The food and beverage retail world is undergoing a
significant transformation according to Steven Johnson Grocerant Guru®
at Tacoma, WA based Foodservice Solutions®. Consumers are reshaping their
eating habits, with a remarkable return to home-prepared meals—a trend not seen
at this level since 2000.
That said, let’s see look at some of what The Food Industry Association found as it
edifies the findings of the Grocerant
Guru® six in ten food shoppers now prepare dinner at home at least five
times a week, a shift that is redefining the grocery landscape. But this is not
just a return to traditional home cooking; instead, it’s an evolution driven by
convenience, innovation, and the blending of restaurant-quality meals into
everyday home dining.
The Rise of Home Dining
A staggering 86% of all eating occasions now happen at
home. Breakfast leads the way at 87%, followed by dinner at 81%, while
lunch—often influenced by workplace trends—accounts for 76% of in-home
consumption. This shift isn’t just about savings; it’s about accessibility,
convenience, and the growing appeal of premium at-home dining experiences.
Heat-and-Eat: The New Home Chef’s Best
Friend
Consumers are seeking shortcuts without sacrificing
quality, and the grocerant niche filled Ready-2-Eat and Heat-N-Eat segment is
booming. A notable 36% of dinners now incorporate a Grocerant niche Heat-N-Eat item,
with prepared meats surging by 12.8% and fresh pizza up by 8.0%. The ability to
quickly prepare a high-quality meal at home is reshaping grocery store aisles,
where fresh and frozen prepared foods are taking center stage.
Frozen Foods: The Power Players
The frozen food aisle has never been more relevant.
Shoppers are flocking to versatile frozen options, including Birds Eye Meal
Starters, Bertolli Toasted Ravioli, and air-fryer-ready snacks. The appeal?
These products offer convenience, portion control, and extended shelf life—all
while aligning with the broader trend of recreating restaurant experiences at
home. Sales of air fryer–friendly frozen foods alone hit a staggering $6.1
billion for the year ended October 10, 2024, according to Conagra Brands.
Fast Food at Home
Consumers are channeling their favorite fast-food cravings
into home-cooked alternatives. Sales of refrigerated pizza are up 18.3%, frozen
processed chicken has climbed 7.4%, and frozen onion rings have increased by
4.8%. The message is clear: people want the indulgence of quick-service
favorites without the drive-thru.
The Premium & Specialty Boom
While convenience is king, quality is equally crucial.
Specialty food sales are projected to hit $231.3 billion in 2025, with
high-protein and gourmet meal solutions gaining traction. As more consumers
seek restaurant-quality ingredients and meals at home, grocers are responding
with an expanded selection of premium options, from organic meats to globally
inspired Ready-2-Eat dishes.
The Bigger Picture: Retail vs.
Foodservice
The U.S. is witnessing an overall increase in eating
occasions—up 17% versus 2019, according to Circana
data. In the third quarter of 2024, 60.2% of U.S. food dollars were spent
on retail and in-home consumption, while 39.8% went to foodservice and
away-from-home dining. This dynamic suggests that while dining out remains
popular, grocery retailers have a firm grasp on the consumer wallet. Looking
ahead to 2025, Circana forecasts grocery
retail unit sales growth of 0%–1%, with dollar sales expected to rise
2.5%–3.5%.
What’s Next? The Future of Food at
Home
The modern consumer wants it all: convenience, quality, and
variety. Retailers and brands that deliver on these evolving
expectations—through innovative frozen offerings, elevated prepared meals, and
premium specialty options—will thrive in this changing landscape. The battle
for food dollars is shifting toward home, and those who understand who is
eating what when will be best positioned for success in 2025 and beyond.
The Grocerant
Guru® sees the future of food retail as dynamic, blending tradition with
innovation. Those who stay ahead of these trends—offering convenience without
compromise—will lead the way in the evolving food and beverage retail world.
Stay Ahead of the Competition with
Fresh Ideas
Is your food marketing keeping up with tomorrow’s trends—or
stuck in yesterday’s playbook? If you're ready for fresh ideations that set
your brand apart, we’re here to help.
At Foodservice Solutions®, we specialize in consumer-driven
retail food strategies that enhance convenience, differentiation, and
individualization—key factors in driving growth.
👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn,
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