Jonna Parker, fresh foods team lead at Circana, has been closely monitoring shifts of consumer shopping patterns. She highlights several key trends that are reshaping the grocery industry.
“Relevance and experience are now as important as quality,” Parker said during a recent online presentation.
Parker pinpoints these trends as key ones to monitor:
Elevated Home Entertaining: Consumers are increasingly looking for products that make home entertaining easier and more exciting. Ready-to-assemble meal kits and gourmet snack options are rising in popularity, catering to a growing number of special occasions celebrated at home.
The Snacking Boom: Snacking is no longer just between meals. With 46% of consumers now having three or more snacks per day, there’s a surge in demand for portable, innovative snack options like mini cheeses and shelf-stable meats.
Breakfast Reinvented: Breakfast remains a strong meal occasion, especially at home. There’s a growing trend toward portable breakfast solutions like yogurt drinks and toaster-friendly snacks, which cater to consumers’ need for convenience during busy mornings.
Generational Shifts: Younger, more diverse shoppers are driving interest in international flavors and specialty products, particularly in the dairy, deli, and bakery categories. Manufacturers are responding with targeted offerings that appeal to these adventurous consumers.
Innovating Through Inflation: With inflation still a major concern, manufacturers are innovating to help consumers stretch their dollars, such as through packaging that reduces food waste and affordable, restaurant-quality deli options for at-home dining.
Circana™, a leading advisor on the complexity of consumer behavior, recently released a new report providing a complete view of food and beverage consumption trends, both at home and away from home. The 39th annual report, “Eating Patterns in America,” highlights a growing trend toward at-home dining over the past year, with 86% of eating occasions sourced from home.
While retail volumes show modest growth, foodservice traffic remains under pressure. However, significant opportunities remain in both sectors, with American consumers spending nearly $1.7 trillion annually on food and beverages. The report offers strategic insights for manufacturers, retailers, foodservice operators, and distributors aiming to better engage with their target consumers.
“Despite easing inflation, consumers continue to face the cumulative impact of several years of rising prices and ongoing economic challenges,” said David Portalatin, senior vice president and industry advisor, Food and Foodservice, Circana. “With dining out costing four times more than eating at home, many are cutting back on restaurant visits. Meal patterns have shifted as consumers spend more time at home and adapt to new daily rhythms. However, convenience and health remain top priorities, with consumers willing to spend on products offering added benefits, especially in the beverage space, where innovation is rising to meet these demands.”
The report highlights several key findings, including:
Home-Centric Dining: In the post-pandemic era, at-home food and beverage consumption remains a cornerstone of daily life. Regardless of where meals were sourced, consumers ate 116 more meals at home over the past year than they did pre-pandemic. As consumers seek the optimal balance between value and convenience, low price is not the sole driver of a compelling value proposition. New mobility patterns, inflationary pressures, and evolving attitudes around well-being offer opportunities to craft retail solutions that help consumers source meals, snacks, and beverages for both in-home and on-the-go occasions. While gains in away-from-home consumption are leveling off, fast casual restaurants are gaining market share. Despite a challenging macroeconomic environment, some foodservice operators have demonstrated resilience and achieved growth. Focusing on efficiency, innovation in menu offerings and delivering value will be key to driving continued growth.
Daypart Disruption: While breakfast, lunch, and dinner remain the primary meal occasions, their composition, timing, and sources are evolving to fit consumers’ daily routines. Breakfast now starts earlier, with mid-morning snacks away from home rising in popularity. Lunch has shifted significantly due to changes in workplace mobility, with lunchtime traffic falling to about half of pre-pandemic levels. Snack consumption is growing, with consumers increasingly preferring quick bites or meal replacements over larger meals. As snacking becomes more common throughout the day, the boundaries between traditional mealtimes will continue to blur.