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Center of Store - US - January 2017

Published By :

Mintel

Published Date : Jan 2017

Category :

Lifestyle

No. of Pages : N/A

The shelf-stable and frozen and shelf-stable packaged food categories of the center store have generated only minimal growth in recent years as shoppers have gravitated to perimeter departments offering foods they perceive to be fresher, healthier, and tastier. While center-store brands are making changes to their products to align with shifting consumer preferences, product improvements alone may not be enough to accelerate growth. Retailers and brands should also look to create a more engaging and idea-driven shopping experience in the center store.

Table of Content

OVERVIEW
What you need to know
Definition

EXECUTIVE SUMMARY
The issues
Only minimal growth for center-store food as a whole
Figure 1: MULO sales and fan chart forecast of center of the store, at current prices, 2011-21
Young adults far less likely to shop center-store at supermarkets
Figure 2: Grocery purchase locations – Primary store, by age, October 2016
Center store trails perimeter on fresh, healthy, and tasty
Figure 3: Grocery department associations – Healthy, authentic, fresh, tasty, October 2016
The opportunities
Center-store assets to be leveraged: time-saving, helpful, a good value
Figure 4: Grocery department associations – Time-saving, a good value, helpful, October 2016
Young adults more likely to break out of the routine
Figure 5: Food shopping behaviors, by age, October 2016
Young adults interested in improved shopping experience
Figure 6: Interest in center-store concepts, by age, October 2016
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Only minimal growth for center-store food as a whole
Shelf-stable food sets pace for center-store overall
Declines for meals/entrees cut into growth for frozen food

MARKET SIZE AND FORECAST
Only minimal growth for center-store food as a whole
Figure 7: MULO sales and fan chart forecast of center of the store, at current prices, 2011-21
Figure 8: MULO sales and forecast of center of the store, at current prices, 2011-21

MARKET BREAKDOWN
Shelf stable outpaces frozen food
Figure 9: MULO sales and forecast of center of the store, by segment, at current prices, 2011-21
Figure 10: MULO sales and forecast of shelf stable foods, at current prices, 2011-21
Frozen food
Figure 11: MULO sales and forecast of frozen food, at current prices, 2011-21

MARKET DRIVERS
Americans are trying to be healthier
Figure 12: Attitudes toward food, by diet status, June 2016
Younger generations reportedly shopping more
Figure 13: US population by generation, 2016
Growing Hispanic and Asian markets continue to influence grocery sector
Figure 14: Generations, by race and Hispanic origin, 2016

KEY PLAYERS – WHAT YOU NEED TO KNOW
Encouraging flavor exploration
Facilitating healthier eating
Enabling snacking
Providing small indulgences
Prepared meals fight processed image
Cold cereal lacks convenience, satiety
Shelf-stable vegetables overshadowed by fresh

WHAT’S WORKING?
Encouraging flavor exploration
Figure 15: MULO sales of spices and seasonings, Mexican foods, and all other sauces, 2011-16
Facilitating healthier eating
Figure 16: MULO sales of rice, frozen fruit, and frozen seafood, 2011-16
Enabling snacking
Figure 17: MULO sales of snack nuts/seeds/corn nuts, salty snacks, snack bars/granola bars, and crackers, 2011-16
Providing small indulgences
Figure 18: MULO sales of chocolate candy, ice cream/sherbet, and cookies, 2011-16

WHAT’S STRUGGLING?
Prepared meals fight processed image
Cold cereal lacks convenience, satiety
Shelf-stable vegetables overshadowed by fresh
Figure 19: MULO sales of frozen dinners/entrees, frozen pizza, soup, vegetables, and cold cereal, 2011-16

WHAT’S NEXT?
Packaging innovation: greater transparency and functionality
Power to the plants
Making healthy and fresh faster

THE CONSUMER – WHAT YOU NEED TO KNOW
Supermarkets still the top center-store channel
Young adults far less likely to shop center-store at supermarkets
Center store trails perimeter on fresh, healthy, and tasty
Center-store assets to be leveraged: time-saving, helpful, a good value
Young adults more likely to break out of the routine
Young adults interested in improved shopping experience
Natural/specialty shoppers critical of center-store but also see improvement

GROCERY PURCHASE LOCATIONS
Supermarkets still the top center-store channel
Figure 20: Grocery purchase locations, October 2016
Young adults far less likely to shop center-store at supermarkets
Figure 21: Grocery purchase locations – Primary store, by age, October 2016
Lower-income shoppers more likely to rely on mass, dollar channels
Figure 22: Grocery purchase locations – Primary store, by household income, October 2016
Hispanic, Asian shoppers less likely to rely on traditional supermarkets
Figure 23: Grocery purchase locations – Primary store, by household income, October 2016
In their words: overall shopping experience

GROCERY DEPARTMENT ASSOCIATIONS
Methodology
Center store trails perimeter on fresh, healthy, and tasty
Center-store assets to be leveraged: time-saving, helpful, a good value
Figure 24: Correspondence analysis – Grocery department associations, October 2016
Figure 25: Grocery department associations, October 2016
In their words: prioritizing health convenience and taste:

FOOD SHOPPING BEHAVIORS
Routine dominates center-store shopping
Figure 26: Food shopping behaviors, October 2016
Young adults more likely to break out of the routine
Figure 27: Food shopping behaviors, October 2016
In their words: shopping routines

INTEREST IN CENTER-STORE CONCEPTS
Everyday low prices a priority over short-term promotions
Figure 28: Interest in center-store concepts, October 2016
Young adults more interested in improved shopping experience
Figure 29: Interest in center-store concepts, by age, October 2016
Natural/specialty shoppers more likely to look beyond price
Figure 30: Interest in center-store concepts, by retail channel shopped most often for center-store items, October 2016
In their words: reimagining the center-store experience

ATTITUDES TOWARD CENTER STORE
Young adults focused on price but also likely to enjoy center-store shopping
Figure 31: Attitudes toward center of the store – Any agree, by age, October 2016
Natural/specialty shoppers critical of center-store but also see improvement
Figure 32: Attitudes toward center of the store – Any agree, by age, by retail channel shopped most often for center-store items, October 2016

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms

APPENDIX – MARKET
Figure 33: Total US sales and forecast of market, at inflation-adjusted prices, 2011-21
Figure 34: MULO sales of top edible grocery categories, 2011-16
Figure 35: MULO sales of top frozen food categories, 2011-16
Figure 36: Population by race and Hispanic origin, 2011-21

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