Grocery Eye

This quarter focuses on how consumers are adapting to stabilising inflation and new market realities.

Key trends for sustainability in grocery:

• Mood is steady but caution is rising
  Shopper sentiment remains mostly positive, but negative undertones are growing as financial pressures persist and the everyday shopping experience feels increasingly overwhelming.
• Frugality is front and centre
  Cost remains the top priority for most consumers, with consciously frugal behaviours dominating purchasing decisions in response to persistent inflation and declining consumer confidence.
• Deepening generational divides
  Preferences and priorities are shifting. Older shoppers remain highly focused on price, yet younger generations are searching for more, with elements like improved shopping experiences, inspiration, and healthy choices signaling a demand for brands to adapt beyond price competitiveness.
• Personalisation and retail media set the baseline
  Shoppers now expect tailored communication and seamless retail media experiences as the norm. With retail media rapidly evolving, brands must stay ahead of changing trends to keep pace with innovation and outperform competitors.
• Opportunities for impact through value and discovery
  In a market where norms are stabilising, brands have windows of opportunity to influence switching behaviours, particularly through exceptional value propositions and innovative approaches that encourage exploration and better choices.

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