Locally grown, locally produced foods poised for growth

February 18, 2015
Store Brands
Like organic products before them, locally produced foods are stepping out of the shadow of their once “quirky niche” designation to claim a much more prominent — and permanent — place in the U.S. food and beverage retail-scape. In its recently released report, “Shopping for Local Foods in the U.S.,” the Packaged Facts division of Rockville, Md.-based MarketRearch.com estimates that local foods generated $12 billion in sales in 2014, accounting for 2 percent of total U.S. food and beverage total retail sales. Looking ahead, the market research firm said it anticipates that sales of local foods will grow faster than those of the total food and beverage category in the next five years, to approach $20 billion in 2019. “We’ve reached a tipping point for local foods. Over the past 10 years, there has been a surge in consumer demand for locally produced foods, along with widening availability,” said David Sprinkle, Packaged Facts’ research director.
“And it’s not just farmers’ markets or natural food retailers lending credence to this trend. An increasing number of larger grocers are carrying and promoting local products. Even Walmart has been promoting local farmers in its bid to tailor its store selections more toward local communities.” A proprietary Packaged Facts National Consumer Survey conducted in November 2014 among U.S. adults found that 53 percent of respondents specially seek out locally grown or locally produced foods, with 19 percent “strongly” agreeing and 34 percent “somewhat” agreeing that they do. Even more interestingly, almost half the respondents said they are willing to pay as much as 10 percent more for locally grown or locally produced foods, and almost a third said they are willing to pay up to 25 percent more.
A third of consumers also claim to consciously purchase locally grown or locally produced foods at least once a week. Among the primary reasons for purchasing locally grown or locally produced foods, according to the majority of respondents, is because they believe the products are fresher. In addition, more than half of consumers said they buy local products to support local businesses, Packaged Facts noted, and more than 40 percent of consumers said the products taste better. In addition, roughly a third indicated that they believe local products are more healthful, and that they like to know the origin of their food. For more information about the report, visit www.packagedfacts.com/Shopping-Local-Foods-8684801. By Store Brands, Stagnito Business Information – See more at: