10 grocery trends
Grocery brands are being hit by inflation, a drop in conspicuous consumption and a desire for convenience. SymphonyIRI's Rod Street highlights ten trends that are ushering in a new era of frugality.
After a prolonged period of economic gloom, people are becoming more professional about their shopping. Faced with inflationary rises in household expenditure, along with static earnings and rising unemployment, they have cut back their grocery shopping. For the first time in more than 20 years, Europe has seen sustained reductions in the volume sales of many grocery products. Shoppers haven't just tightened their purse strings to survive the recession; they are making permanent changes in their behaviour. After decades of growth, FMCG marketers are facing a changed reality – savvy, frugal shoppers, rising input prices that threaten margins, new channels for shopping and a battle for shelf space that is being driven by increasingly desperate competition.