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Despite rising food prices, consumers are still looking for premium products with more nutrients and less added sodium and sugar, says Jeff Turnas, senior vice president of culinary at Whole Foods Markets.
“When it comes to grocery shopping, there are always fads that come and go, but we try to stick to our quality standard because quality food never goes out of style,” Turnas said.
As inflation continued in 2024, food prices continued to rise and consumers suffered.
In July, however, there were some signs of easing, as Food prices rose by 1.1% annually while inflation rose 2.9%, its lowest annual level since March 2021, according to consumer price index data released last week by the U.S. Bureau of Labor Statistics.
Even though inflation in the food retail sector has eased, Consumers remain concerned about food costsThis week, Vice President Kamala Harris promised a nationwide ban on price gouging on food as part of the proposed economic policy which, they say, should help to increase the competitiveness of the food industry.
Consumers value value and quality when making purchases.
For example, according to Turnas, keto and paleo were trendy for a while, but now consumers seem to be focusing more on balanced, whole foods.
Many consumers also turn to dietary supplements to get additional nutrients or are more aware of how certain spices and supplements have positive effects on health and well-being, Turnas says.
The specialty food ingredients market, which includes vitamins and dietary supplements, was valued at $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 phase of massive innovation, with companies introducing ingredients such as honey truffles and other sweet proteins to achieve a taste similar to that of sugar.
Turnas said Whole Foods is trying to stay ahead of such trends by translating consumer shopping behavior into products.
With the rise of supplements, Turnas noticed a rise in turmeric. The spice is rich in phytonutrients and has properties that can reduce inflammation and improve gut health.
Added to this was the trend for sourdough bread on social media, and Turnas saw this as an opportunity.
The grocer will release a pumpkin-turmeric sourdough bread in the fall.
Advances in research and development have enabled grocery retailers to predict shopping behavior and act accordingly.
“We used to make products based on what we thought people would want. Today we can actually test those theories and see how they pay off in practice,” he said.
