Looking ahead to 2025, Abasto Media interviewed industry leaders to discover what trends this year will bring.
Most agreed that private labels would be a topic to follow closely, as well as the technological advances that would come.
The beginning of the year is also a good time for those who know the most to share tips for those interested in entering the sector.
Related Article: 2024: Trends and Challenges That Marked the Year
Anthony Peña, Vice President of the National Supermarket Association (NSA)
Trends: More fresh produce. Self-checkout technology is evolving. There is a current trend of private labels moving into ethnic products, and we must ensure that the quality of these products is superior.
Advice: Customer service is key. As independents, we have the flexibility to adapt to the changing market, which means staying active and maintaining competitive prices. Independents should leverage their collective buying power to compete with large chains and carefully manage costs. We need to analyze our fixed operational costs to remain in business and continue offering customers the prices and variety they expect.
Anthony Aloia, Corporate Vice President of the Private Label Manufacturers Association (PLMA)
Trends: Healthy lifestyle, with multigenerational appeal. More drone deliveries and private label.
Advice: Understand private label and the marketplace. You must just jump in and participate. It’s a 24-month commitment to trying to create your own brand. Other option is to work with the retailer and customers. Maybe you must work with someone else in the category, a competitor, but maybe together you can solve both of your capacity issues.
Bill Mayo, Chief Operating Officer at Save A Lot
Trends: We’ll see continued growth in the sales of private label products as more customers look for ways to save without sacrificing quality. We expect to see more and more customers turn to eCommerce and delivery options for their groceries.
Advice: It’s critical to understand your customers, their grocery needs, and shopping behaviors. At Save A Lot, we’re investing in tools and technology, like our loyalty program, to learn about who is shopping at our stores so we can better serve them. Continuously test and learn, and don’t be afraid to shift your strategy to meet your shoppers’ needs.
Laura Strange, National Grocers Association (NGA) Senior Vice President, Communications & Engagement Officer
Trends: 2025 will likely see a combination of advanced technology, environmental responsibility, and health-conscious consumer offerings as main trends. In the coming years, the food retail industry is set to embrace greater automation. Sustainability will remain a top priority.
Advice: A deep understanding of your market and target audience is crucial. Know the specific needs of your community. Engage with customers through community events to foster connection and keep them engaged, which will also help you craft your brand story and build loyalty. Independent grocers often thrive by offering personalized service. Get to know your customers personally, greet them by name, and provide tailored product recommendations.
Dante L Galeazzi, President/CEO of Texas International Produce Association
Trends: AI is the big topic of conversation. In the coming years, the industry has a lot of factors driving change. Packaging is one of those. Look at what Canada has done in terms of trying to eliminate plastics, while the US has several states considering changes to permissible packaging materials. In addition to that, we’re seeing Gen Z and younger generations become more dominant in the marketplace.
Advice: Talk to everyone. I’m not saying you have to take advice from everyone, but I am saying there’s a lot of people in our industry who have faced the same issues you are going to face – and by talking to them, there’s a good chance you can either avoid the issues they’ve made, or you can at least be prepared to better handle those challenges when they pop-up.