Table of Contents
Executive Summary
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- Overview
- The market
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- Figure 1: Total US sales and fan chart forecast of grocery perimeter food categories, at current prices, 2009-19
- Meat, poultry, seafood account for largest share
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- Figure 2: Total US retail sales of grocery perimeter food categories, by segment, at current prices, 2012 and 2014
- The consumer
- Respondents are most likely to use supermarkets for perimeter foods
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- Figure 3: Retailers used for buying fresh fruit and vegetables, dairy products, fresh meat, and fish and seafood, April 2014
- Connecting meat to health is likely to drive sales at the meat counter
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- Figure 4: Attitudes toward red meat, poultry, and pork, April 2014
- 47% prefer locally grown produce
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- Figure 5: Attitudes toward fruit and vegetables, April 2014
- Consumers say customization, freshness, value important at specialty counters
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- Figure 6: Attitudes toward shopping at grocery specialty counters, any agree, April 2014
- What we think
Issues and Insights
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- Can nontraditional stores capitalize on perimeter growth?
- Insight: Mass stores must improve quality
- How should perimeter departments increase convenience?
- Insight: More convenient perimeter foods means more business
- How can deli prepared foods increase share?
- Insight: Leverage specialty deli items
Trend Applications
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- Trend: Prove It
- Trend: Locavore
- Trend: Make It Mine
Market Size and Forecast
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- Key points
- Demand for fresh, healthy food and prepared meals drives growth
- Migration to nontraditional grocery channels
- Shift in shopping frequency and habits
- Sales and forecast of grocery perimeter food categories
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- Figure 7: Total US sales and forecast of grocery perimeter food categories, at current prices, 2009-19
- Figure 8: Total US sales and forecast of grocery perimeter food categories, at inflation-adjusted prices, 2009-19
- Fan chart forecast
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- Figure 9: Total US sales and fan chart forecast of grocery perimeter food categories, at current prices, 2009-19
Segment Performance
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- Key points
- Growth for all categories; demand for fresh, healthy, and prepared foods
- Sales of grocery perimeter food categories, by segment
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- Figure 10: Total US retail sales of grocery perimeter food categories, by segment, at current prices, 2012 and 2014
Segment Performance – Meat, Poultry, and Seafood
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- Key points
- Steady growth predicted between 2014 and 2019
- Sales and forecast of meat, poultry, and seafood
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- Figure 11: Total US retail sales and forecast of meat, poultry, and seafood, at current prices, 2009-19
Segment Performance – Fresh Produce
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- Key points
- 18% growth between 2014 and 2019
- Sales and forecast of fresh produce
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- Figure 12: Total US sales and forecast of fresh produce, at current prices, 2009-19
Segment Performance – Milk, Dairy, and Eggs
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- Key points
- 13% growth forecast between 2014 and 2019
- Sales and forecast of milk, dairy, and eggs
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- Figure 13: Total US sales and forecast of milk, dairy, and eggs, at current prices, 2009-19
Segment Performance – Bakery Items
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- Key points
- Sales driven by demand for fresh, convenient foods
- Sales and forecast of bakery items
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- Figure 14: Total US sales and forecast of bakery items, at current prices, 2009-19
Segment Performance – Deli Prepared Foods
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- Key points
- Small share but significant growth
- Sales and forecast of deli prepared foods
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- Figure 15: Total US sales and forecast of deli prepared foods, at current prices, 2008-18
Marketing Strategies
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- Overview of the brand landscape
- Theme: Freshness
- Walmart’s freshness guarantee
- Walmart TV spots
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- Figure 16: Walmart television ad, 2013
- Figure 17: Walmart television ad, 2014
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- Figure 18: Walmart television ad, 2013
- Target remodels stores to better emphasize freshness
- Safeway ads focus on freshness
- Safeway TV spots
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- Figure 19: Safeway television ad, 2013
- Albertsons: “You’re in for something fresh”
- Albertsons YouTube channel video
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- Figure 20: Albertsons YouTube channel ad, 2014
Profile of the Grocery Shopper
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- Key points
- Consumers spend $107 per average week on groceries
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- Figure 21: Household grocery expenditures per week, November 2012-December 2013
- 18-24s most likely to spend $150+ per week
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- Figure 22: Household grocery expenditures per week, by age, November 2012-December 2013
- 53% shop for groceries 10+ times per month
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- Figure 23: Number of times shopped at supermarkets/food stores (any) last 4 weeks, November 2012-December 2013
- 55% seek freshest cooking ingredients; 45% prefer foods without additives
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- Figure 24: Attitudes/opinions about shopping for food, any agree, November 2012-December 2013
- 55+ most likely to prefer unprocessed
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- Figure 25: Attitudes/opinions about shopping for food, by age, any agree, November 2012-December 2013
Where Consumers Shop for Fresh Groceries
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- Key points
- Most shop at supermarkets
- Supermarkets
- Mass merchandisers
- Other channels
- Online shopping expected to grow; brick and mortar can leverage fresh foods
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- Figure 26: Retailers used for buying fresh fruit and vegetables, dairy products, fresh meat, and fish and seafood, April 2014
- Supermarket use increases with age; mass store use declines with age
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- Figure 27: Retailers used for buying fresh fruit and vegetables, dairy products, fresh meat, and fish and seafood – any purchase, by age, April 2014
- Supermarket use highest among $100K+
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- Figure 28: Retailers used for buying fresh fruit and vegetables, dairy products, fresh meat, and fish and seafood – any purchase, by household income, April 2014
- Households with kids most likely to use mass merchandisers, club stores
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- Figure 29: Retailers used for buying fresh fruit and vegetables, dairy products, fresh meat, and fish and seafood – any purchase, by presence of children in household, April 2014
- Walmart much more likely to be used for grocery shopping
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- Figure 30: Supermarket chains shopped at in last 4 weeks, November 2012-December 2013
Attitudes toward Shopping at Perimeter of the Store
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- Key points
- Consumers value customization, knowledgeable staff, freshness
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- Figure 31: Attitudes toward shopping at grocery specialty counters, April 2014
- 18-24s most apt to say freshness is important at specialty counters
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- Figure 32: Attitudes toward shopping at grocery specialty counters – any agree, by age, April 2014
- Households with children are looking for fresher products
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- Figure 33: Attitudes toward shopping at grocery specialty counters – any agree, by presence of children in household, April 2014
Where Consumers Shop for Fresh Meat
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- Key points
- Older respondents favor supermarkets for meat purchases
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- Figure 34: Retailers used for buying fresh meat (beef, pork, or poultry, including chicken, turkey, duck, etc), by age, April 2014
- Less than $50K most likely to use mass stores for meat purchases
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- Figure 35: Retailers used for buying fresh meat (beef, pork, or poultry, including chicken, turkey, duck, etc), by household income, April 2014
- Households with children most likely to shop for meat at mass
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- Figure 36: Retailers used for buying fresh meat (beef, pork, or poultry, including chicken, turkey, duck, etc), by presence of children in household, April 2014
Attitudes toward Fresh Meat
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- Key points
- Many agree that poultry, pork, and red meat are healthy
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- Figure 37: Attitudes toward red meat, poultry, and pork, by age, April 2014
Where Consumers Shop for Fresh Seafood and Fish
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- Key points
- Most use supermarkets for fresh fish/seafood purchases
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- Figure 38: Retailers used for buying fresh seafood and fish, by age, April 2014
- Use of supermarkets for fish purchases highest among $150K+
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- Figure 39: Retailers used for buying fresh seafood and fish, by household income, April 2014
Attitudes toward Fresh Seafood and Fish
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- Key points
- Healthy positioning can drive sales at the fish/seafood section of the store
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- Figure 40: Attitudes toward fresh seafood and fish, by age, April 2014
Where Consumers Shop for Fresh Fruit and Vegetables
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- Key points
- 55+s most likely to use supermarkets for fresh produce
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- Figure 41: Retailers used for buying fresh fruit and vegetables, by age, April 2014
- $150K+ most likely to use supermarkets, natural food stores for produce
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- Figure 42: Retailers used for buying fresh fruit and vegetables, by household income, April 2014
- Households with children most apt to buy produce at mass, neighborhood stores
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- Figure 43: Retailers used for buying fresh fruit and vegetables, by presence of children in household, April 2014
Attitudes toward Fresh Fruit and Vegetables
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- Key points
- Many consumers prefer locally grown, chemical-free produce
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- Figure 44: Attitudes toward fruit and vegetables, by age, April 2014
- Consumers are looking for convenient produce options
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- Figure 45: Attitudes toward fruit and vegetables, August 2013
Where Consumers Shop for Dairy Products
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- Key points
- Use of supermarkets for dairy purchases increases with age
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- Figure 46: Retailers used for buying dairy products (eg milk, cheese, fresh creams), by age, April 2014
- Less than $50K most likely to shop for dairy at mass merchandisers
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- Figure 47: Retailers used for buying dairy products (eg milk, cheese, fresh creams), by household income, April 2014
- Presence of children drives use of mass merchandisers for dairy purchases
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- Figure 48: Retailers used for buying dairy products (eg milk, cheese, fresh creams), by presence of children in household, April 2014
Attitudes toward Dairy Products
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- Key points
- Stores can leverage healthy, less processed dairy foods
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- Figure 49: Attitudes toward dairy products, by age, April 2014
- Less than $50K least likely to prefer to buy organic dairy
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- Figure 50: Attitudes toward dairy products, by household income, April 2014
Where Consumers Shop for Bakery Items
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- Key points
- Consumers split between ISBs and bakery aisle
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- Figure 51: Bakery item purchase frequency by bakery type, November 2012
- Households with children more apt to use in-store bakeries
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- Figure 52: Bakery item purchase in past year by bakery type, by presence of children in household, November 2012
- Consumers perceive ISB items to be better than packaged
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- Figure 53: Why consumers prefer in-store bakeries, November 2012
Appendix – Other Useful Consumer Tables
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- Attitudes toward fresh fruit and vegetables
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- Figure 54: Attitudes toward fruit and vegetables, by household income, April 2014
- Attitudes toward fresh seafood and fish
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- Figure 55: Attitudes toward fresh seafood and fish, by household income, April 2014
- Attitudes toward shopping at grocery specialty counters
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- Figure 56: Attitudes toward shopping at grocery specialty counters – any agree, by household income, April 2014
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- Figure 57: Attitudes toward shopping at grocery specialty counters, April 2014
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- Figure 58: Attitudes toward shopping at grocery specialty counters – any agree, by age, April 2014
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- Figure 59: Attitudes toward shopping at grocery specialty counters – any agree, by household income, April 2014
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- Figure 60: Attitudes toward shopping at grocery specialty counters – any agree, by presence of children in household, April 2014
Appendix – Trade Associations
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