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Circana Integrated Fresh, MULO, Latest 52 weeks ending12/31/23
Shifts in consumer behavior along with ever-changing economic factors have affected Fresh performance but not all departments have been impacted in the same way with Bakery being the biggest winner.
Source: Circana Integrated Fresh, US MULO, 52 WE 12/31/23
Younger Generations are limitedly engaged in today’s Traditional Grocery baked goods which skews heavily towards consumers nearing 60 yo+.
Source: Circana Integrated Fresh US MULO, YTD Ending 10-01-2023
Targeting “everyone” or sticking with what has always worked may limit future growth.
There is a significant opportunity in truly understanding a younger shopper’s motivations and recognizing how different they are in both taste, relevance, and reasons to buy/believe than prior generations.
→ INSIGHT: Across channels, and despite inflation, many fresh foods saw increased buyers and frequency while others became less essential or were eclipsed by similar, but more relevant, options.
→ OPPORTUNITY: Continue the growth of Bakery with Innovation and targeting younger generations.
→ INSIGHT: Price promotions and incremental lifts are coming back to pre-pandemic levels—but because of channel shifting, price discount alone doesn’t mean sales growth.
→ OPPORTUNITY: Develop or enhance price pack architecture by Channel. Focus on relevant, targeted promotions to retain primary shoppers.
Source: Circana Omni channel model, Data ending 12/31/2023, Fair share index is 2023 contribution to all dollar sales growth relative to its dollar share in 2022
Bakery shoppers are already omni-channel shoppers and e-comm is driving growth – must embrace digital commerce and marketing.
Foods in Fresh departments are engaging and beautiful – utilize visuals and differentiate beyond price via expanding usage occasions and multi functionality both online and in-store.
Unit Sales CHG vs. YA
Source: Circana Integrated Fresh, US MULO, 52 WE 12/31/23
Top Growing Flavors Across Bakery (Unit Sales CHG vs. YA)
This department offers a way for shoppers to try unique and different foods and flavors without investing heavily in time, energy, or effort – what is hard to make at home could be perfect.
Flavor exploration can also help tap into younger generations and retain retail dollars- get creative and talk about it!
Source: Circana Integrated Fresh Market Advantage, MULO, L52 W.E. 12.31.23
49% eat 3+ snacks per day (+4 pts in 2 years)
Consumers aged 13–17 have been passionate drivers of total snack food consumption. This share growth exceeds pre-pandemic levels and is a noteworthy shift from historic eating patterns.
Although the younger generations have fueled the snacking lifestyle in the U.S., they also influenced other generations into snacking 3+ snacks per days:
Source: Circana 2023 Snacking Survey
While main meals matter, we cannot dismiss the snacking lifestyle that permeates our culture. The percentage of snackers only goes up across younger generations. Targeting these younger consumers on Social Media platforms, like TikTok, with digital advertising and influencer campaigns can attract this increasingly important demographic.
