In
2025, the retail food landscape continues to be disrupted by the rise of the Grocerant
niche—a fast-growing sector blending grocery and restaurant experiences
through fresh, convenient, Ready-2-Eat (RTE) and Heat-N-Eat (HNE) meals.
According to Steven Johnson, the
Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, this
shift is forcing legacy consumer packaged goods (CPG) brands like Campbell’s
Soup and Kellogg’s Corn Flakes to reimagine their roles in
consumers’ evolving eating habits.
The Grocerant Effect: Consumer Migration Accelerates in
2025
The
key to this disruption lies in a generational and cultural shift:
·
Millennials and Gen Z,
now the dominant spenders in food retail, are trading canned and boxed pantry
staples for fresh-prepared, globally inspired, and highly customizable meals.
·
Asian American and Hispanic households
continue to outpace other demographics in per capita fresh food purchases. In
2025, Asian American household food spending averages over $71,000 annually,
with 24% going toward fresh or freshly prepared items. Hispanic consumers now
control $2.3 trillion in buying power, and their spending on
grocerant-style foods is up 37% year-over-year.
·
According to NielsenIQ, 63% of
consumers aged 25-45 now purchase prepared meals from non-traditional outlets
like convenience stores, subscription services, and grocerants,
bypassing traditional grocery aisles altogether.
Legacy Brands Are Losing Shelf Power
Back
in the day, consumers moved from scratch-cooked meals to pantry staples like Campbell’s
condensed soups and Kellogg’s Corn Flakes to save time and money.
But today, that same convenience comes with freshness, customization, and
health-conscious choices—areas where many legacy brands still lag.
The
Grocerant Guru® warns: “Slotting fees are out. Personalization, portability,
and participation are in. Brands stuck in their 1980s marketing and
packaging mindset are quickly becoming irrelevant.”
Even
with corporate efforts to modernize, Kellogg’s, now spun off into Kellanova,
still struggles to shake its image as a cereal-first brand in a world where
cold cereal consumption continues to decline year over year. Campbell’s
has made strides through acquisitions (like Pacific Foods and Rao’s), but many
of its core products are seen as outdated by younger buyers.
7 Ways to Elevate Your Brand’s Menu Offering in 2025
To
compete in the grocerant era, legacy CPG brands and food retailers must embrace
the 5P’s of food marketing: Product, Packaging, Placement, Portability, and
Price. Here’s how to apply them with real impact:
1. Develop
Fresh Meal Kits Featuring Legacy Products
Transform canned soup or cereal into components of globally inspired,
quick-serve meals—like "Kellogg’s Korean Rice Bowls" or
"Campbell’s Italian Street Food Soup Cups".
2. Offer
Customizable Heat-N-Eat Bowls
Allow customers to choose their base (rice, pasta, grains), protein, and
sauce—featuring your brand’s core ingredient—prepared fresh in-store or
on-demand.
3. Integrate
with Ghost Kitchens and Virtual Brands
Create exclusive menu items using your branded ingredients via delivery-only
platforms or convenience store foodservice counters.
4. Rebrand
with Transparent Wellness Messaging
Highlight sodium reductions, protein boosts, or real ingredients in revamped
packaging that speaks directly to health-focused consumers.
5. Add
Snack-Sized and On-the-Go Formats
Mini heatable soups, cereal-based protein bars, and snackable combo packs are
ideal for convenience-minded Millennials and Gen Z.
6. Leverage
Co-Branding with Trend-Forward Retailers
Partner with fast-casual restaurants, upscale grocerants, or even airport
kiosks to reintroduce products in a modern context.
7. Tell
the Story with Cultural Relevance
Align legacy brands with evolving cultural food moments—think Hispanic Heritage
Month collaborations, Lunar New Year bundles, or plant-based Lenten meal kits.
What’s Next for Brands Like Campbell’s and Kellogg’s?
The
clock is ticking. Consumer loyalty has shifted from pantry staples to
mealtime experiences. Brands must stop marketing solely to Boomers and
start earning relevance with younger, diverse, digitally connected shoppers.
That means replacing static grocery displays with dynamic, experience-driven
food platforms—and doing it fast.
The
Grocerant Guru™ puts it plainly:
“Consumers
are dynamic, not static. If your brand isn’t evolving every quarter, it’s
already being replaced.”
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Want
to learn how Foodservice Solutions®' 5P’s can future-proof your brand?
Or how to implement consumer meal participation strategies for your category?
Let’s start building the next generation of food retail success—before another
year passes you by.
Outsourced Business Development—Tailored for You
At
Foodservice Solutions®, we identify, quantify, and qualify new retail
food segment opportunities—from menu innovation to brand integration
strategies.
We
help you stay ahead of industry shifts with fresh insights and
consumer-driven solutions.
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Ready to Find Your Next Success Clue?
We
specialize in outsourced food marketing and business development ideations—helping
brands seize opportunities in food retail, technology, and menu innovation.
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