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From the Wires
Food Gifting in the U.S., 3rd Edition
By: PR Newswire
Nov. 8, 2012 06:58 PM
NEW YORK, Nov. 8, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Food Gifting in the U.S., 3rd Edition http://www.reportlinker.com/p0292325/Food-Gifting-in-the-US-3rd-Edition.... Fueled by upper-income household spending trends, the food gifting market is on firmer ground, buoyed by continued product innovation and usage occasion expansion: Packaged Facts' Food Gifting in the U.S. forecasts U.S. food gifting sales to reach $11.15 billion in 2012, up 2.5% from 2011. Despite this positive news, we see a plethora of untapped opportunity. While purchase frequency has trended upward during 2012-2012, it remains modest. To expand purchase frequency, we believe the industry can do more to ensure that food gifts are priced at tiers that allow for expanded lower-income market participation. We also identify a variety of tangible and intangible (emotional) product purchase and attribute rationales that can overcome sales obstacles among food gifters and non-food gifters alike. To assist market participants in maximizing sales and marketing opportunity, this report:
We also assess leading food gifting manufacturer & retailer strategies and product developments. Falling into three primary catergories (chocolate, floral, and specialty food), the companies include The Hershey Company, Lindt & Sprungli AG, Mars Inc., Russell Stover, 1-800-FLOWERS.COM, FTD, Candy Bouquet, Dean & DeLuca, Edible Arrangements, Harry and David Holdings, Inc., Houston Harvest Gift Products LLC, The Wisconsin Cheeseman, and Zabar's and Company, Inc. In addition to our market size and forecast, we provide detailed sale analysis of gift boxed chocolate and seasonal chocolate, a significant food gifting sales contributor. This includes 2011-2012 gift box chocolate, seasonal Christmas, seasonal Easter, and seasonal Valentine's Day chocolate candy marketer and brand sales and unit comparisons, and identifying fast growing brand lines among each of these four chocolate candy segments. Chapter 1: Executive Summary Scope and Methodology Report Scope Report summary Food Gifting Market Size Details on chocolate Gift boxed chocolate Christmas chocolate Easter seasonal chocolate Valentine's Day chocolate Summary analysis Food Gifting Purchaser, Gift Type, Gift Spend & Recipient Analysis Summary analysis Food gifting becoming more prevalent Thank you, discretionary income gain Food gift sweet spot stays the same, but 2010-2012 spend per gift trends upward Thank you, higher-income consumers Hispanic and black consumers overlooked? Or not interested? Boxed chocolates/candies remain most widely purchased food gift But other choices gathering steam Food gift purchase recipient analysis reveals opportunities Consumer Food Gifting Occasions Summary analysis How important is each occasion? Consumer survey context Food Gifting Purchase Rationales, Attributes Sought & Retail Distribution Summary analysis Intangible reasons Tangible attributes Utility, convenience & value We don't buy them because they're cheap! Increasing women's market participation Harness the internet to reach older food gifters Specialty food gift purchase sources holding ground Why We Don't Buy Specialty Food Gifts Summary analysis We know you exist; now, prove you have sufficient value Help us feel more confident about how our choice will match our recipient Assuage our food fears & offer more healthful food gifts Convince us that gift cards and cash are thoughtless and one-dimensional Know thy enemy: trending gift card metrics Food Gifting Manufacturers & Retailers Chapter 2: Market Size and Forecast Summary analysis Food gifting market Details on chocolate Gift boxed chocolate Christmas chocolate Easter seasonal chocolate Valentine's Day chocolate Food gifting market size and forecast Graph 2-1: Food Gifting Market Size & Forecast, 2007-2014 Seasonal and Gift-Boxed Chocolate Sales Trends & Segmentation Segmentation analysis Gift Boxed Chocolate Challenged by other formats deemed suitable for gifting But presentation and quality appearance has its merits Top marketers: gift boxes Russell Stover maintains lead Table 2-2: Top Marketers of Gift Box Chocolates, 2012 Top marketers: Christmas chocolate Table 2-3: Top Marketers of Seasonal Chocolate Christmas Candy, 2012 Fast growers Table 2-4: 15 Fastest-Growing Seasonal Chocolate Christmas Candy Brand Lines, 2012 Top marketers: Easter chocolate Hershey maintains Easter seasonal chocolate lead Table 2-5: Top Marketers of Seasonal Chocolate Easter Candy, 2012 Fast growers Table 2-6: 18 Fastest-Growing Seasonal Chocolate Easter Candy Brand Lines, 2012 Top marketers: Valentine's Day chocolate Table 2-7: Top Marketers of Seasonal Chocolate Valentine's Day Candy, 2012 Fast growers Table 2-8: 18 Fastest-Growing Seasonal Chocolate Valentine's Day Candy Brand Lines, 2012 Chapter 3: Food Gifting Purchaser, Gift Type, Gift Spend & Recipient Analysis Summary analysis Food gifting becoming more prevalent Thank you, discretionary income gain Food gift sweet spot stays the same, but 2010-2012 spend per gift trends upward Thank you, higher-income consumers Hispanic and black consumers overlooked? Or not interested? Boxed chocolates/candies remain most widely purchased food gift But other choices gathering steam Food gift purchase recipient analysis reveals opportunities The male angle The usage frequency angle The income angle Food gifting on the rise Table 3-1: Food Gifting: Purchasing for Self, Purchasing for Others & Receiving as Gift, 2010 vs. 2012 Buoyed by rise in per capita disposable income Graph 3-1: Consumer Per Capita Disposable Income, Real and Adjusted, with Population Change, Q2 2007-Q2 2012 Household net worth and disposable personal income up; household debt down Graph 3-2: Household Debt-to-DPI & Household Debt-to-Net Worth Ratios, Annual Change and Cumulative Change, 2007-Q2 2012 Food Gift Purchasers Gift spending Sweet spot stays at $20 to $29, but spend per gift trends upward Table 3-2: Food Gift Purchasers: Spend per Gift, 2010 vs. 2012 Food gifting heavily reliant on $100K+ households, which generate 51% of spend Graph 3-3: Food Gifting Market: Consumer Dollar Share by Household Income, 2011 And higher spend per gift Table 3-3: Food Gift Purchasers: Spend per Gift by Household Income, 2012 Household growth trends skew toward high-income brackets, driving food gifting sales Graph 3-4: Household Growth by Household Income Bracket, 2007-2011 Household income trends also favor food gifting market Graph 3-5: Household Income Growth by Household Income Bracket, 2007-2011 Race/ethnicity spend analysis suggests low dollar share contribution among non-whites Graph 3-6: Food Gifting Market: Dollar Share by Race/Ethnicity, 2011 Household growth trends suggest need to market to non-whites more aggressively Graph 3-7: Household Growth by Race/Ethnicity, 2007-2011 Black and Hispanic household income growth suggests increased opportunity Graph 3-8: Household Income Growth by Race/Ethnicity, 2007-2011 A contradiction arises Significant regional variation Table 3-6: Food Gift Purchasers: Spend per Gift by Household Income, 2012 Purchasing Food Gifts for Others Types of food gifts purchased Boxed chocolates/candies remain on top Gifting accounts for 15% of premium chocolate purchases But 2010-2012 purchase incidence gains among other food gifts more pronounced Table 3-7: Types of Food Gifts Purchased for Others, 2010 vs. 2012 Age Table 3-8: Types of Food Gifts Purchased for Others by Age of Food Gifter, 2012 HH income makes a difference in choice of food gift Regional favorites Table 3-9: Types of Food Gifts Purchased for Others by Household Income of Food Gifter, 2012 Table 3-10: Types of Food Gifts Purchased for Others by Household Income of Food Gifter, 2012 Who are food gift recipients? Spouse/significant other at top of list Mom, yes; Dad, not so much What are friends for? Males big food gifters for spouse/significant other & mom; females drive purchases for others Table 3-12: Recipients of Food Gifts by Gender of Food Gifter, 2012 Mom, dad and siblings popular recipients among younger givers Table 3-13: Recipients of Food Gifts by Age of Food Gifter, 2012 Higher income tied to wider food gift recipient distribution beyond family Table 3-14: Recipients of Food Gifts by Household Income of Food Gifter, 2012 Number of food gifting purchase recipients Moderate usage frequency provides growth opportunity Table 3-15: Food Gift Purchasers: Number of Gift Recipients per Year, 2010 vs. 2012 The good news Better news ahead, with just a bit of higher-frequency purchase conversion? Table 3-16: Food Gift Purchasers: Gift Recipient Hypothetical, 2010-2012-2014 Gender analysis demonstrates need to increase purchase frequency among men and women Table 3-17: Number of Gift Recipients per Year by Gender of Food Gifter, 2012 Explore additional food gifting occasions for 18-34s Table 3-18: Number of Gift Recipients per Year by Age of Food Gifter, 2012 Enhance value proposition among lower-income consumers Table 3-19: Number of Gift Recipients per Year by Household Income of Food Gifter, 2012 Purchasing Food Gifts for Self Better to give to self than to others! Everyday use helps tip the scale Table 3-20: Types of Food Gifts Purchased for Self, 2010 vs. 2012 Do not overlook men's role in food self-gifting Table 3-21: Types of Food Gifts Purchased for Self: By Gender, 2012 Age Table 3-22: Types of Food Gifts Purchased for Self: By Age, 2012 HH income Table 3-23: Types of Food Gifts Purchased for Self: By Household Income, 2012 Chapter 4: Consumer Food Gifting Occasions Summary analysis How important is each occasion? Consumer survey context Food gifting special occasions Winter holidays Easter Spend categories Spend locations Online growth Valentine's Day Spend categories Spend locations Online growth Graduation More than 6 million food gifting opportunities annually Postsecondary opportunity Table 4-1: Graduation and Degree Opportunity, 2007-08 to 2011-12 HH income levels support food gifting spend Table 4-2: Graduations in Past 12 Months: Key Demographics, 2012 Weddings Wedding rate significantly declines Graph 4-1: Marriages and Marriage Rate, 2000-2009 More than 2 million weddings—and more than 275 million wedding guests Table 4-3: Marriages in Past 12 Months: Key Demographics, 2012 Anniversaries 121 million married adults to target Table 4-4: Married Adults: Key Demographics, 2012 Mother's Day and Father's Day Table 4-5: Graduations in Past 12 Months: Key Demographics, 2012 Occasions for purchasing specialty food gifts: consumer survey analysis Food gifting less prevalent for Valentine's Day, Thanksgiving & Easter Table 4-6: Occasions for Purchasing Specialty Food Gifts, 2010 vs. 2012 Winter holidays food gift purchase share Table 4-7: Occasions for Purchasing Specialty Food Gifts, with Population Estimates, 2012 Gender: a close call Table 4-8: Occasions for Purchasing Specialty Food Gifts: By Gender, 2010/2012 Age: winter holidays a key exception Table 4-9: Occasions For Purchasing Specialty Food Gifts: By Age, 2010/2012 HH income and food-centric occasion connection Table 4-10: Occasions for Purchasing Specialty Food Gifts: By Household Income, 2010/2012 Chapter 5: Food Gifting Purchase Rationales, Attributes & Retail Distribution Summary analysis Intangible reasons Tangible attributes Utility, convenience & value We don't buy them because they're cheap! Reaching women Harness the internet to reach older food gifters Specialty food gift purchase sources holding ground Reasons for buying specialty food gifts Gifts intended to convey an emotional expression: food gift recipient enjoyment matters Why buy food gift unless the recipient views it as a special, a splurge? Recipients may not need a food gift—but that doesn't mean they wouldn't want one Utility plays a role Convenience and value also relevant, with a twist Food gifts aren't cheap! Rationales becoming more prevalent over time Internet playing a role? Table 5-1: Reasons for Purchasing Food Gifts, 2010 vs. 2012 Women: gift should be uncommon purchase and should fill want vs. need Table 5-2: Reasons for Purchasing Food Gifts: By Gender, 2012 Attributes sought when purchasing food gifts Quality and appearance prevalently sought Trust and food health also relevant Product variety, distinctiveness & special meaning vs. value Shipping and online availability Table 5-3: Attributes Sought When Purchasing Food Gifts, 2010 vs. 2012 Gender & the issue of thought put into the gift Table 5-4: Attributes Sought When Purchasing Food Gifts: By Gender, 2012 With age comes wider desire for quality, product variety . . . and online availability? Table 5-5: Attributes Sought When Purchasing Food Gifts: By Age, 2012 HH income analysis Table 5-6: Attributes Sought When Purchasing Food Gifts: By Household Income, 2012 Specialty food gift purchase sources Holding ground Table 5-7: Specialty Food Gift Purchase Locations in Past 12 Months, 2010 vs. 2012 Similar food gift purchase incidence by gender at many retailers: please explain! Table 5-8: Specialty Food Gift Purchase Locations in Past 12 Months: By Gender, 2012 Shopping context: women garner higher shopping share across retail segments Table 5-9: Retailer Brand Shopping in Past 4 Weeks: Usage Share by Gender, 2012 Age analysis Table 5-10: Specialty Food Gift Purchase Locations in Past 12 Months: By Age, 2012 HH income analysis Table 5-11: Specialty Food Gift Purchase Locations in Past 12 Months: By Age, 2012 Chapter 6: Why We Don't Buy Specialty Food Gifts Summary analysis We know you exist; now, prove you have sufficient value Help us feel more confident about how our choice will match our recipient Assuage our food fears & offer more healthful food gifts Convince us that gift cards and cash are thoughtless and one-dimensional Know thy enemy: trending gift card metrics Introduction Reasons for not buying food gifts Knowledge of food gifts versus food gift value Knowledge about recipient Food fears & food health Alternative gifts Table 6-1: Reasons for Not Buying Food Gifts, 2010 vs. 2012 Reasons for not buying food gifts: all consumers versus food gifters Table 6-2: Reasons for Not Buying Food Gifts: All Consumers vs. Food Gifters, 2012 Gender analysis Table 6-3: Reasons for Not Buying Food Gifts: Food Gifters vs. non-Food Gifters: By Gender, 2012 Age analysis: 18-24s, 25-34s & 35-44s Table 6-5: Reasons for Not Buying Food Gifts: Food Gifters vs. non-Food Gifters: By 18-44 Age Brackets, 2012 Age analysis: 45-54s, 55-64s & 65+s Table 6-6: Reasons for Not Buying Food Gifts: Food Gifters vs. non-Food Gifters, by 45 and Over Age Brackets, 2012 HH income analysis Table 6-7: Reasons for Not Buying Food Gifts: Food Gifters vs. non-Food Gifters, by Household Income, 2012 Regional analysis Table 6-8: Reasons for Not Buying Food Gifts: Food Gifters vs. non-Food Gifters, by Region, 2012 Gift Card Competition Positive holiday spending trend Purchase spend trends Durbin Amendment and CARD Act Reg E dormancy, inactivity and service fees Gift card usage & spending trends Gift card purchase share segmentation Table 6-9: U.S. Adult Gift Card Purchases: Dollar Value by Segment, 2010-2012 Purchase share leadership goes to . . . Table 6-10: U.S. Adult Gift Card Purchases: Dollar Value Share by Segment, 2010-2012 Gift card usage penetration stabilizes Table 6-11: Consumer Payment Card Usage Trending: By Type, 2010-2012 Gift card usage trending by retail distribution segment Table 6-12: Gift Card Usage Trending: By Retailer Type, 2010-2012 Chapter 7: Food Gifting Manufacturers & Retailers Chocolate The Hershey Company Tis the season . . . Sales on the upswing Table 7-2: The Hershey Company: Selected Sales Metrics, 2006-2011 Product price increase Pouring money into advertising Brands receiving support Trade promotion activity Hershey's retail customer base Table 7-3: Hershey's Sales by Channel, 2011 Product overview New product introductions Lindt & Sprungli AG Company overview Products New products Seasonal confectioneries Other Chocolate Products Mars Inc. Products Marketing Russell Stover Company overview Products New products Marketing Whitman's Turns 100 Television advertising Valentine's Day Easter Build-a-Box Novelty Gifts Floral 1-800-FLOWERS.COM Company overview Product and distribution focus Sales performance Company strategy 1-800-FLOWERS.COM is doing well in the face of a recession Technology makes paying easier Strategic partnerships FTD Company overview Consumer floral and gift mass marketing Floral network services Planned FTD spinoff Table 7-5: FTD Revenue, Orders & Order Value, 2009-2011 New collections FTD College Rose Collection expanded Program expands gifting occasions Jane Seymour Silk Botanicals by FTD Collection provide floral alternative Program targets weddings, holiday gift giving, and year-round home décor Specialty Foods Candy Bouquet Company overview Company strategy New owners are making changes Dean & DeLuca Company overview Food gifts and other products Edible Arrangements Company overview Company strategy New products …with new advertising …and technology And strategic partnerships Harry and David Holdings, Inc. Company overview Financial information Food gift products Company strategy Houston Harvest Gift Products LLC Company overview The Wisconsin Cheeseman Company overview Zabar's and Company, Inc. Company overview Methodology Consumer survey methodology Market size and forecast Appendix Report table interpretation Product Definitions Types of Food Gifts To order this report: Snack_and_Sweet Industry: Food Gifting in the U.S., 3rd Edition Contact Nicolas: nicolasbombourg@reportlinker.com SOURCE Reportlinker
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