Shifting Customer Trends – Making The Most of Change
With the ever-changing landscape of working and living styles, Grocery channels are feeling the impact of new customer expectations, going beyond product availability and e-commerce. Understanding these consumer behaviours and trending habits can help retailers decipher how to adapt their businesses’ strategies in order to get customers what they’re after.
Money conscious behaviours, mindful purchasing and sustainable purchasing are the three biggest grocery industry trends to look out for in 2023.
- Money Matters:
According to The Canadian Press “Grocery prices have been rising at the fastest pace in decades in recent months.”
Amid global instability and rise of unemployment, consumers are now becoming more conscious with their money and spending habits. Deloitte Fresh Food Customer Survey 2022 states that there is a 53% increase in concern over food prices and consumers are now worried about exceeding monthly grocery budgets.
Inflation being the key economic factor is impacting lives of consumers more than ever. It is expected that recession and unemployment levels will rise to 6.3% by end of 2023. Therefore, lowering the grocery expenses will prevail as consumers reconcile their personal values with practical realities.
- Convenience is Key:
Grocery shopping is facing a monumental change in buying habits as consumer are now drifting from brand loyalty to perceived value of the products. Availability, convenience and value from product are now key players that are considered while making any buying decision.
48% consumers reported to have said that availability of stock is what is most important to them while 34% said that availability when they are shopping – convenience – is what makes them purchase. While a staggering 81% reported that value makes the difference to them which includes larger pack sizes, promotions, delivery and better prices.
To become a mindful purchaser, customers are now trying different brands and 73% out of those intend to continue to incorporate the new brands into their routine. Gen Z and high earners are most prone to switching brands.
- Mindful Sustainability:
Grocery shopping is the foremost category when it comes to sustainable purchasing. People are now favoring brands that care and protect the environment and have a sense of corporate environmental sustainability.
60% of consumers say their priorities keep changing as a result of everything going on in the world. 55% of consumers are newly motivated to buy items produced locally and sustainably.
Reduction on food waste and efficient consumption from purchases are key ways that are commonly being used to ensure sustainability.
In a nutshell, Grocery business has many challenges ahead to ensure customer loyalty since brand loyalty or having only popular brands at store may not be an ideal business solution going forward.