The consumer industry is shifting from mass to micro, according to “The Future of Grocery Retail” report from Deloitte. Almost 90% of surveyed grocery retail executives predict that grocery marketing will become hyper-personalized, targeting individuals rather than the “average consumer.”
Previous research from Deloitte found that three in four consumers are looking for more personalized nutrition, a 13% year-over-year increase, and more than half (55%) would pay more for the right foods to support their health and wellness. Now, two in three grocery retail executives say this “food as medicine” trend may greatly increase healthy food sales.
The hyper-personalized shift also impacts the supply chain — 70% of surveyed grocery executives plan to move toward more local and less global food supply sources as interest in buying local grows. Four in ten executives see this manifesting in store-managed food production, and possibly on-site vertical farming, for most of their stores within the next five to 10 years.
Alongside these changes, the relationship between CPG companies and grocers is beginning to break down, as CPG brands build their own direct-to-consumer models and grocery retailers focus on private-label offerings. Nearly half of surveyed grocery executives say this relationship will become less important as time goes on, and 92% believe their store-branded products will become a significant, growing source of revenue.
For more insights on the future of grocery retail, see Deloitte’s full report.
