Budget-conscious food sales

Conscious consumers report eating fresher, healthier foods, especially fresh produce 40 percent and food without artificial ingredients 33 percent. Many are cooking more meals at home, where they have greater control over what they eat 40 percent Exhibit 2.

One in two consumers surveyed say that the pandemic changed the way they eat, and one in six made major changes. The changes are especially pronounced in the younger generations, who are much more likely than older consumers to report having made some or even major changes in their eating habits, especially eating less animal products and buying more food from small or new brands Exhibit 3.

Most survey respondents prioritize eating healthy over limiting their personal impact on climate change.

This gap is especially pronounced among consumers 65 and older—about 50 percent versus 33 percent—and among French consumers of all ages except the year-old cohort. This is not to say that conscious consumers ignore sustainability.

Sustainability ranks high as a consumer goal in the United States 64 percent and in Germany 70 percent. Across the markets studied, younger consumers are the most motivated to limit their personal impact on climate change.

But, while more than 60 percent of the consumers surveyed value sustainable solutions, only about 28 percent report eating more sustainable products, and less than 30 percent are willing to pay more for options designed to protect the environment.

Across the countries studied, about 33 percent of consumers under the age of 44 would pay more for foods in plastic-free packaging; only 20 percent of their elders agree. Consumers admit that their willingness to take steps to advance sustainability depends on the effort required.

For example, half of US consumers say that they freeze food to avoid waste, but less than a quarter of the same consumers would go the extra mile to avoid using plastic wrap and sandwich bags Exhibit 4. Two dietary trends loom especially large today—flexitarianism and consumption of plant-based alternatives to meat.

Flexitarianism has gained popularity as conscious consumers aspire to eat little or no meat. Often called casual vegetarianism , flexitarianism centers on eating plant-based food, with only occasional consumption of meat.

Just a small percentage of the consumers surveyed identify as vegan or vegetarian 3 to 6 percent across the markets studied , and that number has increased only slightly over the years. Meanwhile, more than half of consumers in France and Germany and almost half in the United Kingdom and the United States consider themselves flexitarians.

According to our Global Protein Survey, most flexitarians 73 to 93 percent plan to further reduce their meat consumption. Only 27 to 31 percent of frequent meat eaters share that aspiration.

The market, therefore, is clearly bifurcating Exhibit 5. Conscious consumers are willing to give plant-based alternatives a try. About 25 percent of the survey respondents ate more plant-based products during the pandemic.

About 33 percent call themselves consumers of plant-based products, especially plant-based milk and meat. Another 15 percent expect to start consuming plant-based products in the next year. Most survey respondents, especially in the United States, consume plant-based products to benefit their own health much more than the health of the environment.

Germany is the exception. There, the desire to try something new nearly ties with animal welfare—suggesting strong momentum in the consumption of plant-based alternatives Exhibit 6. But, while consumers are eating more plant based products, about 50 percent of those surveyed still greatly prefer the taste of animal protein products over their plant-based alternatives.

Plant-based categories that consumers find more palatable for example, plant-based milk and meat will grow faster than categories in which taste technology is still maturing for instance, plant-based cheese. This has great implications for consumer-packaged-goods manufacturers, as many players look to expand their plant-based portfolio.

And if you'll be leaving home base or school soon and foraging for yourself plus or minus roommates , it's a great time to learn about healthy, low-cost choices for your grocery list.

A healthy diet is rich in vegetables, fruits, legumes beans or lentils , whole grains, nuts, seeds, lean proteins, and low-fat dairy products. Trying to fill your cart with all of those goodies can feel overwhelming.

But just think in terms of twos. Oliveira also recommends getting two foods in each of these categories on your weekly shopping trip:. Organic produce is grown without synthetic fertilizers and pesticides, which are linked to many health problems.

Target opened six new stores so far this year with 20 in total planned for Store and online traffic also continued to grow with traffic in total rising 0.

Target is continuing to add to its same-day fulfillment services widely used during the pandemic. Target could also benefit from some of its competitors having financial issues. Target has continued to grow its private label offerings in home goods and baby supplies and apparel. Earlier this month, baby stroller and carrier brand Colugo announced it was expanding its products to more than Target stores nationwide.

By Nicole Norfleet. PUBLISHED: May 17, at p. UPDATED: May 18, at p.

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This value is down from a six percent increase in February. Food inflation has also relaxed slightly. Executives at Kraft Heinz shared that, likely as a result, some lower-income consumers have been moving to budget-friendly retailers from traditional supermarkets, and higher-income shoppers have shifted to traditional supermarkets and club stores instead of specialty markets.

It also seeks to implement higher-impact sales promotions. Full Story Subscription Required. Well before COVID hit, consumers of diverse demographic stripes had been experimenting with conscious eating to achieve a range of health and sustainability goals that have become as important to them as traditional food goals like losing weight.

But the pandemic accelerated the trend, spurring consumers to eat fresher, healthier food. Does the trend remain alive and well? How widespread is it? Are food companies and retailers meeting the needs of these consumers?

To answer these questions, we conducted an online survey of some 8, consumers in the United States, the United Kingdom, France, and Germany after pandemic restrictions relaxed. We found that conscious eating is here to stay, but consumers are confused about what food is healthy and sustainable.

At least 70 percent of the survey respondents across the markets surveyed want to be healthier. Food is essential to achieving that goal, and about 50 percent of consumers, across age groups, say healthy eating is a top priority for them.

For this half of consumers, healthy eating means reducing consumption of processed foods and sugar their top concerns , as well as fat, salt, and, for some, red meat.

French consumers, in particular, walk the talk of healthy eating, as they long have. Consumers in the other countries are following suit, but more moderately Exhibit 1.

Younger consumers are more likely to have a longer list of ingredients that they seek to avoid. The to year-old cohort, in particular, prioritizes reducing their consumption of red meat, dairy, and gluten. It is worth noting that younger consumers report food allergies and intolerances at much higher levels.

In France, Germany, and the United Kingdom, about 30 percent of to year-olds report food allergies or intolerances. In the United States, that number climbs to 50 percent. By comparison, less than 20 percent of those 35 or older report food allergies or intolerances.

The need to manage these health issues may play a role here. The pandemic has had real impact on the eating patterns of consumers across countries, age groups, and income levels.

Conscious consumers report eating fresher, healthier foods, especially fresh produce 40 percent and food without artificial ingredients 33 percent. Many are cooking more meals at home, where they have greater control over what they eat 40 percent Exhibit 2.

One in two consumers surveyed say that the pandemic changed the way they eat, and one in six made major changes. The changes are especially pronounced in the younger generations, who are much more likely than older consumers to report having made some or even major changes in their eating habits, especially eating less animal products and buying more food from small or new brands Exhibit 3.

Most survey respondents prioritize eating healthy over limiting their personal impact on climate change. This gap is especially pronounced among consumers 65 and older—about 50 percent versus 33 percent—and among French consumers of all ages except the year-old cohort.

This is not to say that conscious consumers ignore sustainability. Sustainability ranks high as a consumer goal in the United States 64 percent and in Germany 70 percent. Across the markets studied, younger consumers are the most motivated to limit their personal impact on climate change.

But, while more than 60 percent of the consumers surveyed value sustainable solutions, only about 28 percent report eating more sustainable products, and less than 30 percent are willing to pay more for options designed to protect the environment.

Across the countries studied, about 33 percent of consumers under the age of 44 would pay more for foods in plastic-free packaging; only 20 percent of their elders agree.

Promoting freezable foods and plant-based proteins, such as tofu and beans, is often essential for these consumers as well. Freezable foods last longer than fresh produce products, and plant-based proteins provide needed nutrients and are more affordable than traditional meats.

Today, more and more Americans are focused on healthier diets and curious to try plant-based proteins. Leading consumers in the direction of freezable foods and plant-based proteins, with the help of meal plans and recipes, will improve their shopping experience exponentially.

Promote Deals —. For some customers, finding low-priced deals can be a struggle. Advertising special offers, coupons and discounts in-store and online will help guide these consumers and simplify the buying process.

Highlighting ways in which consumers can further save money is essential in easing the process for budget-conscious consumers. Consider Supplemental Nutrition Assistance Program Consumers —. There are limited places to shop for groceries with SNAP benefits, as less than five retailers worldwide contain tools necessary to accept Electronic Benefits Transfer EBT payments online.

This lack of accessibility makes the shopping process difficult for many SNAP customers. Investing in operations that meet the needs of these consumers, such as BOPIS and delivery, will lead to increased loyalty and a strong return on investment in the long run.

Distinguishing what is and is not eligible for SNAP benefits is especially crucial, as it allows for an easy online and in-store experience.

Leverage Social Media Platforms —. Budget-conscious consumers often scour the internet searching for low-cost products, meals, and recipes, with more and more individuals watching videos related to at-home cooking. Home-cooked meals not only come at a lower cost and alleviate a sense of boredom, but they create leftovers that last much longer than restaurant meals.

With a rise in at-home cooking, brands must find ways to market to these consumers. Considering the grasp that social media platforms have on budget-conscious consumers, companies should leverage this data and market via these channels. Invest in Analytics —.

Focusing on online purchasing platforms , investing in analytics is essential for companies to market to their budget-conscious consumers effectively. Measuring and tracking data not only allows for optimization, but it highlights key purchasing patterns and trends.

Leveraging this data will then drive engagement and help foster targeted communication with shoppers.

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