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Home » Study: Digitally Engaged Food Shoppers
Retail Market Trends

Study: Digitally Engaged Food Shoppers

Within 10 years, online food shopping will reach digital maturity in the US

FMI_Nielsen_900
February 15, 2017
KEYWORDS digital food shoppers / FMI / food marketing institute / food trends / nielsen research / online food shopping
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Serving as a resource for retailers and manufacturers as the industry embarks on the next digital frontier, Food Marketing Institute (FMI) and Nielsen released a preview of its "Digitally Engaged Food Shopper" analysis at the FMI Midwinter Conference in Scottsdale, AZ. The introductory set of insights from this joint, multi-year initiative offer a comprehensive look into the behaviors, motivations and expectations of the digitally engaged food shopper. This first perspective offers recommendations on how food marketers and manufacturers should be preparing their strategies and managing the organizational change that will be required to engage those shoppers.

Initial findings from this study show that within the next decade, online food shopping will reach maturation in the US, far faster than other industries that have come online before. Research also revealed that the center store is likely to shift online faster than other departments, suggesting a fundamental evaluation of the role the store plays in digital food shopping. The research estimates that in the current climate of technology adoption and evolution, consumer spend on online grocery shopping could reach $100 billion.  To put that into context, that is the equivalent of 3,900 grocery stores based on store volume.

"While we are more connected than ever to influence what shoppers buy, the window to influence those moments is narrowing," said Mark Baum, chief collaboration officer at FMI. "FMI and its members will need to seize the opportunity to harness new skills and collaborate more seamlessly than ever before to effectively reach these digitally savvy food shoppers. We're building the tools to help our members assess where they are in their connected commerce strategies." 

"The grocery business truly is at a digital tipping point, where every aspect of the shopper's journey will soon be influenced by digital, and increasingly enabled by digital platforms," said Chris Morley, President of U.S. Buy at Nielsen. "The need for retailers and manufacturers to know the differences around how consumers shop online versus in-store is greater than ever before.  Analytics will be key for retailers and manufacturers to understand the digitally engaged food shopper on a deeper level.  Beyond unified insights that connect the dots across consumer interaction and platforms, the winning strategy will turn metrics into action steps towards effective digital engagement."

Key findings of the research:

Multi-channel shopping: More shoppers are buying more of their groceries across channels. In fact, 23% of American households are buying food online today. This upward trend continues - of those that will buy online, 60% expect to spend over a quarter of their food dollars online in ten years.

Digital Experimentation: Grocery retailers and manufacturers are meaningfully experimenting with business models and technologies to find their way online. However, the road to success has not been paved.

Grocery Saturation: Grocery shopping will reach digital maturity and saturation faster than other industries before, such as publishing or banking.
Center Store Migration: Center store categories are already migrating online and this migration is expected to continue.

Young & Digital: Younger, newer and more engaged digital shoppers adopt grocery related digital technologies more quickly and will hasten the expansion of digital grocery shopping further.

With grocery as the next big retail sector that will be reshaped by digital, retailers and manufacturers need the tools to realize their connected commerce readiness in order to meet the needs of the digital food shopper. An FMI and Nielsen online assessment enables them to assess six areas that are most important to online grocery shoppers: trust, value, experience, assortment, convenience and personalization.

The "Digitally Engaged Food Shopper" study is part of a strategic alliance and multi-year initiative with FMI and Nielsen to uncover comprehensive insights on current and future digital shopping behaviors within the food retail marketplace. 

A copy of the full report is available at www.fmi.org/digital-shopper.

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