IGD has released a new report that examines the economic and demographic trends expected to shape the next five years for shoppers, retailers, and the food and grocery industry.
The ‘Shoppers in 2030’ study notes that as single households are projected to contribute 95% of the overall growth in the number of households, the growing population will create a higher demand for housing. With disposable income levels unlikely to grow significantly, shopper confidence will remain subdued, impacting volume spending.
The food and grocery industry is expected to be somewhat protected compared to other industries, but IGD states that retailers must build emotional connections with shoppers.
The report highlights the need for retailers and manufacturers to produce the right products for the right shopper. It suggests that the industry must also tackle sustainability and health issues despite low shopper confidence. Understanding these trends can help businesses plan and adapt their strategies to meet shoppers’ evolving needs.
“The outlook is far from positive news for retailers and manufacturers,” said Bryony Perkins, Senior Insights Analyst at IGD.
“We expect shoppers to continue spending with caution for the foreseeable future, especially those on a lower income. This means volume challenges are set to continue. The silver lining for food and grocery is that shoppers will still look to treat themselves in small ways. Retailers and manufacturers should look for ways to help shoppers elevate the everyday with small, affordable treats.”
Further insight and ‘Shoppers in 2030’ report is available on the IGD website
NAM Implications:
- More than a few points to guide your business forward.
- Worth a point-by-point check vs your strategy…
