In 2024, consumers navigated a challenging economic landscape, balancing financial constraints with a desire for health-focused innovations. The year underscored a "value mindset," as shoppers sought ways to stretch their budgets without sacrificing their priorities. Insights from 84.51°, a retail data science and insights firm, shed light on the key trends that defined shopper behavior over the past year.
Adapting to Economic Pressures
Inflation remained a significant factor influencing consumer behavior in 2024. Shoppers increasingly turned to sales, deals, and coupons while cutting back on non-essential purchases such as snacks and candy. Many also switched to lower-cost brands to manage expenses. Despite moderate financial comfort reported by some, inflation, grocery prices, and monthly bills remained the primary sources of financial strain. Categories where price increases were most noticeable included dairy, deli, meat and fish, and produce.
Balancing Health, Wellness, and Budgeting
Consumers placed a strong emphasis on physical and emotional health alongside financial well-being in 2024. Key health concerns across demographics included heart health, weight management, and cholesterol control. This health-conscious approach extended to product selection, with shoppers scrutinizing labels on items like health supplements, frozen foods, and cereals. Label claims promoting overall health and wellness resonated most strongly.
At the same time, shoppers adopted a cautious spending outlook, cutting back on discretionary items to focus on essential goods and savings. This dual focus on health and budgeting reflected a pragmatic approach to balancing priorities.
Loyalty in a Competitive Marketplace
Consumer loyalty varied significantly by product category in 2024. Shoppers demonstrated the strongest loyalty in categories like pet food and baby care, where trust and consistency are paramount. Conversely, they were more open to trying new brands for paper products, shelf-stable goods, and cleaning supplies. Shoppers primarily defined loyalty as “the brand I buy most often,” with value and trust emerging as the leading factors influencing repeat purchases.
Emerging Role of AI in Grocery Shopping
Artificial intelligence played a small but growing role in grocery shopping this year, with only 17% of shoppers reporting the use of AI tools for tasks such as grocery planning or meal preparation. However, the potential for AI to transform the grocery experience remains significant. Shoppers expressed interest in how technology could make shopping more personalized, efficient, and innovative, particularly as they continue to prioritize convenience and cost management.
Implications for Product Development
These shopper trends highlight critical opportunities for food and beverage product developers. Products that deliver value through health benefits, transparent labeling, and competitive pricing are well-positioned to meet consumer demands. Additionally, exploring AI-driven personalization in product recommendations or promotions may help brands connect more effectively with cost-conscious, health-focused shoppers.
By staying attuned to these evolving behaviors, product developers and marketers can align their strategies with the priorities of today's consumers, ensuring relevance in a dynamic market.
