Perspectives: Food Shopping Gets Even More Convenient
As evidenced by Amazon’s recent announcement that it intends to acquire Whole Foods Market, the lines between food and beverage purchase channels are growing increasingly blurry.
We see the signs across the board, as consumers are spending more money eating away from home than at home ($800 billion away from home versus $793 billion at home in 2016, according to the USDA1); venturing online to fill the pantry (we project that e-commerce could grow from 4{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} to 20{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of grocery sales by 2025); and experimenting with new avenues of food preparation (e.g., 25{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} have tried meal kits).
While unexpected by many, the Amazon-Whole Foods linkage highlights just how profoundly consumer expectations regarding food and beverage shopping are changing, and will continue to do so.
But as analysts speculate about how the acquisition will affect the grocery business, their predictions about pricing models and industry players are missing a key component of Amazon’s strength: the consumer. In that regard, I think we should ask a different question first: What will the acquisition mean for the food and beverage consumer experience? Nielsen – Read more…
We see the signs across the board, as consumers are spending more money eating away from home than at home ($800 billion away from home versus $793 billion at home in 2016, according to the USDA1); venturing online to fill the pantry (we project that e-commerce could grow from 4{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} to 20{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of grocery sales by 2025); and experimenting with new avenues of food preparation (e.g., 25{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} have tried meal kits).
While unexpected by many, the Amazon-Whole Foods linkage highlights just how profoundly consumer expectations regarding food and beverage shopping are changing, and will continue to do so.
But as analysts speculate about how the acquisition will affect the grocery business, their predictions about pricing models and industry players are missing a key component of Amazon’s strength: the consumer. In that regard, I think we should ask a different question first: What will the acquisition mean for the food and beverage consumer experience? Nielsen – Read more…
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