November 18, 2024 ARLINGTON, Va.–(BUSINESS WIRE)–Despite ongoing concerns about food prices, shoppers feel more confident in managing their grocery budgets ahead of the holidays, according to FMI —The Food Industry Association’s BB #:162464 annual U.S. Grocery Shopper Trends: Holiday Season report.
These findings are further supported by FMI’s newly released ninth-annual Power of Foodservice at Retail report, which found that retail foodservice purchases continue to play a key role in shoppers’ meal preparation.
Consumers report a strong sense of excitement and enthusiasm for the holiday season despite concerns about rising prices. Seventy-three percent of those celebrating holidays report feeling very or somewhat excited about the holiday season. Furthermore, with 85% of shoppers reporting at least some control over their grocery expenses, shoppers are feeling more prepared to tackle holiday shopping this year.
“While consumers remain understandably concerned about the cost of food impacting their holiday meal preparations, we continue to see remarkable resilience and adaptability among shoppers,” said FMI President and CEO Leslie G. Sarasin. “Whether it be shopping deals and sales or choosing store brands, Americans are stocking up and preparing for the holidays early and eagerly.”
The “hybrid” approach to meal preparation – which integrates retail foodservice items like deli-prepared foods into weekly grocery shopping – is also increasingly popular, with shoppers reporting they prepared and ate more dinners at home in 2024 than at any time since 2020. Shoppers recognize that semi- or fully-prepared items from their food retailer are valuable, budget-friendly options to supplement or even stand in for a meal cooked from scratch at home.
In 2024, according to NIQ, sales of retail foodservice prepared foods increased by 1.4% to roughly $50.9 billion. This trend is expected to continue into the holiday season as well, with 13% of shoppers reporting they will purchase more prepared foods from food retailers compared to last year.
Among those who celebrate this holiday season, nearly 60% of shoppers said that enjoying harmonious, quality time with family and friends is the most important ingredient for a successful holiday, followed by 32% who cited creating a great homemade feast. To make these goals a reality, 40% of consumers are preparing for the December holidays more than a month in advance.
FMI’s U.S. Grocery Shopper Trends: Holiday Season survey also revealed:
- Weekly grocery spending has remained consistent this year, with an average of $158 per week.
- 39% of holiday shoppers are extremely or very concerned about potential out-of-stocks for key ingredients. Among families with children, this concern rises to 44%.
- 46% of shoppers say they would prepare a familiar alternative dish if their preferred ingredients were unavailable, and 30% are willing to try a new recipe.
FMI’s The Power of Foodservice at Retail 2024 survey also revealed:
- Total deli sales reached approximately $450.9 billion, reflecting a growth rate of 1.4% in dollars and 1.2% in units over the past 52 weeks. Shoppers’ desire for convenience and affordability is driving this trend.
- 70.7% of households buy foodservice at retail products regularly, with an average purchase frequency of 9.5 times per year and an average transaction size of $8.30.
- The frequency of shoppers preparing dinner at home at least seven times per week increased slightly this year from 21% to 23%.
- 63% of shoppers say they put at least some focus into eating nutritious options when buying deli-prepared foods from grocery stores.
- 59% of shoppers want the opportunity to buy a combination of prepared foods – main course, sides dishes and dessert for a set, discounted price.
About FMI
As The Food Industry Association, FMI works with and on behalf of the entire industry to advance a safer, healthier, and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers to producers to companies supplying critical services — to amplify the collective work of the industry. www.FMI.org
Contacts
Heather Garlich, media@fmi.org, 202-220-0616