Natural Grocers, Amazon Fresh, Fresh Market tops with health-focused shoppers
Three grocers are leading the way when it comes to consumers who are health-focused, according to a new analysis.
Natural Grocers, Amazon Fresh and The Fresh Market rank as the leading retailers of health-conscious consumers, with 60% of their customers focused on health compared to just 32% for the average U.S. retailer, according to to a new report from customer data science firm Dunnhumby. The report found that retailers who over-index to this customer segment experience a long-term grocery sales growth (five-year compound annual growth) average of 7%.
The key finding of the "Better for You (Customer), You (Brand), and You (Retailer)" report is that health-conscious shoppers represent a $285 billion annual opportunity, making up 33% of the population and driving significant market trends.
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"With health and wellness predicted to be the most critical trend for decades, retailers and brands have unprecedented opportunities to meet emerging customer needs," said Matt O'Grady, president of the Americas for Dunnhumby. "As the grocery landscape continues to evolve, understanding and adapting to these health-centric consumer trends will be crucial for retailers and brands aiming to remain competitive in an increasingly wellness-oriented market."
Dunnhumby’s report found that health-focused customers tend to be younger (18-44), have more children, have higher incomes ($100,000+) and have larger monthly grocery budgets. Health-focused customers care most about quality (63% versus 47% of shoppers overall), digital (45% versus 30%), and values (55% versus 31%) and less about price (64% versus 71%).
Nearly two-thirds (64%) of U.S. customers rank physical health as the most important need for them, ahead of financial health (58%) and mental health (55%). More than half of health-focused customers expect a high level of support from retailers and brands with products, services and information for these three top needs.
Gen Z is reshaping health behaviors, according to the report, focusing more on mental health. Sixty-one percent of Gen Z shoppers care most about their mental health, 15 points higher than those between ages 45-54, and double that of those 75 years old and over.
