Deloitte: The number one driver for food purchases is…
A number of factors influence consumer food purchase decisions, but one in particular stands out.
According to "A Fresh (Food) Take on Grocery Convenience," a new survey of consumers and grocers from Deloitte, 82% percent of surveyed shoppers say convenience drives their fresh food decisions.
In addition, two-thirds (67%) of consumer respondents say that on busy days, they buy more convenient food items, even if they are not healthy (or fresh). Half (52%) of all surveyed consumers say they value convenience now more than they did in the past. This sentiment is more prevalent among Gen Z (61%) and millennials (57%).
The survey also reveals that consumers' top priority for in-store convenience is speedier checkouts (73%), followed by more convenient store layouts (59%) and easier returns (51%).
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More than half (53%) of consumers surveyed say that figuring out "what's for dinner" is one of their major pain points, and 44% would regularly buy from a grocery store that could help them with meal planning.
Younger consumers including Gen Z (66%) and millennials (60%) are especially likely to call figuring out dinner a primary pain point. Similarly, households with children (62%) also struggle to plan evening meals. Six-in-10 (58%) of Gen Z respondents and 55% of millennials say they would regularly buy from a grocery store that could help them with meal planning,
However, the survey also indicates that freshness is a major driver of food purchase decisions. Nine-in-10 surveyed. consumers say fresh food makes them happy, and two-thirds (66%) would pay a premium for fresh food. On average, respondents say they would pay 22% more for fresh over the alternatives, such as canned, frozen or other options.
Grocers recognize consumer preferences
More than eight-in-10 (84%) surveyed grocers agreed that successfully competing on convenience is key to increasing unit sales volume, and 85% are making significant investments to increase it.
Grocer respondents are most concerned about competition on convenience from internet grocery stores (56%) and third-party shopping apps (53%). They also recognize the importance of fresh food, as more than half (52%) expect fresh to be their most strategically important department over the next one to three years, especially the produce, deli and meat departments.
The survey also reveals strong grocer interest in generative AI technology. Eight-in-10 grocer respondents are optimistic about the potential financial contribution of the leading-edge AI solution, compared to just 40% in 2023. Close to three-in-four (73%) say their companies will have a major generative AI application in place within the next six months, and 65% say their companies are increasing investments in the technology.
"Despite their growing desire for quick and easy choices, consumers still show significant preference for their neighborhood grocery stores,” said Adam Almond, principal, retail and consumer products, Deloitte Consulting LLP. “Grocers can capitalize on, and look to enhance, that loyalty through innovative solutions that pair fresh food with more convenience. Investing in the pivotal moments throughout the shopping process can help ripen grocers' chances for creating an industry advantage that shoppers will remember long after their carts are full."
The report is based on a survey of 100 U.S.-based grocery retail executives from organizations with at least $1 billion in annual revenue, and 2,000 U.S. consumers. The surveys were conducted in May and June of 2024.
