Short Term Grocery Store Trends/Projections
Use of new technologies such as warehousing automation, blockchain technology, and artificial intelligence; physical stores adding digital experience to their repertoire; focus on giving personal experience to the customers; the rise of social media and internet pictures and video-based commerce are some short term trends for the grocery market industry in the next 2-5 years. Other identified trends include the rise of smartphone app-based shopping; the evolution of creative partnerships; mergers and acquisitions; and a transformation to speedy and seamless delivery experience.
Grocery market industry trends
Use of new technologies
- Technologies such as warehouse automation, blockchain technology, and Artificial Intelligence are being used to improve supply chain management and to ensure traceability.
- Food Navigator reported in an article, that the technology-driven online grocery market will have a revenue of $200 billion by 2023 and will have an annual growth rate of 20% in the years preceding 2023. This also reflects the shift of customers from brick-and-mortar shop grocery buying to online buying.
- E-Fresh an AI-supported digital grocer and Ocado, another online grocer in the UK pioneered warehouse automation and AI in this sector. Also, Kroger, a US-based grocer partnered with the British grocer, Ocado, to install high-tech warehouses where machines will handle grocery orders.
- Grocery retailers, Carrefour, and Auchan, have begun to use blockchain technology to ensure traceability of their products.
- All these points to technology adoption is becoming a prevalent trend in grocery industry.
Physical stores adding digital selling to their repertoire
- Recently, brick-and-mortar grocery stores are adding shopping-cart attached digital devices and smart phone apps to their shopping experience in order to make easier, the aisle navigation and product-finding, for the customer.
- Also, sensors are being used on shelves so that an automatic bill is ready by the time the customer reaches the billing counter.
- Another example could be that of Il Viaggiator Golosa, an Italian grocer, installing electronic shelf-edge labels which show customers online reviews and quality and feedback scores, of the products. These changes also suggest that customers are enjoying the experience of digital shopping.
Focus on giving personal experience to the customers, both online and offline
- The grocers are trying to use shoppers' data to develop a more personalized shopping experience. While personalized shopping is in its early stages both online and offline, there are many examples that show that grocers are eagerly trying to adopt it.
- The US grocers like Stop&Shop, Cub Foods, Hy-Vee, and Aldi have added restaurants, burrito bars, and popcorn vending machines to their offline stores.
- Customer data sets, in-store machine learning, and AI devices are used to develop new modes of this personalized engagement.
The rise of social media based commerce is predicted
- Social media based commerce is set to render both conventional online and offline grocery buying obsolete.
- When a customer sees a picture or video of a product on Instagram or Facebook or anywhere on internet, the customer will be enabled to add that product to a virtual shopping cart just by clicking on it and selecting the buy option. So the shopping happens as the customer is doing all other things and there will be no need to set aside time for shopping.
- This reflects the wish of the customer to save time on shopping and make grocery shopping a seamless experience.
The rise of smartphone app based shopping
The evolution of creative partnerships between grocers and mergers and acquisitions
The transformation to speedy and seamless delivery experience
To determine the trends/projections for the grocery market industry in the next 2-5 years, your research team searched through industry reports, press releases, news articles, media publication, and market research websites. We were able to identify from Food Navigator, an article on the upcoming trends in grocery industry. Also, we found another publication by Grocery Dive which listed the trends to watch in 2019 for the grocery industry. This corroborated those listed in the report by Food Navigator. Again, we found on eMarket website, a recent study which provided specific trends/projections related to customer buying behaviors with respect to a few of the listed trends. We have therefore, used the information found from the above sources to compile the list of 7 trends/projections for the grocery market industry in the next 2-5 years.