Sales of premium, gourmet and organic foods are expected to decline during the recession, according to Frost & Sullivan, a company that provides research and best practice models for its clients.
Likewise, in its economic impact analysis of the food and beverage ingredients industry, Frost & Sullivan concludes that more consumers will clip coupons and trade down to store or private label brands.
The company suggests that the food industry invest in marketing strategies that focus on core product offerings and that they aggressively seek consumer feedback in order to match specific needs.
Fortunately, the U.S. food industry hasn’t been hard hit by the economic downturn, notes Frost & Sullivan.
“While all industry segments have been affected by the economic downturn,” says Frost & Sullivan’s Shomik Majumdar, “food processing has only lost 5.1 percent of its value in one year, compared to the S&P 500, which is down 36.5 percent.”