Coffee is just the beginning: Pumpkin-spiced food now a $500 million industry

OPINION:

Chocolate once reigned as the flavor of choice. Lemon had its day, as did mocha, garlic, chipotle and the allure of red velvet cake. Pumpkin has now taken over. Pumpkin has squashed the competition.

“Data from Nielsen shows that total sales of pumpkin-flavored food, personal and household goods in supermarkets and convenience stores across the U.S. are up almost 80 percent since 2011, to over $360 million in 2015,” reports Forbes analyst Claire O’Connor, who cites the pumpkin spice latte —  or “PSL” — as a primary driver.

“Add in our estimate of $100 million in Starbucks PSL revenue, and millions more in sales of similar beverages at McDonald’s, Dunkin’ Donuts, Peets and other cafes, and Forbes pegs the size of this growing pumpkin spice economy — annual sales of pumpkin-flavored food, drinks and novelties — at more than $500 million this year,” the analyst says in her overview of the new phenomenon.

“Nielsen’s data shows that sales of pumpkin yogurt are up more than 320 percent, with pumpkin cereal up over 180 percent. The next big growth market for the once-humble pumpkin? Beer, according to Mintel Menu Insights. Data shows pumpkin as a beer flavor accounts for 90 percent of the ingredient’s growth on beverage menus,” Ms. O’Connor notes.