Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Fresher foods of the perimeter outpace the center store
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- Figure 1: Total US sales and fan chart forecast of perimeter of store products, at current prices, 2012-22
- Young adults far less loyal to supermarkets for perimeter foods
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- Figure 2: Perimeter purchase locations – Primary store, by age, April 2017
- Produce sets the standard for healthy and natural
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- Figure 3: Correspondence analysis – Store department associations by type, April 2017
- The opportunities
- Breaking the routine: nearly half tend to buy the same items every time
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- Figure 4: Food shopping behaviors, April 2017
- Young adults opt for concepts that facilitate enjoyment and exploration of food
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- Figure 5: Interest in perimeter concepts, by age, April 2017
- Personal selection a key to the perimeter shopping experience
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- Figure 6: Attitudes toward the perimeter, April 2017
- What it means
The Market – What You Need to Know
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- Fresher foods of the perimeter outpace the center store
- Growth slows for meat, poultry, and seafood
- Fresh produce drives growth
- Prepared foods notch strong gains from a small base
Market Size and Forecast
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- Fresher foods of the perimeter outpace the center store
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- Figure 7: Total US sales and fan chart forecast of perimeter of store products, at current prices, 2012-22
- Figure 8: Total US retail sales and forecast of perimeter of store products, at current prices, 2012-22
Market Breakdown
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- Growth slows for meat, poultry, and seafood
- Fresh produce drives growth
- Dairy sales slide
- Solid sales growth for the in-store bakery
- Prepared foods notch strong gains from a small base
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- Figure 9: Total US retail sales and forecast of perimeter-of-store products, by segment, at current prices, 2012-17
Market Perspective
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- Center-store growth lags perimeter
- Within center store, shelf stable outpaces frozen food
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- Figure 10: MULO sales and forecast of center of the store, by segment, at current prices, 2011-21
Market Factors
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- Americans are trying to be healthier
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- Figure 11: Attitudes toward food, by diet status, June 2016
- Younger generations reportedly shopping more
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- Figure 12: US population by generation, 2016
- Growing Hispanic and Asian markets continue to influence grocery sector
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- Figure 13: Generations, by race and Hispanic origin, 2016
- Fluctuating prices impact some key perimeter categories
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- Figure 14: Changes in food price indices, 2015-17
Key Players – What You Need to Know
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- Bringing convenience to perimeter: fresh cut salad
- Ethical, environmental, free-from claims gain traction in protein categories
- Meal kits move to the store (maybe where they always belonged)
What’s Working?
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- Bringing convenience to perimeter: fresh cut salad
- Ethical, environmental, free-from claims gain traction in protein categories
- Red meat
- Poultry
- Seafood
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- Figure 15: Incidence of select packaging claims on meat, poultry, and seafood launches, 2012-17*
- Grab and go: stores place great emphasis on prepared foods
What’s Struggling?
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- Majority of dairy milk segments on the decline
What’s Next?
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- An increasing emphasis on service, experience, and expertise
- Meal kits move to the store (maybe where they always belonged)
The Consumer – What You Need to Know
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- Supermarkets remain the top location for perimeter purchases
- Produce sets the standard for healthy and natural
- Breaking the routine: nearly half tend to buy the same items every time
- Young adults opt for concepts that facilitate enjoyment and exploration of food
- Personal selection a key to the perimeter shopping experience
Perimeter Purchase Locations
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- Supermarkets remain the top location for perimeter purchases
- Online shopping for perimeter items still not widespread
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- Figure 16: Perimeter purchase locations, April 2017
- Young adults far less loyal to supermarkets for perimeter foods
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- Figure 17: Perimeter purchase locations – Primary store, by age, April 2017
- Hispanic, Asian, Black shoppers less likely to shop supermarkets for perimeter
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- Figure 18: Perimeter purchase locations – Primary store, by race/Hispanic origin, April 2017
- In their words: fresh produce
- In their words: meat, poultry, and seafood
Correspondence Analysis – Department Associations
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- Methodology
- Produce sets the standard for healthy and natural
- Deli and in-store bakery seen as time-saving and helpful
- Fresh fish and seafood top meat for health
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- Figure 19: Correspondence analysis – Store department associations by type, April 2017
- Figure 20: Store department associations, by type, April 2017
- In their words: meat, poultry, and seafood
Food Shopping Behaviors
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- Breaking the routine: nearly half tend to buy the same items every time
- Perimeter shopping on the increase
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- Figure 21: Food shopping behaviors, April 2017
- Younger adults more actively engaged in perimeter shopping
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- Figure 22: Food shopping behaviors, by age, April 2017
Interest in Perimeter Concepts
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- Strong interest in everyday low prices
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- Figure 23: Interest in perimeter concepts, April 2017
- Young adults opt for concepts that facilitate enjoyment and exploration of food
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- Figure 24: Interest in perimeter concepts, by age, April 2017
Attitudes toward the Perimeter
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- Personal selection a key to the perimeter shopping experience
- Perimeter gets the nod for health over center store
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- Figure 25: Attitudes toward the perimeter, April 2017
- Younger shoppers more engaged in, more demanding of the perimeter
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- Figure 26: Attitudes toward the perimeter, by age, April 2017
- In their words: fresh produce drives perimeter shopping enjoyment
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 27: Total US retail sales and forecast of perimeter of store products, at inflation-adjusted prices, 2012-22
- Figure 28: Total US retail sales and forecast of meat, poultry, and seafood, at current prices, 2012-22
- Figure 29: Total US retail sales and forecast of fresh produce, at current prices, 2012-22
- Figure 30: Total US retail sales and forecast of milk, butter, and eggs, at current prices, 2012-22
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- Figure 31: Total US retail sales and forecast of in-store baked goods, at current prices, 2012-22
- Figure 32: Total US retail sales and forecast of in-store deli/prepared foods, at current prices, 2012-22
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