Consumers Find Comfort In The Familiar

Chicago — “There will be no recession in eating,” insisted industry analyst Harry Balzer, extrapolating his assertion from the more than 4,200 consumers surveyed by The NPD Group, where he serves as vice-president.

As the company’s lead expert on food and beverage consumption, Balzer authors its Annual Report on Eating Patterns in America.

At the All Candy Expo, he spoke to a capacity crowd on the final morning of the three-day trade show, and shared research findings and insights gleaned from them.

Though he said he supported the idea that new products are essential in a downturn, Balzer offered a caveat, explaining: “In tough times, consumers want slightly new versions of old things — food they are comfortable with — not items they aren’t familiar with at all.”

He said in spite of economic troubles, consumers will forego many expenditures, even so-called small luxuries, but food is essentially immune to these cuts in spending. Balzer illustrated his points with data that support an increase in fast food service, casual dining restaurant chains and other convenience-based outlets.

In stores, private label is also doing very well in the current economy, especially as retailers are bringing out their own branded products that address value options, he said.

Regarding the surge in convenience foods, Balzer said the increasing number of women in the workforce during the past several decades represented the “pillar of growth for take-out and convenient foods across America.”

The same bodes for the snack category, he noted, and will only continue to bolster such segments as 100-calorie packages and on-the-go meal replacement items, for example.

To most potentially negative indicators in today’s economy that he outlined, Balzer offered a positive counter, supported by NPD research.

“There is still great opportunity,” he pointed out, “the key is to see what everyone else sees and think something different.”