Madison, WI — Supermarket retailers are prioritizing customer service and personalization as demographic shifts weigh toward Hispanics, women, Baby Boomers and Millennials, according to What's in Store, the annual trends publication of the International Dairy-Deli-Bakery Association™. Grocery retailers are zeroing in on customer preferences as personalization is key to attracting and maintaining customers.
Hispanics
One out of every six inhabitants of the United States is of Hispanic origin, and the group’s population is increasing at a higher rate than any other non-Hispanic group, according to the Selig Center at the University of Georgia. Hispanic buying power in the United States is projected to reach $1.2 trillion in 2012, up from $1 trillion. It’s estimated to rise to $1.7 trillion in 2017. Hispanics are anticipated to account for 9.7% of total U.S. buying power in 2012, and reach 11.1% in 2017, the Selig Center reported.
Some supermarket chains are implementing tactics to draw ethnic consumers to their aisles. In-store masa (corn flour) factories for tortilla production, as well as beefed up selections of fresh Latino foods cheeses, meats, cremas, salsas, pastries, and ethnic foods like empanadas, tamales, and regional breads, rolls, and pastries. Bilingual employees and signage are also making ethnic shoppers feel at home in grocery aisles. Another trend, in light of shifting ethnic demographics, is putting an ethnic spin on mainstream foods, like Dulce de Leche Cheerios, targeted at Hispanics.
Similarly, ethnic grocery stores and ethnic grocery items are a leading trend. The ethnic grocery sector is likely to increase in prominence in the coming years, according to IBISWorld research. The Asian and Hispanic markets account for 98.3% of ethnic supermarket sales, a figure that’s expected to grow by 3.7% annually to reach $31.2 billion in the United States by 2016. Ethnic grocery products make sense for grocers because Hispanic consumers spend 0.9% more on food eaten at home than the general U.S. population on average. Asian consumers spend 9.1% more, IBISWorld found. IBISWorld analyst Mary Nanfelt said big box chains are taking notice. Some grocers are adding more ethnic products to their everyday assortments.
Women
Women influence nearly 80% of purchases, according to Female Factor, and do much of the typical family's routine shopping. Men, however, are taking on more roles traditionally performed by women as the Great Recession makes it more economical for some men to stay home with their families as women work. Some men are moving into more stereotypically female professions, such as nursing and teaching. Boomer women hold the largest amount of wealth in the United States, Female Factor said. Baby Boomer women are at a cross-section of demographics as the Boomer group.
Baby Boomers
Baby Boomers continue to set a new standard for aging. The 76 million U.S. Baby Boomers are forecast to control 52% of annual grocery spending (approximately $706 billion), by 2015, according to Phil Lempert of SupermarketGuru.com. Boomers, aged 48-56 years, will be catered to by supermarkets with convenient store design, such as wide aisles and low shelves, as well as food needs. Older Boomers, age 60 and over, known as Matures, are living longer, and trying to take better care of their health. This group is a source of growing consumer power, according to A.T. Kearney. Boomers are staying active and many prefer to eat a diet rich in functional foods that supply necessary nutrients than supplement their diets with vitamins.
Millennials
The Millennials, born from roughly 1981-2000, have developed a unique perspective on grocery shopping, with value, quality, and health most important in the equation. Forty-six percent of Millennials enjoy grocery shopping, according to WD Partners. These shoppers seek fresh food, new items, inspiration for cooking, unique products, organic, and ethnic products. Fifty-four percent of Millennials prefer traditional supermarkets. Quality of food is important to Millennials as they cook at home more than other age groups.
What’s in Store 2013, our 27th edition, is a 200+ page trends report that details consumer and industry trends affecting the dairy case, cheese case, bakery, deli, and foodservice supermarket departments. Its nearly 200 tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, random-weight, UPC, and private label sales data. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. For more information and to order, visit iddba.org/wis.
About IDDBA: IDDBA is a nonprofit membership organization serving the dairy, deli, bakery, cheese, and supermarket foodservice industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, training programs, management tools, and an annual trends report. For more information, contact IDDBA at 608.310.5000 or visit our Web site, iddba.org.
Source: The International Dairy•Deli•Bakery Association™