Despite macroeconomic challenges, the food industry is leading in the implementation of new technologies, offering more consumer-friendly in-store experiences and providing more options to help Americans reach their health goals, according to the FMI–The Food Industry Association’s The Food Retailing Industry Speaks 2026 report.
“Consumers are increasingly sensitive to both the cost of food and the nutritional needs of their families. Our annual industry research shows a food industry responding to this challenging economic climate by innovating and improving the customer experience, while offering more healthy options to customers,” said Leslie G. Sarasin, president and CEO for FMI.
“The investment food retailers and suppliers are making to ensure robust grocery shopping experiences is significant,” said Steve Markenson, vice president, research & insights, FMI. “Even with tight profit margins, our research finds food retailers and suppliers are investing in improved store space for key departments, customer service excellence, high-quality fresh foods and local products, as well as technology enhancements with a focus on efficient operations and frictionless grocery shopping experiences.”
What are the key takeaways from The Food Retailing Industry Speaks 2026 report?
The Food Retailing Industry Speaks 2026 report finds that food industry executives are focused on five key strategies for success – grappling with today’s volatile macro landscape, addressing customers’ needs from health to value, optimizing the shopper experience, tapping into new technologies to fuel progress, and bolstering business resiliency in the face of this changing landscape.
Related Article: FMI: Why 90% of Shoppers Choose Private Brands
What are the most significant challenges facing the food industry, and how are food retailers and suppliers responding?
Food industry attitudes were more negative in 2025 regarding the economy’s impact on business, with about 90% of responding food retailers and suppliers reporting negative impacts from international trade and tariffs, and 82% of suppliers sharing concerns that economic challenges and inflation would influence consumer shopping behavior. Two-thirds of food retailers and 70% of suppliers pointed to negative impacts on their businesses from supply chain challenges in 2025. Roughly 11% of food retailers posted losses, and across the industry, food retail profit margins remained thin in 2025, up slightly from the prior year at 2.1%. Credit and debit cards now represent 81% of all sales, a new high.
What are grocery stores doing to provide more value to shoppers?
According to The Food Retailing Industry Speaks 2026, the food industry is providing value to shoppers by offering enhanced private-brand options and solutions that address consumers’ expanded definition of value, which includes convenience, experience, relevance, and quality. Among the data points on these strategies, 76% of food retailers leveraged private brand programs in 2025 as differentiation strategies and 77% focused on community support and ties. Retailers are also expanding private brand options as a vehicle for healthier options.
How are grocery stores and suppliers leading on health and well-being?
According to FMI’s U.S. Grocery Shopper Trends 2026, two-thirds of shoppers feel their diet could be healthier. The food industry is meeting consumers’ health and well-being goals by providing improved access to products and services that support healthy living. For example, The Food Retailing Industry Speaks 2026 found that 76% of food retailers focused on nutrition, health, and well-being, and 74% emphasized products with beneficial nutritional attributes. Grocery stores offer consumer wellness, family health, and pharmacy services. Suppliers are also cognizant of consumers’ increasing prioritization of healthy options, with half of suppliers noting that this change is a positive for their businesses. Additionally, 76% of suppliers focused on products with beneficial attributes for health and well-being, and 67% of those suppliers reported success.
What are grocery stores doing to optimize the shopping experience?
With 80% of food retailers now offering online sales – up from roughly 50% before the COVID-19 pandemic – and 94% of shoppers purchasing groceries both online and in-store in 2025, a seamless omnichannel experience has become the baseline expectation. Food retailers are meeting that bar by implementing a coherent experience between in-store and online shopping. Within the store itself, 82% of food retailers surveyed are experimenting with in-store technologies to enhance customer experience, and grocery stores are also expanding space for fresh and perimeter departments. At the same time, 80% of food retailers surveyed offer online shopping, 67% provide curbside pick-up, and 58% accommodate home delivery.
Which new technologies is the food industry implementing?
The technology landscape for the food industry is continuously evolving, and food retailers are implementing artificial intelligence for operational assistance, including with assortment planning and loss prevention. Suppliers are also increasingly focused on enhancing their technology and have even spent a greater share of sales (3.3%) on technology than food retailers (1.9%). Most suppliers (83%) expect to increase their technology investments in 2026 and 60% of suppliers expect these investments to positively impact their bottom lines.