The food industry is undergoing change. Supermarkets reigned supreme a few decades ago, but with rising living standards and a new generation of customers now dominating the marketplace, that is no longer the case.
1. Fresher & Healthier Foods
One undeniable pattern we’re seeing right now is a move toward fresher, healthier foods. Customers are increasingly aware of the health benefits of the foods they eat and are actively seeking out these foods.
Many retailers are experiencing difficulties as a result of this. This turn, on the other hand, benefits a lot of retailers. New, organic, and safe food retailers are seeing a rise in sales across the board. The moral of the story is to provide your customers with a new, safe choice.
2. Vegan/Vegetarian Options
Another trend we’re seeing is a rise in market demand for vegan and vegetarian food choices.
Even those who do not choose veganism for ethical reasons purchase similar items, as more people are switching to plant-based diets as they become more conscious of their health benefits.
As a result, companies that cater to plant-based diets can anticipate increased demand for their products as their target market increases, and food retailers can expect the vegan and plant-based meal market to rise even further in the years ahead.
3. Eating Out
It seems that dining in is out, and dining out is in (confusing, I know). Last year, for the first time ever, dine-out sales actually surpassed grocery sales.
This trend of more customers eating out has largely been driven by younger consumers, who value convenience over expense. This spells out good news for restaurants and bad news for grocery stores, but only if they don’t adapt to this change and start offering consumers a dining-in option.
4. Online Shopping
We’ve officially joined the digital age. Consumers all over the world are spending an increasing amount of time online. Customers now do almost everything online, including socializing, dating, and, most notably for retailers, shopping.
To keep up with this trend, all food retailers should now have a website and, preferably, an online sales platform. Retailers who specialize in home delivery should benefit the most from this trend. For example, online meal-prep delivery services are becoming increasingly common. They provide consumers with a simple, easy way to eat at home without having to prepare or purchase ingredients – just what millennials want.
5. The Takeaway
The biggest lesson from all of this is that, in 2018, if you’re a food retailer who wants to give the best possible service to your customers, you may need to change your business model.
It doesn’t have to be a total overhaul of the business model. No one is proposing that grocery stores, for example, close their doors and go entirely digital. There is still a lot of demand for in-store shopping – it isn’t extinct yet. It is, however, worthwhile to diversify in order to cover all of your bases.