What's In Store 2014 State Of The Industry Highlights

Madison, WI — What’s in Store 2014, the latest edition of the annual trends publication of the International Dairy-Deli-Bakery Association™ (IDDBA), and What’s in Store Online, a collection of more than 150 downloadable tables, as well as white papers and trends articles, are now available. With 28 years of credible reporting, What’s in Store is an essential dairy-deli-bakery resource providing vital data on the growth, trends, and category changes shaping the food industry. What’s in Store 2014 is composed of six comprehensive chapters: State of the Industry, Consumer Lifestyles, Bakery, Cheese, Dairy, and Deli.

Eighty-five percent of global consumers said higher food prices affect their grocery purchases and 52% said higher prices are a major consideration.  With shopper trips declining as a result of both economic anxiety and decreasing household size, differentiation is essential.  Tim O’Connor, vice president, RetailNet Group, told IDDBA that slow economic growth means more competition and more differential advantage for retailers providing real value and relevance to consumers. However, O’Connor noted that personal engagement keeps shoppers coming back to the same store, creating more loyalty than simple shelf-price differentiation.

Despite ongoing innovations in store formats, 72% of food sales still originate in conventional format stores, up from 68% the prior year.  The transition to smaller store formats is shaped by a need to fill markets with closer, more convenient stores, while providing more convenient shopping for the aging shopper base, O’Connor told IDDBA. Grocery delivery and pick-up after ordering online are becoming more prevalent shopping options.

Supermarkets face increasing competition as more retail channels are stocking higher-quality fresh food to capture the consumer dollar, particularly drug stores and convenience stores. Supermarkets are also altering their formats and layouts to accommodate a more urban, time-pressed consumer. Some stores are responding to upmarket competition by developing specialty versions of their stores.

Fresh food sales are amplifying trip volume and basket rings. Data from Nielsen Perishables Group shows fresh food, consisting of the bakery, deli, meat, produce, and seafood departments, contributed 29% to total store sales. Baskets are 1.5 to 2.1 times larger, on average, when fresh items are present than without, Chris Zagorski, research analyst, Nielsen Perishables Group, told IDDBA.

In line with fresh food trends, health and convenience are among the top food trends that meet consumer demand. Convenience can range as widely as easy grocery pickup when pre-ordered on line to ready-to-eat meal solutions. Retailers are leveraging health and wellness to appeal to shoppers who want to live healthier lifestyles, as well as consumers with health issues, Todd Hale, SVP, Consumer and Shopper Insights, Nielsen, told IDDBA. 

Health is an overarching food trend shaping the industry today. The rising global population and unpredictable weather subtract some certainty from our previously abundant food supply. At the same time, many developed nations are facing an epidemic of health problems thought to be brought on by changing lifestyles and diets. Consumers are opening up to new food habits as seniors are living longer and the younger generation is raised with health on the brain.

Grocery retailers can best serve consumer demand by offering foods that are both convenient and healthful. Sharon Olson, executive director, Culinary Visions Panel told IDDBA that “offering a delicious healthful entrée where the provenance of the ingredients appeals to the senses and the assurance of sustainability in production brings added satisfaction. In our research “homemade” has become an important word to describe a consumer’s perception of quality. An authentic homemade recipe that would be difficult for a consumer to replicate at home brings great pleasure and value.”

Convenience and creativity exist at opposite ends of the cooking spectrum and consumers are searching for a sweet spot between them, Laurie Demeritt, CEO, The Hartman Group, told IDDBA. Stores act as a sous chef, assembling and chopping ingredients, so shoppers can add their own touch before putting the meal together and serving it.

“The desire is high on the part of the consumers to look to the fresh departments as a space for healthful snacking,” Demeritt told IDDBA. To approach this opportunity, stores can offer portable, easy-to-eat, easy-to-prepare, and snack portions.

What’s in Store 2014, our 28th edition, is a 230-page trends report that details consumer and industry trends affecting the in-store dairy case, cheese case, bakery, deli, and foodservice departments. Its 200+ tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, system 2, UPC, and private label sales data. The purchase of What’s in Store 2014 includes access to What’s in Store Online, a collection of downloadable tables from the book, plus white papers and trends articles (many with accompanying downloadable tables) that offer supplementary in-depth trends information. Be sure to save time using our Reference Links—these are web homepage links to all of the businesses referenced in What's in Store 2014. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. For more information and to order, visit iddba.org/wis.aspx.

About IDDBA:  IDDBA is a nonprofit membership organization serving the retail dairy, deli, bakery, cheese, and supermarket foodservice industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, free training programs, management tools, and an annual trends report. For more information, contact IDDBA at 608.310.5000 or visit our Web site, www.iddba.org.

[1] Nielsen. Factors That Impact How We Grocery Shop Worldwide. August 2012.

[1] Nielsen. “What’s in Store 2013: Think Small for Big Results.” January 23, 2013.

[1] “80th Annual Report of the Grocery Industry: Swirling Fortunes.” Progressive Grocer. April 2013.

Source: International Dairy-Deli-Bakery Association™ (IDDBA)