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- US Foodservice in Retail Market Report 2022
This food service in retail market report provides comprehensive and current information and analysis of the food service in retail market report, including US foodservice in retail market size, anticipated market forecast, relevant market segmentation, and industry trends for the foodservice in retail market in the US.
Current market landscape
While retail foodservice sales suffered in the early stages of the pandemic as retailers scaled operations, demand for convenient freshly prepared food remains strong and retailers continue to enhance their offerings. Nearly nine in 10 consumers report at least occasional purchase and about one third say they do so at least once a week.
To stay competitive with an ever-widening array of easy meal alternatives and cater to increasingly diverse consumer tastes, retailers need to place emphasis on food quality and cuisine variety
Future market trends in US food service retail
To meet the needs of the heaviest users of foodservice in retail, grocery retailers should work both to create more pleasing on-premise dining experiences and to leverage technology for easy online ordering, a dual focus that aligns with the broader efforts to optimize both in-store shopping and ecommerce for groceries overall.
Grocery retailers have a unique opportunity to position prepared foods not as a replacement for home cooking but as a complement to it, aligning with the tendency of heavy users to incorporate prepared foods into their own home-cooked meals.
Read on to discover more about the US Foodservice in Retail consumer market, read our Evolving eCommerce: Grocery Retailing: Incl Impact of COVID-19 – US – June 2020 report, or take a look at our other Food and Foodservice research reports.
Quickly understand food service market research
- The impact of COVID-19 on consumer behavior and the market for foodservice in retail.
- Key drivers for increased usage.
- The attitudes and preferences of the heaviest users of foodservice in retail.
- Menu preferences and interests for foodservice in retail.
Covered in this food service market report
Brands include: H-E-B, Giant, Whole Foods, Walmart, Kroger, Albertson’s, Target, Sam’s Club, Costco, Sprouts, 7-Eleven, Wawa.
This Report excludes prepared foods in convenience stores. For an in-depth analysis of foodservice trends in convenience stores, please look to Mintel’s Convenience Store Foodservice – US, 2021 report.
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 of food service market research to highlight current trends and add expert context to the numbers.
Foodservice in retail suffered in the early stages of the pandemic, but the forces that made foodservice a priority for grocery retailers before the pandemic are as strong as ever. Retailers compete against an ever-widening array of convenient meal options and must meet shoppers’ elevated expectations for variety, quality and convenience.
John Owen
Associate Director, Food and Retail
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Overview
- What you need to know
- This Report looks at the following areas
- Definition
- Market context
- COVID-19: US context
- Economic and other assumptions
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Executive Summary
- Top takeaways
- Market overview
- Impact of COVID-19 on foodservice in retail
- Figure 1: Short-, medium- and Long-term impact of COVID-19 on foodservice in retail, 2022
- Opportunities and challenges
- Demand remains solid with room for further growth
- Figure 2: Prepared food at retail purchase frequency, 2021
- In-home usage most common, but away-from-home offers opportunity
- Figure 3: Prepared food at retail anticipated consumption locations, by purchase frequency, 2021
- Beyond rotisserie chicken: expanding menu variety
- Figure 4: Types of prepared foods and drinks purchased at retail – Foods, by age, 2021
- Both convenience and experience hold appeal for heavy users
- Figure 5: Interest in retail foodservice concepts, by usage frequency, 2021
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The Market – Key Takeaways
- Foodservice spending rebounds
- Food inflation could boost relative value perception of foodservice in retail
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Market Factors
- Pandemic temporarily reversed trends in food spending
- Figure 6: Sales of food at home and away from home, 2018-21
- Amid rising food prices, retail foodservice may be seen as cost-effective alternative
- Figure 7: Changes in consumer price indexes for food, 2019-22
- Desire to limit time in-store altered food and drink shopping habits
- Figure 8: Shopping-related coronavirus lifestyle changes, 2020-21
- Comfort with shopping and dining still impacted by infection rates
- Figure 9: Comfort level with grocery shopping, 2021
- Figure 10: Comfort level with dining in a restaurant, 2021
- Pandemic temporarily reversed trends in food spending
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Companies and Brands – Key Takeaways
- Foodservice can bolster grocery retail’s connection to community
- Plant-based options cater to shoppers interested in healthier eating
- Making easy even easier
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Competitive Strategies and Market Opportunities
- Strengthening a sense of community
- Better-for-you offerings expand with plant-based options
- Added simplicity and convenience
- Ghost kitchens as a mutual relationship between retailers and operators
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The Consumer – Key Takeaways
- Demand remains solid
- Food and experience are key to differentiation and growth
- Younger purchasers look beyond supermarkets
- Beyond rotisserie chicken: expanding menu variety to attract new shoppers
- Both convenience and experience hold appeal for heavy users
- Encouraging creative pairing with fresh foods
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Purchase Frequency
- Demand for prepared foods at retail remains strong
- Figure 11: Prepared food at retail purchase frequency, 2021
- Heavy usage skews young and male
- Figure 12: Prepared food at retail purchase frequency, by gender and age, 2021
- Higher incomes and busy households drawn to foodservice in retail
- Figure 13: Prepared food at retail purchase frequency, by household income, 2021
- Hispanic consumers more likely to be heavy or moderate users
- Figure 14: Prepared food at retail purchase frequency, by race and Hispanic origin, 2021
- Growth potential: more purchasers report an increase in usage
- Figure 15: Year-over-year change prepared food purchase frequency, by gender and age, 2021
- Demand for prepared foods at retail remains strong
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Reasons for Changes in Purchase Frequency
- More than just convenience: the food and the experience are key to growth
- Figure 16: Reasons for purchasing more prepared foods at retail than a year ago, by age, 2021
- Negative comparisons to home cooking drive decreased usage for some
- Pandemic impact eases
- Figure 17: Reasons for purchasing fewer prepared foods at retail than a year ago, 2021
- More than just convenience: the food and the experience are key to growth
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Purchase Locations
- Supermarkets still lead in an increasingly competitive market
- Figure 18: Prepared food at retail purchase locations, 2021
- Younger prepared foods shoppers look beyond supermarkets
- Figure 19: Prepared food at retail purchase locations, by age, 2021
- Supermarkets still lead in an increasingly competitive market
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Consumption Locations
- Most prepared foods eaten at home in the past year
- Consumers don’t anticipate big changes in where they eat prepared foods
- Figure 20: Prepared food at retail past-year and anticipated consumption locations, 2021
- Away-from-home consumption could be key to increasing frequency
- Figure 21: Prepared food at retail anticipated consumption locations, by purchase frequency, 2021
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Types of Foods and Drinks Purchased
- Rotisserie chicken still a core prepared-food selection
- Figure 22: Types of prepared foods and drinks purchased at retail, 2021
- Food choices can be a reflection of lifestage
- Figure 23: Types of prepared foods and drinks purchased at retail – Foods, by age, 2021
- Made-to-order beverages key to connecting with younger adults
- Figure 24: Types of prepared foods and drinks purchased at retail – Drinks, by age, 2021
- Rotisserie chicken still a core prepared-food selection
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Interest in Retail Foodservice Concepts
- Family meal deals could help drive frequency of use
- Grab-and-go represents safer option for convenient fresh food
- Figure 25: Interest in retail foodservice concepts, 2021
- Both convenience and experience hold appeal for heavy users
- Figure 26: Interest in retail foodservice concepts, by purchase frequency, 2021
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Attitudes toward Foodservice at Retail
- Catering to the habits and preferences of heavy users:
- More creative
- More natural, plant-based and local
- Figure 27: Attitudes toward foodservice at retail, by purchase frequency, 2021
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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Appendix – Trend Drivers
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- Figure 28: Mintel Trend Drivers and Pillars
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About the report
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