International Dairy-Deli-Bakery Association’s 2015 Trends Report
Over $65 billion in grocery spending will shift from Baby Boomers to Millennials by 2018.
If you haven’t yet purchased the 24-page trends report that the International Dairy-Deli-Bakery Association (IDBA) puts out every year, it’s well worth the $99 (or $399 for non-members). The What’s in Store 2015 details consumer and industry trends affecting the in-store dairy case, cheese case, bakery, deli, and foodservice departments. With its 200+ tables, developed in cooperation with leading industry firms and associations, you can take an in-depth look at department sales, per capita consumption, consumer preferences as well as system 2, UPC, and private label sales data.
Here are few key insights from this year’s report:
- Millennials will outspend the Boomer Generation by 2018 as over $65 billion in grocery spending shifts from one group to the other. With one-half of the US population over 50 by 2019, nearly 80-million free-spending boomers will control 70% of disposable income in the United States by 2019. This generation will also inherit $15 trillion within the next 20 years. So Boomers will continue to wield tremendous present and future buying power, but the 77-million-strong Millennial generation and their $200 billion in buying power is coming on strong.
- Hispanic and Asian American consumers are a growing demographic in the fresh departments. Nielsen reports that Hispanics will have $1.5 trillion in buying power by 2015, a 50% increase from 2010, while the average Asian American household expenditure in 2012 was $61,400, 19% more than non-Asian households.
- Non-traditional channels like convenience stores, small box grocery stores, and online shopping and delivery retailers,will continue to chip away at the market share of traditional grocery channels. This report projects a decrease in market share of 1.2 percentage points by 2018 in the traditional channels, which will equate to 44.8% of the market. Non-traditional grocery and convenience store channels will command 40.1% and 15.1% of the market, respectively. Supercenters will also experience dramatic growth, capturing an estimated 19.4% share by 2018.
- Men are stepping up when it comes to shopping for groceries and making brand choices. More than 65% of men now hold primary shopping responsibilities for several product categories, with 67% stating that they enjoy shopping for the household.