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FMI-NielsenIQ report shows digital transformation is key to grocery success

The report reveals that over 90% of shoppers now engage in online and in-store shopping.

Table of Contents

Arlington, Va. As grocery shopping enters a new digital transformation era, FMI—The Food Industry Association and NielsenIQ (NIQ) released their latest report, "Digital Engagement Transforms Grocery Shopping." The report reveals that over 90% of shoppers now engage in online and in-store shopping.

The report highlights consumers' rapid adoption of digital tools and platforms and retailers' innovative strategies to meet evolving demands. From e-commerce and mobile apps to AI-driven personalization, the grocery industry is undergoing a seismic shift driven by the need for convenience, efficiency, and sustainability.

Key findings

  1. Rise of E-Commerce and digital platforms
    The report shows a surge in online grocery shopping, with over 60% of consumers using digital platforms for grocery purchases. Mobile apps are now preferred for meal planning, shopping lists, and personalized deals.
  2. Demand for convenience
    Grocery delivery and curbside pickup services have surged, with 75% of consumers using them last year for time savings and convenience.
  3. Personalization and data-driven insights
    Retailers leverage data analytics and AI for personalized shopping. These technologies help brands connect with customers, from tailored recommendations to dynamic pricing.
  4. Focus on sustainability and health
    Consumers are more aware of the environmental and health impacts of their purchases. The report highlights a growing demand for sustainable products, eco-friendly packaging, and clear labeling. Options like organic and plant-based are also rising in popularity.
  5. Challenges for retailers
    Digital transformation offers opportunities but also challenges for retailers. The report highlights the need for strong logistics, cybersecurity, and tech investments to remain competitive in a digital marketplace.

Industry Implications

"The grocery landscape is changing at an unprecedented pace," said an FMI spokesperson. "This report underscores the importance of embracing innovation and understanding the needs of today’s tech-savvy shoppers. By leveraging data and technology, the industry can create more engaging and efficient shopping experiences."

NielsenIQ reiterated this viewpoint, highlighting how collaboration fuels progress. "Retailers and brands that prioritize customer-centric strategies and invest in digital capabilities will be best positioned to thrive in this new era," a NielsenIQ representative stated.

The report ends on a forward-looking note, forecasting that incorporating advanced technologies such as augmented reality (AR), voice-activated shopping, and blockchain for supply chain transparency will continue transforming the grocery industry in the years ahead.

The full report is now available on the FMI—The Food Industry Association website.

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