Higher fuel and food costs and other economic pressures are having
a pervasive impact on how consumers shop, cook, and dine, according
to the Food Marketing Institute (FMI) "U.S. Grocery Shopper Trends
2008" report, released yesterday at the FMI Show in Las Vegas.
Economic concerns are compelling Americans to cook at home more and
eat less often at restaurants (71 percent), the report finds. In
fact, families eat their main meal at restaurants only 1.2 times
per week, down from 1.3 in 2007 and 1.5 in 2006.
Not surprisingly, consumers are buying fewer luxury foods (67
percent) but more store-brand items (60 percent) and eating more
leftovers (58 percent). The high cost of fuel is contributing to
the decline in the number of shopping trips -- below two per week
for the second straight year at, 1.9.
When deciding where to shop, 37 percent of consumers cite "low
prices" as the overriding factor -- up from 31 percent in 2007 and
well ahead of the second most often cited factor (convenient
location at 13 percent).
"Food retailers can turn these economic challenges into benefits
for consumers and the industry," said FMI president and c.e.o. Tim
Hammonds in a statement. "As people eat out less often, we can help
revive the great American home family meal tradition. This presents
retailers an opportunity to win back a share of the mealtime market
long owned by restaurants, and it provides American families
important health, economic, and social benefits."
Consumers equate eating at home with eating healthier, the FMI
report finds. As many as 91 percent say they eat healthier when
dining at home. This number includes 39 percent who believe
home-cooked food is "much healthier."
The report also found that consumer confidence in the safety of
food bought at supermarkets rebounded to 81 percent, from the
18-year low of 66 percent last year. Their confidence is fragile,
however: Only 11 percent are "completely confident," down from 15
percent in 2007, and 70 percent are "somewhat confident." Consumer
confidence in the safety of restaurant food increased to 65
percent, from 43 percent in 2007.
Nutrition is very much on the minds of shoppers, with 41 percent
"very concerned" about the nutritional content of the foods they
eat, and 47 percent "somewhat concerned." At the same time, many
continue to fall short in acting on these anxieties: 62 percent of
consumers believe their diets could be healthier, including 12
percent who describe the room for improvement as "a lot."
The shoppers most likely to say their diet needs significant
improvement include:
-- Baby boomers (68 percent), especially men (75 percent).
-- Shoppers earning $75,000-$100,000 (70 percent).
-- Consumers age 25-39 (69 percent).
-- Parents with older children (69 percent).
Supermarkets are responding to consumer health needs with products
and services. For example, 82 percent of stores now feature natural
or organic foods, up from 80 percent last year and 72 percent in
2006. In fact, nearly 60 percent of food retailers feature
store-brand organic foods, according to FMI's "The Food Retailing
Industry Speaks 2008" report. Health clinics are now featured in 9
percent of stores, and 5 percent have a dietitian on hand to
provide consumers nutritional guidance.



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