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ARLINGTON, Va. — Despite continued concerns over rising food prices, U.S. consumers are feeling optimistic and prepared to manage their grocery budgets as the holiday season approaches, according to the latest U.S. Grocery Shopper Trends: Holiday Season report by FMI—The Food Industry Association. The report indicates a strong sense of enthusiasm among shoppers, with 73% of holiday celebrants expressing excitement for the upcoming festivities, and 85% feeling confident about controlling their grocery expenses.
This renewed sense of confidence is reflected in shoppers' strategies for the holidays. FMI president and CEO Leslie Sarasin notes, “While consumers are understandably concerned about food costs, we continue to see remarkable resilience and adaptability. Americans are taking proactive steps, from shopping early to leveraging store brands and promotions, to make the most of their holiday budgets.”
A key trend highlighted in this year’s report is the rise of the “hybrid” approach to meal preparation, which blends home-cooked meals with convenient, ready-made options from retail foodservice. As consumers continue to tighten their budgets, prepared foods from grocery store delis are emerging as a budget-friendly solution for holiday gatherings.
According to FMI’s Power of Foodservice at Retail report, sales of retail foodservice items, such as deli-prepared foods, grew by 1.4% to reach approximately $50.9 billion in 2024. This trend is set to continue into the holiday season, with 13% of shoppers planning to purchase more prepared foods compared to last year.
The growing popularity of semi- and fully-prepared foods reflects a shift in consumer behavior. As shoppers juggle busy schedules and rising costs, these options offer convenience without sacrificing the festive spirit. Notably, 70.7% of households regularly buy foodservice items from grocery stores, with an average purchase frequency of 9.5 times per year.
In response to inflationary pressures, many consumers are preparing early for the holiday season. 40% of shoppersreport they are planning more than a month in advance to ensure they can create the perfect holiday experience. Among those surveyed, nearly 60% emphasized that the key to a successful holiday season is spending quality time with loved ones, while 32% prioritized creating a memorable homemade feast.
However, concerns about availability and potential out-of-stocks remain top of mind. According to the survey, 39% of holiday shoppers are highly concerned about shortages of key ingredients, with families with children feeling this anxiety even more acutely at 44%. To mitigate these risks, 46% of consumers are prepared to pivot to familiar alternative dishes, while 30% are open to trying new recipes if their preferred ingredients are unavailable.
Weekly grocery spending has remained steady this year, averaging $158 per household. This stability reflects shoppers' focus on budgeting and careful planning to manage inflationary pressures without compromising holiday traditions.
FMI's findings indicate that consumers are leveraging various strategies to maximize their purchasing power, such as hunting for discounts, choosing store brands, and mixing ready-made foods with home-cooked dishes. As a result, the frequency of preparing meals at home remains strong, with 23% of households cooking dinner at home at least seven times per week, up slightly from 21% last year.
Amid these economic challenges, consumers continue to prioritize both convenience and nutrition. The report reveals that 63% of shoppers focus on selecting nutritious options when purchasing deli-prepared foods, and 59% are interested in bundled meal deals that include a main course, side dishes, and dessert at a discounted price.
As the holiday season kicks into high gear, retailers are likely to see strong demand for ready-made food options, with a focus on affordability and convenience. The industry’s ability to adapt to shifting consumer behaviors will be crucial in helping shoppers navigate the season while keeping holiday traditions alive.
