Madison, WI — The recessionary cycle continues to affect the food industry as manufacturers and retailers face higher costs while consumers seek value, according to What’s in Store 2012, the newly released annual trends report from the International Dairy-Deli-Bakery Association™ (IDDBA).
State of the Industry
The dairy, deli, and bakery industries are feeling the brunt of higher input prices due to food inflation. Worldwide, food businesses are under pressure to innovate and differentiate. Supply chain efficiencies and measures that meet sustainability are paramount. Emerging online technologies add more facets to the competitive retail business. Brickand- mortar locations seem to be scaling back to meet consumer needs as smaller formats become the store size of choice.
Consumer Lifestyles
In the face of ongoing high unemployment and the stagnant economy, consumers want the best return on investment for their purchases: fresh, healthful foods. The release of the U.S. Department of Agriculture’s 2010 dietary guidelines fueled talk of nutrition needs amid burgeoning obesity rates. Retail food sales are forecasted to rise 5% annually through 2012 to reach $698 billion. According to household census data, the U.S. population has shifted to more people of Hispanic origin. At the same time, single households have tripled in the last 30 years to comprise nearly one-third of U.S. households.
Bakery
Along with consumer demand for healthy foods, the whole-grain and high-fiber market is pegged at $42 billion by 2015. In-store bakeries have adapted with different nutritive offerings, as well as with products that are free of allergens, such as gluten, nuts, and dairy. Similarly, the scratch baking method is making a comeback in many service bakeries as consumers seek fresh, whole foods. Mini-portions are hot in the bakery case as less costly, lower-calorie, convenience snacks.
Dairy
Customers average 34.8 dairy department shopping trips per year, making it one of the strongest shopping destinations. More than half of these dairy case trips include multiple items. Consumers buy refrigerated dairy case items primarily for their nutritional benefits. Top sellers are milk, juices, eggs, and yogurts. In 2010, more than 12,400 new dairy department products launched globally. Organic dairy sales increased by 9% in the same year.
Cheese
Consumers continue to seek out cheese at traditional supermarkets. This venue accounts for 63.8% of this dairy product’s sales volume. Chefs polled by the National Restaurant Association named artisan cheese the 20th hottest culinary trend in 2011. Future cheese consumption will be driven by its versatility, health attributes, snacking properties, and ‘local’ farmstead and artisan production.
Deli
Eighty-two percent of deli customers enjoy visiting supermarket delis that feature newer, trendier items, regardless of whether they regularly purchase those items. Unique flavor profiles and fusion foods, innovative dining experiences, and the “professionalization of the amateur home cook” invigorate deli department sales. Deli customers want customizable convenience, foods with ethnic influences, and “ownership” over deli dishes they assemble, but don’t necessarily prepare. While taste is the top consideration when purchasing deli food and beverages, price contributes heavily to this decision. Price has risen higher than all other purchase drivers in the past five years.
What's in Store 2012, our 26th edition, is a 200+ page trends report that details consumer and industry trends affecting the dairy case, cheese case, bakery, deli, and foodservice supermarket departments. Its 185+ tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, and random-weight, UPC, and private label sales data. The full report is available from IDDBA. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. Along with the book, readers have access to What's in Store Online, featuring over 50 quarterly-updated, downloadable, color sales tables with random-weight (PLU), UPC, and system 2-coded data. In addition, the Web site offers timely white papers, trends articles, and links for all of the businesses that are referenced in the What's in Store book. For more information, or to order, call the IDDBA Education Department at 608.310.5000 or visit the organization's Web site, www.iddba.org.
About IDDBA:
IDDBA is a nonprofit membership organization serving the dairy, deli, bakery, cheese, and supermarket foodservice industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, free online training programs, management tools, computer-based training and an annual trends report. For more information, contact IDDBA at 608.310.5000 or visit our Web site, www.iddba.org.
Source: The International Dairy·Deli·Bakery Association
