Recession Resistant Supermarket Products

Supermarket sales reached $437 billion in 2009, according to Progressive Grocer's 2010 Consumer Expenditures Study. It marked a modest 1.6 percent sales gain year-over-year, but it was the first time in five years that supermarket sales didn't exceed the gain of the prior year.

The economic downturn certainly impacted the supermarket business, with American consumers cutting back on almost all purchases. Had it not been for some of the product groups on the following list—those that consumers rely on in good and bad economic times—it might have been worse.

But this year, with food prices on the rise, can these same product groups keep supermarket sales in positive territory? Global prices of agricultural commodities are picking up, and foodstuff prices passed their 2008 zenith in December, according to data compiled by the United Nations. It could make for tough days ahead for consumers and grocers alike.

Click ahead to see what American consumers continued to put in their shopping carts even as the economy faltered.

By Constance Parten, Senior Producer
Posted 24 Jan., 2011

Meat departments remained among the few bright spots in the perishables category in supermarkets, Progressive Grocer found. Fresh meat sales increased by 4 percent to $55.3 billion in 2009. Trading down to less expensive cuts was a prevailing theme during 2009, with shoppers turning to family packs and bundled meat to stretch their food budgets.

Source: Progressive Grocer's annual Consumer Expenditures Study

Keeping with the cooking-at-home theme of 2009 supermarket shopping, baking mixes saw a year-over-year increase in sales of 5.4 percent. A rule for supermarkets in 2009 seemed to be if consumers couldn't eat it, they decided they didn't need it. General merchandise lost ground with a 5 percent sales decline while edibles were up almost across the board.

Source: Progressive Grocer's annual Consumer Expenditures Study

With sales just below $7 billion at supermarkets in 2009, this category eked out a 0.6 percent sales increase on flat volume growth for the year. But cereal remains a top seller among supermarket products. In June 2010, Kellogg edged out General Mills as the top vendor, with sales shares of 32 percent and 30 percent respectively.

Source: Progressive Grocer's annual Consumer Expenditures Study

Despite the recession, US consumers didn't give up on chocolate, even as they cut back on other frills. With household penetration at 90 percent, chocolate remains a popular supermarket purchase, with sales reaching $1.8 billion at supermarkets in 2009, a 4.2 percent increase over 2008 sales.

Source: Progressive Grocer's annual Consumer Expenditures Study

Sales of tobacco and accessories were up 5.3 percent in 2009, with cigar sales at supermarkets up 13.7 percent. Cigar sales in supermarkets are relatively small ($132 million) compared to the $2.2 billion raked in by convenience stores during the same period.

Source: Progressive Grocer's annual Consumer Expenditures Study

As the economy slid deeper into recession, coffee marketers moved in the opposite direction, with a variety of strategies designed to capitalize on coffee's position as a relatively thrifty luxury. Ground coffee sales increased 3.4 percent in 2009 while whole-bean coffee increased just slightly at 0.2 percent.

Source: Progressive Grocer's annual Consumer Expenditures Study

Due to the economic downturn, the growing popularity of cooking shows, and a rise in international travel, more Americans are classifying themselves as "cooking enthusiasts," and are having fun experimenting with new flavors and foods. That, along with rising ethnic populations, made the dry mix category of prepared foods — particularly the ethnic specialty segment of the category — see sales increase 3 percent in 2009.

Source: Progressive Grocer's annual Consumer Expenditures Study

While the beverage alcohol industry is sometimes thought to be recession-proof, its performance in 2009 can be more accurately described as recession-resistant. Consumers tend to drink alcohol in both good and bad economic times, but what and where they drink changes with their confidence in their personal financial situations. Alcohol manufacturers and retailers had to adapt their strategies, which gave rise to stronger sales of boxed wine and domestic beer.

Source: Progressive Grocer's annual Consumer Expenditures Study

More at-home eating due to the economy coupled with the spread of global cuisines have led to consumers being more comfortable experimenting with new recipes. Consumers also have shown they are willing to pay premium prices for non-traditional extract and spice products. In 2009, extract sales alone in supermarkets reached $178 million, a 6.8 percent increase year over year.

Source: Progressive Grocer's annual Consumer Expenditures Study

“Back to basics” was the rallying cry of shoppers. One example was vitamins, which saw a 9.1 percent increase in sales in 2009. As Progressive Grocer's report put it, "nothing like a little self-medicating in a down economy."

Source: Progressive Grocer's annual Consumer Expenditures Study

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