The Food Marketing Institute recently released its 2017 U.S. Grocery Shopper Trends report, and after surveying more than 2,000 adults, it compiled some fascinating information about where they shop, how they shop, and what they value the most.
Here are the key takeaways:
* Several of the top claims that shoppers are looking for:
Low sugar: 33%
Low sodium: 32%
Natural: 24%
Non-GMO: 23%
Certified organic: 16%
Free-range: 13%
Cage-free: 12%
Fair trade: 8%
Gluten-free: 7%
* The “fresh” category (fruits, vegetables, meat, seafood) remains critical, and grocers are the most trusted allies for meeting wellness needs.
* Co-shopping is the new norm, with men taking on an ever-greater responsibility for shopping.
* Weekly spending on groceries has moved up to $110 per week, an all-time high, but grocery trips per week per shopper is 1.5, down from 2.2 in 2005. This is most likely a result of an increase in shared responsibilities.
* E-commerce has passed a tipping point during the past year, with large numbers of Millennials suddenly more comfortable with shopping online, albeit still confined to a limited breadth of food products. The biggest online categories are food snacks, baby food, pet food, and cleaning products.
In 2017, 43% of Millennials said they shop online for groceries at least occasionally, with much of the growth coming among those who shop online either “fairly often” or “all of the time.” This number is up by a whopping 50%, compared to 2016.
Overall, “online-only” shopping is now used frequently by 10% of shoppers, up from 7% in 2016.
* Digital tools matter: Millennials favor social tools (Facebook, Instagram) while Gen X-ers prefer “direct/utilitarian” tools such as digital coupons.
Over half of the respondents are “somewhat likely” to make the effort to use a QR code. This is heavily skewed by Millennials, and they want information beyond ingredients and nutrients, such as details about ingredient and product sourcing, production methods, and animal welfare concerns.
* This points to a broader theme of Millennial shoppers, who especially want to support companies that share their values and prioritize a broader good — treating their employees, animals, and the environment in a benevolent way.
* A major theme is transparency, which is not only critical to building trust but it helps to forge an emotional connection with shoppers.
In practice, consumers do not always use the word “transparency” itself. Instead, they talk about “openness,” “honesty,” things being “public,” “clear,” “visible” and “not hidden.”
* Here are two quotes from the report that were quite telling:
“Food companies aren’t interested in being transparent. They’re interested in giving the appearance of transparency.” — Kevin, 32
“I would like to support a business that is a good corporate citizen. If there is a kind of story or humanizing aspect to a particular business, that helps earn some trust and lets me know that, ‘hey, we’re not just a food company.’” — Alex, 36
MY TAKE
For organic food companies, this report should spur the following questions.
– Is our marketing effectively conveying how transparent we are? How could we do it better?
– Are we doing a good job of telling our story? Do our customers understand how we are working to make the world a better place? Are we truly building deeper connections with shoppers?
– Are we dedicating enough resources to e-commerce and how does our online strategy capitalize on the shopping habits and preferences of Millennials?
As an industry, we should have a much greater sense of urgency to educate consumers about what “organic” truly means. And this is exactly what John Foraker, the former President of Annie’s, alluded to in my interview with him two weeks ago when he talked about the key challenges that organic faces.
The fact that shoppers continue to look for “natural” and “Non-GMO” claims more than “organic” not only means that they are purchasing inferior products, but also that our industry is giving away market share, simply because we have not made education a priority.
If this trends report is telling us anything, it is that we can no longer afford to ignore this issue. Financially, it is costing us.
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Have a great day! 
Max Goldberg, Founder |
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