What’s New in Retail Grocery
Consumer behavior continues to evolve rapidly across the grocery landscape, shaped by inflation, shifting priorities, and digital convenience.
E-Grocery surges, with delivery driving growth. In May 2025, U.S. e-grocery sales surged to $8.7 billion, marking a 27% year-over-year increase, according to Brick Meets Click. This growth was largely fueled by a massive 70% jump in delivery order volume, while pickup orders saw a slight decline of about 4%, and ship-to-home sales rose by 21%. The sharp increase in delivery reflects evolving consumer preferences, particularly among mass and grocery retailers, as shoppers increasingly prioritize convenience, speed, and flexible fulfillment options.
Delivery Insights: Delivery Dominates E-Grocery Growth
For retail advertisers, this trend underscores the accelerating shift toward online grocery shopping and the need to align media strategies with evolving customer behaviors. As delivery becomes the dominant growth driver, advertisers have new opportunities to influence purchase decisions close to the point of fulfillment, from targeted promotions to personalized offers. Retail brands that can connect with customers across digital channels and highlight delivery convenience will be better positioned to capture market share in this rapidly expanding e-commerce space.
Delivery-first consumers emphasize the need for media strategies that highlight convenience, speed, and subscription benefits, especially across paid search, social, and CTV channels.
Beef Prices Soar, Becoming the New Measure of Inflation. Beef has emerged as the new eggs, a previously affordable staple now signaling inflationary pressure. Just as egg price spikes once underscored supply shocks and rising costs, soaring beef prices now reflect broader economic strain.
Pricing Insights: Beef Becomes the New Economic Signal
Consumer budgets are under stress, particularly as beef often takes a significant share of the protein basket. While falling egg prices provide some relief, the soaring cost of beef offsets those gains.
Sustained beef purchases, even in the face of tightening household spending, suggests that consumers prioritize trusted, versatile protein.
Beef now serves as a macroeconomic indicator, akin to eggs in prior cycles. Persistent high prices and resilient demand make beef both an economic bellwether and a source of consumer friction.
Produce Surges Despite Inflation as Health, Deals, & Digital Lead the Way. The Packer’s Fresh Trends 2025 survey reveals that despite inflation and economic uncertainty, fresh produce remains a priority for consumers, especially younger generations, with 75% of Millennials and 78% of Gen Z reporting increased consumption.
Pricing Insights: Fresh Produce Defies Inflation
Shoppers are open to trying new fruits and vegetables, heavily influenced by promotions, social media, and health priorities.
However, economic pressures are impacting behavior, with 90% noticing price increases, 66% buying more online, and many opting for store brands or cutting back on value-added and organic produce.
Retailers and brands must balance health messaging with value-driven promotions, leverage social media for product discovery, and optimize fresh offerings across both in-store and online channels to capitalize on sustained demand amid economic uncertainty.
Source: https://www.thepacker.com/news/retail/fresh-trends-2025-driving-demand-age-uncertainty
Retail Media Networks Go In‑Store as Screens & Audio Amplify Shopper Touchpoints. Supermarket News reports that in-store messaging platforms including digital display screens in entryways, delis, pharmacies, and checkout lanes, as well as audio broadcasts, are becoming essential components of Retail Media Networks (RMNs). Retailers like Hy‑Vee, Walmart, and Kroger are rolling out these tools to deliver targeted brand messages at key points of rest and purchase, enhancing visibility and shopper engagement inside the store.
Retail Media Network Insights: Retail Media Moves In-Store
These in-store media surfaces complement online RMN efforts, thanks to their vast reach. Walmart reports monthly in-store audiences of 212 million versus 125 million online. Industry estimates suggest U.S. RMN ad spending could nearly double from $50 billion in 2023 to $106 billion by 2027.
In-store media offers brands high-impact, contextually relevant touchpoints at the moment of purchase, expanding RMNs beyond digital channels and enabling retailers to capitalize on their in-store audience scale.
For more information, visit harmelin.com, or connect with us on LinkedIn or Facebook.
