From protein-packed snacks to the rise of international fusion and functional beverages, Kehe’s Growth Solutions Manager Andrew Spencer discussed how specialty retailers can meet evolving demand across channels and life stages during the Summer Fancy Food Show earlier this summer in New York City.
Based on Kehe’s syndicated and observational data, Spencer emphasized that consumers are redefining wellness, flavor exploration and purchasing behaviors as shown through five major trends:
- All-Day protein – Consumers are seeking protein across all dayparts, not just for fitness, integrating it into snacks, meals and beverages
- Drink your health – Functional beverages are growing, with consumers either buying pre-formulated drinks or adding their own supplements for health benefits
- Unexpected areas of discovery – Shoppers are discovering new products via social media, travel and alternate channels, then seeking them out in stores
- New rules of aging well – Consumers are taking a proactive, long-term view on wellness, choosing foods and products that support healthier aging
- International flavors – Global cuisine continues to trend, with consumers embracing fusion, customization, and a resurgence of Korean, Mediterranean and Indian flavors
Cost-conscious consumers are still spending on quality
Cost remains a key factor, but many consumers are balancing affordability with health-driven values, Spencer explained.
Many shoppers are still opting to pay more for foods they perceive as healthier or more functional, he added.
“Because natural specialty foods are so beneficial and have all these added benefits, like great flavor, it’s better for you, or it’s organic, people definitely will spend a little bit more to get the functional benefits that they’re seeing,” he said.
Natural and specialty growth remains strong
Despite cost pressures, the natural and specialty food segment continues its upward trajectory, with a CAGR of 7.8% over the last 18 years, Spencer emphasized.
Consumer interest in diverse and health-forward products is driving momentum in the natural and specialty sectors, with sales in stores like Sprouts and Natural Grocers outpacing traditional grocers, according to Placer.ai data.
Consumers are paying closer attention to additives
Amid rising concerns and federal oversight about artificial additives like red dye 3, Spencer noted a growing awareness among shoppers – whether driven by allergies, sensitivities or clean-label preferences.
This awareness is “just an element of people looking for better-for-you items that still give them the flavor and the profiles that they’re looking for,” he added.
