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Food Gifting in the U.S., 2nd Edition

150 Pages Packaged Facts August 01, 2010 SKU: LA2642049
Attention: There is an updated edition available for this report.

The U.S. market for food gifting continues to expand in sales and product offerings, and is one of the few areas of gifting that is doing so in the current challenged economy. Consumer interest in food gifts continues to increase, with sales up 9.6% from 2007 to 2009. This market is driven by many factors, including consumers wishing to save themselves agony over gift decisions while desiring to give a gift that is unique, personal, indulgent, convenient, fun to share and sure to please. The corporate food gifting sector, although considerably smaller in total sales, grew 3.8% between 2007 and 2009.

During the Christmas/Hanukkah holiday season of 2009, consumer purchases of food gifts increased 12% over sales during the same period in 2008. Candy and food spending was up about $10 per person and was the only category that rose among gift items, with shoppers overall diminishing their gift purchases by an average of 3.2% from 2008.

According to CES data, average annual per-person expenditures on food gifts increased from $93 in 2007 to $97 in 2008, and were estimated at $105 in 2009. The average annual per-person expenditures spent on food gifts as a percentage of expenditures for all gifts increased from 7.8% in 2007 to 8.3% in 2009, and is projected at 8.5% in 2010.

Although the trend of self-gifting has decreased overall, it has increased in food gifts.

During the first half of 2010, holiday food gift sales increased from the previous year, indicating a promising year of growth in this sector. A rising interest in gourmet, natural/organic and specialty demographic food gifts (food gifts for kids, food gifts for sports fans, ethnic food gifts, etc.) is fueling demand.

Gift-boxed chocolates remain a mainstay of the food gifting market in the United States, with sales totaling $227.4 million in 2008 and $223.3 million in 2009, a 1.8% decrease.

The continuing expansion of the market for food-gifting is remarkable in that it comes at a time when Americans are reducing spending on gifts overall. Food gifting combines practicality (a consumable item and one that does not require an intimate knowledge of the recipient's lifestyle, needs or tastes). Although clothing remains the most popular Christmas holiday gift, it is also the most likely item to be returned.

Despite the increase in the price of gas over the past few years, brick-and-mortar retailers remain the leading venue for food gifts. Brick-and-mortar retailers held approximately 47% of the food gifting market in 2009, while non-traditional retailers (which includes direct marketers and online food gift retailers) had approximately 53% of the market. Sales of food gifts at brick-and-mortar retailers increased 11% from 2007 to 2009, while online and direct market sales of food gifts increased 5.7% during this period.

Food Gifting in the U.S., Second Edition, focuses on the U.S. market for consumer and corporate food gifts, with a focus on this sector as part of the total gift-giving market. The report analyzes the highly fragmented market by channel, including brick-and-mortar retailers (representing nearly half of all food gift sales), online and direct marketers, and independents, franchises and distributorships. Trends in food gifting are examined, along with factors driving the food-gifting market. The report also reviews the results of an exclusive Packaged Facts online poll, along with marketing, retail and consumer trends and growth opportunities.

Report Methodology

The information in Food Gifting in the U.S., Second Edition, is based on both primary and secondary research. Primary research involved interviews with industry experts and food-gifting business managers. Secondary research entailed gathering data from relevant trade, business and government sources, including the U.S. Bureau of Labor Statistics, Unity Marketing, the National Retail Federation, BIGresearch, IRI InfoScan, company reports, retail audits, trade associations, etc. Consumer data were obtained from Simmons Market Research Bureau’s Fall 2009 National Consumer Study. In addition, Packaged Facts conducted its own online poll of 1,800 adults in May 2010 to measure the spending and attitudes of shoppers.

What You’ll Get in This Report

Food Gifting in the U.S., Second Edition, makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Food Gifting in the U.S., Second Edition, offers. The report provides extensive data presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from This Report

If your company is already doing business in the food-gifting market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for food gifts, as well as projected markets and trends through 2014.

This report will assist:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for food gifts.
  • Research and development professionals stay on top of competitor initiatives and explore demand for food gifts.
  • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to buy food gifts.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

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Food Gifting in the U.S., 2nd Edition

Packaged Facts
August 01, 2010

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