Food & Beverage Market Research & Business Solutions

For more than 20 years, we've asked American consumers to provide details about what they have in their kitchens and how they prepare and cook their meals. Get new insights from our report, What's Happening in America's Kitchens, and learn what convenience means in the kitchen today, explore the emerging disruptors in the industry, and find out how we can expect food-related habits to change. Also, discover the outlook for the food and beverage and home industries and how you can maintain a competitive advantage and capture more consumer dollars next year.

Inform innovation and targeting strategies by completing your view of U.S. eating habits with the fresh insights on how and what Hispanic consumers eat and drink both at home and away from home. The report gives you deep insight into the needs, behaviors, motivations, and desires of this growing population segment. Armed with this comprehensive report, you’ll find new ways to address the latest trends and strengthen your connection to Hispanic consumers, refine your targeting and messaging, and find new ways to appeal to this critical consumer group.

Focusing on delivery is one way to stay competitive in today’s slow-growth foodservice market. We know delivery trends were strong in 2017, but what is the outlook for the future? This report provides new insight about foodservice customers and the potential growth opportunity for delivery The Delivery Overview section looks across QSR pizza, QSR beyond pizza, and FSR, revealing unique business dynamics, consumer profiles, digital delivery engagement, and third-party apps. The Delivery Outlook section provides a five-year cohort forecast for restaurant delivery, as well as a two-year outlook for delivery compared across QSR pizza, QSR beyond pizza, and FSR.

With a new generation of food and beverage consumers coming of age, it's important to educate yourself about their needs and generational mindset. Our new report, Make It Happen for Gen Z, dives deep into the attitudes and behaviors of next-generation U.S. consumers — by young kids, kids aged 6 to 12, and teens into adulthood. It also examines the eating habits of Gen Z parents and how they choose to feed their kids. This report uncovers how food and beverage brands can create personal value for this generation by embodying four key attributes: authenticity, individuality, discovery, and fluidity.

With new labeling laws on the horizon, it’s critical to understand and address consumers’ concerns. Most consumers now say they are aware of genetically modified organisms (GMOs), and many of them tell us they aren’t comfortable buying and consuming foods that include them. Our new report, Navigating GMOs for Success, gives you new information and expert insight into this consumer mindset. It’s how to get the knowledge you need to improve product positioning and deliver effective marketing messages to respond to GMO-related concerns.

Meal kit delivery services like Blue Apron and Plated have garnered a small, but seemingly dedicated, segment of enthusiasts in the U.S. Are these kits a passing fad, or is this a trend worth watching? Our new report, Thinking Inside the Box: A Fresh Look at Meal Kit Delivery Services, combines findings of our own custom study with ongoing NET® consumer tracking research, insights from our Checkout Tracking solution, and industry expertise. It uncovers answers to your pressing questions about this new player in your market.

The Environmental Working Group’s recent report that pesticide levels in organically grown foods is equal to that of conventionally grown foods raised the question: will consumers of organic foods switch to all natural or conventionally grown foods.

Although there are more consumers buying their groceries online, they haven’t jumped all in. Nearly all online grocery shoppers (99%) still shop in brick and mortar grocery stores.

Generation Z, those born 1997 to present, has the potential to take demand for “real” unadulterated food to new heights, finds a new report from The NPD Group, a leading global information company. Raised by Gen X parents, Gen Zs have higher consumption rates of organic foods and beverages than any other group, and they were taught at a young age the value of food in terms of function and nutrition and not just how it tastes.

Generation Z, those born 1997 to present, now represent 27 percent of the U.S. population, a larger group than Millennials, and although only older Gen Zs are entering adulthood, their impact on the food industry is already being felt, finds a new study by The NPD Group, a leading global information company. Gen Zs, many of whom were raised by Gen Xers, grew up understanding the purpose of food and how it fits into a well-lived life. As a result this generational cohort has set expectations that food and food brands will follow their needs and not the other way around.

U.S. consumers have a renewed interest in cooking freshly prepared meals but not in spending more time doing it, according to a recent kitchen audit conducted by The NPD Group, a leading global information company. While convenience has always been a chief consideration in America’s kitchens, the definition of convenience is constantly in flux, and now saving consumers time with their freshly prepared foods is essential. The move towards fresh or clean eating has had an impact on how kitchens are equipped and set up today. Pantries are stocked differently and kitchen appliances, cookware, technology, and tools are evolving to make fresh food prep and cooking more convenient and foolproof, reports NPD.

Over half of U.S. adults and teens say they’re trying to get less sugar in their diet, apparently the operative word is trying.

Cultural influences and the more adventurous taste buds of U.S. consumers have made flavors like tikka masala, poblano, and doenjang recognized names on grocery store shelves and restaurant menus. The affinity U.S. consumers continue to show for ethnic flavors and dishes is supported by the fact that 75 percent of U.S. adults, especially young adults, are open to trying new foods, reports The NPD Group, a leading global information company.

Millennials are growing up and having kids and while some of their generational attitudes remain intact, their lifestyle as parents often change the how, what, and why behind their consumption choices. Breakfast is a meal occasion where being a Millennial parent necessitates convenience over satiation, which is the primary motivation for breakfast choices of Millennials without kids, according to a recently released report by The NPD Group, a leading global information company.

There continues to be a lot of buzz about meal kit delivery services — from celebrities launching their own services, ecommerce retailers partnering with food companies to develop meal kits, to major food companies investing in meal kit delivery services — but still adoption by U.S. consumers is relatively small at roughly 5 percent of households, reports The NPD Group, a leading global information company. One of the barriers to adoption is the expense of meal kit delivery services, according to an NPD Group study, but with the growth of online grocers offering meal kits, the kits will become more readily available, affordable and, as a result, more adoptable.

Grocery e-commerce has a lot of headroom for growth with only seven percent of U.S. consumers shopping online for groceries in the last month, reports The NPD Group, a leading global information company. Consumers who are lapsed from grocery shopping online or have never shopped for online groceries point out a number of barriers to their adoption of online grocery shopping, the top reason being that they want to pick out their own fresh items. Amazon’s recently announced purchase of Whole Foods will help overcome this barrier for Amazon Prime members (52 percent of online grocery shoppers are Amazon Prime members), active online shoppers, like young adults and men, and urban consumers; but there remains a large sector of the population that will continue to be served by brick and mortar grocery stores.

If you haven’t heard of Amazon Go by now you might want to search for it online. It represents what could be part of the future of retail by taking away a key grievance consumers have with shopping – waiting in line to check out. While you’re doing your online search you might see me featured as an analyst discussing its implications in the news story. While I spoke about it several times in the media, I hadn’t actually been there so I decided it was time to check it out with my own eyes.

Located in Seattle, Washington, this store exemplifies the notion that big ideas are sometimes in small containers. It’s no larger than a typical convenience store at a gas station, but I knew I arrived when I saw a group of people taking pictures with their smartphones of a store front. I already had the Amazon Go app on my phone, which is linked to your existed Amazon account for billing purposes. As I entered the store I was greeted by two employees who advised me it was time to open the app so I can scan the barcode at a turnstile right by the front door. I felt as though I was boarding a plane because that’s the only other time I scan barcodes on my phone for entry.

The first thing I did was look up to see the technology on the ceiling. It was all colored black, which in some ways makes it blend into the ceiling, but you couldn’t help notice it was all throughout the store. This is apparently how the technology works – you scan your barcode at the entry, the cameras capture your face, therefore when you remove an item from the shelf it knows who took it and whom to bill.

The options seemed fairly straight forward – packaged foods, snacks, beverages, as well as ready-to-heat and ready-to-eat options. There were even alcoholic beverages in a section guarded by a staff member who checks for IDs. For those looking for more involvement they even had meal kits that have all the ingredients pre-proportioned and ready to prepare. It was lunchtime so I grabbed an Indian chick pea dish, a beverage, and a couple of snacks for later. However, I wanted to put the technology to the test so I grabbed two other random items and shortly thereafter placed them back to see if I would get charged incorrectly for them.

Now I was ready to check out – uh – I mean leave the store. I headed back to the turnstiles and had this odd feeling that I was doing something wrong but the staff waved me on and I simply left. There’s a small dining area with microwaves and while I ate there my receipt arrived via email – it worked! Only the items I took were charged and the two items I put back were not.

So will this technology be the way of the future? Perhaps. While details are top secret, it seems this technology is expensive and retrofitting stores all across the country could prove too large an expense for some retailers. However, consumers continue to express convenience in the way they procure their foods and beverages, which is why we’re seeing more consumers use online sources for delivery or pick-up to minimize their time in stores.

Speaking of minimizing time in the store, the receipt shows I spent 14 minutes and 33 seconds inside – about 10 minutes of which I was wandering around taking pictures.

On March 27, 2018, I had the privilege of speaking on a panel at the 2018 GMA Science Forum in Washington, DC. In attendance were food scientists and technologist from many of the major food manufacturers in the United States, but despite their backgrounds I was surprised to see how much the consumer took a center role during the presentations – especially when discussing GMOs.

Sree Ramaswamy from The McKinsey Global Institute said in a keynote speech that from the beginning, the benefits of GMOs were touted to the wrong audience. The messaging was constantly around how farmers, their crops, and agribusinesses will thrive, but there were very few benefits advertised to the consumer. This is especially true today when consumers are calling for greater transparency, the free flow of information on the internet, and increasingly asking, “what’s in it for me?”

GMOs have been debated for several years with some fearing they might have health issues when consumed over a long period of time. While scientific studies have yet to prove that, our research at NPD shows more than 70 percent of adults have concerns when using GMO foods. As a result, nearly 20 percent of all meal occasions now include a Non-GMO Verified product up from nearly zero just five years ago. Clearly, the science around GMOs hasn’t reached the average consumer.

What I took away from this conference is that food companies have to be consumer focused throughout their entire organization. Even if your role is scientific in nature, you have to be concerned with how consumers will react. So while those of us in the food industry might be close to the information, the average person isn’t and it’s everyone’s job to educate them and satisfy their needs.

These past several months I spent much of my time compiling and writing the 32^nd Eating Patterns in America (EPA) report. It’s my second year authoring EPA and my third year traveling the country to share the insights gained from this report. Although I have a long way to go to top my predecessor’s longevity in writing the report (29 years), I'm enjoying bringing my own perspective  into our rich, ongoing food and foodservice research.   But I find that where my perspective on the data intersects with our clients’ real life experience is where real learning happens.

It’s my privilege to travel around the country meeting with and presenting EPA to our clients, and a luxury to hear firsthand what’s on their minds. They deal daily with the realities of changing consumer attitudes, behaviors, and demographics, an evolving marketplace with ongoing channel and digital disruptions; and increasing competition for consumer mindshare and dollars. As a result of our conversations together, this year’s EPA addresses many of these new realities.

There are four new realities in particular that are a focus of our view on the state of the consumer: The New Retail, The New Convenience, The New Restaurant, and The New Health and Wellness. These topics best represent the areas where there has been the most change or evolution.  So this year, in addition to the long-term trends on consumption of foods and beverages, visits to restaurants, cooking methods, and attitudes on nutrition and diet, we also included our perspective of emerging trends facing the food and foodservice industries.  We explore the challenges of a low growth macro environment that is also enduring significant digital disruption, evaluate the long-term implications of demographic  change, examine new consumer attitudes about time spent at home, expand our view into the changing restaurant landscape, and more.

The contributions of our client partners brings to mind an ancient proverb that is a personal favorite of mine: As iron sharpens iron, so one man sharpens another.  I look forward to sharing my perspective on new realities with food and foodservice executives this year so that together we may sharpen our vision for finding growth in this challenging consumer landscape.

It’s that time of year when I gather and review all of the food and beverage and foodservice research we’ve conducted over the past year and begin compiling the next annual edition of Eating Patterns in America. One of the continuing themes I’m seeing this year is how U.S. consumers are redefining what healthy and wellness means to them.  Consumer attitudes toward health and wellness have evolved beyond dieting and exercise, and are now more about a personal lifestyle in which wholesome foods and beverages play a role. Personal is the operative word. More than half of Americans agree they work hard to live healthy but define healthy based on their own needs.

As part of our study, Consumption Drivers: How Need Shapes Choices, we looked at the how, what, and why behind healthy consumption choices.  The definition of healthy eating has been broadened to include how food is processed and produced, like clean labels, fresh, non-genetically modified, or organic. This broader spectrum of wellness is a primary need throughout the day but it manifests differently at each daypart based on each consumer’s motivations. For example, those making healthy and nutritious food choices at breakfast and snack times are driven by the need for a healthy start. Men, 65 and older, women, ages 45 to 64, and adults with no kids fall into the well-developed group for healthy start motivations.  The need for smart choices is present for people practicing restraint at lunch, cutting calories and sugar to lose weight. The demographic skews for smart choices include men, ages 18-54, kids, and teens. 

Beyond healthy eating behavior, our research partner, CultureWaves*, points out that today’s definition of wellness also encompasses physical, mental, and emotional health. Balancing the mind as well as the body has led to the creation of numerous apps, products, and services built around monitoring the influencers of physical and mental health. With greater access to information about their personal wellness, consumers are taking increasingly more responsibility for their own health, choosing to be proactive instead of reactive. With the assistance of technology, information at their fingertips, wholesome foods, and accessible nutrition and workout programs, health and wellness fits seamlessly into consumers’ everyday lives.  

The irony of this modern approach to healthfulness is that, collectively, we aren’t exercising or dieting more and we’re not losing more weight, but that’s no longer the point, we are embracing a lifestyle centered on health and wellness and future well-being.

*CultureWaves^TM provides consumer insights that are used by some of the top companies in the world to add a layer of qualitative behavioral insights to the traditional quantitative data, giving perspective and real time evidence around the evolution of a category. http://culturewaves.net

I sometimes feel in the minority of men when it comes to grocery shopping because I actually don’t mind the task. Between NPD’s and my anecdotal research sources (a.k.a. my friends), men typically can’t wait to get the heck out of grocery stores and view the trip as a chore. However, even I don’t mind saving time by having someone else deliver my groceries right to my front door by using an online grocer.

My shopping patterns have changed thanks to the internet and it dawned on me the other day that I’m actually using more, not fewer, channels since much of my purchasing happens online. While I might be using more channels I’m spending less time in a physical store and I’m not alone in this shopping paradigm. Our National Eating Trends®(NET®) shows users of online grocers typically shop at twice as many channels as their offline counterparts (six versus three, respectively).

Are online grocers revolutionizing the shopping experience? I wouldn’t describe pace of change like the runaway grocery cart that’s heading for your brand-new car in the parking lot, but the seeds for future changes have been planted. As I mentioned, men typically have very negative views of grocery shopping but men are becoming increasingly responsible for acquiring their household groceries. More than 40 percent of primary grocery shoppers are now men, but they’re not taking on the task with open arms. This is a leading reason why men, ages 18-34, make up twice their fair share of all online grocery shoppers, according to our report, The Virtual Grocery Store. Since younger and tech savvy consumers are leading the way for the online segment to grow, we should expect this to be a larger behavior in the future.

There are a few things industry players can do now to prepare for this growth. Acknowledge that delivery/- online services have left the gate and are gaining favor with consumers. This underscores the need for manufacturers and retailers to partner on creating strategies to meet consumers wherever they shop. Whether it is delivery, click-and-collect, meal delivery kits, or traditional in-store, retail plans must now be holistic in their approach if they want to guarantee future success. Also, for slower moving or lower distribution products use this as an opportunity to drive sales. With online grocers, it’s less about shelf space and more about availability. And, don’t forget that your competition is just a click away so make sure you don’t give consumers an excuse to leave!

 The U.S. Food and Drug Administration started a public process to redefine the “healthy” nutrient content claim for food labeling. They want to make sure the definition for the “healthy” labeling claim stays up-to-date. For example, public health recommendations now focus on various thresholds fat, added sugars, or nutrients that consumers aren’t getting enough of, like vitamin D and calcium.

Recently I was part of an FDA-hosted panel that was part of a public forum to discuss the definitions of “healthy.” Food companies, lobbyists, nutritionist, and even a grammarian who wanted the FDA to consider the grammatically correct term “healthful” instead of “healthy,” were among the hundreds of individuals and organizations who provided comment.  All commented with the good intention of getting consumers to eat “healthy”… or should I say healthful.

Here’s what we know with our 30-plus years of tracking all aspects of how consumers eat: consumers today define “healthy” to mean fresh, authentic, and real. It’s clear to them that an apple is healthy.  If the food is processed, they want transparency, meaning they want to know the makeup of the food, including the positive attributes of the food that they may desire in their diet. They want all of the necessary information to decide what they will eat and what they will not. In other words, the definition of “healthy” is personal.

I’m often asked if non-GMO is a passing fad or engrained behavior, and given how often I’ve been asked this over the years I’m going with the latter.

But it’s not just my gut instinct that’s driving that belief. We decided to take another look at the pulse of consumers’ concerns around GMOs and there have been some very interesting shifts in just three years. I used to joke in my presentations how most people had no idea what GMOs were yet there are millions of consumers who are saying they need to avoid them. Back in 2013, more than half of consumers said they had little to no awareness regarding GMOs. Well, that’s not the case anymore.

In fact, most consumers now have some idea of what GMOs are and many more consumers can identify potential benefits to using them centering mostly around more resilient crops. But this increase in understanding hasn’t quelled any fears for consuming genetically modified foods. In 2013, about 70 percent of consumers had concerns and that figure is now 76 percent in 2016.

The reason why I think it’s more of an engrained behavior that will last has to do with who’s driving this increase. Adults in their 20s and 30s are the main reason for the increase in awareness and concern, and since their food preparation habits are beginning to solidify, we should expect more of these behaviors as they become more prominent players in the economy and raise their children under these habits.

I think a clear example of how this is changing is the increased use of organic foods, which is one method consumers can use to avoid GMOs. Previous generations saw this as a way to feed their children “clean” foods but the parents would use traditional foods as they didn’t see the need to spend the extra money on themselves. As evidenced in both our National Eating TrendsÒ information as well as consumer interviews, Millennial parents are now asking why shouldn’t they use organic foods for themselves since they use them for their children for healthful reasons.

With the new GMO labeling law set to take effect, the question isn’t if you should disclose but how you should disclose. You can use a QR code that consumers can scan but our research shows most consumers find that inconvenient. That being said, consumers also appreciate when companies are being open and honest about their manufacturing processes. If the QR code is the way you go, you might want to use that as a chance to talk about more than just GMOs. Talk to consumers about where you source your ingredients, charities you support so consumers feel they’re supporting them too, sustainable business practices, etc. Now more than ever, consumers want to know what happened to your products before they hit the shelves.

Driving with my family recently after a long trip away, we pondered what we would do for dinner. We spent the last several days eating restaurant meals and were craving a home cooked dinner. The problem was we were still hours away from home and too tired to stop and grocery shop. My wife suggested using online delivery from our local grocery store. I was skeptical. Would the fresh food sit out on our porch spoiling in the unseasonable Houston heat? She assured me that our retailer promised we could specify the delivery time. And so we placed the order while driving home.

An hour down the road we received a text from Kate, our personal shopper, who told us she was starting our order and asked for permission to text or call with any questions. This communication was followed with a text photo of apples to ensure they met our standards. The order delivered right after we arrived home. We were satisfied with the service and now about half of our grocery shopping has shifted online.

We are among the 52 million consumers who currently shop online and there will be many more of us in the coming months based on our recent The Virtual Grocery Store study. Like us, the majority of online grocery shoppers is satisfied with the experience and become repeat users.

Happy customers, the never-ending search for convenience, more delivery options, shipping deals, like Amazon Prime, the infinite assortment, and more aggressive online strategies being launched by major grocery retailers will drive the quick adoption of virtual grocery shopping. The tipping point will be here before you know it.

Watch, listen, and learn. Food and beverage manufacturers should monitor to ensure their products are part of the assortment where it matters. Grocery retailers should start developing e-commerce programs or to expand current services. Now is the time to act, while shoppers, like my family, are still experimenting and before virtual grocery shopping becomes an everyday reality.

In a world of uncertainty, one thing is certain in 2017: America will eat! But how and where people source meals and the attributes that will win share of wallet are ever-changing. Here are five overarching trends to watch in 2017.

• The battle for share of stomach will intensify. For several years now, more than 80 percent of meals have been sourced from home; fewer than 20 percent have been sourced from foodservice, and dollars are evenly split between the two. Food manufacturers will benefit from a trend toward eating meals at home by capitalizing on consumers’ desires for fresh, authentic foods. Foodservice operators will increasingly leverage technology to conveniently get their food on the in-home table. At the intersection of this trend is the retailer, who will continue to blur the line between retail and foodservice.
• Watch for the continued development of the “blended meal.” Consumers are dining at home more, and they value fresh and authentic foods, but convenience remains an important part of the equation. People don’t always source meals entirely at home or away. Look for various components of “homemade” meals to be sourced from items fully or partially prepared. Opportunity exists all along the preparation spectrum, from meal kits to restaurant delivery.
• Companies will win by getting personal. Even in a mature, low-growth environment, there will be opportunities for double-digit growth. But today more than ever, the consumer is in charge. Access to information is empowering people to do things on their terms. The days of a one-size-fits-all blockbuster idea are over. Consumers will seek out foods with a variety of value-added attributes (fresh, natural, organic), positive benefits (energy, brain food, etc.) and social value (local, sustainable, transparent). Some of these opportunities may seem small by big-company standards, but that is where the growth is.
• The definition of meal occasions will evolve. People aren’t adding new eating occasions to their day, but how meal and between-meal occasions are composed will continue to change. Foods that offer the flexibility to compose an eating occasion to fit specific needs at a given time will grow, whether packaged goods or foodservice offerings. Consumers will make choices on price point, portion control, and portability – whatever allows them to craft a snack or full meal, spend a little or a lot, take a break or eat on the run.  
• Experience will make the difference. To stand out, food manufacturers, retailers, and foodservice operators must go beyond sustenance. People will seek out experiences, whether through exploring street food vendors, emerging ethnic flavors, or hands-on experiences, such as learning new food prep techniques. Connecting your product or brand to an experience people are eager to share with others can be an important differentiating factor in 2017.

Get more insights like this. Contact your NPD account representative, call 866-444-1411, or email contactnpd@npd.com.

You’ve probably heard me say already that food and beverage consumption patterns are slow to change, but lately I find myself eating those words (pun intended). My colleagues and I at NPD have been watching several trends that might disrupt what we consider to be the fundamentals for the food industry. We will closely monitor these shifts in the coming year and beyond.

Sweating the small stuff

It's the little things grabbing consumers’ attention these days; they can be small but influential ways to garner loyalty among consumers. Increasingly consumers are looking to support brands and companies that do more than manufacture a product —they want to support causes and actions aligned with their values. People feel they’re doing right when they support companies that are connected to locally sourced ingredients, donations to charities, sustainable environmental practices, and animal welfare practices. The constant flow of Internet-based information will continue growing, so expect younger consumers especially to research brands and pinpoint those with the qualities they value.

Healthful eating gets personal

It’s not about what works on average but what works for the individual. Just as consumers want personal touches in the foods they eat, health is getting personal as well. Wearable devices that track footsteps and apps that track calories allow consumers to develop their own personal plans to meet their needs, rather than relying on health plans based on averages. Even though dieting is on the decline, “my own diet” is still rising as the most common way consumers take control of their intake. They’re looking for personal plans that meet their own specific interests, and more importantly, their lifestyles.

The future is now

Technology is quickly making its way into how we acquire our foods and beverages. It represents a small portion of food acquisition but has the potential to grow if consumers are convinced the extra cost of technology saves time in other areas of their lives. Technology is also helping consumers avoid the grocery store entirely by enabling them to purchase their groceries online and have them delivered to their homes. Based on growth patterns for this behavior we expect to see more people in the coming years use retailers’ websites or third-party sites like InstaCart to acquire foods and beverages.

Meal kits, still in their infancy, are another time-saver and solve the age-old problem of figuring out what to have for dinner. The kits also prevent fresh foods from spoiling by providing the exact amount of ingredients called for by a particular recipe.

Home is where the meal is

It’s becoming more common to make meals at home while also using dishes sourced from restaurants. Those purchased components are more likely to be appetizers or side dishes, indicating consumers use these dishes as quick ways to round out or complete their meals. It’s yet another sign people want freshly prepared items in the home without having to spend a great deal of time in the kitchen. This is a true generational shift; younger consumers already consume fresh foods at rates higher than older adults did when they were the same age. As these younger consumers age, our forecast shows their demand for freshness in a hurry will only increase.

I’ve got my eye on these trends and so should you. If you’re a food and beverage marketer i then now is the time to react to these shifts because more and more it seems the pace of change is accelerating. It’s about connecting with consumers on a personal level to let them know you understand them as an individual. One size fits all doesn’t seem to fit anymore.