Gourmet Food Growth
Information Resources finds consumers will pay for perceived “premium” foods, drinks.
It is certainly not uncommon these days to purchase at least some natural and organic products and even occasionally shop in a specialty gourmet retailer. In fact, 15% of consumers say they will be increasing usage of these and other premium–tier products in the next 12 months according to the latest IRI Point of View: “Premium Products Primed to Perform.”
IRI, Chicago, says its new research uncovers the latest attitudes and behaviors when it comes to purchasing premium products and helps savvy CPG marketers develop carefully targeted products that will broaden their consumer audience and increase profit margins.
“The word ‘premium’ means different things to different consumers,” says Susan Viamari, editor of Thought Leadership, IRI. “For some, it means natural and organic and, for others, it means a private label product offering high-quality ingredients at a lower price. Ultimately, a premium brand must have some sort of perceived value in order to appeal to consumers. Our research reveals how each unique consumer demographic segment defines and shops for premium products at the channel, aisle and even category level.”
In this IRI Point of View, the premium brand purchasing habits and attitudes of millennials, baby boomers, households with children and lower-earning households are highlighted.
In terms of age, the most significant differences appear between baby boomers and millennials, who each find value in varying premium brand attributes and employ different shopping strategies. For instance, millennials are more drawn to convenience, while boomers are more likely to seek quality ingredients and brand names. Generation X consumers tend to align most closely with the general population and serve as the middle ground between their adjacent cohorts.
The IRI Point of View, “Premium Products Primed to Perform,” is available exclusively from IRI. Research findings were compiled from insights in the 2014 Annual Brand & Retailer Loyalty Survey, which was conducted in April, 2014. To download the free IRI Point of View, please visit: http://www.iriworldwide.com/Insights/Publications/PointofView.aspx.