Editor's note: This article appeared in the September 24, 2008, edition of Quirk's e-newsletter.
A five-star restaurant might be out of the question, but a nice bottle of wine at home? Definitely. In spite of (or maybe because of) tough economic times, many Americans are clinging to their smallest, most-indulgent pleasures. New research from Chicago research company Mintel shows sales of chocolate, cigarettes and alcohol are holding strong and steady, continuing a pattern from previous economic downturns.
"Chocolate, cigarettes and alcohol again seem relatively recession-proof. People might be cutting back or switching to store-brands, but they definitely aren't giving up their small daily indulgences," says Marcia Mogelonsky, senior analyst at Mintel. "Because people are being so cautious with their spending, they feel they are entitled to small rewards and they won't give them up easily."
The sweet tooth does not seem to be connected to the finance bone. Mintel shows the chocolate market growing quickly, with retail sales rising 22 percent from 2002 to 2007 (to $16.3 billion). Innovative, dark and premium chocolates are extremely popular, so Mintel expects Americans to continue indulging in this favorite treat. Likewise, many smokers aren't kicking the habit, even as prices continue to rise and health warnings abound. Cigarette and tobacco product sales increased 44 percent from 2003 to 2007 (to $103 billion), according to Mintel. Alcohol follows suit. Motivated by high gas prices and expensive bar tabs, more Americans are opting to drink at home. But that doesn't mean they're drinking less. New research from Mintel reveals the market for at-home alcohol is expected to reach $77.8 billion in 2008, a 32 percent increase from 2003.