by: Rob Veidenheimer
June 14, 2017
Consumers are using a wide variety of non-traditional channels to satisfy their food and beverage needs, according to Pentallect, a leading food industry strategy firm. Pentallect’s research shows that a sizable number of consumers plan to try or use the channels more often in the future. Many reasons are driving this use, including convenience, a desire to save money, availability of unique items, support of local business, and perceptions of better quality (largely in the context of fresher products) than traditional channels.
Bob Goldin, a Partner at Pentallect, notes that many of the channels studied are generally not tracked nor well understood. “We regard these businesses as stealth disruptors to the mainstream food and beverage industry. They have very strong appeal to a growing number of consumers and have real traction. They will gain valuable share over the next decade, and help to explain why some traditional retail and foodservice segments will be growth challenged.”
Pentallect estimates that the non-traditional channels represent approximately $100 billion in consumer expenditures, and projects 10+% annual growth for the referenced channels over the next five years compared to 3 – 4% for foodservice and 1 – 2% for retail (which includes supermarkets, mass merchants, club stores, and drug stores). According to Bill Caskey of Pentallect: “We are seeing a real change in industry dynamics. The emergence and accelerated growth of nontraditional channels reflects fundamental shifts in consumer behavior.”
Pentallect will be publishing results of their Non-Traditional Channel study, which will provide detailed insights regarding consumer usage, frequency, spending and attitudes by age group, income levels and gender for each channel. For information on the report and other Pentallect services, please contact Rob Veidenheimer, President of Pentallect.