Temporary commodity price deflation could distract packaged food and beverage companies from their long-term unit-volume challenges throughout their portfolio. They will revel in enhanced margins even with flat price points. Things will seem fine again. But when we look at per capita volume trends in packaged food, the story remains bleak.
The implications are troubling for those at the helm of food and beverage companies with large exposure to the U.S. retail food market:
We have a different concern: the food. The biggest long-term challenge facing the U.S. food and beverage industry is that Americans’ overall preference structure is changing much faster than in the mid-twentieth century.
The Hartman Group is uniquely qualified to synthesize consumer and market insights with an eye toward the future of food culture. Learn more about how you can benefit from our approach.
As leaders in the study of American food culture, The Hartman Group has been tracking how Americans shop for food since the 1990s. From one-stop shopping to multichannel shopping to online markets and click-and-collect, we continue to track consumers’ evolving perceptions, needs, habits and relationships with food retailers. New to the 2017 report is a special section on the expansion of the discount grocery channel, the emerging fresh-format channel and smaller-footprint retail formats.