Table of Contents
The current mindset of consumers as they shop for food, beverages and other household staples is surprisingly positive. Despite persistent concerns about food price inflation, the majority of Americans enjoy the experience.
That’s one of the key findings in “U.S. Grocery Shopper Trends: Finding Value,” part of a series of reports issued annually by FMI – The Food Industry Association. Conducted by the Hartman Group, the survey includes a new shopper sentiment index, which is based on attitudes toward the overall experience and a given consumer’s primary food store. It resulted in a score of 70 on a scale of 100, down slightly from 72 for 2023.
The quest for value is a primary motivator for almost all consumers today, with 85% of shoppers citing it as a high priority. Just what constitutes value has become more fluid and complex. The definition has been enlarged to include such factors as convenience, experience and relevance, as well as price and product quality.
“To manage higher prices, shoppers are increasingly prioritizing good value, which involves focusing more on quality and optimizing purchases for personal enjoyment, convenience and waste reduction at home,” FMI president and chief executive officer Leslie Sarasin commented. “That’s not to say that price is irrelevant to the value equation — 91% of shoppers concerned with rising prices have made some changes to their shopping habits to obtain better price value.”
As the concept of value has expanded, so have the trade classes in which food shoppers seek it out. In line with trends that coincided with the COVID pandemic, Walmart and other mass merchants are challenging traditional supermarkets as the top venue for buying groceries. Forty percent of respondents to the survey indicated that supermarkets are the first place they turn, followed by discounters at 33%, and club stores at 9%. Notably, the percentage of consumers whose primary source for groceries is an online merchant declined to 3% from 5% in 2023. In addition to those channels, a high volume of food and beverage products are sold in convenience, drug and dollar stores.
As the report indicates, the diversity of competition and the evolution of priorities among consumers make it incumbent upon all retailers involved in the grocery category to be nimble and ready to adapt. FMI’s efforts related to such emerging developments as “food as medicine,” the impact of new technology, and the growth of nonfood sales should help prepare them to do just that.
