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products and is driving up prices.
Despite these challenges, there are also a
number of opportunities for food marketers.
The report finds that consumers are increasingly
interested in sustainable and convenient
foods. Food shoppers are increasingly
placing sustainability at a higher priority
level again, with plant-based options, clean
labels, sustainable supply chains, and recyclable
and reduced packaging as key trends.
Furthermore, shoppers are presenting preferences
with contradictions as they are looking
for indulgence, but better-for-you versions, and
chef-inspired menus, but with convenient preparation.
are valued by consumers on positive grounds linked
to attributes like tradition, health and naturalness.
Examples include stone-ground flour, cold-pressed oil
and fermented dairy products, " explains Megan Stanton,
associate director, Mintel Food & Drink.
Sustainability matters
A new report from Packaged Facts delivers predictions
and recommendations designed to guide retailers,
foodservice providers, wholesalers, food processors,
packaging firms, and investors in making business decisions
about the food market.
" The US food market is facing a number of challenges
in 2023, including rising inflation, supply chain
disruptions, and labor shortages, " says Jennifer Christ,
food & beverage research manager at Packaged Facts.
" However, there are also a number of opportunities
for food marketers, including the growing demand for
sustainable and convenient foods. "
The report finds that inflation is a major concern
for US consumers, with prices for food and beverages
rising at their fastest pace in decades through 2022 and
continuing to rise in 2023. According to Mapes, " This
is putting a strain on household budgets and leading
consumers to seek out more affordable options, from
buying private label versions to shopping at discount
grocers, or even seeking alternatives to products they
used to buy whether it was trading to more affordable
cuts of meat or seeking egg-free options for baking. "
Supply chain disruptions continue to have a major impact
on the food market. However, in 2023, this comes more
from global political challenges or severe storm activity or
drought affecting agriculture output than COVID pandemic
impacts. This leads to shortages of key ingredients and
20 < JAN-FEB 2024 | bakemag.com
Food marketers will need to develop new products and
services that meet these needs.
Online sales are soaring
The future of grocery shopping is increasingly digital.
Online grocery sales nearly tripled due to pandemicfueled
changes and expectations for contactless transactions.
Sales were also strong in 2021 and 2022 as many
consumers continued pandemic-era habits and desired
convenient ordering. Double-digit advances in the online
grocery market will continue, with sales expected to grow
at an average annual rate of 12% through 2027, according
to Packaged Facts' new report, The Future of Grocery:
Online Grocery, Meal Kits, & Direct-to-Consumer Food.
Packaged Facts' March 2023 National Online Consumer
Survey indicates that 52% of adult consumers had used
a grocery delivery option in the preceding year, while
27% utilized grocery pickup. Twenty-one percent of
consumers had used meal kit delivery services in the last
year, while 17% had used prepared meal delivery services.
Consumers are looking for convenience in how they
get and prepare their foods, and online grocery shopping
options facilitate:
* ordering on one's own time (even outside of store
business hours)
* home delivery or appointments for curbside pickup
* access to foods not available locally, including
specialty types or foods to suit particular eating
habits or allergy limitations
* assistance with meal planning, as platforms
suggest combinations and recipes
* assistance with meal preparation, as some formats
supply precooked, premeasured, or otherwise
semi-prepared meal elements
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