Since it’s a healthy, cheap source of protein, peanut butter will see sales increase 26% from 2008 to 2013, up from the company’s original prediction of 12%.
– Frozen meals offer convenience and variety and come in family-size servings. Mintel expects a total sales increase of 4.5% in 2008, a jump from its original forecast of -0.3%.
– Ready-prepared side dishes are seeing a surge in growth because they offer convenience and often aren’t cost-prohibitive. Mintel expected this market to grow 2.3% in 2008, but in fact found it grew more than 5%, driven by sales of foods such as mac and cheese.
– The retail coffee market grew 6% in 2008, as more consumers brewed their coffee at home. Mintel’s original forecast was 2.4%.
Mintel notes that what these specific food markets also have in common is that they all fall into the comfort/simple food category, they’re relatively inexpensive and can be prepared fairly easily.