Supermarket Perimeter - May 2023 - 10

For many consumers, private label brands
" What's going to be easier is being able
have grown in value in the last year. Atkins
said that as consumers have been purchasing
more private label products, they have become
accustomed to them and consider private labels
as their own brands within a store.
This is particularly true for Gen Z.
" Younger generations say they like private
labels " Atkins said. " They want quality for their
money. Focusing on the quality of private label
products within your bakery is going to be
key. Growing those type of brands is going to
be huge. "
Acknowledging the current challenges
retailers are facing, Atkins said that one of
IDDBA's main goals this year is to support stores
in offering this personalized experience to
customers.
" What we're focusing on is to cut through
the noise, " Atkins said. " How can we help carry
the message and help retailers do that? How
can we help them have labor efficiency to focus
on the customer? It's going to continue to be a
struggle. "
Another challenge for retailers with providing
value to consumers is pricing.
" How we look at food is a little bit different
now, " Atkins said. " We can't have this discussion
without talking about inflation. It went down
a percent in March, so that's good. But the
consumer's overall budget and overall spend still
plays a part. What challenges we are seeing is
the increasing cost of ingredients. "
One area where the industry is seeing a little
bit of relief is in dealing with supply shortages.
Atkins said that while the supply chain is still
facing these problems, they have had some
experience dealing with them over the last few
years and are better at problem solving and
moving forward.
" What manufacturers and retailers are saying
is they can react a little easier, " Atkins said.
" One month, one ingredient is in full supply,
and another month it's not, or the cost goes up.
There is still unpredictability, but they are more
equipped to react to it. "
Reviewing holiday history
While the last few years have been unpredictable
and ever-changing, Atkins said that 2023 is
the first year the food industry is able to start
seeing patterns in consumer behavior again.
This is useful as the industry prepares for the
holiday season.
10 - MAY 2023
DOES YOUR
STRATEGIC
PLAN MATCH
TODAY'S
SHOPPERS?
2.5
PEOPLE
in the average US
household, the lowest
it has ever been.
70%
of households do not
have children.
17
STATES
lost population in
the last year, shifting
west and south.
<40
Households led by adults
under the age of 40 will
soon outnumber those
led by adults over 40.
to use some data from 2022 as far as what
consumers were buying for the holidays, "
Atkins said. " What we're seeing is the trends
in how they are shopping. Retailers will be
able to use data from Easter and how that
compared to what they saw in 2022 and
how that's changed. It's kind of a clean slate
going forward after all that has changed in
the world. "
An important thing for retailers to offer
holiday shoppers is individual items that they
can contribute to a holiday meal.
" Family occasions are coming back, but
everyone is bringing their own twist and
tradition, " Atkins said. No one wants to be
responsible for the entire meal. Everyone is
bringing different things. "
There is big interest in nostalgia among
consumers right now, and many family
traditions are regional.
" Be sure that you are ready for those
holidays in your area of the country, " Atkins
said. " For Easter, maybe you had hot cross
buns in one area, cinnamon rolls in another.
Know your area and what those local traditions
are and be ready for them. Now we have the
data to know what customers are looking for. "
Going global, creating with color
Flavors from all around the world have been
making their way to American grocery stores.
Some of this has to do with nostalgia and
consumers connecting with their cultural
roots, and some of it is people wanting to
branch out and try foods from other cultures.
According to the Washington, D.C.based
National Restaurant Association's
What's Hot 2023 Culinary Forecast, globally
inspired salads, flavors from Southeast Asian
countries - such as Vietnam, Singapore and
the Philippines - and Caribbean cuisines are
among the top 10 hot trends this year.
" Consumers are obsessed with Asian
Source: A Feb. 28 webinar hosted
by Arlington, Va.-based FMI - The
Food Industry Association and
Chicago-based Circana Inc.
cuisine, " said Shannon Cushen, director of
marketing for Hampstead Md.-based Fuchs
North America. " They are craving spicy,
pickled, fermented and sweet-heat flavors.
Korean, Indian, Vietnamese and Thai food are
seeing quite a bit of demand from consumers. "
Claire Conaghan, associate director of
content at Chicago-based market research
firm Datassential, said that Middle Eastern and
Japanese ingredients are among the trendiest
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