Supporting the New Grocery Consumer

Shopping habits are evolving constantly, and that process has been accelerated to reflect newly found hobbies and lifestyles at home. With a re-defined sense of experience, new priorities on product, and an urge to break comfort zones, the new grocery consumer gives retailers a chance to be creative. As brands race to differentiate from one another, we’re sharing how they can gain favor and build a lasting impression in the eyes of the consumer.

Recent events have forced an uprise in home cooking. Consumers are finding their groove in the kitchen, and it’s a hobby that will undoubtedly benefit grocers for years to come. This manifests itself in a few ways. Shoppers are more involved in weekly meal prep at home, researching new recipes, and experimenting with meal delivery services like Hello Fresh. Gen Z will be a catalyst for the chef generation, with over 71% learning to cook more at home. 62% of Gen Z consumers explore international dishes and flavors, opening the door for new products in retail environments across the globe. We see this as an opportunity for brands to own the at-home-chef experience, offering in-store activations that support this learn-to-cook mentality beyond just a meal kit. What better place to learn about flavor than your local grocer?

With 78% of Gen Z shoppers looking to social media for mealtime inspiration, grocers need to create out-of-store experiences that are informative yet inspiring and directly related to the in-store experience. The once dead QR Code has seen a resurgence—adding to our overall shopping, dining, retail experiences—we see an opportunity for grocers to enhance their private label products with recipes or sharing inspirational compliments. Enhanced self-guided connection-points allow shoppers to explore new tastes, products, and cooking methods. By embracing new digital moments that connect directly to the in-store experience brands are able to support this new food culture driven shopper while building brand confidence.

It’s not only about the product anymore. Customers are expanding their tastes by incorporating healthier lifestyle choices in their culinary queue. Health-first shoppers are growing fast, and re-imagining home necessities. 61% of consumers stated they are looking to reduce their meat consumption, by finding plant-based alternatives. Snack seekers are also finding a new purpose, looking for products that support the likes of gut health, brain function, and mood enhancement.

For retailers, investing in private label products that are compatible with the health-first shopper is essential. 40% of consumers will pay more for the right store-branded product. While this helps promote great in-house product offerings, it also establishes a connection with the shopper as a reliable place to continue their healthy lifestyle.

Consumers crave connection, and it’s clear that an increase in bonding by belief has become critical through social views, sustainability, or company mission—elevating brand to consumer relationships to new heights. 60% of millennials globally would rather re-purpose their loyalty rewards into a philanthropy program that will benefit someone other than themselves. Sustainability continues to be a leading focus for consumers looking to make a global impact when making buying decisions. 83% of consumers take sustainability into consideration when making food purchases at least occasionally.

Shoppers love supporting local businesses and retailers are missing an opportunity to work in partnership with local brands. Whether that be a specific product offering, or even coming together to create shop-in-shops, a certain level of selflessness is demanded in today’s consumer mindset. Retailers who are already invested in giving back to communities, or serving the world at large, need to bring their shoppers directly into the conversation and allow them to see how they are also contributing by association.

Our partners and friends at Food Lion are on a mission to provide over one billion meals to families, districts, and local municipalities via their Food Lion Feeds campaign. With over 600 million accounted for, the timeline is roughly 2025 to not just achieve their goals, but exceed them. For more information on how to contribute to an amazing mission, you can view the details here.

Grocery, a pillar of retail, continues to adapt at remarkable speeds. With experiences on the horizon once again, consumer optimism is climbing. With new shopper priorities, the road ahead is paving new paths toward healthier lifestyles, both mentally and physically.

Our studio came together, looking at the road ahead for retail in 2021.

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Statistics courtesy of Stylus + Innovation, a trends intelligence agency.