There are a number of underlying trends in the marketplace that are driving demand for products. One of the trends that continues to stand out clearly to me is the increased consumer awareness and interest in living a healthier life. I have stated previously that the downturn in the economy has had a profound impact on consumer behavior, and has caused many to seriously consider what truly improves their lives. While we don't all have the same perceived needs, I think many have determined what is important to improve their lives. After reflecting on their most desired needs, they are now focusing the spending of their disposable income on those things that add the greatest value to their happiness. Or to put it in economic terms, they are maximizing the utility they derive from their product purchases.
I believe that living a healthy life has made it to the top of many consumers’ lists as an important factor driving their consumer purchases. Does this mean that consumers in our country are going to shy away from anything that is not completely healthy? Of course not, but they are certainly going to value it when comparing some of the available choices. Recent Mintel research analyzing consumer snacking habits found that 44 percent of consumers who valued their health consumed healthful snacks most of the time. But, at the same time, 39 percent also reported that they consume less-healthy snacks as an occasional treat.
At the same time, we are seeing an explosion of gluten-free products hitting the market to meet the demand that has been rising at 30 percent per year. If you consider that only about 3 million Americans have a bad physical reaction to gluten, yet the market for gluten-free products is expected to grow to $5 billion in the next three years ... that's catering to well beyond the number of consumers who have been prescribed a strict diet by their doctors. Then there are a large number of consumers buying these products because they are perceived as being healthy.
Obviously, my message to you is that health sells. If you can call attention to the health benefits of specific products or cooking methods in your signage and merchandising, I think you will find a lot of interested shoppers.
In this issue, we have done our best to run with this concept, and make you aware of some products that fit in with the healthy living lifestyle trend. For those of you who closely follow the health food market, we have also included a preview of the upcoming Natural Products Expo West, where you will find a wealth of companies producing natural products to meet the growing demand.
What are some of the trends you have identified as driving demand in your store? We would love to hear your ideas as well, so please join the conversation on Twitter @gbpublisher.