CINCINNATI, Dec. 3, 2024 /PRNewswire-PRWeb/ — dunnhumby, the global leader in customer data science, today released a special report revealing the rising importance of health-focused consumers in the U.S. grocery market. The key finding of the Better for You (Customer), You (Brand), and You (Retailer) report is that health-conscious shoppers represent a $285 billion annual opportunity, comprising 33% of the population and driving significant market trends.
Top Performers in Health-Focused Retail
Natural Grocers, Amazon Fresh, and The Fresh Market emerged in the report as the leading retailers for health-conscious consumers, with 60% of their customers focused on health, compared to just 32% for the average U.S. retailer.
“This groundbreaking report provides a blueprint for meeting customers’ health needs now and into the future. As the grocery landscape continues to evolve, understanding and adapting to these health-centric consumer trends will be crucial for retailers and brands.”
The report also found that 64% of U.S customers rank physical health as the most important need for them, ahead of financial health (58%) and mental health (55%). More than half of customers expect a high level of support from retailers and brands with products, services, and information for these three top needs.
Key findings from the study include:
- Health-focused customers are worth $285 billion to the grocery industry every year, around 20% percent of the 1.7 trillion-dollar industry, and representing 33% of the population. Retailers who over-index to this customer segment experience a long-term grocery sales growth (5-year compound annual growth) average of 7%.
- Health-focused customers tend to be younger (18-44), have more children, have higher incomes ($100,000+), and have larger monthly grocery budgets. They also exhibit more omnichannel and loyalty behaviors than their less-health-focused counterparts.
- Health-focused customers care most about quality (63% versus 47%), digital (45% versus 30%), and values (55% versus 31%) and less about price (64% versus 71%) than their less health-focused counterparts.
- The future GenZ customer is reshaping health behaviors. Sixty-one percent of GenZ shoppers care most about mental health, 15 points higher than those between 45-54, and double that of those 75 years old and over. Similarly, GenZ and Millennials exhibit and invest more in values than their older counterparts.
“With health and wellness predicted to be the most critical trend for decades, retailers and brands have unprecedented opportunities to meet emerging customer needs.” said Matt O’Grady, President of the Americas for dunnhumby. “This groundbreaking report provides a blueprint for meeting customers’ health needs now and into the future. As the grocery landscape continues to evolve, understanding and adapting to these health-centric consumer trends will be crucial for retailers and brands aiming to remain competitive in an increasingly wellness-oriented market.”
Brands and retailers can improve their standing with health-focused customers by getting a better understanding of the nine dimensions of health that reflect a more holistic understanding of consumer priorities, ranging from physical and mental health to environmental and financial wellness.
Better for You (Customer), You (Brand), and You (Retailer) is available for download today and includes the top performing retailers for the future, alongside actionable strategies for retailers and brands to invest in health dimensions that matter most to consumers.
Methodology
For the report, dunnhumby included the largest 73 U.S. retailers in the industry that sell everyday food and non-food household items. To identify the dimensions of health that matter most to customers, the behaviors that define Better-for-You shoppers, the elements (or needs) of the customer value proposition that matter most to them, and the best positioned retailers with these same shoppers, the company relied on two key resources: dunnhumby’s Consumer Trends Tracker (CTT) and dunnhumby’s Grocery Retailer Preference Index (RPI).
The RPI is the grocery industry’s most robust statistical model and contains over 70,000 consumer survey responses conducted annually since 2017. The CTT — a long-term study that tracks the evolution of customer behavior over time on key trends — has 14,000 consumer survey responses over the seven waves of the report which first published in April 2022. The company also conducted extensive desk research reviewing more than 100 articles and white papers for the report.
About dunnhumby
dunnhumby is the global leader in Customer Data Science, empowering businesses everywhere to compete and thrive in the modern data-driven economy. We always put the Customer First. Our mission: to enable businesses to grow and reimagine themselves by becoming advocates and champions for their Customers. With deep heritage and expertise in retail – one of the world’s most competitive markets, with a deluge of multi-dimensional data – dunnhumby today enables businesses all over the world, across industries, to be Customer First.
The dunnhumby Customer Data Science Platform is our unique mix of technology, software, and consulting, enabling businesses to increase revenue and profits by delivering exceptional experiences for their Customers – in-store, offline and online. dunnhumby employs over 2,500 experts in offices throughout Europe, Asia, Africa, and the Americas working for transformative, iconic brands such as Tesco, Coca-Cola, Meijer, and Procter & Gamble.
Media Contact
Theresa Smith, dunnhumby, 818-704-8481, TLS@PATHWAYPR.COM, https://www.dunnhumby.com/
