Highlights from the 2017 Food Marketing Institute U.S. Grocery Shopper Trends Report
This week, the Food Marketing Institute (FMI) presented the findings of its 2017 U.S. Grocery Shopper Trends Report. In fact, for the past 40 years, FMI has tracked consumer grocery trends including who shops, how they shop, and where the shop. This year’s report, prepared by the Hartman Group, confirms what many industry insiders suspect: not even grocery shopping is not immune to the trend towards online-only shopping. If your company wants to conduct a similar survey or research, you may consider offering incentives or rewards to everyone who will participate. You may visit sites like https://www.qualtrics.com/experience-management/research/reward-your-research-panel/ to learn more about survey rewards.
A Portrait of the Modern Grocery Shopper
The caricature of mom shopping each week while dad gets lost in the grocery store when he’s sent for a gallon of milk may very well be obsolete. In the 21st century, more and more men are taking over as their household’s primary shoppers. In addition, many households share shopping duties, according to the FMI report. Let’s review some of the top trends in who shops in the U.S.:
- The majority of primary shoppers (61%) in U.S. households are female. However, this figure is down significantly from last year, when women represented 69% of household primary shoppers.
- 84% of U.S. adults (male and female) report being responsible for at least 50% of their household’s shopping.
- Nearly a quarter (22%) of all U.S. households are now “shared” shopping households where each parter is equally responsible for grocery purchases.
In addition to sketching out the changing face of the average American shopper, the FMI report also looks at how we shop. To that end, they found that the number weekly grocery trips remain steady, at an average of 1.5 times per week. However, spending is up more than $2 from last year, to $109.68 per week.
The Growing Push Towards Online-Only Shopping
I know I keep mentioning it, but I really think that the news of the summer is Amazon’s acquisition of Whole Foods last month. Now, the data from the FMI Report confirms it. This report clearly shows massive growth among online-only shopping, led by millennial households.
Among 2017 respondents 11% reported that they “fairly often” or “almost always” visit online-only food stores. This number is a significant jump from last year (5%). It is also in line with another FMI prediction: 20% or $100 billion of grocery shopping will be online by 2025.
In fact, 1 in 4 shoppers in 2017 reported using online-only retailers for at least some grocery shopping. Among millennial respondents, that ratio jumped to 1 in 2. Significantly, however, there are some items that shoppers are more or less likely to purchase online. These include:
| Items Shoppers Likely to Buy Online | Items Shoppers Likely to Buy In-Store |
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What this says is that so-called “center store” items are those most threatened by the changing face of American shopping habits. In fact, additional data from this study and others has seen significant gains in online sectors such as pet food/supplies. In this case, even older generations have embraced the convenience of pet food delivery – Baby Boomers are actually the most likely to use this service.
As a result, FMI predicts a major shift in the way brick-and-mortar stores will present themselves and operate in the future. They state, up to 40% of current inventory in the “center store” may shift to an online experience.
Shopper’s Loyalties in 2017
One other interesting element of the 2017 FMI Report was the changing face of consumer loyalty and how individuals defined their shopping habits. In line with the accessibility that online shopping provides, many shoppers are less likely to just go to one store. Instead, they price compare and/or patronize more than one place.
Indeed, while traditional supermarkets and super centers (i.e. Target, Walmart) still claimed majority of shopper’s loyalties, a rising tide spreads their dollars out over multiple channels. Fully 8% of participants claimed they have “no primary store,” but rather stated that they spread their money out to three or more locations each week. Like online shoppers who often price compare before purchase, this trend points to a more price-conscious modern consumer.
What to Expect in 2018 and Beyond
Given the content of the FMI Report, it’s fitting that another significant, though unsubstantiated piece of news also surfaced this week. According to Supermarket News, the U.S. Patent and Trademark Office reported that Amazon filed paperwork to trademark the phrase, “We do the prep. You be the chef.” This indicated that Amazon’s new venture with Whole Foods will seek to spread out into another fast-growing online market: meal kits. This acknowledgement of market trends by one of the leaders in the industry should make the coming months and years interesting indeed.
For now, keeping an eye on what is and is not on shelves (and how to save money on it) will certainly matter.