Changing Purchase and Consumption Patterns of Specialty Foods in America

What to Know Before Opening a Food Store in the United States to Achieve Success

Much has been said and written about the ongoing battle between e-commerce and traditional commerce, particularly in the United States, exemplified by Amazon vs. Walmart. The crux of the matter is that the rapid growth of online commerce, favoring Amazon, has eroded Walmart's dominance in retail. However, in this challenge, Walmart's problem may not be solely about Amazon and e-commerce of food products.

Tastes and purchasing habits of food products are changing in the United States. Millennials are shying away from large industrial food products, opting for natural and niche food items. Consequently, sales of specialty foods in supermarkets are beginning to decline in favor of those in specialized stores.

In a recent report to its clients, the financial analysis agency Stifel presented a chart showing that when it comes to grocery shopping, supermarkets like Walmart are not losing sales to other retailers, whether online or traditional. Rather, sales of food products in these American superstores are declining because Millennials' shopping patterns are changing; they do not prefer to do all their shopping in a single store.

As one of Stifel's analysts explains: "The concept of the one-stop-shop grocery store, capable of meeting all a customer's daily shopping needs, is diminishing in favor of so-called 'specialty stores' — niche, specialized food stores that cater to the emerging demand for quality, health, and wellness typical of Millennials in America.

Therefore, in the near future, we will likely witness a shift in food consumption patterns toward shorter but more frequent trips to such stores."

Several factors confirm this change in consumption patterns in the United States:

1. More Americans are living in cities, and—for the first time in decades—people are "downsizing." For both reasons, it's increasingly difficult to stockpile food products at home.
2. Individuals with above-average incomes tend to purchase organic products and consume healthy foods. In this pursuit, they diversify their choices by shopping at specialized food stores rather than relying on traditional supermarkets.
3. While many Millennials may not be as skilled in cooking as their parents, they are decidedly more adept than previous generations at seeking inspiration —typically online— for new recipes or dishes and experimenting by purchasing the necessary specialty foods.

Therefore, Millennials do not tend to stockpile food products as previous generations did. Instead, their food shopping is much more "spontaneous," leading them to visit multiple stores to purchase preferred products rather than relying on a single store.

In conclusion, "specialization is back," and large retailers will need to consider this if they wish to maintain their sales volumes. At the same time, significant opportunities arise for specialty food retail stores that can meet the new demands and needs of consumers who now prioritize quality and authenticity in food products for overall well-being in America.

Millennials in the United States

• Age group: 23-38 years
• Born between 1977 and 1992
• Millennials constitute 22% of the total U.S. population
• Purchasing power of Millennials in America is estimated at approximately $170 billion
• Key menu terms for American Millennials:
  • "Fresh"
  • "Local"
  • "Grass-fed"
  • "Unprocessed"
• Pasta is the favorite dish of 51% of Millennials in the United States