Millennials Are Driving the Rise of Supermarket Foodservice, The Grocerant, Reports NPD Group

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Supermarkets are raising the bar on their foodservice offerings and by doing so are attracting the attention of the coveted Millennials, finds recent research by The NPD Group, a leading global information company.

Millennials’ interest in the benefits and experience supermarket foodservice offers will continue to be strong over the next several years,” says David Portalatin, vice president, industry analysis at NPD Group.

Supermarkets are raising the bar on their foodservice offerings and by doing so are attracting the attention of the coveted Millennials, finds recent research by The NPD Group, a leading global information company. Restaurant-quality and fresh food, chef-driven menus, in-store experiences have given rise to the Grocerant and inspiration to Millennials to visit and spend, finds a recently released NPD report, A Generational Study: The Evolution of Eating

In-store dining and take-out of prepared foods from grocers has grown nearly 30 percent since 2008, and accounted for 2.4 billion foodservice visits and $10 billion of consumer spending in 2015, based on NPD’s ongoing foodservice market research. Over 40 percent of the U.S. population purchases prepared foods from grocery stores, and while Millennials use grocery stores less than other generational groups, retail foodservice is gaining traction with them, according to the study that examines the influence of age, generation, life stage, and values on current and future eating behaviors

Consumers rate visits to Grocerants higher than traditional quick service restaurants (QSRs) on variety and healthy options. These attributes are among the most important motivators of purchase and customer satisfaction to prepared foods consumers. Grocery prepared foods are also rated higher on freshness and quality, which are attributes particularly important to Millennials. According to the NPD generational study, which examines how eating behaviors of key generations are set to change as they move through life stages, freshness will remain an important factor in Millennials’ eating behaviors as they go through their life stages.

Another way in which Grocerants are appealing to Millennials is by offering them an experience. Many grocers now offer restaurant-quality food at a lower cost than full service or some fast casual restaurants, and specialty categories like Asian, seafood, Italian, Mexican, and barbeque. Grocery stores are aiming to cater to all dining needs, including hot, custom-prepared grilled meat, food bars, soups, and sushi. A growing number of grocery stores provide comfortable, casual seating for in-store dining and some a full-service restaurant.

“Millennials’ interest in the benefits and experience supermarket foodservice offers will continue to be strong over the next several years,” says David Portalatin, vice president, industry analysis at NPD Group. “This forecast bodes well for food manufacturers and retailers who have their fingers on the pulse of what drives this generational group. Give the Millennials what they want — fresh, healthier fare and a decent price — and they will come.”

About The NPD Group, Inc.
The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup

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Kim McLynn
The NPD Group
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