Consumer value drivers are fundamentally changing the food & beverage industry [REPORT]

The Food and Beverage industry continues to struggle with stagnant overall growth. From 2012 to 2014, US food and beverage retail spending annual growth of 2.6 percent has roughly mirrored the annual inflation plus population growth of 2.3 percent.[1],[2] Though the overall spend has been flat, there has been a shift in where consumers are spending. The challenge becomes finding ways to grow by connecting with shifts in consumer purchase decisions and evolving shopping behavior.

Consumer-led disruptions are compounding the challenges of stagnant growth. According to interviews with retail and manufacturing executives, consumers have an unprecedented ability to access information about products and share this information via social media, making it more challenging than ever for companies to manage messaging. In addition, many consumers have signaled a distrust of the established food industry in spite of retailers’ and manufacturers’ traditional efforts to keep consumers positively engaged with their brands.[3] To help retailers and manufacturers better understand the drivers and implications of these shifts, Deloitte Consulting LLP conducted a study in collaboration with the Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) and authored the report, “Capitalizing on the shifting consumer food value equation.”

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