The food industry landscape is shifting, and consumers’
habits are leading the charge, particularly in the growing grocerant sector.
The age of the “grab-and-go” dinner is here, with fewer consumers knowing what
they’ll eat for dinner early in the day. In fact, only 20% of consumers know
what they’re having for dinner by noon, and 30% decide by 4 PM
according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. This indecision opens an avenue for
convenience-driven, ready-to-eat meal solutions that the grocerant sector is
perfectly poised to fill. Supporting these trends, the prevalence of single and
two-person households—now comprising over 60% of households in the U.S.—underscores
the demand for ready-to-eat options. These consumers prioritize ease and speed
over cooking from scratch, propelling the grocerant sector forward.
1. Convenience-Driven Decisions by
Dinner Time
The traditional home-cooked dinner is becoming a relic as
consumers prioritize convenience, especially as many don’t plan meals until the
last minute. Here’s a breakdown of what’s driving these changes:
·
Consumer Mindset: Studies show that by 4 PM, over 30% of people still
don’t know what they’ll be eating for dinner, with this group increasingly
turning to ready-to-eat or heat-and-eat options. This trend underscores a
broader shift toward meal flexibility, allowing grocerants to attract consumers
needing quick solutions.
·
Shift in Consumer
Habits: With 60% of meals prepared at
home now involving little or no cooking, ready-to-eat solutions provided by
grocerants are the perfect fit. This consumer preference is creating demand for
packaged meal options that meet the growing need for low-effort meal solutions.
·
On-the-Go Lifestyle: With work and social obligations often extending late
into the evening, over 70% of consumers prefer quick meal options over
cooking from scratch on weeknights. The grocerant sector meets these needs
by offering meal options ready to enjoy, with minimal preparation required.
2. Growth of Single and Two-Person
Households
The rising number of single and two-person households is a
key driver for the grocerant niche. These consumers prefer convenient,
single-portion meals that eliminate the hassle of extensive prep or cleanup.
·
Household
Composition Shift: Today, more than 60% of
households in the U.S. are made up of one or two people. This demographic
shift is pushing demand for smaller portioned, single-serve meals that cater
specifically to smaller households, aligning perfectly with the grocerant’s
core offerings.
·
Meal Planning
Preferences: Single and two-person households are
increasingly opting for grab-and-go meals, with 50% of them indicating
they’d rather pick up a ready-to-eat meal than cook from scratch. This
inclination highlights the growing value they place on time-saving food
solutions, allowing grocerants to capture their attention with innovative meal
offerings.
·
Cost-Conscious
Eating: With rising food prices, smaller
households also look for ways to reduce waste. Nearly 45% of single and
two-person households report that ready-to-eat meals help reduce grocery waste,
showing that grocerants’ fresh meal solutions meet not only their convenience
needs but their desire for economically sound choices.
3. Industry Facts Supporting Grocerant
Sector Growth
The grocerant sector is evolving quickly as consumers’
dining patterns continue to move away from traditional meal preparation and
dining establishments. Here are three facts underscoring this sector’s
momentum:
·
Expansion of
Ready-to-Eat Options: In the past five years, the
number of grocerants has expanded by 30%, driven by grocery stores,
C-stores, and retail chains seeing the demand for convenient meal solutions
rise. This growth is a direct result of consumer preference for ready-to-eat
meals and options that don’t require cooking from scratch.
·
High Margin
Opportunity: Ready-to-eat and heat-and-eat
options have profit margins up to 20% higher than traditional groceries,
making them an attractive option for retailers looking to increase
profitability through fresh, convenient solutions.
·
Consumer Willingness
to Pay for Convenience: Reports indicate
that more than 40% of consumers are willing to pay a premium for convenient
meal solutions. This readiness to pay for convenience translates into
growth for the grocerant sector as consumers seek quality, prepared meals
without the time investment of cooking from scratch.
The rise of grocerants is a clear indication of how
consumer behavior is shaping the future of food retail. As more people embrace
the convenience of grab-and-go, particularly among smaller households and those
who decide on dinner late in the day, the opportunity for grocerants to
innovate and capture a larger share of the foodservice market is stronger than
ever.
Invite Foodservice
Solutions® to complete a Grocerant ScoreCard, or for product positioning or
placement assistance, or call our Grocerant Guru®. Since 1991 Foodservice Solutions® of Tacoma, WA has been the
global leader in the Grocerant niche. Contact: [email protected] or 253-759-7869