Spending to Increase During Super Bowl
By Grocery Headquarters Staff
NFL teams are not the only ones competing to participate in the Super Bowl; a variety of industries compete for business on Super Bowl Sunday, and in 2014, the competition is expected to be as intense as ever, say officials at IBISWorld. Here is a look at the areas of spending for the 2014 Super Bowl Sunday, according to IBISWorld. Chicken wings In 2013, the National Chicken Council estimated that Americans ate over 1.2 billion chicken wings during the Super Bowl, which is consistent with an increasing trend in chicken wing consumption for the game. In 2014, IBISWorld anticipates that chicken wing consumption during the Super Bowl will surpass previous levels. This increase is expected to be the result of high demand coupled with lower wholesale prices of chicken wings than in previous years. According to the US Department of Agriculture, the price of wings in December 2013 was 37% lower than the year before. Falling corn prices are also anticipated to encourage production as the cost of chicken feed declines in tandem. In 2014, IBISWorld estimates that the price of corn will decline by 4.3%, providing the Chicken and Turkey Meat Production industry (IBISWorld report 11235) with higher margins. Avocados IBISWorld estimates that Americans are increasingly consuming avocados in the form of guacamole on Super Bowl Sunday, having increased at an annualized rate of 9.6% in the five years to 2013. For example, the consumption of avocados on Super Bowl Sunday grew as much as an estimated 30.1% in 2011, while Super Bowl avocado consumption only declined once (2009) in the past five years. This decline can likely be attributed to consumers spending less on Super Bowl parties during the recession. The growth in avocado consumption is expected to continue in 2014, and IBISWorld expects that avocado consumption this Super Bowl Sunday will reach new highs. While Super Bowl Sunday is known for overindulgence in snack foods and football staples such as pizza, beer and chicken wings, IBISWorld expects that consumers will increasingly incorporate healthier items into their party plans. Even though guacamole accompanies less healthy food items, the avocado-based dip has established itself as a Super Bowl Sunday staple. IBISWorld estimates that avocado consumption this Super Bowl Sunday is likely to surpass 80.0 million pounds, growing by more than 1.3% over the year. Consumer spending In the five years to 2014, IBISWorld estimates that consumer spending will rise at an annualized rate of 2.2%. Furthermore, the largest expenditure for traveling Super Bowl attendees is typically lodging. In the past two Super Bowls, lodging accounted for an estimated 30.7% of total trip cost for visitors. This year lodging is expected to account for an even larger portion of a visitor’s trip cost due to the higher cost environment of New York City. However, public transportation is expected to play a larger role in the Super Bowl transportation this year, which will dampen the elevated revenue that taxi and limousine services typically enjoy in a host city during Super Bowl Sunday. This year’s Super Bowl is the second time in 20 years that the NFL’s top seeded teams compete for the Lombardi Trophy. Consequently, this matchup is expected to attract droves of consumers to bars, restaurants and privately held parties around the country. Peyton Manning’s historic year is also expected to drive viewership of the Super Bowl. Ultimately, IBISWorld expects that these aforementioned factors, coupled with a brighter economic outlook for consumers, will drive consumer spending during the 2014 Super Bowl to exceed previous years.