September 30, 2009

The weaker economy has changed purchasing trends among US consumers, as price value becomes the top priority, according to a trends report from the International Dairy-Deli-Bakery Association.

More than half of consumers are buying less in the deli and prepared foods area, and fewer consumers are putting a high value or organic, local and imported food than before. Brand loyalty has also weakened.

Many consumers are also reducing restaurant spending without increasing their deli meal purchases. About half of Americans bought meals at the in-store deli less often over the past year, with one-third of those doing so "much less often", the research said.

The research noted that many shoppers are more concerned about price right now, and in the future, retailers will turn to more pricing tactics, promotion, menu composition and in-store aesthetics.

Before the financial crisis, premium and imported deli meats were very popular. But consumers are now scaling back to get more protein per penny. The study said consumers are opting for the more cost effective pre-packaged meats over sliced-to-order meats from the service deli.

The study also noted that while consumers keep their eyes on the price, they may be willing to pay a little more for more health-conscious meats. 

Financial instability is also leading many consumers to seek consistency in other areas of their lives, and that has manifested itself in a demand for iconic deli foods such as ribs and fried chicken.

Packaging also plays a hand into a consumer's buying decision, and plastic tub packaging continues to win over consumers because it is easier to handle than zip bags and vacuum bags.