The International Dairy•Deli•Bakery Association (IDDBA) released its annual What’s in Store report for dairy, deli, bakery, and food service and fresh food retail.
For over 30 years, IDDBA has been researching and reporting trends and consumer behavior in the industry.
Here are some of the key insights and predictions:
- Food industry annual sales reached $2.06 trillion in the last year.
- U.S. food retail is predicted to increase 3-4% in 2017.
- Between 2016-2020, traditional stores will grow annually at 0.4%, and e-commerce (online food sales) will grow 23.1% annually.
In an interview with Food Business News, IDDBA VP of education Mary Kay O’Connor noted: “Transparency, social responsibility, and traceability will continue to grow in importance in consumer shopping behavior.”
She added that to compete and be relevant to the emerging Gen Z customer base, retailers need “effective and engaging in-store technology, a 24/7 service mentality, real-time knowledge on current inventory in each store, and price and product consistency.”
The report also identified six challenges food retailers face:
- Vulnerability of regional supply chains to external forces (e.g., natural disasters)
- Growth of e-commerce
- Industry consolidation
- Shoppers’ focus on value
- The need to engage consumers on multiple channels (in store, online, app, etc.)
- Amazon’s forays into grocery
Overall, the retailers that will succeed are the ones that adapt quickly to consumer demand and behavior.
Read the executive summary.