In 2024, middle-class consumers still feel the pressure and worry about inflation, but they continue to spend regardless of age. Brand loyalty and high quality have played significant roles in their purchasing decisions.
Therefore, companies must pay close attention to what consumers want, as indicated by a report from the global firm McKinsey & Company titled “State of the Consumer 2024: What’s Now and What’s Next?”
Industry leaders interviewed by Abasto Magazine agree that the trends in 2024 reflected a shift towards healthier and more personalized options. Ready-to-eat foods remain popular. Additionally, there is a growing interest in local and sustainable products driven by food tourism and the search for authentic experiences.
According to the International Food Information Council’s (IFIC) Food & Health Survey, “fresh” (39%) emerged as the most common criterion used by consumers to define “healthy” food, followed closely by “good source of protein” (37%) and “low in sugar” (35%).
Related Article: 2024: Keeping an Eye on the Use of Technology
In this 2024 recap, industry leaders explain what they consider the most critical moment, the opportunities they identified in the market this year, and how they took advantage of them.
Anthony Peña, Vice President of the National Supermarket Association (NSA)
Critical Moment: The contamination at the Boar’s Head Brand plant and the port strike. Boar’s Head Brand is a well-known and leading brand in the independent market.
Opportunities and Actions: With the merger of Kroger and Albertsons, we as independents have to negotiate harder with our suppliers to get better prices because now governments are paying more attention to these types of large company mergers. We’ve already been through a period with the Walmart of the world, but now we must focus on controlling our costs and operating expenses to generate more profits in our stores. Operating costs have gone up a lot and we don’t know if this is going to affect customers. The key is to find a way to keep our costs low so that our stores remain profitable.
Anthony Aloia, Corporate Vice President of the Private Label Manufacturers Association (PLMA)
Critical moment: The Hispanic population has grown significantly over the last 10-20 years, so retailers have had to adapt and introduce store brand programs geared towards that particular consumer.
You never know when there will be another supply chain disruption, such as a strike at the shipping ports. So, supplier diversification is also very important for the retail customer.
Opportunities and Actions: If you will, the diversity of wine and spirit products that we’ve ever had. I think that’s also another reason why you’re going to see a growth area there, and certainly PLA wants to capitalize on that. But more importantly, it’s allowing the retailer to capitalize on and grow that area.
Also, we’re specifically looking at plant-based meat alternatives, so there’s an opportunity there.
Bill Mayo, Chief Operating Officer at Save A Lot
Critical moment: Many shoppers are continuing to work with reduced budgets – due to inflation, fewer available SNAP dollars, and other factors. Save A Lot shoppers in particular prioritized everyday staples for meals and used coupons more often. We saw a shift in shopper behavior with a lower shopping frequency and an uptick in cross-shopping to find the best deals. In tandem, we saw more shoppers gravitate toward our private label products.
Opportunities and Actions: Shoppers are engaging more in the digital space and shifting when and how they shop. Save A Lot partnered with Uber Eats this year to expand the ways we offer fresh, affordable groceries to shoppers.
With the Hispanic population in the United States rapidly growing and wielding considerable buying power, Save A Lot partnered with Leevers Supermarkets to develop Ahorra Mucho, a new specialty store and innovation center.
Laura Strange, National Grocers Association (NGA) Senior Vice President, Communications & Engagement Officer
Critical moment: Independent grocers have long explored customization and personalization, particularly through loyalty programs, using customer data to tailor offerings and introduce shoppers to new products. However, 2024 marked a pivotal shift with the integration of AI, transforming not only how personalization is approached but also enhancing operational efficiencies across the board.
Opportunities and Actions: A standout trend in the market this year is the rising consumer demand for products from smaller, local businesses. Independents capitalized on this trend to meet consumer desires for authenticity and community support. By tapping into this demand, independents continued to strengthen their connection to local communities and enhance their competitive edge.