Luxury fruit may finally be cracking into the U.S. market. From Cherimoyas to Royal Riviera pears, a recent article in Modern Farmer credits America’s budding interest in luxury fruit to high-end chefs, connoisseurs and even social media influencers seeking a viral moment. However, we’d wager that there are larger cultural forces at work beyond pure shock value or special occasions.
Premium occasions are rooted in the pursuit of quality
While most people won’t regularly spend $12 on half a dozen strawberries, luxury producers like Oishii saw an opportunity to make unique, high-quality produce more accessible in the American market. Quality ranks as the third most important selection driver when consumers are shopping for foods and beverages, falling behind only taste and price.1 Trading up for better quality has become the norm, not the exception for many Americans.
Premium is becoming synonymous with enjoyment and purposeful indulgence
Our latest research on health benefits indicates that 47% of all consumers consider indulgent foods and beverages an important part of a healthy, balanced diet,2 and premium products can fulfill their desires for exploration and delight. Sure, the market for $396 Rubyglow pineapples will likely remain small and exclusive. However, when 29% of consumers view unique flavor (meaning there’s no close substitute) as an indication of high quality,3 we may see more consumers spring for premium produce at the “affordable indulgence” price point — like the zesty and fragrant Buddha’s Hand that rings in around $8 per pound.
Premium products speak to health, sourcing and sustainability priorities
Consumers are becoming significantly more aware of how the food they eat interacts with both personal wellness and sustainability: 55% of consumers are willing to pay more for healthier foods and beverages and 40% are willing to pay more for those that are good for the environment.4 Unique and intentional production methods can help communicate real distinctions in quality while also building transparency and trust: all of which signal a more premium product to consumers.
For example, you might be more willing to spend $2 per strawberry knowing the fruit was grown using state-of-the-art sunlight simulation that supports the natural pollination habits of bees — bees whose health and wellbeing is monitored by the farm’s 200+ employees.
Key takeaway:
The demand for quality — and by extension, premium — is reshaping consumer expectations across all food and beverage sectors. Categories that were not traditionally perceived as premium are seeing more innovation and competition as affordable indulgences and prioritization of values become part of consumers’ everyday lives.
Our Q4 syndicated study, Premiumization and Everyday Value(s) 2024 is your playbook to the new premium: central attributes and values, consumer skews, category relevancy and nuances, dynamics of premium occasions, the role of brand, premium’s interplay with value and more.
Get the insights and recommendations you need to tailor products and services to consumers’ modern food values: pre-order the report today.
1. Brand Ambition 2021: Food and Beverage Private Brands and Beyond, Hartman Group
2. Health Benefits 2024: From Energy to Immunity, Hartman Group
3. Taste of Tomorrow 2023: Navigating Food Through the Eyes of Gen Z and Alpha, Hartman Group
4. Health & Wellness 2023: The Great Wellness Reset, Hartman Group