Despite facing higher food prices, consumers are still looking towards more premium products with more nutrients and less added sodium and sugar, said Jeff Turnas, senior vice president of culinary at Whole Foods Markets.
“There are always fads with grocery shopping that come and go, but what we try to do is stick to our quality standard because good quality food will never be out,” Turnas said.
As inflation persisted in 2024, food prices experienced continued hikes and consumers suffered.
July, though, showed some signs of relief as food-at-home prices rose at a 1.1% annual rate while inflation increased 2.9% — its lowest level on an annual basis since March 2021, according to Consumer Price Index data released last week by the U.S. Bureau of Labor Statistics.
Even as grocery inflation has slowed, though, consumers are still concerned over food costs. This week, Vice President Kamala Harris promised a federal ban on food price-gouging as part of proposed economic policies which she said would help the food industry become more competitive.
Consumers seek value and quality in their purchases.
Keto and paleo, for example, were trending for some time, according to Turnas, but now consumers seem to be more focused on well-rounded whole foods.
Many consumers have also been turning to supplements for added nutrients, or are more focused on how specific spices and supplements have a positive effect on health and wellbeing, said Turnas.
The specialty food ingredient market size, which includes dietary vitamins and supplements, was $112.4 million in 2022 and is expected to reach $168.6 million by 2031, growing at a compound annual growth rate of 5.2%.
The sweetener market, for example, is going through a period of massive innovation, with companies using ingredients like the honey truffle and other sweet proteins to achieve a taste similar to that of sugar.
One way that Turnas said Whole Foods looks to stay ahead of trends like these is to take shopping behaviors of consumers and turn them into products.
With the supplement surge, Turnas noticed an uptick in turmeric. The spice is rich in phytonutrients and has properties that can reduce inflammation and improve gut health.
Couple that with how sourdough bread has been trending on social media, and Turnas saw an opportunity.
The grocer will be coming out with a pumpkin turmeric sourdough bread in the fall.
Developments in research and development have also allowed the grocer to predict shopping behaviors and act accordingly.
“We used to make products based on what we thought people would want, now we can actually test those theories and see them pay off in practice,” he said