In recent years, you may have noticed how Americans’ eating habits have and are continuing to evolve and how the future of food retail is driving change when it comes to the global food chain. Consumers want a more sustainable approach to feeding the world’s population. That drive for change is impacting the future of grocery retailers and their shoppers.
Key Takeaways:
- Food retailers and product suppliers want to maintain an improved revenue stream even after pandemic restrictions ease. That will take investment in how consumers want to shop today.
- As consumers seek healthier and minimally processed options free of additives, food producers and retailers are responding with meat and seafood alternatives and clean-label foods.
- Investing in technology will continue to deliver exponential returns for food retailers. They can streamline and automate operations and provide consumers with an omnichannel experience.
- When customers think about the impact their grocery purchases have on the planet, business owners need to integrate sustainability fully into their operations, not just their products.
Predictions for the Future of Food Retail in 2023
Experts have been studying consumer behavior to discover what trends drive demand for specific goods. Moving into the future of food retail, consumers are focusing on eating healthier foods that are not only good for them but also for the environment. There are trends industry experts predict will drive the innovation in the future of food.
Eating at Home
Consumer food sales are hitting new heights as more people eat at home. Not only are they cooking at home more, but they are also finding the best possible deals at grocery and bulk stores. This trend has become increasingly popular as shoppers are more eco-conscious. Today shoppers are prioritizing convenience while also opting for brands that offer healthy meal plans, meal kits, grab-and-go, ready-to-cook, or steam options.
Clean-Label Eating
When it comes to food trends coming in 2023 and beyond, a major topic of discussion is people’s desire for sustainable, healthy, and functional nutrition. As consumers seek healthier and minimally processed options that are free of additives, food producers and retailers alike are responding in turn. Meat and seafood alternatives and clean-label foods (no artificial chemicals and shorter ingredient lists) are expected to enter consumers’ shopping carts next year. Similarly, functional foods and beverages for mental and emotional well-being are expected to see increased demand in the coming year due to the introduction of gradual legalization and the normalization of certain controlled substances.
Buying Online
Consumers are also pushing for food retailers to provide online services, like being able to shop from home and either having the groceries delivered or picked up at the store. As you can see from the graph below, online shopping is the top driving factor for change in the future of food retail. Evolving consumer demands are another driving force and the driving factor for many of the other trends unfolding.
Image Courtesy of Deloitte
Regarding the impact of the future of food retail, grocery store executives suggest that the drivers of these changes will primarily affect the nature of the work itself. Promoting items on websites and apps can help you create attractive aisle displays, quickly select items while making decisions on behalf of consumers, and chat with consumers on apps.
Remember, it’s a different kind of work than delivering groceries. Parking at the curb is different than running a cash register. Management also reports that the skills required for the job have changed. Also, the physical location has also changed, including a “dark store” used exclusively to process online orders.
Investing in Technology
Investments in technology will continue to deliver exponential returns for grocery retailers in the future. This includes providing customers with an omnichannel experience to improve their buying process and investing in AI technology to better understand shopping patterns. Especially in the distribution room, food retailers will streamline and automate operations with the help of robotics.
Additionally, the value of maintaining an omnichannel presence, including digital interaction systems, has been widely recognized by shoppers and third parties, and these investments are largely driven by grocery retailers to reduce costs while maintaining market share.
Image Courtesy of Infosys
The food sales and service industries are not limited to just food retail. Investing in technology can help all within this sector automate payroll systems. Other advancements include QR codes for commerce and inventory management and expanding customer loyalty program capabilities.
Sustainability Across the Board
The grocery store’s sustainability efforts won’t go to waste in the future of food retail. Customers are expected to fully consider this factor in their purchasing decisions. When customers think about the impact their grocery purchases have on the planet, business owners need to integrate sustainability fully into their operations, not just their products.
You can implement sustainability holistically by ethically sourcing raw materials and products, using eco-friendly packaging, and adopting natural cooling solutions. Whatever it takes to minimize the carbon footprint of food retail. Navigating the future of food retail grocery retail will require forward-looking planning and providing customers with continuous value. To remain competitive, grocery retailers of all sizes must stick to what works while continuing to innovate and find ways to stay at the forefront — not only in trends but also in their competitive position.
Discover More About the Future of Food Retail at the Next SIAL America Show
There are a lot of food industry shows you could attend. However, all of these events are niche, which makes SIAL America different from the rest. We offer all product categories under one roof so that you can connect with industry experts innovating the way we feed the world’s population. Discover the latest trends and what food retailers expect to see as we move into the future of food retail.
Discover more about the future of food retail when you attend our show in March. Or you can set up an exhibit and share with everyone your innovations into the future of food.
