Grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food continues to drive customer migration in every sector of retail foodservice today according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
That migration is creating both food channel disrupting and opportunity. Johnson stated, “Recent Foodservice Solutions® Grocerant ScoreCards found 84.9 percent of meals eaten at home at a least one Ready-2-Eat or Heat-N-Eat meal component. Lacking the skill-set to cook many value convenience over time. With 82% of shoppers say convenience is extremely or very important to them; for Millennials, this number rises to 87%, while for Boomers+, it is only 77%.
Bill Wilson recently asked, what do Gen Z and Millennials fear these days? Rising interest rates and the economy are two possibilities, but according to Cleo one certain concern is buying groceries.
Here is more of what that Cleo surveyed 1,000 Americans aged 18-44, and found.
1. 52% said buying groceries was their biggest worry.
2. Coming in at a distant second was transportation costs (22%) and rent (13%).
3. In addition, 38% said they are worried they will not be able to afford groceries due to inflation in the future, and 26% of employed respondents indicated they have turned to government-assisted programs like SNAP, food banks and food stamps for groceries in the past year.
The Cleo research also revealed that higher-priced groceries had younger consumers pivoting with the way they shop, as 31% came up with a different strategy and 43% used buy now, pay later services to shop for groceries. A total of 46% said food inflation greatly affected their household budget.
Regular readers of this blog know that A survey of grocery shoppers’ spending habits and attitudes by FMI – The Food Industry Association, conducted by The Hartman Group, revealed that while U.S. shoppers remain concerned about rising food prices, consumers are less likely to cut back on the number of items they purchase.
Among shoppers who are concerned about rising food prices, only 32% of shoppers in February reported buying fewer items as a strategy to address rising prices, down from 41% in October. Instead, shoppers continue to look for deals across multiple channels – supermarkets, mass retailers, club stores and online – to mitigate the impact of higher food prices on their budgets. Now think about the opportunity to extend your brand into an at home meal component.
Food price concerns cut across shopper demographics, but Boomers are more worried about rising food prices than any other group, with 80% showing concern in February 2023 versus 69% in October 2022. Millennials polled close behind with 76% saying they are concerned, 5% more than one year ago. Such concerns about food costs coincide with an increase in spending in this inflationary environment. In February, on average, consumers spent $164 per week on groceries, up from $148 in both October and February of 2022.
For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions. His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869