2021
9
US Perimeter of the Store Market Report 2021
2022-01-12T03:14:01+00:00
OX1045391
3695
146727
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Report
en_GB
“Fresh food departments in the perimeter that offer ingredients for home meal prep have seen a substantial boost in the pandemic as consumers have spent more time in the kitchen.

US Perimeter of the Store Market Report 2021

£ 3,695 (Excl.Tax)

Description

This report provides comprehensive and current information and analysis of the US Perimeter of the Store market including US Perimeter of the Store market size, anticipated market forecast, relevant market segmentation, and industry trends for the Perimeter of the Store in the US.

Current market landscape

The perimeter of the store saw unprecedented growth, especially in fresh departments, as the pandemic compelled home-bound consumers to cut back on foodservice and return to their kitchens. The challenge now for grocery retailers and perimeter suppliers is to keep consumers cooking.

Like grocery shopping overall, perimeter shopping tends to be a matter of routine. The tendency to stick with what’s familiar in the perimeter of the store may be rooted in a tendency to rely on tried-and-true recipes and meal ideas in the kitchen.

Future market trends in the supermarket perimeter

There’s an opportunity to create a more engaging and idea-driven perimeter shopping experience, one designed to encourage cuisine exploration and to cater to interest in healthier eating.

Perimeter shoppers are also looking for products that make fresh food prep easier. While convenience might once have meant a sacrifice in freshness or quality, shoppers are less willing to compromise.

Read on to discover more about the US Perimeter of the Store market, read our US Vegetables Market Report 2021, or take a look at our other Food research reports.

Quickly understand

  • The impact of COVID-19 on consumer behavior and the perimeter of the store.
  • Perimeter of the store purchase factors.
  • Interest in perimeter product and promotional concepts.
  • Attitudes toward the perimeter of the store.
  • Perimeter of the store market report.

Covered in this report

Brands include: Food Lion, Fresh Thyme Market, Giant.

Perimeter food categories include:

  • Fresh refrigerated meat, poultry and fish/seafood.
  • Fresh produce: Fresh fruits and vegetables, including bagged salads and pre-cut vegetables.
  • Milk, dairy, eggs: Fresh dairy and non-dairy milk, cream; butter; fresh eggs.
  • Bakery: In-store baked goods including breads/rolls and cakes/ pies/desserts.
  • In-store deli/prepared foods: Deli meat and cheese and freshly prepared foods such as entrées, sandwiches, appetizers, salads, sides, trays, dips, desserts, soups and spreads.

Expert analysis from a specialist in the field

This report, written by John Owen, a leading analyst in the Food and Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Fresh food departments in the grocery perimeter that offer ingredients for home meal prep have seen a substantial boost in the pandemic as consumers have spent more time in the kitchen. To keep sales elevated in the long run, retailers should look to create a more engaging perimeter shopping experience revolving as much around meal ideas as the products themselves.
John Owen, Associate Director, Food and RetailJohn Owen
Associate Director – Food and Retail

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
    • Economic and other assumptions
    • COVID-19: US context
  2. Executive Summary

    • Top takeaways
    • Market overview
    • Impact of COVID-19 on the perimeter of the store
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the perimeter of the store, December 2021
    • Opportunities and challenges
    • Freshness, taste and cost are must-haves in the perimeter
      • Figure 2: Priorities for perimeter shopping, 2021
    • An opportunity to break the routine of perimeter shopping
      • Figure 3: Perimeter shopping behaviors – tending to purchase the same items, by age, 2021
    • Opportunity for a more engaging, idea-driven shopping experience
      • Figure 4: Attitudes toward the perimeter – interest in ideas for preparing fresh foods, by age, 2021
    • Increasing expectations for fresh and easy
      • Figure 5: Interest in perimeter product concepts – value-added convenience items, 2021
  3. The Market – Key Takeaways

    • Pandemic and rising prices boost sales
    • Fresh foods dominate the perimeter
    • Pandemic reversed trends in food spending
  4. Market Size and Forecast

    • Pandemic and rising prices boost sales in some perimeter departments
      • Figure 6: Total US sales and fan chart forecast of market, at current prices, 2015-25
      • Figure 7: Total US sales and forecast of perimeter-of-store foods, at current prices, 2016-26
  5. Segment Performance

    • Fresh foods dominate the perimeter, see boost in pandemic
    • Bakery and deli/prepared miss pandemic sales bump
      • Figure 8: Total US retail sales of perimeter-of-store foods, by segment, at current prices, 2016-21
  6. Market Factors

    • Pandemic reversed trends in food spending
      • Figure 9: Sales of food at home and away from home, 2019-21
    • Price inflation during pandemic contributes to elevated perimeter sales
      • Figure 10: Changes in consumer price indexes for food, 2019-22
    • Desire to limit time in-store altered food and drink shopping habits
      • Figure 11: Shopping-related coronavirus lifestyle changes, 2020-21
    • Comfort with shopping still impacted by infection rates
      • Figure 12: Comfort level with grocery shopping, 2021
  7. Competitive Strategies and Market Opportunities

    • Going local
    • Breaking the routine and driving engagement
      • Figure 13: Perimeter shopping behaviors – tending to purchase the same items, by age, 2021
      • Figure 14: Attitudes toward the perimeter – interest in ideas for preparing fresh foods, by age, 2021
    • Making fresh a little easier
      • Figure 15: Interest in perimeter product concepts – value-added convenience items, 2021
  8. The Consumer – Key Takeaways

    • Shoppers prefer the store over online for perimeter
    • Freshness, taste and cost are must-haves
    • Best of both worlds: opportunities for cross-department collaboration
    • Breaking the routine
    • Strong interest in fresh foods from local sources
    • Younger shoppers look to make fresh easy
    • Opportunity for a more engaging, idea-driven shopping experience
    • Quality in perimeter reflects overall store quality
  9. Preferred Perimeter Shopping Methods

    • In-store remains the favored method for perimeter shopping
      • Figure 16: Preferred center-store and perimeter shopping methods, 2021
    • Younger shoppers more open to shopping online for perimeter items
      • Figure 17: Preferred perimeter shopping methods, by age, 2021
  10. Priorities for Perimeter Shopping

    • Freshness, taste and cost are must-haves
      • Figure 18: Priorities for perimeter shopping, 2021
    • Younger shoppers more likely to look beyond freshness, taste and cost
      • Figure 19: Priorities for perimeter shopping, by age, 2021
  11. Grocery Department Associations

    • Diverse strengths create opportunities for cross-department collaboration
    • An opportunity for innovation
      • Figure 20: Correspondence analysis – Store department associations by type, 2021
      • Figure 21: Store department associations by type, 2021
    • Methodology
  12. Perimeter Shopping Behaviors

    • Perimeter shopping often a matter of routine
      • Figure 22: Perimeter shopping behaviors, 2021
    • Greater opportunity to drive impulse purchases among younger shoppers
      • Figure 23: Perimeter shopping behaviors, by age, 2021
  13. Interest in Perimeter Product Concepts

    • Strong interest in fresh foods from local sources
      • Figure 24: Interest in perimeter product concepts, 2021
    • Increasing expectations for fresh and easy
      • Figure 25: Interest in perimeter product concepts, by age, 2021
  14. Interest in Perimeter Service Concepts

    • Opportunity for a more engaging, idea-driven shopping experience
      • Figure 26: Interest in perimeter service concepts, by age, 2021
  15. Attitudes toward the Perimeter

    • A preference for personal selection
    • Perimeter serves as marker for overall store quality
    • Rising prices increasingly a concern
      • Figure 27: Attitudes toward the perimeter, 2021
    • Transforming the perimeter into a flexible meal solution center
      • Figure 28: Attitudes toward the perimeter, by age, 2021
  16. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
    • Terms
  17. Appendix – The Market

      • Figure 29: Total US retail sales and forecast of perimeter-of-store foods, at inflation-adjusted prices, 2016-26
      • Figure 30: Total US retail sales and forecast of fresh meat, poultry, and seafood, at current prices, 2016-26
      • Figure 31: Total US retail sales and forecast of fresh meat, poultry, and seafood, at inflation-adjusted prices, 2016-26
      • Figure 32: Total US retail sales and forecast of fresh produce, at current prices, 2016-26
      • Figure 33: Total US retail sales and forecast of fresh produce, at inflation-adjusted prices, 2016-26
      • Figure 34: Total US retail sales and forecast of milk, butter, and eggs, at current prices, 2016-26
      • Figure 35: Total US retail sales and forecast of milk, butter, and eggs, at inflation-adjusted prices, 2016-26
      • Figure 36: Total US retail sales and forecast of in-store baked goods, at current prices, 2016-26
      • Figure 37: Total US retail sales and forecast of in-store baked goods, at inflation-adjusted prices, 2016-26
      • Figure 38: Total US retail sales and forecast of in-store deli/prepared foods, at current prices, 2016-26
      • Figure 39: Total US retail sales and forecast of in-store deli/prepared foods, at inflation-adjusted prices, 2016-26
  18. Appendix – Trend Drivers

      • Figure 40: Mintel Trend Drivers and Pillars

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