The food industry is feeling ripple effects from rising food and fuel prices, new benefit costs due to the 2010 Affordable Care Act, modest income growth following the 2013 payroll tax increase, and weak consumer confidence due to fiscal uncertainty. That’s according to “What’s in Store 2014,” an annual trends publication of the International Dairy-Deli-Bakery Association, Madison, Wis.
Price, convenience and health are now implicit in the fresh food value equation. Digital platforms and personalized promotions are encouraging the “de-averaging” trend. Showrooming, geo-fencing and price-matching are becoming more prominent in retail. “Channel surfing” is cutting grocery trips as shrinking household size cuts trip volume.