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Gourmet, Specialty and Premium Foods, Beverages and Consumer
Trends in the U.S., 8th Edition
September 1, 2010
The conventional wisdom goes that gourmet/premium foods fare well during economic
downturns because consumers view them as “affordable luxuries.” But the “Great
Recession” of 2008-2009 disproved this theory as mighty Starbucks, the bellwether for
the democratization of luxury, was among the first companies hit by cutbacks in
consumer spending. For the market overall, Packaged Facts conservatively estimates
that total U.S. retail sales of gourmet/premium foods and beverages through all retail
channels rose to $67.1 billion in 2009, an increase of 3.7% over the previous year‟s
sales of $64.7 billion compared with the 2005-2009 compound annual growth rate of
8.7%.
Still, success remains to be had, and many gourmet/premium marketers and retailers
are succeeding by finding ways to respond to the economic slowdown not by ignoring it
or reversing strategy, but by incorporating its impact on consumer behavior as a factor
among others. This new report from Packaged Facts is an indispensible tool to this end,
answering such questions as: Which gourmet/premium products and market segments
have been faring well in the new economy? How are marketers and retailers adjusting?
How can they recast and reposition their goods? Who are the most viable consumers,
and how can they best be reached? Which media and marketing messages resonate for
these consumers, and in what contexts?
Gourmet, Specialty and Premium Foods, Beverages and Consumer Trends in the
U.S., 8th Edition also pinpoints market size, analyzes growth potential and identifies
issues and trends that will affect the marketplace through 2014. Focusing on consumer
lifestyles and demographics through extensive analysis of Experian Simmons panel
data, the report examines their attitudes and behaviors toward gourmet/premium foods
and beverages, retail shopping patterns, and media usage and preferences, both
traditional and social. Also included is extensive coverage of new product trends and
marketing and advertising positioning, all discussed within the context of the social,
economic, and psychographic drivers of current consumer behavior.

2. Additional data sources include SymphonyIRI Group sales tracking of selected products
and brands through tracked mass-market channels; Datamonitor‟s Product Launch
Analytics data tracking new product introductions; and proprietary data from Packaged
Facts‟ own consumer survey, which is based on a national online poll conducted in
May/June 2010.
Additional Information
Market Insights: A Selection From The Report
One in Five U.S. Consumers Seeks Out Gourmet Products
According to the survey, one in five U.S. adults (20.0%) seeks out gourmet products
when food shopping, including 5.0% who agree strongly with the statement, “When food
shopping, I seek out gourmet products.” Another 22.0% are noncommittal about the
statement and 57.0% somewhat (26%) or strongly (31%) disagree. The 20.0% who
agree that they seek out gourmet products when food shopping in the Packaged Facts
survey is slightly higher than the 17.5% of respondents to Experian Simmons‟ Fall 2009
survey who agree that “I try to eat gourmet food whenever I can” (17.5%), although
strong agreement is slightly lower, at 5.0% in the Packaged Facts survey vs. 5.8% in
the Experian Simmons survey. A surprising 30% of consumers are willing to pay more
for gourmet food products, according to the Packaged Facts findings, including 6% who
strongly agree with this statement.
Beverages the Largest Product Classification
According to NASFT data, the single largest specialty food category at retail is cheese,
representing almost 11% of total specialty food and beverage dollar sales, followed by
condiments (8%), frozen and refrigerated meals (5%), and chips and snacks (almost
5%). However, beverages—including juices, functional drinks, coffee, tea, bottled water
and other drinks—collectively account for more than 12% of total dollar sales. The
NASFT category sales data excludes sales through Walmart and Trader Joe‟s, as well
as “price-look-up” (PLU—i.e. non-scanner) items such as prepared foods,
meat/poultry/seafood, and bakery products (NASFT: ibid).
Examining the entire gourmet/premium food and beverage spectrum through all retail
channels, Packaged Facts calculates that beverages (including bottled water and
refrigerated juices in the dairy case) comprise the largest classification, accounting for
34% of retail dollar sales in 2009. In second place is the baked goods (including
cookies, crackers, breads and sweet baked goods) pasta, and grains classification,
representing 14% of sales, with the meat/produce/seafood and produce departments

3. combined a close third at 13%, followed by prepared foods contributing 10% of
gourmet/premium dollar sales. [Table 2-2]
Specialty Foods The Foundation of Food Gifting Despite Challenging Economy
Packaged Facts‟ new market research report, Food Gifting in the U.S., 2nd Edition
(August 2010) found that specialty foods are the foundation of food gifting in the United
States, which has helped the industry expand sales and product offerings in a
challenged economy where few other areas of gift-giving have found success.
Packaged Facts estimates the overall market for gift-giving in the U.S. increased...
TABLE OF CONTENTS
Chapter 1: Executive Summary
Scope of Report
Terminology
Some Foodservice Crossover
Report Methodology
The Market
U.S. Retail Sales of Gourmet/Premium Foods and Beverages
Beverages the Largest Product Classification
Table 1-1: Share of U.S. Retail Sales of Gourmet/Premium Foods and
Beverages: By Classification, 2009 (percent)
Supermarkets Lead Retail Market with 54% of Sales
The Economy and Its Impact
Dining Out Less, Cooking More
Consumer Trends
One in Five U.S. Consumers Seeks Out Gourmet Products
High Socioeconomic Status Characterizes Gourmets
Gourmet Foods Appeal to Younger Adults
An Ethnic Skew
Attitudes Toward Food and Cooking
Food Trends and Preferences
Thousands of Marketers, from Conglomerates to Artisans
An Industry Founded on Entrepreneurs
Joint Ventures and Licensing Offer Synergies
Kraft Foods, PepsiCo, Unilever Lead Marketers in 2009
More than 1,800 New Products Projected for 2010
The Gourmet/Natural Foods Synergy
Selling Health Benefits
Selling Convenience
Private-Label Products
Retail and Foodservice
Supermarkets vs. Foodservice: Blurring the Boundaries

4. Really Local Farms
Supermarkets Field Larger Experimental Gardens
Chef-Run Local Markets
Grocery Spending Patterns
Consumer Attitudes/Behavior Toward Shopping
Consumer Attitudes/Opinions Toward Foodservice
Consumers and Media
Internet Has Changed How Consumers Spend Free Time, Shop
Gourmet Consumers and Traditional Media
Making Use of Websites and Social Media
Food Show Sponsorships
Celebrity Spokespeople
Chapter 2: Market Overview
Scope of Report
Terminology
Some Foodservice Crossover
Report Methodology
Market Size and Growth
Sales Estimates Amorphous
U.S. Retail Sales of Gourmet/Premium Foods and Beverages
Table 2-1: U.S. Retail Sales of Gourmet/Premium Foods and Beverages, 2005-
2014 (in millions of dollars)
Beverages the Largest Product Classification
Table 2-2: Share of U.S. Retail Sales of Gourmet/Premium Foods and
Beverages: By Classification, 2009 (percent)
Supermarkets Lead Retail Market with 54% of Sales
Table 2-3: Share of U.S. Retail Sales of Gourmet/Premium Foods and
Beverages: By Channel, 2009 (percent)
Seasonal Sales Vary by Product Category
Market Outlook
The Economy and Its Impact
Table 2-4: Household Income Levels: Gourmet Consumers vs. All Consumers,
2009 (percent)
Demographic Shifts: Youthful and Ethnic Consumers
Table 2-5: Demographic Snapshot of the U.S. Population as of July 1, 2008
The Restaurant Role
Fine-Dining Restaurants Hit by the Recession
Dining Out Less, Cooking More
A Food-Focused Culture
An Expanding Industry and Marketplace
The Global Palate
Overlap Between Natural and Gourmet/Premium Foods
New Dietary Guidelines Due by the End of 2010
Going Local
Artisan Foods

5. Chapter 3: Consumer Trends
Packaged Facts Proprietary Survey Methodology
One in Five Seeks Out Gourmet Products
Table 3-1: Percent of U.S. Adults Who Agree with the Statement “When Food
Shopping, I Seek Out Gourmet Products,” May-June 2010
One in Five Often Buys Gourmet Products in Specialty, Gourmet, or Natural
Food Stores
Table 3-2: Percent of U.S. Adults Who Agree with the Statement “I Often Buy
Gourmet Products from Specialty, Gourmet or Natural Food Stores,” May-June
2010
30% Willing to Pay More for Gourmet Products
Table 3-3: Percent of U.S. Adults Who Agree with the Statement “I Am Willing to
Pay More for Gourmet Food Products,” May-June 2010
One in Three Believes Premium Packaged Products Compare with Gourmet in
Quality and Taste
Table 3-4: Percent of U.S. Adults Who Agree with the Statement “Premium
Packaged Products in Supermarkets Are Comparable to „Gourmet‟ Foods in
Quality and Taste,” May-June 2010
Specialty Foods The Foundation of Food Gifting Despite Challenging Economy
Table 3-5: Percent of U.S. Adults Who Have Purchased or Received Specialty
Food Gifts in the Last 12 Months, May-June 2010
Experian Simmons Consumer Survey Methodology
Almost One Out of Five Adults Are Gourmets
High Socioeconomic Status Characterizes Gourmets
Gourmet Foods Appeal to Younger Adults
An Ethnic Skew
Attitudes Toward Food and Cooking
Food and Nutrition Interests Extend Beyond Gourmet
Attitudes Toward Nutrition
Cheddar Cheese, Barilla Pasta The Most Widely Used Gourmet/Premium
Products
Godiva Chocolate Tops Gourmet/Premium List by Gourmet Index
Table 3-6: Trended Number and Percentage of Gourmet Consumers, 2005-2009
(in millions)
Table 3-7: Indexes by Age Bracket: Gourmet Consumers vs. All Consumers,
2009
Table 3-8: Selected High-Index Demographics of Consumers Who Agree or
Agree a Lot with the Statement “I Try to Eat Gourmet Food Whenever I Can,
2009 (U.S. adults)
Table 3-9: Demographic Overview of Consumers Who Agree with the Statement
“I Try to Eat Gourmet Food Whenever I Can,” 2009 (percent, number and index
of U.S. adults, any agree)
Table 3-10: Demographic Overview of Consumers Who Agree a Lot with the
Statement “I Try to Eat Gourmet Food Whenever I Can,” 2009 (percent, number
and index of U.S. adults)

6. Table 3-11: Consumer Attitudes/Opinions Toward Food and Cooking, 2009
(percent and index of U.S. adults)
Table 3-12: Consumer Attitudes/Opinions Toward Nutrition, 2009 (percent and
index of U.S. adults)
Table 3-13: Leading Gourmet/Premium Products and Brands by Consumer
Penetration, 2009 (percent of U.S. adults)
Table 3-14: Usage Rates for Selected Gourmet/Premium Brands and Products,
2009 (percent of U.S. adults)
Table 3-15: Leading Gourmet/Premium Branded Products by Gourmet
Consumer Indexes, 2009 (U.S. adults)
Table 3-16: Brand and Product Indexes by Agreement with Statement: “I Try to
Eat Gourmet Food Whenever I Can,” 2009 (index of U.S. adults)
Food and Retail Shopping Lifestyle Segmentations
Five Food Lifestyle Groups
Table 3-17: Food Lifestyle Segments: All Consumers vs. Gourmet Consumers,
2009 (percent and index of U.S. adults)
Retail Shopping Segmentations
Table 3-18: Retail Shopping Segmentations: All Consumers vs. Gourmet
Consumers, 2009 (percent and index of U.S. adults)
Other Survey Findings
The NASFT Consumer Survey
The Martha Stewart Living Omnimedia Survey
Chapter 4: Food Trends and Preferences
Competitive Trends
Thousands of Marketers, from Conglomerates to Artisans
Food and Beverage Marketers
An Industry Founded on Entrepreneurs
Joint Ventures and Licensing Offer Synergies
Recent Mergers and Acquisitions
Kraft Foods, PepsiCo, Unilever Lead Marketers in 2009
Brand Performance: From Triple-Digit Advances to Double-Digit Declines
Table 4-1: Selected Gourmet/Premium Foods and Beverages by SymphonyIRI-
Tracked Sales, 2009 (in millions of dollars)
New Product Introductions
More than 1,800 New Products Projected for 2010
Table 4-2: “Gourmet” and “Upscale” Claims on New Product Launches, 2005-
2010 (number)
Foods Dominate New Product Launches
Table 4-3: Gourmet/Premium Product Launches: Foods vs. Beverages, 2005-
2010 (number)
“Upscale” the Top Product Claim on All Foods and Beverages
Table 4-4: Top 10 Product Claims/Tags on All U.S. Food and Beverage
Launches, 2005-2010 (number)
Top Claims on Gourmet/Premium Foods and Beverages: “Upscale” and “Natural”
Table 4-5: Top 20 Product Claims/Tags on Gourmet/Premium U.S. Food and
Beverage Launches, 2005-2010 (number)

7. Chocolate Candy Leads Gourmet/Premium Food Launches
Table 4-6: Top 15 Categories for Gourmet/Premium Food Launches, 2005-2010
(number)
Tea Tops Gourmet/Premium Beverage Launches
Table 4-7: Top 10 Categories for Gourmet/Premium Beverage Launches, 2005-
2010 (number)
Retailers Ahead of Marketers in Product Introductions
Table 4-8: Top 20 U.S. Marketers Launching Gourmet/Premium Foods and
Beverages, 2005-2010 (number)
Marketing Trends
The Gourmet/Natural Foods Synergy
Table 4-9: Number of Gourmet/Premium Food and Beverage Launches: By
Selected “Natural” Package Tags/Claims, 2008 vs. 2009
Selling Health Benefits
Table 4-10: Number of Gourmet/Premium Food and Beverage Launches: By
Selected “Healthy” Package Tags/Claims, 2008 vs. 2009
Selling Convenience
Table 4-11: Number of Gourmet/Premium Food and Beverage Launches: By
Selected “Convenience” Package Tags/Claims, 2008 vs. 2009
Private-Label Products
Table 4-12: Number of Private-Label Gourmet/Premium Food and Beverage
Launches, 2005-2010
Artisan, Handmade, and Handcrafted Foods and Beverages
Table 4-13: Number of Artisan, Handmade and Handcrafted Gourmet/Premium
Food and Beverage Launches, 2005-2010
Selected New Product Introductions
Frozen and Shelf-Stable Meals
Dairycase
Cheese: New Flavors and More Convenience
Yogurt: It‟s All Greek to Me
Condiments, Sauces and Meal Starters: Innovation and Convenience
Fresh Foods
Fresh Deli Foods
Fresh Meat: Branding Meat with Celebrity Appeal
Fresh Fruits: It‟s All About Unusual Colors
Fresh Vegetables: Artisanal Salads and Colorful, Flavorful Assortments
More Sophisticated Flavors Distinguish Gourmet/Premium Snacks
Confectionary and Desserts
Confections—Ice Cream Parlor Treats or Adults-Only Wine-Flavored
Cookies
Ice Cream and Frozen Desserts
Beverages
Coffee
Sodas: Handcrafted and All-Natural
Teas
Chapter 5: Retail and Foodservice

8. Trend Overview
Supermarkets vs. Foodservice: Blurring the Boundaries
Really Local Farms
Supermarkets Field Larger Experimental Gardens
Chef-Run Local Markets
What‟s Hot, According to Chefs
Gastropubs and Pubs in Supermarkets
Tableside Service Personalizes the Dining Experience
Retail Channels
Types of Outlets
Supermarkets Lead Retail Market
Mass Merchandisers and Supercenters
Contest for National Warehouse Club Supremacy
Gourmet/Specialty Food Stores
Natural Food Stores
Convenience Stores
Express-Format Grocery Stores
Internet, Mail Order, and Subscriptions
Shopping and Foodservice Patterns
Experian Simmons Consumer Survey Findings
Grocery Spending Patterns
Table 5-1: Grocery Spending Patterns, 2009 (percent and index of U.S. adults)
Retail Shopping Patterns
Table 5-2: Retail Shopping Patterns: All Consumers vs. Gourmet Consumers,
2009 (percent and index of U.S. adults)
Consumer Attitudes/Behavior Toward Shopping
Table 5-3: Attitudes/Behavior Toward Shopping: All Consumers vs. Gourmet
Consumers, 2009 (percent and index of U.S. adults)
Consumer Attitudes/Opinions Toward Foodservice
Table 5-4: Attitudes/Opinions Toward Foodservice: All Consumers vs. Gourmet
Consumers, 2009 (percent and index of U.S. adults)
Restaurant Usage Patterns
Table 5-5
Visits to Selected Restaurants in the Past Month: All Consumers vs. Gourmet
Consumers, 2009 (percent and index of U.S. adults)
NASFT Consumer Survey
Chapter 6: Consumers and Media
Usage Trends
Experian Simmons Consumer Survey Findings
Internet Has Changed How Consumers Spend Free Time
Table 6-1: The Internet and Lifestyle Changes: All Consumers vs. Gourmet
Consumers, 2009 (percent and index of U.S. adults)
Internet Has Changed How Consumers Shop
Table 6-2: Internet Usage Patterns: All Consumers vs. Gourmet Consumers,
2009 (percent and index of U.S. adults)
Gourmet Consumers and Traditional Media

9. Table 6-3: Traditional Media Patterns: All Consumers vs. Gourmet Consumers,
2009 (percent and index of U.S. adults)
Gourmet Consumers‟ Attitudes Toward Advertising
Table 6-4: Attitudes Toward Advertising: All Consumers vs. Gourmet Consumers,
2009 (percent and index of U.S. adults)
Advertising and Marketing Trends
Few National Advertisers
Making Use of Websites and Social Media
Food Show Sponsorships
Celebrity Spokespeople
Advertising and Marketing Positioning
Adventurousness
Authenticity/Heritage
Customization
Emotional Appeal
Flavor Variety
Healthfulness
Limited Edition
Organic
Premium Quality vs. Ordinary Products
Pure/Simple Ingredients
Restaurant-Style
Sex Appeal
Versatility
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