Aug 5, 2009

Edible GiftsBy GourmetRetailer.com

Food gift-giving is a trend that shows no signs of slowing, and innovative new products are helping retailers boost sales.

When shopping for gifts, many consumers are going for a more tasteful approach — they’re giving food.

Between 2004 and 2006, the latest period for which sales figures are available, edible gift sales increased 47 percent to almost $16 billion, according to “Food Gifting in the U.S.,” a report from Rockville, Md.-based market research publisher Packaged Facts. Furthermore, sales are expected to grow another 45 percent by next year to more than $23 billion.

Granted, a full-fledged recession has occurred since 2006, but the case for continued food gift growth is a convincing one. “In recessionary times, specialty food purchases have been strong because they are viewed as affordable luxuries,” notes Stephen F. Hall, CEO of consulting firm Food Marketing International, based in Tucson, Ariz.

While overall gift sales have decreased in recent years, food gift sales have accelerated. Consumer interest in food-giving is booming in part because of frustration with traditional gifting and the desire to give a gift that is unique, personal, indulgent, convenient, fun to share, and almost sure to please. In short, food gifts are a no-brainer for many shoppers.

A rising interest in gourmet, natural and organic, and other specialty foods is also fueling demand, and these kinds of food gifts not only mean premium pricing, but brand image enhancement and a profitable trial-use segment, which are all excellent reasons for manufacturers and retailers to feed the trend.

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