When winding through the aisles of their local grocery store, shoppers have so many decisions to make before placing something in their cart.
What’s on the list? How much do I have to spend? Am I searching for sustenance or snack-ary? How hungry and impulsive am I feeling? What foods did I see on social media? What’s in stock? What’s on sale? Am I brand loyal or willing to try something new?
As grocers welcome the 2024 shopper, it’s important to remember they aren’t completely new, but an evolved version of the shopper they once were in 2023. And by understanding and embracing what’s important to these new(ish) shoppers, grocers can stay a step ahead of competitors. Here are three grocery store trends that grocers can really sink their teeth into in 2024.
Private Label Sales will Continue to Prevail
Forced to find ways to save amidst inflation, the grocery industry witnessed a 2.3x growth rate on private label sales compared to national-brand competitors with some categories exceeding 5x the sales growth. And as shoppers continue to support private label, private label can support shoppers by developing new, low-cost products.
Private label products help shoppers save on their grocery bill. But they also keep them in your store. Many national-brand products struggled with supply chain issues leaving them out-of-stock. Private label helped save the day (and the basket) by offering an alternative solution, which can lead to increased shopper loyalty and a more positive in-store experience. Once shoppers got a taste of private label, they often found it was sufficient enough to purchase again. Research found 76% of shoppers who switched from a national brand to a private label brand purchased private label again on the following purchase.
Premium Snacking Trend Will Rise
Social media sells big even when the products are little. Thanks to TikTok trends like “Girl Dinner” and “A little treat”, snacking has shifted beyond traditional chips and pre-packaged cookies to support a more luxurious, Instagram-worthy snacking culture. Charcuterie boards are nothing new (and they’re not going anywhere), but consumers often have a craving for elevated experiences from home. This food trend may include purchases like pre-packaged snacking cheese, specialty dips and frozen foods that blur the lines between at-home cooking and a tapas/small plate dining experience (often in pajamas).
Younger Audiences will Shop Sustainably
Sustainability is more important to some shoppers than others. But as many grocers seek to reach younger audiences with higher lifetime values, the answer may just be more sustainable options. Research shows 50% of Gen Z and Millennials place a premium on sustainability compared to only 23% of Gen X-ers and 16% of Baby Boomers. This may include plant-based alternatives, more local choices, and improvement in more sustainable merchandising solutions that can reduce shrink and energy usage.
How a product is displayed can impact how it sells. And whether your store is investing in elevated displays for private label favorites, snacking cheeses or sustainable meat substitutes, pusher trays from the experts at Retail Space Solutions can help. Learn more by browsing our catalog or request a free online quote for your packaged cheese, veggies, pre-packaged meats or bagged salads.