Consumers who care about what they put in their body and where the products come from are becoming big drivers in trends in convenience, Brad Helmer, executive vice president of business and corporate brand development for specialty and fresh product distributor KeHE Distributors, Naperville, Illinois, told CSP at the NACS Show in Las Vegas.
Citing SPINS data, Helmer said the growth in sales of natural products is up 5% while convention is down 1%. Helmer said convenience-store retailers are now more open to bringing a better-for-you assortment into their stores.
“These trends are not going to stop and more of the enlightened convenience operators are starting to see that,” Helmer said. “This is a trend that is going to keep penetrating the convenience channel.”
Echoing this insight on the tradeshow floor was Ryan Burkhart, foodservice sales manager at Veggies Made Great, a Piscataway, New Jersey-based private company that specializes in the food and beverages area.
The younger generation is living a healthier lifestyle and are seeking out better-for-you products, said Burkhart.
“C-stores are serving better food, and we believe better-for-you is going to continue to grow as well,” said Burkhart.
Health-focused consumers account for $638 billion in total food and beverage spending, split between $363 billion in retail and $275 billion in foodservice, according to Circana.
In its recent webinar, A Pulse on Consumer Well-Being: U.S. Food & Beverage, the Chicago-based market research firm said that wellness-focused spending reflects a significant shift toward prioritizing physical, mental, and social well-being in food and beverage purchases.
“Consumers are looking for wellness across every aspect of their lives, and food and beverages are playing a critical role in this transformation,” said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “Our complete food and beverage research shows that while the retail sector is excelling at meeting these needs, there is significant opportunity for foodservice providers to innovate and offer wellness-centered dining experiences.”
Meat snacks, a c-store favorite, are seeing growth in better-for-you, including Chomps, makers of Chomps sticks that are made with grass-fed and finished beef, venison, or antibiotic-free turkey.
In September the Chicago-based company announced it will open a new state-of-the-art manufacturing facility in Mexico, Missouri, slated to open in 2025 to “meet growing demand.”
The development marks the next phase in Chomps’ “long-standing strategic partnership with Western Smokehouse Partners (WSP) and will support Chomps’ rapid growth, allowing the brand to meet an increasing consumer demand for better-for-you meat snacks,” the company said.
Pete Maldonado, Chomps' co-founder and co-CEO said the new manufacturing facility is a “significant milestone for Chomps as it will allow us to scale our production to meet the surging demand for our products."
As consumer demand for wellness grows, retailers and foodservice providers alike have an opportunity to innovate by expanding their offerings to better align with physical, mental and social well-being, Circana said.
“Retailers can continue to lead the charge with offerings across the food and beverage aisles that offer nutrient-dense options, while foodservice providers can capitalize on the growing demand for healthier dining experiences by offering functional foods and beverages alongside indulgent choices,” Circana said.
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