KANSAS CITY, MO — This year was all about learning how to live with the challenges brought on by COVID-19 and how to move forward. As shoppers, students and workers returned to their in-person activities, the pandemic still impacts people’s everyday lifestyle.
SPINS, a leading health-and-wellness data consultant, recently outlined some of the top wellness-related consumer trends impacting the food and beverage industries including commercial baking.
The influence of inflation
From shoppers to manufacturers, the rising cost of raw materials, fuel and labor has affected everyone. It’s also impacted consumers’ food budgets and everyday needs. Retailers felt the repercussions of inflation in the form of fuel surcharges from distributors, reduced delivery frequency and smaller promotional spends.
According to data from SPINS, the average retail price (ARP) grew across several categories and channels. Natural products in food and beverages withstood the increasing of prices with a few exceptions. Due to natural products having a higher premium than other common goods, there was less shock for natural product shoppers when prices rose, even attracting some consumers newly interested in wellness. Private label products, however, are usually at a lower price point, so an increase in price means that they can still be an affordable option for budget-conscious consumers.
Sustainability as a must, not a maybe
A survey from IRI OmniConsumer Survey Solutions from June 2022 revealed that 77% shoppers take sustainability into account when selecting products, which is an 8% increase from last year. With piqued interest from younger generations regarding sustainability, its likely that related topics will be top of mind in the future.
As a result, brands have been branching out to communicate sustainability attributes to shoppers. Third-party certifications and labels such as Non-GMO Project, Certified B Corporation, Carbon Trust and others are valuable outlets that allow shoppers to gain knowledge on which products meet their standards.
Returning to in-person shopping
Post-COVID, consumers of natural products serve as an example of how shopping habits have split. Shoppers who prefer natural products shop online by nearly double in comparison to normal shoppers. However, these consumers will spend half of what shoppers at traditional grocery stores will in retailers like Walmart.
Shopping trends from 2022 proved that consumers need attention as their purchasing decisions are driven by a variety of factors that range from pricing to convenience.
The topic of inflation will carry into 2023, likely influencing decisions on what shoppers buy and how much they spend. As the trends for 2023 have yet to unravel, retailers and brands will need to put themselves in the shoppers’ shoes to plan for the upcoming year.
Read more about 2022 health-and-wellness trends on SPINS’ website.
