by Food Trade News Team.
Even the biggest trends come and go. In fact the only constant is change. The previous year was tumultuous and confounding. Few would have imagined the speed of the impact of AI in countless industries, including grocery.
Trends are like a storm system. Some move quickly like an Alberta Clipper – blink and you’ll miss it. While others are like a cold front, lingering for far longer than conceived possible.
With the broad attention we put on trends at the beginning and ending of each year, we thought it appropriate to review the biggest trends currently affecting us.
Budget Constraints Shift Consumer Behavior
First and foremost, value conscious and budget minded consumers are the biggest story for 2025 and we don’t expect to see that change. The economic situation of millions of Americans has driven changes to their shopping behavior in recent years that we expect to continue and grow.
One of the smartest marketers we know told us that shifting consumer behavior is incredibly hard, and once shifted, it becomes hard to change. Aldi is the fastest growing grocery retailer in the country in part because of its discount offerings in a format consumers like. With 2,600 stores by the end of 2025 and expectations for 3,200 by 2028, Aldi is capitalizing on this cost conscious consumer shift.
Almost 90% of Aldi products are private label. We expect private labels to grow as a percentage of overall grocery offerings and to compete heavily against national CPG products as consumers look to slash spending and move to value as they trade down.
LLMs and AI are Everywhere
Moving out of its “shiny new object” phase, AI/LLMs are now being used to manage core functions of the grocery business like: demand forecasting, personalization, inventory management, and dynamic pricing.
The industry – indeed, the world – is barely a year or so into widespread adoption of this new technology and we haven’t begun to see what it can do for operators. Think how different the first Microsoft personal computer was in 1975 to Windows in 1985. It won’t take ten years to see the changes here, we’ll see them start accelerating this year.
Operational efficiencies and loyalty programs will be opened up by AI in ways that retailers have only dreamt about. Being able to personalize customer interactions at scale is going to be a game changer. This isn’t just a grocery story but one for all of society and humanity. Our only hope is that we can stop making those “When the robots take over” jokes…
GLP-1s Are Here… to Stay?
Oprah shared that she was taking Ozempic/GLP-1 type drugs for weight loss way back in 2023. Just as noteworthy when she said she went back on them after a 12-month hiatus where she gained back 20 pounds.
These appetite suppressant drugs can be life-changing, but their true impacts are only now being discovered. What we do know is that shoppers using this medicine cut back on their overall food intake and purchases.
They find less desire for calorie dense foods like snacks and sweets while increasing their intake of healthier fresh produce, dairy and high-protein options. Supplement makers have also benefitted while fast-food has suffered. GLP-1s are continuing to impact shopper behavior and we expect that trend to grow.
Omnichannel Isn’t an Alternative Anymore
Creating a seamless experience across all of a customers’ various touch points used to be an alternative way of marketing. Not anymore. Connecting digital ads, online shopping, websites, in-store, delivery and apps are all just parts of the whole.
The point of all of it is to blend a consumer’s experience from discovery to purchase – regardless of where or how it happens. The goal is to boost sales and loyalty. And the important thing is that it works.
Instead of focusing your marketing and outreach efforts on the “top of funnel,” or “bottom of funnel” – places where consumers start or end their journey right before making a purchase – the goal is to enable your content to help the conversion regardless of where they are.
Take some time to review some of the themes from last year, and check out Phil Lempert’s: 12 Forces that Slammed Grocery in 2025.
