Madison, WI – The changing retail landscape and shifting customer demographics within the food industry provide both challenges and opportunities for the in-store dairy, deli, and bakery industries, as evidenced by findings in What’s in Store 2015, the 29th edition of the annual trends publication of the International Dairy-Deli-Bakery Association™ (IDDBA). It’s composed of six comprehensive chapters: State of the Industry, Consumer Lifestyles, Bakery, Cheese, Dairy, and Deli.
Among the consumer and retail trends reported in What’s in Store 2015 are:
- New and expanding retail formats are convenience stores, small box, discounters/dollar stores, online shopping and delivery, and “drive” concepts where customers order online and pick up their product right from their cars at a designated spot. These non-traditional channels will continue to chip away at the market share of traditional grocery channels, according to Willard Bishop. It projects a decrease in market share of 1.2 percentage points by 2018 in the traditional channels, which will equate to 44.8% of the market. Non-traditional grocery and convenience store channels will command 40.1% and 15.1% of the market, respectively. Supercenters will also experience dramatic growth, an estimated 19.4% share by 2018.
- Hispanic and Asian American consumers are a growing demographic in the fresh departments. Nielsen reports that Hispanics will have $1.5 trillion in buying power by 2015, a 50% increase from 2010, while the average Asian American household expenditure in 2012 was $61,400, 19% more than non-Asian households.
- Boomers and Millennials wield tremendous present and future buying power. One-half of the US population will be over 50 by 2019, with a projected growth rate of 34% by 2030. According to Nielsen, 80-million free-spending boomers will control 70% of disposable income in the United States by 2019. This generation will also inherit $15 trillion within the next 20 years. The 77-million-strong Millennial generation and their $200 billion in buying power Millennials will outspend the Boomer Generation by 2018 as over $65 billion in grocery spending will shift from one group to the other, predicted Acosta Sales & Marketing.
- Men are taking a more active role in grocery shopping and making brand choices at the supermarket. Defy Media reported that more than 65% of men now hold primary shopping responsibilities for several product categories, with 67% stating that they enjoy shopping for the household.
“The manner in which consumers shop for and purchase food—as well as the demographics of the shoppers themselves—continues to evolve in the food retail industry,” said Mary Kay O’Connor, VP Education, IDDBA. “Identifying, researching, and responding to these trends can help retailers successfully engage with the consumers of today and tomorrow.”
The growing importance of Millennials within the in-store bakery and deli departments is further supported by IDDBA’s newest original research, Engaging the Evolving Shopper: Serving the New American Appetite. It shows that Millennials are more likely to use fresh perimeter departments for everyday needs, rather than just for special occasions. Additionally, this generation engages with fresh perimeter foods differently than older generations in two ways. Their engagement with fresh perimeter categories is shaped by their orientation to health and wellness and an approach to shopping that is more proximate to eating. They also see higher-quality food experiences as part of an implicit wellness practice that includes food discovery, enjoyment, sociability, and indulgences.
“Millennials value ‘fresh’, which makes in-store bakery, deli, and dairy departments prime destinations for this generation,” O’Connor added. “Stores can capitalize by offering products that meet Millennials’ unique food preferences.”
What’s in Store 2015, our 29th edition, is a 224-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 2015 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 2015. 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.
Engaging the Evolving Shopper: Serving the New American Appetite is IDDBA’s latest original research that explores the evolving U.S. shopper of fresh perimeter categories – dairy, deli, bakery, prepared foods, specialty cheese and specialty meats – through the lens of Millennials, modern eating, health and wellness, and digital engagement. This study provides insights and implications around: how Millennials are shaping food trends, particularly in fresh perimeter categories; how new demands of modern life are changing eating culture, enabling meals and snacks to happen anytime and anywhere, shaping how shoppers think about the fresh perimeter; how health and wellness trends have redefined how shoppers see the role of food in their lives; and how technology has become integrated in shoppers' lives as they seek information and inspiration both in-store and digitally for deeper engagement with their foods. The research is free to members and $795 for nonmembers. For more information and to order, visit iddba.org/engagingevolvingshopper.aspx.
About IDDBA: IDDBA is a nonprofit membership organization serving the dairy, deli, bakery, cheese, and supermarket foodservice industries. Member companies enjoy many benefits and services including the Dairy-Deli-Bake seminar and expo, leading-edge research, free training programs, management tools, and an annual trends report, What’s in Store 2015. For more information, contact IDDBA at 608.310.5000 or visit our Website, www.iddba.org.
Source: International Dairy-Deli-Bakery Association™ (IDDBA)
