4 Consumer Trends For Independent Grocers To Know

One reason many grocery retailers join the Independent Grocers Alliance (IGA) is access to programs and resources that will put their stores on equal footing — or ahead of — competitors. Whether they use the CPG offers and our digital circular to compete with value advertised by national chains or leverage our agency-produced décor and signage packages, or our other offerings, the scale of thousands of independent grocers coming together makes us a formidable force in the industry.

In addition to implementing programs that keep stores current with technology and regulation, independents must stay current with shopper trends, behaviors, and preferences, which can change frequently. 

“Consumers have continued to defy expectations and behave in atypical ways, keeping consumer goods manufacturers and retailers on their toes,” reports McKinsey and Company in their annual State of the Consumer report, which surveyed over 15,000 consumers.

Keep reading for five key takeaways on consumer behavior and trends from this year's report that independent grocers can use to stay ahead of the competition.

1. Older consumers remain a key demographic.

While retirees face financial constraints, they are still willing to spend. As life expectancies increase, older consumers will continue to represent a large part of the market.

“Consumer businesses that market exclusively to younger consumers are thus missing out,” McKinsey says.

IGA retailers are already taking stock of these changing trends. Price Less IGA has collaborated with high school seniors and senior citizens to create fun shopping experiences that appeal to customers of all ages, in addition to reducing grocery prices.

Other retailers, including Ted’s IGA and Garrett’s Supermarket, have created senior discount programs to attract older customers. If your store offers a senior discount program, be sure to promote in your print and digital circulars, on social media and email, and on your website.

Minford IGA's Facebook post about their senior discount.

2. Post-pandemic brand exploration is set to continue.

After the pandemic disrupted supply chains and prices, many customers changed brands routinely. Approximately half of consumers switched products and/or brands after the disruption.

“That behavioral change has proved quite sticky: consumers continue to be open to exploring alternatives.”

This flexibility gives IGA retailers a unique opportunity to promote IGA-branded products.

“One beneficiary of this rampant downtrading is private labels. 36% of consumers plan to purchase private-label products more frequently, and 60% believe private brands offer equal or better quality.”

By promoting their quality and discounted price, promoting IGA products can be a way to take advantage of customer flexibility. And remember that IGA products offer a double-your-money-back guarantee, which is a great selling point with value-focused shoppers. Contact your wholesaler to order.

A selection of IGA Exclusive Brand products

3. Wellness is a key concern for all demographics.

Wellness products that foster healthy lifestyles are in high demand, especially for women’s health.

Consumer demands for wellness can be integrated into the existing grocery store format. For example, IGA Australia stores in Victoria participated in an Eat Well at IGA trial campaign, which included cart and basket signage, local area and in-store promotion, and shelf tags highlighting the healthiest packaged foods. 97% of customers surveyed agreed that IGA should continue its efforts to encourage healthy eating, finding it helpful and valuable to them as shoppers.

Other independents, such as Darrington IGA, have made eating healthy fun and affordable, with a produce tent sale offering reduced prices in a farmers’ market style.

Kinsman IGA has also implemented practical solutions to make healthy eating easier. By suggesting meal plans that work with specific diets, Kinsman IGA is an example of promoting food products in addition to healthy eating, therefore capitalizing on the wellness trend.

A Facebook post from Kinsman IGA outlines how to grocery shop and meal plan for diabetics.

4. Prices outweigh sustainable products in this economy.

“Fewer Gen Zers and Millennials ranked sustainability claims as an important purchasing factor at the beginning of 2024 than in 2023,” McKinsey reports, attributing the shift to high inflation.

However, about 70% of consumers highly value reducing their own environmental impact, and are still choosing stores that value sustainability. Even if consumers aren’t reaching for sustainable products as frequently as they used to, independents can still stand out by showcasing their sustainable efforts and practices. 

For example, Metcalfe’s Market stores are 100% powered by green energy, and they tout that status on their website. They have  received several awards and recognitions for their sustainability efforts, including being included in the U.S. Environmental Protection Agency’s “Green Power Leadership Club” from 2008 to 2013 for being 100% green-powered. The stores have also garnered local and regional media attention for purchasing renewable energy credits. 

Metcalfe Market's green energy setup in store.

Independents can stay on top of their game by monitoring shopper trends and behavior to adapt their offerings and marketing tactics to what their customers want and need.