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THE SAVVY FOOD SHOPPER - UK - APRIL 2018

Published By :

Mintel

Published Date : Apr 2018

Category :

Food

No. of Pages : N/A

A savvy shopping mentality is firmly ingrained among UK consumers when it comes to their grocery purchases. That this is underpinned by emotions as well as by monetary gains, signals continuing longevity. 

However, there are plentiful opportunities for brands and retailers to connect with the savvy shopper beyond promotions. Positioning themselves as helping shoppers to reduce food waste or use low-cost ingredients, for example, will chime.

Table of contents

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
The return of income squeeze characterises 2017
Rapid food inflation in late 2017, but slowing into 2018
Many consumers have become more careful of food spend
Move towards ELDP and continuing growth of discounters
Levels of top-up shopping rise
The consumer
Two in five are spending more cautiously on food
Figure 1: Changes to how careful consumers are with how much money they spend on food shopping, February 2018
A savvy shopping mentality is well-entrenched
Supermarkets lead on grocery shopping, but half buy from discounters
Figure 2: Typical food shopping locations, February 2018
Grocery shopping tends to be a pre-planned, budgeted mission
Figure 3: Food shopping behaviour, February 2018
Scratch cooking and frozen food are popular means of cutting food costs
Figure 4: Preferred ways to save money on food bills, February 2018
Robust demand for more British produce, grocers can steer consumers towards cheaper products
Figure 5: Offerings consumers would like to see more of from food retailers, February 2018
Avoiding food waste seen as a key way to save money
Figure 6: Attitudes towards food shopping, February 2018
What we think
ISSUES AND INSIGHTS
Saving money creates a feelgood factor
The facts
The implications
Supermarkets can win goodwill by steering consumers towards cheaper products
The facts
The implications
Helping shoppers avoid food waste connects with savvy mentality
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
The return of income squeeze characterises 2017
Rapid food inflation in late 2017, but slowing into 2018
Many consumers have become more careful of food spend
Move towards ELDP and continuing growth of discounters
Levels of top-up shopping rise
MARKET DRIVERS
2017 characterised by the return of income squeeze
Household spend is subdued
Pressure is set to ease
Figure 7: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2012-February 2018
Consumer sentiment slips, but still relatively strong
Figure 8: “How would you generally describe your financial situation at the moment?”, February 2018
Rapid food inflation in late 2017…
…but slows in 2018
Figure 9: Annual percentage change in CPI, total and food, monthly basis, January 2012-February 2018
Many consumers forced to become more careful
The rise in in-home food spend lags behind food inflation
The move towards ELDP
The food discounters are not losing their steam
Levels of top-up shopping continue to rise
THE CONSUMER – WHAT YOU NEED TO KNOW
Two in five are spending more cautiously on food
A savvy shopping mentality is well-entrenched
Supermarkets lead on grocery shopping, but half buy from discounters
Grocery shopping tends to be a pre-planned, budgeted mission
Own-label has a strong hold among shoppers
Two thirds tactically wait for promotions
Scratch cooking and frozen food are popular means of cutting food costs
Robust demand for more British produce
Supermarkets can steer consumers towards cheaper products
Avoiding food waste seen as a key way to save money
Saving money creates a feelgood factor
CHANGES TO CAREFULNESS ON FOOD SPEND
Two in five are spending more cautiously on food
Figure 10: Changes to how careful consumers are with how much money they spend on food shopping, February 2018
Shoppers are well-versed in savvy habits
More frugal habits have implications for brands and retailers
No change in shopping behaviour for the majority
A savvy shopping mentality is well-entrenched
WHERE PEOPLE SHOP FOR GROCERIES
Supermarkets remain the cornerstones of grocery shopping
Figure 11: Typical food shopping locations, February 2018
52% of shoppers buy food from discounters
Shopping at discounters a popular way to save money
Savvy shoppers have the widest repertoires
Figure 12: Repertoire of typical food shopping locations, February 2018
FOOD SHOPPING HABITS
Grocery shopping tends to be a pre-planned mission…
Figure 13: Food shopping behaviour, February 2018
…and a budgeted one
Own-label has a strong hold among shoppers
Own-label benefits from the savvy shopping mentality
Young consumers are more inclined to choose own-label
Two thirds tactically wait for promotions
Other messages needed to drive associations with being bargains
PREFERRED WAYS TO SAVE MONEY ON FOOD BILLS
Scratch cooking is a popular means of cutting costs
Positioning products as savvy alternatives to eating out can overcome the threat from scratch cooking
Figure 14: Preferred ways to save money on food bills, February 2018
Frozen food can be a winner when budgets are tight
Retailers can do more to push their frozen offering
The positive impact for ambient food is more limited
Brands look to advertising to improve the image of canned food
INTEREST IN OFFERINGS FROM FOOD RETAILERS
Robust demand for more British produce
Figure 15: Offerings consumers would like to see more of from food retailers, February 2018
Ethics become lesser priorities when spending is reined in
Strong visibility and support for British food producers in dairy…
…and scope for more in other categories
Retailers can do more to support scratch cooking
Meal deals can harness interest in scratch cooking
Supermarkets can steer consumers towards cheaper products
Swap ideas for meat and fish will appeal
‘Wonky veg’ fits well in this space
Promotions act as a steer for meal choices
Tracking spend chimes most among under-35s
ATTITUDES TOWARDS FOOD SHOPPING
Avoiding food waste seen as a key way to save money
Figure 16: Attitudes towards food shopping, February 2018
Scope to provide shoppers more support with this mission
Recipe inspiration can play a role
Saving money creates a feelgood factor
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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