Where Consumers Shop for Staple Foods

Delivery

This report comes in PPT.

Key Findings

Sales of staple foods continue to rise

In 2024, sales of staple foods continued to rise, sustaining the momentum gained during the pandemic. Despite ongoing inflationary pressures, both constant value and volume sales increased, however value growth did outpace volume growth. As essential components of most meals, staple foods have benefitted from the rise in at-home meal preparation, driven by hybrid work styles and consumers' efforts to reduce spending on more expensive foodservice options.

Discounters, warehouse clubs and local grocers thrive

Discounters and warehouse clubs are rapidly growing in many countries, gaining market share with private label products that cater to value-conscious consumers. Small local grocers are also increasing their presence by offering small pack sizes at competitive prices, appealing to budget-sensitive shoppers in emerging markets.

Grocery e-commerce faces new challenges as options expand

The share of staple food sales through grocery e-commerce has increased, building on the boost from the pandemic. However, consumers now have a wider array of grocery shopping options, both offline and online. Importantly, consumers are becoming more discerning about the extra cost associated with the convenience of online shopping. Offering value other than convenience is required to stand out in the crowd.

Stable demand for staple foods as essential goods

Although inflation is decreasing in many countries, the prices of numerous products and services remain a concern for consumers. Staple foods, being essential, are likely to benefit from frugal spending habits. The cost-of-living crisis is driving consumers to prioritise their expenditures and seek value, both in their choice of goods and shopping venues.