Grocerant Growth Driven by Consumer Trends in Dinner Decisions and Smaller Households

 

The food industry landscape is shifting, and consumers’ habits are leading the charge, particularly in the growing grocerant sector. The age of the “grab-and-go” dinner is here, with fewer consumers knowing what they’ll eat for dinner early in the day. In fact, only 20% of consumers know what they’re having for dinner by noon, and 30% decide by 4 PM according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  This indecision opens an avenue for convenience-driven, ready-to-eat meal solutions that the grocerant sector is perfectly poised to fill. Supporting these trends, the prevalence of single and two-person households—now comprising over 60% of households in the U.S.—underscores the demand for ready-to-eat options. These consumers prioritize ease and speed over cooking from scratch, propelling the grocerant sector forward.

1. Convenience-Driven Decisions by Dinner Time

The traditional home-cooked dinner is becoming a relic as consumers prioritize convenience, especially as many don’t plan meals until the last minute. Here’s a breakdown of what’s driving these changes:

·         Consumer Mindset: Studies show that by 4 PM, over 30% of people still don’t know what they’ll be eating for dinner, with this group increasingly turning to ready-to-eat or heat-and-eat options. This trend underscores a broader shift toward meal flexibility, allowing grocerants to attract consumers needing quick solutions.

·         Shift in Consumer Habits: With 60% of meals prepared at home now involving little or no cooking, ready-to-eat solutions provided by grocerants are the perfect fit. This consumer preference is creating demand for packaged meal options that meet the growing need for low-effort meal solutions.

·         On-the-Go Lifestyle: With work and social obligations often extending late into the evening, over 70% of consumers prefer quick meal options over cooking from scratch on weeknights. The grocerant sector meets these needs by offering meal options ready to enjoy, with minimal preparation required.

2. Growth of Single and Two-Person Households

The rising number of single and two-person households is a key driver for the grocerant niche. These consumers prefer convenient, single-portion meals that eliminate the hassle of extensive prep or cleanup.

·         Household Composition Shift: Today, more than 60% of households in the U.S. are made up of one or two people. This demographic shift is pushing demand for smaller portioned, single-serve meals that cater specifically to smaller households, aligning perfectly with the grocerant’s core offerings.

·         Meal Planning Preferences: Single and two-person households are increasingly opting for grab-and-go meals, with 50% of them indicating they’d rather pick up a ready-to-eat meal than cook from scratch. This inclination highlights the growing value they place on time-saving food solutions, allowing grocerants to capture their attention with innovative meal offerings.

·         Cost-Conscious Eating: With rising food prices, smaller households also look for ways to reduce waste. Nearly 45% of single and two-person households report that ready-to-eat meals help reduce grocery waste, showing that grocerants’ fresh meal solutions meet not only their convenience needs but their desire for economically sound choices.

3. Industry Facts Supporting Grocerant Sector Growth

The grocerant sector is evolving quickly as consumers’ dining patterns continue to move away from traditional meal preparation and dining establishments. Here are three facts underscoring this sector’s momentum:

·         Expansion of Ready-to-Eat Options: In the past five years, the number of grocerants has expanded by 30%, driven by grocery stores, C-stores, and retail chains seeing the demand for convenient meal solutions rise. This growth is a direct result of consumer preference for ready-to-eat meals and options that don’t require cooking from scratch.

·         High Margin Opportunity: Ready-to-eat and heat-and-eat options have profit margins up to 20% higher than traditional groceries, making them an attractive option for retailers looking to increase profitability through fresh, convenient solutions.

·         Consumer Willingness to Pay for Convenience: Reports indicate that more than 40% of consumers are willing to pay a premium for convenient meal solutions. This readiness to pay for convenience translates into growth for the grocerant sector as consumers seek quality, prepared meals without the time investment of cooking from scratch.

The rise of grocerants is a clear indication of how consumer behavior is shaping the future of food retail. As more people embrace the convenience of grab-and-go, particularly among smaller households and those who decide on dinner late in the day, the opportunity for grocerants to innovate and capture a larger share of the foodservice market is stronger than ever.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869