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The Food and Drink Shopper: Spotlight on Technology - US - November 2016

"The competition for share of food/drink sales rages on. Consumer interest in low prices, convenience, and fresh options is fueling a shift in how they shop for food and drink, including a move away from traditional grocery retailers. Non-store retailers, including online merchants and subscription services, are expanding retailing possibilities. 71% of grocery shoppers shop for food/drink with the use of a computer or mobile device, and more than half do so most or all of the time. Where technology can be utilized to clearly meet consumer need for cost and time savings, it will help assure relevance and secure patronage."

Beth Bloom, Senior Analyst, Food and Drink

This report looks at the following areas:

  • The majority of respondents prefer to personally select their own food and drink
  • 27% of shoppers still want assistance from store clerks
  • Shoppers are slow to adopt food/drink delivery options

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • The majority of respondents prefer to personally select their own food and drink
            • Figure 1: Barriers to entry, August 2016
          • 27% of shoppers still want assistance from store clerks
            • Figure 2: Attitudes toward technology and shopping – Store clerk, August 2016
          • Shoppers are slow to adopt food/drink delivery options
            • Figure 3: Attitudes toward technology and shopping – Delivery/pick-up, August 2016
          • The opportunities
            • Cost savings leads interest in technology, followed by time savings
              • Figure 4: Desired benefits of technology, August 2016
            • Money savings websites and retailer sites lead types of tech used
              • Figure 5: Food and drink shopping technology usage and awareness – Currently using, August 2016
            • Consolidation of services may improve stickiness
              • What it means
              • The Market - What You Need to Know

                • Adoption of online shopping grows, but food/drink categories are not as quick to benefit
                  • Food/drink shoppers are growing accustomed to alternative channels
                    • Women and Millennials control a large share of food/drink shopping responsibility
                      • Smartphone ownership and app usage suggest opportunity for mobile engagement
                      • Market Perspective

                        • Food and drink sales move beyond the grocery store
                          • Consumers continue to adopt online shopping
                            • Barriers remain for online food/drink purchase, but online share is expected to grow
                              • Figure 6: Categories avoided in online shopping, April 2016
                            • Expansion of foodservice delivery could help normalize online food/drink shopping
                            • Market Factors

                              • Women represent the majority of primary shoppers
                                • Figure 7: Grocery shopping responsibility, by gender, August 2016
                              • Millennials make up 40% of primary grocery shoppers
                                • Figure 8: Grocery shopping responsibility, by generation, August 2016
                              • Mobile carries a third of online sales
                                • Figure 9: US mobile shopping sales vs online shopping sales via desktop, 2014 and 2016
                              • 81% of consumers have smartphones
                                • Figure 10: Mobile device ownership, August 2016
                              • Three quarters of consumers use mobile apps daily
                                • Figure 11: Time spent using mobile apps, July 2016
                            • Key Players – What You Need to Know

                              • Amazon keeps innovating
                                • Walmart prioritizes the development of online resources
                                  • Third party food/drink delivery providers continue to gain investor support
                                    • Consolidation of services may improve stickiness
                                    • What’s Working?

                                      • Amazon keeps innovating
                                        • Figure 12: Extent of online shopping conducted on Amazon, April 2016
                                      • Grocery retailers are boosting their online presence
                                        • Walmart prioritizes development of online resources, customer service
                                          • Food delivery providers gain investor support
                                          • What’s Struggling?

                                            • Food and drink shopping tech misses the why
                                              • Figure 13: Food and drink launches, by share of leading claims, 2012 and 2016
                                            • Tech needs to push beyond inconvenience
                                            • What’s Next?

                                              • Consolidation can boost convenience
                                                • Consumers like to reap rewards
                                                  • Emphasizing relevance through personalization
                                                    • Figure 14: Attitudes toward technology and shopping – Push notifications, August 2016
                                                    • Figure 15: Attitudes toward technology and shopping – Push notifications, by generation, August 2016
                                                  • Encouraging connection
                                                    • Figure 16: App download inspirations, July 2016
                                                  • Engage through empowerment
                                                  • The Consumer – What You Need to Know

                                                    • 71% of food and drink shoppers use tech as part of their shopping experience
                                                      • Money savings websites and retailer sites lead types of tech used
                                                        • Cost savings is the strongest driver of technology usage
                                                          • Barriers to utilization largely tie to a comfort with the status quo
                                                            • Shoppers are still slow to adopt food/drink delivery options
                                                            • Food and Drink Shopping Technology Usage and Awareness

                                                              • 71% of food and drink shoppers use tech as part of their shopping experience
                                                                • Half of food and drink shoppers use tech while in the store
                                                                  • Figure 17: Technology used when shopping for food and drink – NETs, August 2016
                                                                • Money savings websites and retailer sites lead usage
                                                                    • Figure 18: Food and drink shopping technology usage and awareness – Currently using, August 2016
                                                                  • Interest in delivery/mobile pay still challenged
                                                                    • Figure 19: Food and drink shopping technology usage and awareness, August 2016
                                                                  • Men are more likely than women to order for delivery/pick-up
                                                                    • Figure 20: Technology used when shopping for food and drink – Delivery/pick-up, by gender, August 2016
                                                                  • Women are more likely to use traditional sites, men get onboard in-store
                                                                      • Figure 21: Food and drink shopping technology usage and awareness – Currently using, by gender, August 2016
                                                                    • iGens/Millennials most likely users of shopping technology
                                                                        • Figure 22: Technology used when shopping for food and drink – NET*, by generation, August 2016
                                                                        • Figure 23: Food and drink shopping technology usage and awareness – Currently using, by generation, August 2016
                                                                      • Eight in 10 Asian shoppers use tech when shopping for food/drink
                                                                        • Figure 24: Technology used when shopping for food and drink – NET*, by race, August 2016
                                                                      • White and Asian shoppers are most likely to use food/drink shopping tech
                                                                        • Figure 25: Food and drink shopping technology usage and awareness – Currently using, by race, August 2016
                                                                      • High earners are primary users of technology
                                                                        • Figure 26: Food and drink shopping technology usage and awareness – Currently using, by HH income, August 2016
                                                                      • Key driver analysis – Likelihood of in-store purchase
                                                                        • Consumers under the age of 55 who earn $75K+ are most likely to use tech while in-store
                                                                          • Figure 27: Key drivers of use of technology in-store, August 2016
                                                                        • Key driver analysis – Likelihood of delivery
                                                                          • Urban dwellers under the age of 45 who earn $100K+ are most likely to use grocery delivery services
                                                                            • Figure 28: Key drivers of use of technology for delivery, August 2016
                                                                        • What Food and Drink Shoppers Want from Technology

                                                                          • Cost savings leads interest in technology, followed by time savings
                                                                            • Figure 29: Desired benefits of technology, August 2016
                                                                          • Women are particularly money conscious
                                                                              • Figure 30: Desired benefits of technology, by gender, August 2016
                                                                            • Food/drink tech can help newer shoppers learn about products
                                                                              • Figure 31: Desired benefits of technology, by generation, August 2016
                                                                            • Younger shoppers are interested in help making responsible choices
                                                                              • Figure 32: Desired benefits of technology – Responsibility, by generation, August 2016
                                                                            • Delivery and food management could appeal to Hispanic shoppers
                                                                              • Figure 33: Desired benefits of technology, by Hispanic origin, August 2016
                                                                            • Interest in money savings is not limited to lower earners
                                                                              • Figure 34: Desired benefits of technology, by HH income, August 2016
                                                                            • Parents seek help with making healthy choices/meal planning
                                                                              • Figure 35: Desired benefits of technology – Information, by parental status, August 2016
                                                                          • Barriers to Using Food/Drink Shopping Tech

                                                                            • The majority of respondents prefer to pick out their own food and drink
                                                                              • Figure 36: Barriers to entry, August 2016
                                                                            • 27% of shoppers still want human interaction
                                                                              • Figure 37: Attitudes toward technology and shopping – Store clerk, August 2016
                                                                            • A quarter of shoppers agree self-checkout can be a hassle
                                                                              • Figure 38: Attitudes toward technology and shopping – Self checkout, August 2016
                                                                            • Men are not as particular about picking out their own items
                                                                                • Figure 39: Barriers to entry, by gender, August 2016
                                                                              • Reminding young people to use the technology available will be key
                                                                                  • Figure 40: Barriers to entry, by generation, August 2016
                                                                                • Time appears as a barrier for some of the most time-strapped shoppers
                                                                                  • Figure 41: Barriers to entry, by employment status, August 2016
                                                                                  • Figure 42: Barriers to entry, by parental status, August 2016
                                                                                • Asian shoppers don’t want to be bombarded with offers, but are OK with social sharing
                                                                                  • Figure 43: Barriers to entry, by race, August 2016
                                                                              • Delivery/Pick-up

                                                                                • Non-perishables lead delivery/pick-up
                                                                                  • Boosting delivery/pick-up participation may come from a focus on hard-to-find items
                                                                                    • Figure 44: Food and beverages purchased for deliver/pick-up, August 2016
                                                                                  • Free delivery would only sway a third of shoppers
                                                                                    • Figure 45: Attitudes toward technology and shopping – Delivery/pick-up, August 2016
                                                                                  • Price incentive plays a stronger role for women
                                                                                    • Figure 46: Attitudes toward technology and shopping – Delivery/pick-up, by gender, August 2016
                                                                                  • Millennials are willing to pay for delivery
                                                                                    • Figure 47: Attitudes toward technology and shopping – Delivery/pick-up, by generation, August 2016
                                                                                  • Three in 10 consumers worry about the quality of delivered goods
                                                                                    • Figure 48: Attitudes toward technology and shopping – Delivery concerns, August 2016
                                                                                    • Figure 49: Attitudes toward technology and shopping – Delivery concerns, by gender, August 2016
                                                                                    • Figure 50: Attitudes toward technology and shopping – Delivery concerns, by race, August 2016
                                                                                • Appendix – Data Sources and Abbreviations

                                                                                  • Data sources
                                                                                    • Consumer survey data
                                                                                      • Consumer qualitative research
                                                                                        • Key driver analysis methodology
                                                                                          • Interpretation of results – Use of technology while in-store
                                                                                              • Figure 51: Key drivers of use of technology in-store – Key driver output, August 2016
                                                                                            • Interpretation of results – Use of technology for delivery
                                                                                                • Figure 52: Key drivers of use of technology for delivery – Key driver output, August 2016
                                                                                              • Abbreviations and terms
                                                                                                • Abbreviations
                                                                                                • Appendix – Key Players

                                                                                                    • Figure 53: Food and Drink launches, by leading claims, 2012-16*

                                                                                                Companies Covered

                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                The Food and Drink Shopper: Spotlight on Technology - US - November 2016

                                                                                                US $3,995.00 (Excl.Tax)