Food Giants Signal Sluggish Consumer Spending in 2026
Executives from major CPG food companies are reporting a sour mood on consumer spending for 2026. This sentiment is prompting brands to consider price rollbacks and increased innovation to attract cautious buyers. The trend could have downstream effects on budgets for both corporate and private catering.
- In the face of widespread consumer caution, a counter-trend of "everyday escapism" is emerging in catering, with clients seeking indulgent and high-touch experiences like caviar service, seafood towers, and martini carts to create a sense of celebration. - A key visual trend for Chicago events in 2026 is the "foodscape," where catering and design merge into a single immersive experience, using ingredients like seasonal produce and citrus as part of the decor to create content-driven, sensory moments. - While overall food-away-from-home spending has been sluggish, younger and higher-income consumers, particularly Millennials, have been the least likely to pull back on restaurant spending, prioritizing social and unique dining experiences. - The cost of "food away from home" rose about 6% from January 2024 to September 2025, outpacing the roughly 3% increase for "food at home," which may influence corporate and private clients to be more selective with their catering budgets. - For Gen Z and Millennial consumers, texture has become as important as flavor, with chewy and crispy formats seeing significant menu penetration growth in 2025; this extends to beverages, where cold foam and popping boba have surged in popularity. - Social media now directly influences 50% of diners' choices, with visually driven trends like "Chaos Cakes" (colorful, vegan-friendly cakes) and "Pasta Chips" (air-fried snacks) shaping consumer requests and expectations for visually appealing food. - In 2025, 82% of consumers reported changing their grocery habits by seeking more discounts, switching to cheaper brands, or cutting back on non-essential food purchases, indicating a value-conscious mindset that may carry over to catering decisions. - Health and wellness remain a priority, with Gen Z and Millennials driving demand for functional foods that support sleep or gut health, as well as plant-based innovations and sustainable, upcycled ingredients.
