Category : News
Last year, the grocery space was faced with a number of disruptions that are changing the way consumers think and participate in the industry. With so many complex changes, it’s important to pay attention to these 2019 upcoming trends.
1. Rising prices
A Dalhousie study found the average Canadian household will spend $411 more in 2019 than in 2018, as food prices are projected to rise between 1.5 and 3.5 per cent. Dairy is projected to rise up to 2 per cent, following the USMCA deal that was passed in November. While costs may increase within the first half of the year, projections show dairy prices may start to improve by the second half.
2. E-commerce expansion
Consumers want convenience, and e-commerce speaks directly to that. Grocery e-commerce is growing prominently – just look at Amazon acquiring Whole Foods late last year. Traditional brick-and-mortar retailers are teaming up with third-party companies to help grow their online reach and convenience factor to consumers, while retailers who’ve built a name online are expanding into brick-and-mortar spaces.
3. Higher demand for delivery
Increasing the delivery options means an overhaul in the way retailers dev6 Trends in Grocery That Will Have The Biggest Impact in 2019elop their infrastructure. As consumers shift their shopping habits to reflect the need for convenience, distributors and retailers will have to adapt by expanding to include prepared foods, complete meals, and meal kits. Monthly grocery subscription boxes are also expected to rise in popularity this year, giving traditional grocers even more to consider.
4. Health trends and natural wellness
As more people are looking for functional foods to fill specific dietary needs, naturally derived wellness additives will continue to grow. Functional foods are a top health trend for 2019, especially in the dairy sector; we’ve already seen a rise in popularity of probiotic dairy, fermented dairy, and lactose-free dairy in 2018, so expect this to continue this year.
5. Diet trends
In the same vein, dietary restrictions are on the rise. A Nielsen study shows the number of people following specific diet plans has increased from 29 per cent in 2016 to 37 per cent in 2018. People are recognizing a trip to the grocery store is just as important as a trip to the gym, and as more consumers are looking to minimize their lactose and gluten intake, products on the shelves will have to reflect this.
6. Ethical buying
According to the same Nielsen study, 63 per cent of global consumers prefer to buy goods and services from companies that employ good ethics and stand for a purpose that aligns with their personal ethos. Consumers are hyper-aware of how their food is sourced and the path it takes to get from farm to table, and studies show companies that have forward-thinking social values and sustainability and environmental practices are more likely to attract shoppers. Especially on the heel of the USMCA deal, Canadian consumers are looking to support their local dairy farmers now more than ever.