Where Consumers Shop for Staple Foods

Delivery

This report comes in PPT.

Key Findings

Sales of staple foods continue to grow

Staple foods sales advanced in 2023, maintaining momentum after the pandemic boom. Despite ongoing inflationary price pressure, both constant value and volume sales grew, with value outpacing volume. As the base of most meals, staple foods benefit from at-home meal preparation having increased, thanks to hybrid work styles, and as consumers look to limit more costly foodservice spending.

Inflationary price pressure is shifting the offline grocery landscape

Discounters are quickly gaining ground with private label portfolios that meet consumers’ need for value. Small local grocers have also expanded their share, being well-positioned to offer small pack sizes at the right price point for price sensitive shoppers in emerging markets. Supermarkets lead offline grocery retail sales, but the channel’s share will continue to be eroded as sales shift online.

E-commerce expansion facing pickier consumers

Grocery e-commerce’s share of staples food sales has grown, gaining further ground on top of the pandemic-related boost. However, consumers now have more grocery shopping options, both offline and online, that challenge the online shopping habits established during the pandemic. Notably, consumers are more critically evaluating the premium paid for the convenience of online shopping.

Essential goods are in focus as consumers prioritise value in their purchases

While inflation is falling in most countries, the cost of many products and services still has the capacity to dismay consumers. Staple foods are often indispensable, and should benefit from thrift. The cost-of-living crisis is pushing consumers to prioritise their spending and seek value, both in terms of their basket of goods and where they shop.