Abstract
The economic turmoil that reached crisis level in fall 2008 has been a bull in
the china shop of American consumer behavior, even for a market as fundamental
as food. Food spending, fueled by price increases but dampened by consumer
cutbacks, took on a volatility that matched the chaotic economic trajectories
of American consumers. Even within the premium cohort of upscale-to-affluent
U.S. adults ($75K+ individuals; $100K+ households), as of first quarter 2009,
nearly a fifth described themselves as significantly worse off than they were
a year ago, and nearly a fourth described themselves as somewhat worse off..
Focusing on this upscale-to-affluent U.S. cohort, Affluent Consumers in the
New Economy: Food and Foodservice examines how responses to economic turmoil
are affecting consumer demand for food products and chain restaurant services.
Notably, for example, premium consumers who have taken a financial hit are
more likely to shop for organic and natural foods, and are more sensitized to
ethical consumerism issues. In addition, premium consumers whose financial
situation has recently worsened or improved show higher levels of health and
nutrition consciousness, as well as a keener taste for food adventure. In an
era of widespread economic turmoil, such psychographic responses to financial
setback and financial recovery will shape and transform consumer spending on
food.
The effects of economic turmoil are being seen not only in which types of food
products consumers are buying, but in which retail channels and chains they
are flocking to. Although premium consumers remain less likely than the rest
of the population to shop at Walmart supercenters, they are shifting to
Walmart at above-average rates, making supercenters an ever-bigger part of the
equation for marketers of premium foods. At the same time, shopping patterns
for Trader Joe' s and warehouse clubs show the heightened potential for
adventurous but value-priced store brands among the premium cohort.
The effects of economic turmoil are also presenting broadly felt and widely
reported challenges to the foodservice industry. Even within the current
environment, however, specific segments of premium consumers are more
receptive to healthy fast food and more likely to find that fast food fits
their current lifestyles. Therefore, the true task for restaurants is to match
supply to demand, rather than to create or maintain it. Successful foodservice
strategies must accommodate generationally and regionally inflected economic
contexts, food landscapes, nutritional psychographics, and consumer lifestyles.
Overall, consumers who have been set back or thrust forward financially are
more likely to be thinking and rethinking about what they need, what they
want, and how and where best to find it. For marketing and customer
communications, as discussed in this report, more is now more.
Report Methodology
This report is primarily based on original research and analysis. The analysis
of affluent consumer trends, demographics, and psychographics derives from
custom extraction and cross-tabulation of data collected by Experian Simmons
(New York, NY) in its Winter 2008/09 National Consumer Study (fielded from
late July 2008 through late March 2009), which is based on 13,128 U.S. adult
respondents. In addition, this report draws on recent Packaged Facts consumer
market studies, as well as relevant data from various government, business,
and trade sources.
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