76% of grocery shoppers prefer discounts over other rewards, showing a strong bias towards value as a result of the cost-of-living crisis. However, 45% of grocery shoppers show interest in loyalty rewards that extend beyond grocery discounts, peaking at 71% of younger families.
Higher living costs have pushed consumers to prioritise essential purchases and seek budget-friendly options, leading to growth in the popularity of discounters. Easing inflation and rising confidence will encourage shoppers to trade up, but many households will maintain cautious shopping behaviours.
Moving forward, grocery retailers will be challenged to balance affordability and quality amidst rising consumer confidence. The highly competitive market environment creates intense price-sensitivity, and the need to adapt to changing preferences will drive retailers to improve their store experience and offer more than just price.
The greatest opportunities lie in premium own-label products, as 74% of grocery shoppers believe they match the quality of branded products. Demographics such as older and wealthier households with premium options can be targetted while enhancing the shopping experience with better navigation and in-store technology.
Despite rising consumer confidence, German grocery shoppers remain cautious, seeking value even when trading up – driving demand for own-labels, tailored promotions and greater in-store convenience.
Armando Falcao, Associate Director – Retail Reports
For the purposes of this Report, Mintel has used the following definitions:
This Report covers all retail channels that provide grocery products, following the retailer categories proposed by the German Retail Association (HDE). These include traditional supermarkets, food discounters, hypermarkets, online grocery retailers, as well as food and drink specialist stores.
Groceries are defined as products such as food, beverages, household goods (eg cleaning products, toilet paper, garbage bags), and/or personal care products. The primary focus of the research is on food and beverages.
This Report is complemented by Mintel’s Germany Online Grocery Retailing Market Report, which focuses entirely on and provides a deeper dive into the online channel for the purchase of grocery products.
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