The Food and Drink Category on Amazon
The Low Down:
The Food and Drink Category on Amazon
The food and drink category on Amazon shows wide variety across its subcategories and regions. If you are already advertising or thinking about entering into this category, you should tailor your offerings and PPC strategies to seasonal trends, consumer preferences and regional nuances to best boost your visibility and conversion potential. If done right, brands can efficiently tap into the growing demand for this category across Amazon’s international marketplaces.
This breakdown will look at some subcategory and regional differences, quarterly trends and PPC strategies to support your knowledge of, and advertising in the category. Let’s dive into it.
Subcategories
There are a variety of subcategories within the wider Food & Drink Category. The major subcategories (excluding Grocery) include:
Snacks and Sweets: chocolates, sweets, crisps
Gourmet Food: speciality, artisanal, organic and imported
Beverages: coffee, tea, soft drinks, energy drinks
Alcoholic Beverages: wines, beers, spirits, cocktail kits
Health and Wellness Food: gluten-free, keto, vegan, plant-based, super-foods
Supplements and Nutritional Products: protein powders, vitamins
The type of shopper for each subcategory can differ. For example, those shopping for gourmet food usually expect to pay higher price points but are looking for luxury offerings, versus those shopping for snacks and sweets prioritise variety, volume-packs and lower price points. Let’s have a look at some of these trends and insights for 3 spotlight subcategories: Gourmet Food, Alcoholic Beverages and Health and Wellness Food.
Gourmet Food
Consumers have a preference for products that are premium and emphasise quality, authenticity and uniqueness as their selling points. Shoppers are often seeking luxury or gifts when searching within this subcategory and are open to higher price points due to the artisanal or imported nature of these products.
These products traditionally perform strongest in Q4 with holiday gifting, but are also popular in Q1 with Valentine’s Day and Q2 with Easter and Mother’s / Father’s Day (UK). They are also great for year-round special occasions like anniversaries and birthdays, so the opportunities to do well in this category are relatively boundless.
Marketing that emphasises exclusivity, craftsmanship and regional authenticity is important in this subcategory and supports best meeting customer needs and search queries. They are also ideal for bundling and gifting, and perform well when content and imagery is created and presented in a thoughtful and carefully curated manner.
Alcoholic Beverages
Alcoholic beverages are often tied to celebrations, gifting and social events. Buyers are seeking quality, reputation and uniqueness in this subcategory and expect moderate to high pricing, depending on the product and brand e.g. beer vs wine, Veuve Clicquot vs Bottega.
These types of products see major spikes in sales volume in Q4 with holidays and Christmas, and smaller peaks around special occasions throughout the year such as Valentine’s Day and summer events.
In marketing tactics, brands that highlight their craftsmanship and exclusivity but also tie their offerings to specific occasions tend to do quite well. Gift packaging options are also common, especially during holidays.
Health and Wellness Foods
Health conscious shoppers prioritise ingredients, dietary restrictions and nutrition in their purchases of these types of products. These customers tend to be more informed and value transparency and certifications, and clarity in what problems the product is suited towards and why e.g. “this product is Gluten Free and how”. They are also open to higher price points due to premium ingredients and specialised production methods.
This subcategory shows its strongest growth in Q1 in alignment with New Year’s resolutions and the “New Year, New Me” trend. However, there is also consistent demand throughout the year due to lifestyle diets and health trends, also impacted by social media.
Marketing that clearly shows health benefits, dietary suitability (e.g. vegan) and ingredients, with packaging that focuses on eco-friendliness and clean labelling is typical of this subcategory, allowing consumers to align their core beliefs with the products on offer.
Regional Differences
United States
Top Subcategories: Beverages (especially coffee and energy drinks), snacks and sweets and health and wellness foods (e.g. gluten-free, organic, plant based) do particularly well in the US.
Consumer Behaviour: The US market is highly driven by convenience and health conscious eating. Ready-to-drink beverages and on-the-go snacks are high in demand, and subscription models (e.g. for coffee) are popular due to convenience factors.
Seasonality Trends: Q1 sees a surge in chocolate and luxury confession sales for Valentine’s Day, and health and wellness options are popular post-New Year. Mothers and Father’s Day in Q2 stimulates demand for gourmet gifts e.g. gift baskets, and Q3 and the summer season raises popularity for gourmet picnic hampers and alcoholic beverages. Q4 is the strongest quarter for the wider category due to the gifting periods of Christmas and Thanksgiving. Sales of premium chocolate, alcoholic beverages and curated hampers peak in this quarter.
United Kingdom
Top Subcategories: Tea and coffee gift sets, luxury biscuits and cheese and wine hampers are incredibly popular subcategories in the UK.
Consumer Behaviour: There is a strong tradition of gifting gourmet food in the UK, especially around holidays. Ethical and eco-conscious gifts (e.g. fair trade) are also important to UK consumers. There is also a strong “tea culture”, where sales of premium and specialty teas continue to grow YoY.
Seasonality Trends: “Dry January”in Q1 boosts demand for alcohol-free beverages. Easter also drives sales of high-end chocolates and sweet treats in this quarter. Mother’s Day in Q2 leads to a rise in demand for gourmet gifts, especially hampers. Gourmet snack and tea hampers are particularly popular in Q3 for picnics and outdoor activities as the weather improves, and beverage sales also peak (especially tea, coffee and alcohol) during Summer festivals and holidays. Similar to the US, Q4 has the strongest demand with Christmas, where wine and cheese hampers, chocolate boxes, tea sets and alcohol see high sales volumes.
France
Top Subcategories: Gourmet foods (wine, charcuterie, cheese), snacks and supplements are particularly popular in France.
Consumer Behaviour: French consumers prioritise high-quality, artisanal and gourmet items. Wine is often purchased as a luxury item or gift, especially around holidays. They also tend to be selective in their purchases, valuing craftsmanship and authenticity of brands over mass-market products.
Seasonality Trends: Shoppers are very health-conscious post-holiday season in Q1, evidenced by surges in supplements and diet products during this time. Gourmet food sales peak in Q2 for Easter and better-weather gourmet picnics. In Q3, snacks and beverages see an increase for Summer and holidays and Q4 also shows a significant increase in alcoholic beverages and sweets for holiday gifts.
Germany
Top Subcategories: Beer, savoury snacks, coffee and health products (e.g. protein powder, vitamins) are popular for German consumers.
Consumer Behaviour: Germans appreciate quality and practicality in both mainstream and health-focussed categories (e.g. organic, low-sugar). Beer gift sets are also particularly popular for gifting, in alignment with the big “beer culture” in Germany.
Seasonality Trends: Similar to other regions, January sees a spike in sales of supplements as part of post-holiday health resolutions. Valentine’s Day is less of a major event in Germany than other countries, but still shows some demand for gourmet chocolates in Q1. In Q2, gourmet snacks and beer gift baskets are popular for festivals and Summer BBQs. Coffee and energy drink sales also peak around this time, with a preference for grab-and-go options in Q3. Finally, Q4 drives high sales of alcoholic drinks and gourmet food hampers with Oktoberfest and Christmas.
Italy
Top Subcategories: Wine, gourmet foods (e.g. artisanal pasta, olive oil), coffee and sweets tend to show the highest volumes in Italy.
Consumer Behaviour: Italians prioritise traditional Italian products. Gourmet and artisan foods are favoured for gifting and special occasions, with local producers holding significant amounts of market share. Coffee is also an essential part of their daily life and they prefer premium espresso and moka blends.
Seasonality Trends: Health foods and detox products show the typical upticks in Q1, along with snacks for more casual consumption. Easter is a big deal in Italy in Q2 and festive gatherings and events fuel demand for gourmet food and wine products. Summer holidays also lead to increased sales of wine and snacks in Q3, and Christmas in Q4 drives sales of wine, coffee and gourmet foods for gifting and festive meals.
Spain
Top Subcategories: Wines, gourmet foods (olive oil, Iberian ham, seafood delicacies), supplements (performance related and plant based) are very popular in Spain.
Consumer Behaviour: Spanish consumers have a strong preference for traditional food products like wine and olive oil, often purchased as gifts. There is also a growing interest in plant-based goods and supplements, reflecting their increasing focus on health and wellness.
Seasonality Trends: Again, Q1’s January is driven by more health-conscious purchases and suitable products. Like Italy, Easter is also a big festival in Spain and gourmet food and beverage sales rise ahead of these celebrations in Q2. Wine, snacks and beverages rise in demand in Q3 with Summer festivals and holidays and gourmet food. Wine sales also surge in Q4 for Christmas and New Year’s celebrations, especially with gift baskets and high-quality regional products.
Key Differences
The US, UK and Germany show the highest demand for health-oriented products year round, driven by health trends and dietary restrictions. France, Italy and Spain prioritise gourmet and artisanal products with a focus on local and regional specialities (like wine, cheese and olive oil) more than the other regions globally. When it comes to alcohol, Germans have a strong affinity for beer, whereas Italians and Spainards prefer wine. France balances both, with a focus on premium wines and spirits. US consumers also prioritise convenience more highly versus European countries, particularly the UK and Germany, where there is a higher focus on eco-friendly and sustainable snack options.
Amazon PPC Advertising
Seasonal and Niche Keywords
Include occasion-based keywords in your targeting such as “Christmas gourmet gift basket” for specific periods for wider targeting, and product-specific keywords to ensure you are tailoring your offerings to specific searches e.g. “wine and cheese hampers”. However, note that CPCs can be relatively high for the more generic seasonal terms like “Valentine’s Day gifts” so it is important to review your performance regularly on these terms to understand their actual worth and value.
Consider negative matching irrelevant targets for your products to reduce wasted spend. For example, negative matching “wine” and for your beer specific products will ensure you are not wasting time and money on irrelevant searches.
Cross-Promotion and Remarketing
Use Sponsored Display to cross-promote complementary products on your own PDPs e.g. biscuits on coffee related products. Use remarketing campaigns to retarget consumers who viewed gift products but did not complete their purchase for the high-conversion weeks before major holidays to further grow your sales volumes.
Brand Visibility
Deploy Sponsored Brands Ads to promote gift collections or highlight bundles. This is particularly effective for premium and artisanal brands that focus on gifting. Create curated, seasonally relevant themed campaigns in these ads for specific periods e.g. “Valentine’s Day Chocolate Gifts” in Q2 or “Christmas Gourmet Gifts” in Q4.
Budget and Bid Management
Gourmet gifts see their highest demand in Q4, especially leading up to Christmas. Ensure you allocate significant PPC budgets during this time to capture these peak sales. Outside of Christmas, ensure your budgets are increased for Valentine’s Day, Mother’s Day and Easter as key peaks across most regions. High enough budgets and bids are key during this time for visibility and conversions.
Subscription Models
Use subscription-based advertising to encourage Subscribe and Save on specific products such as protein bars, protein powder and coffee to increase the stickiness of your offerings and drive long-term, repeat purchases. Promote subscription benefits such as discounts, convenience, and guaranteed stock to drive repeat purchases and include callouts like “Save X% when you subscribe” in the product title or description to encourage these subscriptions.
Want to know more about the Food and Drink category on Amazon? Get in touch with us at zeal@zealagency.co.uk or at www.zealagency.co.uk.
