A Food Industry Transformation

Food industry practices are constantly evolving to align with consumer wants and needs. Today, Baby Boomers wield considerable economic and political clout due to their size as a group. But their Millennial children and grandchildren have become the largest generational cohort in American history. By 2030, Millennials will outnumber Baby Boomers by more than 20 million.

As a result, projections show that sales of traditional shelf-stable and frozen foods will be flat at best by 2025, but the market for perishables will explode. Supermarket fresh prepared foods will lead the way in sales growth in the foodservice industry throughout the next decade by being one of the few segments able to appeal to both consumer groups. The right mix of fresh prepared foods has the potential to appeal to affluent guests’ demand for local, upscale and convenient offerings, while serving as an affordable alternative to restaurant meals for more price-sensitive customers.

Supermarket fresh prepared foods are projected to grow 7.5% per year, as traditional supermarkets retool their stores and offerings with a greater emphasis on the fresh perimeter of the store. In response, regular grocery stores will invest in more fresh prepared foods and on-site eating areas, self-serve stations, and highly trained expert staff like butchers and fish mongers.