Convenience, well-being and digitization key to consumer loyalty, industry leaders assert
New findings unveiled by FMI, Oliver Wyman and Circana highlight fresh prospects for trading partners in the food industry to meet the evolving value perceptions of shoppers.
The study, "Finding Growth for Food & Beverage at Retail: Winning Eating Occasions throughout the Day," offers insights into go-to-market strategies and methods for grocers to enhance shopper engagement by addressing their needs, preferences, tastes, incentives, health concerns and, notably, convenience, according to a news release.
“The research showcases how food and beverages that promote well-being, those that are competitively priced and products that are decidedly convenient to buy and prepare, will ultimately earn shoppers’ allegiance,” Mark Baum, senior vice president of industry relations and chief collaboration officer for FMI, said in the release.
“We are witnessing shifts toward foodservice spending, a rise in digitization and return-to-office protocols that all provide food and beverage retail with opportunities to improve how they deliver on what matters most to consumers," he added.
According to the research, while 87% of morning eating occasions and 76% of midday eating occasions are sourced from home, there is an increasing trend toward foodservice across many consumer segments, particularly Generation Z and Generation X, reflecting growing demand for convenience.
“Time is of the essence for Americans, especially when it comes to their morning routines. Sixty-five percent of morning eating occasions are prepared in less than five minutes, and we see opportunities for new appliances that give consumers quick solutions, with the microwave gaining the most ground since 2020,” Sally Lyons Wyatt, global executive vice president and chief adviser for consumer goods and foodservice insights for Circana, said in the release.
The research also showed that, in the evening, less prep, quick cleanup and fewer ingredients are growing trends.
“Dinner represents the largest financial upside for retailers winning at home relative to other eating occasions throughout the day," Oliver Wyman, partner at Randall Sargent, said in a news release. "To increase their share of evening consumption, retailers and suppliers must offer solutions that are not only sufficiently convenient but also offer the varieties of cuisines and textures found in a foodservice offering."
FMI Vice President for Research & Insights Steve Markenson emphasized how retailers can share a compelling story for how these solutions meet the value-for-money and health preferences for busy consumers to prepare their midday food and beverages.
“The insights demonstrate how our industry can be successful by capitalizing on consumers’ shifting habits, especially when companies consider dayparts, such as snacks, to inspire experimentation and create new memories through food,” Markenson said in the release.
Finally, as another way to consider how the food industry can cater to newfound eating experiences among consumers, the analysis points to opportunities to explore new channels by competing for untapped potential in places primarily occupied by food distributors.
