Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- The majority of shoppers open to trying new locations
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- Figure 1: Shopping statements – New items/locations, August 2017
- Low price leads important factors when choosing a purchase location
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- Figure 2: Channel drivers, August 2017
- Shoppers want it to be easier
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- Figure 3: Shopping statements – Convenience, August 2017
- The opportunities
- Brands should capitalize on consumers’ engagement with food
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- Figure 4: Food/drink segmentation – Engagement – Any agree, August 2017
- Rapidly growing claims suggest greater consumer interest in ingredient transparency
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- Figure 5: Fastest growing food and drink claims, 2013 and 2017*
- Turning shoppers into advocates
- What it means
The Market – What You Need to Know
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- Sales of food for at-home consumption outpace sales for away-from- home
- Gap widens between supermarkets and “other channels”
- Women make up a slightly larger share of grocery shoppers
- Retailer choice may shift due to health initiatives
- Whole Foods acquisition causes retailers to rethink strategies
Market Breakdown
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- Gap widens between supermarkets and “other channels”
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- Figure 6: Percentage of total MULO grocery sales (food and nonfood), by segment, at current prices, 2012-22
- Competitive landscape sees even more entrants
- 62% of US adults have shopped for food at Walmart in the past month
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- Figure 7: Select food stores and supermarkets shopped in the past four weeks, spring 2017
Market Perspective
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- Sales of food for at-home consumption outpace sales for away-from- home
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- Figure 8: Share of food expenditures for food at home and food away from home, 2007-17
- Whole Foods acquisition causes retailers to rethink strategies
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- Figure 9: Walmart “New! Hand-crafted in Italy. Sam’s Choice Italia is here.” email, October 2017
Market Factors
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- Brands should capitalize on consumers’ engagement with food
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- Figure 10: Food/drink segmentation – Engagement – Any agree, August 2017
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- Figure 11: Whole Foods Market “Reserve Your Feast Today: 3 Weeks ’Til Thanksgiving!” email, November 2017
- Women make up a slightly larger share of grocery shoppers
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- Figure 12: Share of grocery shopping responsibility, by gender, August 2017
- In their words: Who’s involved?
- Increasing diversity broadens American palate/shopping cart
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- Figure 13: “Many Chairs. One Table.” YouTube ad, August 2017
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- Figure 14: Population by race and Hispanic origin, 2012-22
- Retailer choice may shift as Americans attempt to eat healthier
- Consumer confidence should rise as unemployment falls
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- Figure 15: Consumer confidence and unemployment, 2000-September 2017
Key Players – What You Need to Know
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- Kosher and low/no/reduced allergens lead 2017 food/drink claims
- Rapidly growing claims suggest increasing consumer interest in ingredient transparency
- All-natural claim losing share, as are callouts related to weight loss
What’s Working?
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- Popular food and drink claims
- Kosher and low/no/reduced allergens lead 2017 food/drink claims
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- Figure 16: Leading food and drink claims, 2013 and 2017*
- Rapidly growing claims suggest increasing consumer interest in ingredient transparency
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- Figure 17: Fastest growing food and drink claims, 2013 and 2017*
What’s Struggling?
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- All-natural claim losing share, as are callouts related to weight loss
- Low price should create distance from an association with low value
- Don’t tell me to diet
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- Figure 18: Fastest declining food and drink claims, 2013 and 2017*
What’s Next?
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- Prioritizing speed
- Boosting convenience through consolidating efforts
- Meal kits represent challenge and opportunity
- Turning shoppers into advocates
- In their words: Spreading the word
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- Figure 19: Save-A-Lot food stores “We’re saying thanks with a WEEKEND SALE!” email, October 2017
The Consumer – What You Need to Know
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- Health leads as an important factor in food choices
- Supermarkets lead as food and drink purchase outlet of choice
- The weekly supermarket trip still leads
- Low price leads important factors in choosing a purchase location
- The majority of shoppers open to trying new locations
- Consumers want food and drink shopping to be easy
What Influences Consumer Food Choices?
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- Health leads as an important factor in food choices
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- Figure 20: Food/drink segmentation – Food choices – Any agree, August 2017
- Environmental responsibility is important to younger shoppers
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- Figure 21: Food/drink segmentation – Food choices – Any agree, by age, August 2017
- Higher earners are more likely to prioritize health
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- Figure 22: Food/drink segmentation – Food choices – Any agree, by HH income, August 2017
- City dwellers are more interested in health, environment
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- Figure 23: Food/drink segmentation – Food choices – Any agree, by region, August 2017
- Parents are especially engaged in food factors
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- Figure 24: Food/drink segmentation – Food choices – Any agree, by parental status, August 2017
- New product trial
- Introduction to new products largely happens while shopping
- In their words: What/who influences new food/drink trial
Food and Drink Shopping Channel Preference
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- Supermarkets lead as food and drink purchase outlet of choice
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- Figure 25: Primary shopping channels, August 2017
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- Figure 26: “How to Lidl – Price” TV ad, May 2017
- Figure 27: ALDI “Start November with savings!” email, November 2017
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- Figure 28: Instacart “Reserve Your Feast Today: 3 Weeks “Get $20 off today! Shop and save with ALDI.”” email, November 2017
- In their words: Online food/drink shopping has a strong association with time savings
- Women seek cost savings and health
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- Figure 29: Select food stores and supermarkets shopped in the past four weeks, by gender, spring 2017
- 18-24s are more likely to shop at Walmart than at traditional supermarkets
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- Figure 30: Primary shopping channels, by age, August 2017
- Supermarkets may appear as an expensive option
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- Figure 31: Primary shopping channels, by HH income, August 2017
- 59% of Aldi shoppers come from HHs earning less than $75K
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- Figure 32: “Name That Chewn | Rice Cakes” YouTube ad, October 2017
- Figure 33: “I Like ALDI Commercial | Mac & Cheese” YouTube ad, September 2017
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- Figure 34: Select food stores and supermarkets shopped in the past four weeks, by HH income, spring 2017
- Supermarkets do well in the suburbs, mass merchandisers have rural appeal
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- Figure 35: Primary shopping channels, by city size, August 2017
- Supermarkets work for smaller households, mass appeals to larger ones
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- Figure 36: Primary shopping channels, by HH size, August 2017
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- Figure 37: “Target Run 2017 Milk :15” TV ad, June 2017
- Figure 38: Select food stores and supermarkets shopped in the past four weeks, by HH size, spring 2017
- In their words: Mass outlets may do well to highlight benefits beyond price
- In their words: Ideal food and drink shopping location
Food and Drink Purchase Frequency
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- The weekly supermarket trip still leads
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- Figure 39: Purchase frequency, by channel, August 2017
- Men are more likely to shop frequently
- In their words: Shopping frequency
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- Figure 40: Purchase frequency – Any channel, by gender, August 2017
- 25-34s are most frequent shoppers
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- Figure 41: Purchase frequency – Any channel, by age, August 2017
- 18% of shoppers in urban locations shop daily for food and drink
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- Figure 42: Purchase frequency – Any channel, by city size, August 2017
Choosing a Food and Drink Shopping Location
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- Low price leads important factors in choosing a purchase location
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- Figure 43: Channel drivers, August 2017
- Women are most likely to be price conscious, while men gravitate toward convenience
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- Figure 44: Share of channel drivers – Any importance, by gender, August 2017
- Figure 45: Whole Foods Market “Reserve Your Feast Today: 3 Weeks ’Til Thanksgiving!” email, November 2017
- Fresh products appeal to older shoppers
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- Figure 46: Channel drivers – Any importance, by age, August 2017
- Rural shoppers like low prices; city dwellers want health and ease
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- Figure 47: Channel drivers, by city size, August 2017
- Motivations to switch channels
- Lower prices can help sway shoppers; fresh products could also appeal
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- Figure 48: Motivation to switch channels, August 2017
Food and Drink Shopping Statements
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- New items/locations
- The majority of shoppers are open to trying new locations
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- Figure 49: Shopping statements – New items/locations, August 2017
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- Figure 50: “Puerto Rico Relief Fund: “United”” TV ad, October 2017
- Under 45s are most interested in new products/locations
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- Figure 51: Shopping statements – New items/locations, by age, August 2017
- Rural shoppers may be resigned to limited options
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- Figure 52: Shopping statements – New items/locations, by city size, August 2017
- Convenience
- Shoppers want it to be easier
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- Figure 53: Shopping statements – Convenience, August 2017
- Younger shoppers want to spend less time thinking about food
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- Figure 54: Shopping statements – Convenience, by age, August 2017
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- Figure 55: Kellogg’s “Happy Birthday from Kellogg’s” email, November 2017
- Hispanics prefer frequent, small trips
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- Figure 56: Shopping statements – Convenience, by Hispanic origin, August 2017
- Respondents from large HHs feel like they spend too much time on meal planning
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- Figure 57: “ClickList Delivery “Dog Wash” | Commercial | Kroger” commercial, July 2017
- Figure 58: Shopping statements – Convenience, by HH size, August 2017
Cluster Analysis
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- Figure 59: Food and drink shopper clusters, August 2017
- Group 1: Traditionalists
- Demographics:
- Characteristics
- Opportunities
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- Figure 60: Primary shopping channels, by food/drink shopper clusters, August 2017
- Group 2: Enthusiasts
- Demographics:
- Characteristics
- Opportunities
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- Figure 61: Shopping statements, by food/drink shopper clusters, August 2017
- Group 3: Just Feed Mes
- Demographics:
- Characteristics
- Opportunities
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- Figure 62: Channel drivers, by food/drink shopper clusters, August 2017
- Group 4: Ease Seekers
- Demographics:
- Characteristics
- Opportunities
- Group 5: Quality Seekers
- Demographics:
- Characteristics
- Opportunities
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- Figure 63: Motivation to switch channels, by food/drink shopper clusters, August 2017
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Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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