Five Consumer Trends Shaping the Future of the Food and Foodservice Industries

Chicago, May 7, 2015 – Sluggish restaurant traffic growth and stalled sales in the center aisles at grocery stores are evidence that U.S. consumers’ eating behaviors are evolving.  The growing influence of Hispanics, Millennials going through life stages, aging boomers, smaller households, and the need for fresh and non-processed foods are among the factors driving the shift in what and how consumers eat, reports The NPD Group, a leading global information company.  

The NPD Group, which has been continually tracking all aspects of how consumers eat in- and away-from-home for over three decades, finds that among the changes in demographics and behaviors driving the evolution in eating behaviors are:

  • Hispanics- The U.S. Hispanic population is growing exponentially compared to non-Hispanics. In 2014 U.S. Hispanics grew restaurant visits while non-Hispanic visits declined.  In-home the Hispanic population combined with their adherence to dining traditions is beginning to influence national consumption patterns. Fresh and from scratch are the most common food forms during Hispanic meal preparation. Stove top preparation dominates Hispanic meals more than non-Hispanic meals due to the types of dishes being prepared.

  • Millennials- In 2015 the Millennial generation is projected to surpass the Baby Boom generation as the nation's largest living generation, according to the U.S. Census Bureau population projections.  Based on its sheer size, as Millennials go so goes the food and foodservice industries. Millennials are driving changes in this country’s eating behaviors with their approach to food choice and preparation. They like fresh, less processed food, which has played out in their preference for fast casual restaurants that offer freshly prepared foods and shopping the perimeter of grocery stores where fresh and non-packaged foods can be found.

This generation is in a life stage when they would, historically, visit restaurants more often than other age groups, but in recent years they have cut back to the point where 50+ year-olds go out more often than Millennials do. In addition, 65 percent of U.S. Hispanics, a growing population base, are Millennials or younger.

  • Aging Boomers- The Baby Boomer generation is aging, considering retirement, becoming empty nesters, and developing health ailments, all of which are typically associated with major changes in the way we approach food and beverage consumption. While shrinking in size, this generation is still too large to ignore especially given their expected lifestyle changes. This group will be less driven by the latest fad and more by what they need to sustain their health and lifestyles. Healthful foods, such as high in whole grains, protein, and calcium, or low in saturated fat, cholesterol, and sodium, will be of most interest to this generational group.  Boomers’ restaurant visits have surpassed those of younger adults, who have cut back on visits over the past several years.

  • Smaller Households- Consumption behaviors in the U.S. have become less household-oriented and more individualized than previous generations and now over 50 percent of eating and beverage occasions happen when consumers are alone.  Also contributing to consumers dining alone is that 27 percent of all households now consist of just one person — the highest level in U.S. history, according to the U.S. Census Bureau. The number of solo eating and drinking occasions has wide-ranging implications for food and beverage marketers and foodservice operators in terms of new product development, packaging and positioning, restaurant seating design, menu development, and more.

  • Fresh- From 2003 to 2013, consumption of fresh foods —  fruits, vegetables, meat, poultry, fish, and eggs — grew by 20 percent to over 100 billion eatings and it’s the youngest generations, Generation Z and Millennials driving the trend.  In addition to eating more fresh foods, Generation Z and Millennial consumers are also interested in eating more organic foods. In terms of foodservice visits, Millennials prefer fresh ingredients and freshly prepared items – key differentiators among many fast casual vs. traditional quick service restaurant formats.  An aspect of freshly prepared that suits Millennials are menu components that are made to order or that can be customized. 

“Visits to U.S. restaurants are forecast to grow less than one percent a year over the next decade, slower than the 1.1 percent a year growth in the country’s population,” says Bonnie Riggs, NPD restaurant industry analyst. “A greater share of visits will source to those 50 years and older in 2019, but as consumers age they become less frequent restaurant users. This means the restaurant industry will have heavier dependence on lighter buyers.”

“Macro food and beverage consumption behaviors are slow to shift akin to the movement of the continental plates. If you sit and stare at the plates along a fault line you’re not going to observe any discernible difference from one moment to the next,” says Darren Seifer, NPD food and beverage industry analyst. “However, if you put a stake in the ground on both sides and return some time later you will see that a small but definite movement occurred. Food manufacturers, foodservice operators, and retailers need to be aware of these slow changes in behaviors or they will be caught off guard.“


Related Press Releases

Aging U.S. Consumers Slow Down Food And Beverage Consumption Making It A Battle for Market Share
Aging U.S. Consumers Slow Down Food And Beverage Consumption Making It A Battle for Market Share

The aging population and corresponding changes in life stage will contribute to the decline in total eating occasions on a per capita basis in the U.S., according to The NPD Group’s recently released Eating Patterns in America.

What’s Life Stage Versus Generational Behavior When It Comes to Dinner Planning? Millennials Are Showing Us The Difference.
What’s Life Stage Versus Generational Behavior When It Comes to Dinner Planning? Millennials Are Showing Us The Difference.

It’s a common oversight not to age generations or recognize how life stage can impact behavior. To understand the difference between generational and life stage behaviors enables food companies and foodservice operators to develop products and marketing messages that are more relevant to their target consumer audiences.

It’s PSL Time! Pumpkin Spice Latte Limited Time Offers Are Still Working It for Fans and Foodservice Operators
It’s PSL Time! Pumpkin Spice Latte Limited Time Offers Are Still Working It for Fans and Foodservice Operators

The payoff for coffee and restaurant chains promoting seasonal pumpkin spice latte limited time offers are more visits and a higher average check size, according to The NPD Group’s Checkout Analytics.

Total U.S. Restaurant Count At 660,755 in Spring 2018, A One Percent Drop From Last Year, Reports NPD
Total U.S. Restaurant Count At 660,755 in Spring 2018, A One Percent Drop From Last Year, Reports NPD

The U.S. restaurant count reached 660,755 in spring of 2018, a 1 percent decrease in units from a year ago, according to a restaurant census conducted by The NPD Group. The primary source of the decline in U.S. restaurant units was a two percent drop in independent restaurant units.


Press Contact

Kim McLynn
847-692-1781
kim.mclynn@npd.com

@npdfood

The NPD Group, Inc.
900 West Shore Road
Port Washington, NY 11050

Want more?

Complete this form to hear from NPD.


npd.com | © 2018. The NPD Group, Inc.

Follow Us on