Before continuing, check out what we saw as top trends in 2021: A year of change in the grocery industry
Nearly two years of a global pandemic have changed consumer behavior and preferences in unexpected and profound ways. Shoppers are more concerned with making health-conscious and environmentally-friendly decisions. Trends already in play—growth in online grocery sales for example—were magnified and accelerated. And consumers expect more than ever before from the companies they do business with. That’s why 2022 will be such a pivotal year for the nation’s grocery industry.
Here are some key areas that require the attention of any grocery business in the coming year:
The health and wellness category
You know that consumers are more interested in natural/organic/healthy/functional foods. That focus on health and wellness will continue to grow and evolve in 2022, requiring grocers to keep a close eye on this area. No longer a niche market, health and wellness products are increasingly being considered necessities by consumers as their physical and emotional well-being becomes a larger part of their hierarchy of needs, according to Nielsen research.
A study by Pew Research, states that more than three-quarters of U.S. adults purchased organic foods as a way to be healthier, followed by environmental concerns (one-third). Research suggests that a number consumers want to find ‘healthified’ versions of foods and beverages throughout the store, in the same section and alongside their conventional counterparts.
In 2022, expect to see consumer demand for functional foods and beverages skyrocket. Functional foods are those that contain ingredients not traditionally available in that food (such as vitamins in coffee). According to SPINS, demand is growing for foods that contain ingredients which help promote mental performance and focus, such as GABA, L-Theanine, and Acetyl L Carnitine.
Sustainability is now on the front burner
The pressure to build sustainability into your business practices has never been greater heading into 2022. Shoppers are actively looking for retailers committed to supporting the planet and curbing climate change, even shifting their purchases to benefit companies with a sustainability plan. Governments are creating sustainability goals and regulations. And increasingly, your shoppers, suppliers, and business partners want to better understand your store’s carbon footprint and steps you’re taking to be more eco-friendly.
If you haven’t already, 2022 is the year to create a sustainability plan and start taking steps to demonstrate your commitment to this extremely important issue. In fact, in a survey done by New Hope Network, 11% of natural shoppers said it was “absolutely essential” and 19% of non-natural shoppers said it was “very important” that they shop at a grocery store that is committed to reducing carbon emissions.
AI/customer/sales data and predictive analytics is critical
The sky’s the limit when it comes to what data can do for your store. Leveraging data can help you stock the right foods/beverages/merchandise at the right time, control costs, personalize your store’s offering to fit individual customers, and drive loyalty, sales, and profits. If your grocery business isn’t leveraging these tools in 2022, you risk being left behind by competing stores that are using it effectively and extensively to their advantage.
Customers want more ways to pay
Another pandemic-era trend with a whole lot of staying power heading into 2022: consumers are looking for new, convenient, and touchless ways to pay. According to Raydiant research, more than 80% of consumers have used contactless payments in the past year. As with online grocery shopping, consumers first saw it as a health/safety proposition but discovered it’s also highly convenient. According to the company’s recent survey, 57% of consumers say they are more likely to do business with those who offer contactless payment options.
Demand for local foods/suppliers is climbing
Piggybacking on the natural/organic/healthier-for-you food trend, consumers are beginning to appreciate foods that don’t travel far, and have a short farm-to-table journey. Many shoppers will continue to look for, and even pay more for, locally-grown and manufactured foods.
Take the next step in 2022
As you can see, 2022 will be a decisive year for grocery retailers. The steps you take now can have a profound impact on the way your store keeps up with trends and how well it serves its customer base over the long term. At UNFI Professional Services, we have a wide array of solutions to help your store stay relevant, build loyalty, drive sales and profitability, control costs, and adapt to a world where the only constant is change. Let’s talk! E-mail us at [email protected].
We’re exploring the trends shaping the grocery industry in a three-part blog series. Stay tuned for the third installment, “TITLE” on January 24.
