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SANDWICHES, SUBS AND WRAPS - US - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Food

No. of Pages : N/A

The sandwich, sub, and wrap market has continued to engage consumers with premium, innovative, and tasty fare. Many fast casual sandwich stores and fast food chains are expanding units and growing sales. However, the category is crowded, with grocery stores, convenience stores, and coffee shops creating a complex, competitive landscape. Sustained growth will hinge on meeting consumers’ quest for value, taste, and freshness. This will need to be balanced with expectations for the choice, speed, and convenience prized by diverse, tech-savvy iGen and Millennial consumers.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
The issues
Crowded landscape is getting ever more competitive
Figure 1: Increase usage of purchase of sandwiches, subs, and wraps in last year, by location, May 2018
Dining out less and other factors undercut sandwich shop purchases
Figure 2: Reasons for decreased purchase of sandwiches, subs, and wraps in last year, at any location, May 2018
Buying sandwiches widely considered indulgent, and meats too processed
Figure 3: Attitudes related to sandwich meats and sandwiches as indulgence, May 2018
The opportunities
High engagement among 18-34-year-olds and parents
Figure 4: Increased purchase of sandwiches, subs, and wraps in last year, at any location, by age and parental status, May 2018
Variety, innovation, and high-quality ingredients widely sought
Figure 5: Interest in innovations in sandwiches, subs, and wraps, for 18-34-year-olds and parents, May 2018
Interest high in loyalty programs, mobile apps, and delivery
Figure 6: Attitudes related to time saving, loyalty programs, delivery, and ordering, for 18-34-year-olds and parents, May 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Fast food and fast casual are dominant, well-established channels
Positive macroeconomic trends drive growth, but landscape competitive
Younger consumers are engaged, shaping market looking forward
Natural, free-from, and more sustainable fare
MARKET PERSPECTIVE
At home versus away from home eating
Figure 7: At-home and away-from-home food sales, January 2003-April 2018
Consumers look beyond QSRs and LSRs to buy sandwiches
Figure 8: Increase usage of purchase of sandwiches, subs, and wraps in last year, by location, May 2018
Blurring of traditional grocery stores and foodservice
Convenience stores expanding reach into sandwich, wrap, and sub market
Figure 9: Sandwich menu incidence, by segment, Q1 2015-Q1 2018
Coffee shops and Breweries grow sales thanks to allegiance of Millennials and iGen
The “bowl” meal continues to evolve, competes with sandwiches
MARKET FACTORS
Macroeconomic landscape is positive for discretionary spending
Figure 10: Consumer confidence and unemployment, 2000-June 2018
Younger consumers key in shaping future market
Figure 11: US Population aged 18+, by generation, 2013-23
Figure 12: US population aged 18+, by age, 2013-23
Multicultural diversity shapes consumer base as well as tastes
Figure 13: Distribution of population, by age, race, and Hispanic origin, 2018
Parents are highly engaged and bring “foodie” sensibilities to market
Fighting obesity and improving the quest for quality ingredients
KEY PLAYERS – WHAT YOU NEED TO KNOW
Fast casual sandwich chains stand out with fresh and innovative fare
Chick-fil-A and Arby’s continue to build share in sandwich market
Subway continues to struggle, and overexpansion plagues others
Technology transforms sandwich ordering, delivery, marketing
High-end sandwiches and the fast fine movement
WHAT’S WORKING?
Fast casual sandwich chains continue growth and innovation
Fresh ingredients and fast delivery
Unique stories with local connections and/or community activism
Fun, original, and kid-friendly approaches and environments
Clean, natural, and organic fare
International, regional tastes and new takes on classic fare
Chick-fil-A and Arby’s continue to make in-roads and grow sales
WHAT’S STRUGGLING?
Struggles of some reflect competitive landscape, dangers of overexpansion
Quiznos shrinks to fewer than 400 locations
Behemoth Subway struggles to revamp and revitalize
Potbelly tries to consolidate and turn around losses
WHAT’S NEXT?
Technology is transforming wider foodservice landscape
Panera Bread showcases successful innovations in digital integration
High-end sandwiches and the fast fine movement
THE CONSUMER – WHAT YOU NEED TO KNOW
Fast food tops range of locations used for sandwich purchase
18-34-year-olds and parents buying more from range of locations
Men more likely to be buying more sandwiches than a year ago
Dining out less is prime reason for reduced sandwich purchases
Wraps, meats, and varied sauces are in high demand
Interest is high in innovation, loyalty programs, mobile apps, and delivery
More variety and sliced-to-order ingredients are widely desired
PURCHASE LOCATION OF SANDWICHES, SUBS, AND WRAPS
Fast food and fast casual are dominant, well-established channels
Figure 14: Total revenues for restaurants and other eating places, by segment share, at current places, 2015-22
Fast food tops range of locations used for sandwich purchase
Figure 15: Purchase location of sandwiches, subs, and wraps in last three months, May 2018
Those who buy at fast food, also turn to range of other locations
Figure 16: Purchase location of sandwiches, subs, and wraps in last three months, by purchase location of sandwiches, subs, and wraps in last three months, May 2018
18-34-year-olds are most likely to buy from wide range of locations
Figure 17: Purchase location of sandwiches, subs, and wraps in last three months, by age, May 2018
Figure 18: Purchase location of sandwiches, subs, and wraps in last three months, by age, May 2018
Less-affluent favor fast food venues, grocery and convenience stores
Figure 19: Purchase location of sandwiches, subs, and wraps in last three months, by household income, May 2018
Parents buy sandwiches at range of venues
Figure 20: Purchase location of sandwiches, subs, and wraps in last three months, by parental status, May 2018
Figure 21: Purchase location of sandwiches, subs, and wraps in last three months, by parental status, May 2018
CHANGES IN SEGMENT VISITATION
Increase in purchases through grocery and convenience stores
Figure 22: Change in frequency of purchase of sandwiches, subs, and wraps in last year, by location, May 2018
Figure 23: Change in frequency of purchase of sandwiches, subs, and wraps in last year, by location, part II, May 2018
Youngest consumers are buying more
Figure 24: Increased purchase of sandwiches, subs, and wraps in last year, at any location, by age, May 2018
Men more likely to be buying more sandwiches than a year ago
Figure 25: Increased purchase of sandwiches, subs, and wraps in last year, at any location, by gender, May 2018
Most affluent are the least likely to be buying more often
Figure 26: Increased purchase of sandwiches, subs, and wraps in last year, at any location, by household income, May 2018
Almost half of parents increase purchasing, relative to a year ago
Figure 27: Increased purchase of sandwiches, subs, and wraps in last year, at any location, by parental status, May 2018
Blacks and Hispanics stand out for increased purchase in past year
Figure 28: Increased purchase of sandwiches, subs, and wraps in last year, at any location, by race/Hispanic origin, May 2018
REASONS FOR DECREASING PURCHASE
Dining out less often is prime reason for fewer sandwich shop purchases
Figure 29: Reasons for decreased purchase of sandwiches, subs, and wraps in last year, at any location, May 2018
Women more likely to report dining out less often and cite cost as issue
Figure 30: Reasons for decreased purchase of sandwiches, subs, and wraps in last year, at any location, by gender, May 2018
Income shapes reasons consumers cut back on purchase
Figure 31: Reasons for decreased purchase of sandwiches, subs, and wraps in last year, at any location, by household income, May 2018
APPEALING TYPES OF BREADS
Wraps appeal to more than half of sandwich buyers
Figure 32: Appealing types of bread for sandwiches, subs, and wraps, May 2018
TURF analysis shows which bread options can maximize reach
Figure 33: TURF analysis – Bread preferences, May 2018
Wraps are especially appealing to youth, multigrain to those 55+
Figure 34: Appealing types of bread for sandwiches, subs, and wraps, by age, May 2018
Wraps appeal to women, while men value hoagies and pretzel bread
Figure 35: Appealing types of bread for sandwiches, subs, and wraps, by gender, May 2018
Household income drives interest in wider range of breads
Figure 36: Appealing types of bread for sandwiches, subs, and wraps, by household income, May 2018
Parents find wide range of breads appealing
Figure 37: Appealing types of bread for sandwiches, subs, and wraps, by parental status, May 2018
APPEALING TYPES OF PROTEIN
Traditional meats remain most popular protein options
Figure 38: Appealing types of protein for sandwiches, subs, and wraps, May 2018
Top three meat options will reach more than 90% of diners
Figure 39: TURF analysis – Protein preferences, May 2018
Men relish meat, while women seek more veggies
Figure 40: Appealing types of protein for sandwiches, subs, and wraps, by gender, May 2018
Premium sandwiches with special meats may appeal to affluent diners
Figure 41: Appealing types of protein for sandwiches, subs, and wraps, by household income, May 2018
APPEALING TYPES OF SPREADS OR SAUCES
Mustard, ranch, and BBQ have maximum appeal
Figure 42: Appealing spreads or sauces for sandwiches, subs, and wraps, May 2018
Top five sauce/spreads will reach almost 90% of diners
Figure 43: TURF analysis – Sauce preferences, May 2018
Older consumers prefer mustard, younger consumers seek more varied tastes
Figure 44: Appealing spreads or sauces for sandwiches, subs, and wraps, by age, May 2018
Men find wide range of sauces appealing
Figure 45: Appealing spreads or sauces for sandwiches, subs, and wraps, by gender, May 2018
Pesto, aioli, and yogurt sauce have added appeal to more-affluent
Figure 46: Appealing spreads or sauces for sandwiches, subs, and wraps, by household income, May 2018
Parents over index for range of spreads and sauces
Figure 47: Appealing types of spreads or sauces for sandwiches, subs, and wraps, by parental status, May 2018
INNOVATIONS IN MENUS, FLAVORS, AND INGREDIENTS
Interest is high in variety and high-quality ingredients
Figure 48: Interest in innovations in sandwiches, subs, and wraps, May 2018
Beyond fast food locations, customers especially primed to pay more
Figure 49: Interest in innovations in sandwiches, subs, and wraps, by purchase location, May 2018
Top five sauce/spreads will reach almost 90% of diners
Figure 50: TURF analysis – Innovation interest, May 2018
Younger consumers especially interested in innovation
Figure 51: Interest in innovations in sandwiches, subs, and wraps, by age, May 2018
Premium toppings engage women, while regional flavors appeal to men
Figure 52: Interest in innovations in sandwiches, subs, and wraps, by gender, May 2018
Affluent consumers interested in premium ingredients, new flavors
Figure 53: Interest in innovations in sandwiches, subs, and wraps, by household income, May 2018
Parents over index for a wide range of innovations
Figure 54: Interest in innovations in sandwiches, subs, and wraps, by parental status, May 2018
Breakfast sandwiches have high appeal to Black diners
Figure 55: Interest in innovations, by race, May 2018
PAYING MORE FOR SPECIAL INGREDIENTS, MENUS, AND TOPPINGS
About six in 10 ready to pay a dollar or more for premium protein
Figure 56: Additional amount willing to pay more for premium proteins, May 2018
Men more likely to pay more for premium proteins
Figure 57: Additional amount willing to pay more for premium proteins, by gender, May 2018
For premium breads, about half would spend an additional dollar or less
Figure 58: Additional amount willing to pay more for artisan breads, May 2018
Affluent are interested, but not necessarily ready, to pay more for artisan bread
Figure 59: Additional amount willing to pay more for artisan breads, by household income, May 2018
More than half of diners would pay $1 or more extra for limited menu items
Figure 60: Additional amount willing to pay more for limited menu items, May 2018
Women willing to pay, but not as much, for limited menu items
Figure 61: Additional amount willing to pay more for limited menu items, by gender, May 2018
ATTITUDES RELATED TO LOYALTY PROGRAMS, DELIVERY, ORDERING
Interest high in loyalty programs, mobile apps, and delivery
Figure 62: Attitudes related to time saving, loyalty programs, delivery, and ordering, May 2018
18-34-year-olds eager for online ordering and delivery
Figure 63: Attitudes related to time saving, loyalty programs, delivery, and ordering, by age, May 2018
Online ordering and delivery highly valued by less-affluent consumers
Figure 64: Attitudes related to time saving, loyalty programs, delivery and ordering, by household income, May 2018
Busy parents prize the online and delivery tools that can save them time
Figure 65: Attitudes related to time saving, loyalty programs, delivery, and ordering, by parental status, May 2018
ATTITUDES RELATED TO VARIETY, FRESHNESS, INGREDIENTS
More variety and sliced-to-order ingredients are widely desired
Figure 66: Attitudes related to variety and slicing to order, May 2018
More than half concerned sandwich meats are too processed
Figure 67: Attitudes related to sandwich meats and sandwiches as indulgence, May 2018
Consumers 18-34 are especially interested in more variety
Figure 68: Attitudes related to variety and slicing to order, by age, May 2018
Parents also want more variety and value fresh-sliced ingredients
Figure 69: Various attitudes, by parental status, May 2018
Concern with processed meats higher among more-affluent consumers
Figure 70: Various attitudes, by household income, May 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Mintel Menu Insights
Abbreviations and terms
Abbreviations
Terms
APPENDIX – CONSUMER
Figure 71: Population by race and Hispanic origin, 2013-23
TURF ANALYSIS – METHODOLOGY
Figure 72: Table – TURF analysis – Innovation interest, May 2018
Figure 73: Table – TURF analysis – Bread preferences, May 2018
Figure 74: Table – TURF analysis – Protein preferences, May 2018
Figure 75: Table – TURF analysis – Sauce preferences, May 2018

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