Food gifting in the US market has been on the rise over the past few years with the market looking to reach $18 billion by the end of 2016. This represents a 3.5% increase from last year. When looking at the US food gifting market it is clear that it is divided by consumer and corporate sales.
Consumer sales represent just below 60% of total sales while corporate sales represent just below 40%.
With positive employment increases in the US, corporate food gifting has increased massively. Many new US companies are creating food gifts that are targeted and designed to appeal to business people. The recovery from the recession and access to more disposable income has clearly been a factor here and especially in consumer spending.
Research published from “Food Gifting in the US, 5th Edition” indicates people are buying food gifts, not just for holiday periods or special occasions but just because they can. In 2014 42% of US adults purchased at least one specialty food gift. Of these purchasers, 33% bought specialty food gifts for between three and four people, 22% bought them for two people, 23% bought them for one person, and 22% bought them for five or more people. These figures are again expected to increase next year showing opportunities for new food gifting products.
Food gifting in the US has also seen increases due to the demand for specialty foods, like truffles, gourmet marshmallows or artisan granola. The fact there is also such accessibility to customized treats like cookies and cakes made-to-order online and offline has allowed the American consumer to really consider food as an option for gifting.
Chocolate/candies led the way for food gifting as 28% of people said they had bought either as a gift for someone within in the last 12 months. This was followed by baked gifts at 19%, coffee/tea/hot chocolate at 17% and nut or salty snack foods at 15%. The remaining percentages come from a range of different categories.
A recent study conducted by Bord Bia on travel retail stated that there are three main reasons why people buy gifts:
1. To flatter which normally involves premium products with a high price
2. To endear which is about bringing people together. Normally the product will have a universal appeal.
3. For ME! These products tend to defy logic when regarding price and tend to be of luxury.
For Irish food gifting products to succeed in the US market they must fit into one of the above reasons for buying gifts along with having a point of differentiation to stand out against other products. Secondly, to further push sales these products need to be packaged and displayed in a fashion to catch the eye of a consumer. Packaging will only go so far, the display will provide the final push.
