Clarkston’s team of grocery consultants have highlighted the top grocery industry trends that businesses should consider. See an excerpt of the trends report below, and read all 5 trends for 2025 by downloading the full report here.

2025 Grocery Industry Trends

The grocery retail landscape in 2025 stands at a transformative crossroad, shaped by technological innovation, evolving consumer preferences, and persistent economic pressures. Five key trends are fundamentally reshaping how consumers shop and how retailers operate: a heightened focus on value and affordability driven by inflation, the strategic implementation of artificial intelligence, evolving approaches to pricing and promotion, enhanced in-store experiences through personalization, and the acceleration of digital integration and omnichannel shopping. These interconnected trends reflect a grocery industry that is rapidly adapting to meet the demands of increasingly sophisticated consumers who expect both value and convenience, while navigating the complex balance between digital innovation and human connection. We outline these 5 grocery trends below. 

Trend #1: Focus on Value and Affordability – Inflation is Changing Consumer Behavior

The persistent impact of inflation continued to transform the grocery industry in 2024, extending a shift in consumer behavior that prioritizes value over traditional brand loyalty, as evidenced by several striking statistics: 41% of shoppers now strategically stock up during sales, while 37% have either reduced their purchases or switched to less expensive alternatives. Most telling is that 35% of consumers have transitioned from national brands to private-label options, signaling a dramatic realignment in shopping priorities. 

The evolution of consumer loyalty presents both challenges and opportunities across the grocery ecosystem. Only 55% of shoppers maintain steadfast loyalty to their primary grocery store, with this figure varying significantly across demographics – Baby Boomers (61%) and affluent consumers (64%) show higher loyalty rates, while 50% of millennials are open to shopping at alternative stores for better savings. This shift has created a new shopping paradigm where consumers increasingly split their grocery purchases across multiple stores and platforms, hunting for the best value propositions regardless of store allegiance. 

For grocery retailers, this value-conscious environment has catalyzed a strategic pivot toward private-label expansion, with over 90% planning to increase their private-label investments over the next two years. This isn’t merely a defensive move – private labels have evolved far beyond their traditional “generic” perception, with 72% of shoppers citing good value and 71% noting price as primary purchase drivers. The transformation is so profound that analysts project private-label market share could reach 30% by 2033, mirroring European market trends. Frans Muller, President and CEO of Ahold Delhaize, shared their goal to make private label 45% of total food sales by 2028. Leading retailers like Aldi and Trader Joe’s are already demonstrating potential, with private labels comprising 80% and 69% of their sales, respectively. 

For national brands, this shift presents challenges requiring innovative responses. “Innovation has traditionally been a key to regaining lost share for name brands, and it’s clear consumer packaged goods companies are moving in that direction,” said Billy Roberts of CoBanks. “ConAgra, Hershey, and others have recently announced initiatives to increase their innovative launches, principally to regain lost share and fend off further incursion by private label offerings.” Success demands more than mere price competition – brands must differentiate through compelling storytelling, breakthrough innovation, and stronger emotional connections with consumers. Quality perception of private labels has improved dramatically since the 2008 recession, forcing national brands to justify their premium pricing through clear demonstration of superior value, unique features, or innovative offerings. 

The implications for consumers are equally profound. While inflation has squeezed household budgets, it has also sparked more sophisticated shopping strategies. Consumers are increasingly leveraging a combination of tactics – using more coupons (34%), adhering strictly to shopping lists (32%), and taking advantage of loyalty programs. Remarkably, 90% of shoppers indicate they’ll continue buying private brands even if inflation subsides, suggesting a permanent shift in consumer behavior rather than a temporary response to economic pressures. 

Looking ahead, the grocery industry’s future will be shaped by this renewed focus on value. Retailers are responding with enhanced loyalty programs, increased investment in store-brand innovation, and more sophisticated pricing strategies. The winners in this evolving landscape will be those who can effectively balance quality with affordability while maintaining strong consumer connections through personalized experiences and targeted savings opportunities. For both retailers and brands, success will require a deep understanding of their customers’ definition of value – a metric that increasingly encompasses quality, convenience, and price in equal measure. 

Trend #2: Artificial Intelligence – Prioritizing Consumer Trust While Delivering Operational Excellence 

Artificial intelligence (AI) stands as a defining force reshaping grocery retail in 2025, with industry analysts projecting a remarkable $136 billion in potential value to be unlocked in the industry by 2030. Over the past few years, AI capabilities have quickly evolved from ideation and pilots to implementation of real-world use cases delivering ROI across business functions. On the stage at Groceryshop 2024, various retailers shared examples of how they have incorporated AI into their processes and technology. Caleb Carr, Director of Data Science and Engineering from Schnuck Markets, described how they are using generative AI to generate copy for marketers, as well as their upcoming focus on “team productivity” to use AI in providing store associates with key policy and guideline information in real-time. Retailers are also leveraging sophisticated AI systems to tackle persistent industry challenges, particularly in inventory management, where traditionally over 30% of food supply is lost to waste. Krystyna Kostka, SVP of Operations at BJ’s Wholesale Club, provided examples of how they are using AI-powered robots to drive in-store intelligence, providing in-store visibility to inventory and guidance to store employees for stocking shelfs, as well as other inspection capabilities like planogram compliance.  

However, the journey toward AI integration reveals significant industry-wide challenges. In a recent report from Grocery Doppio, budget (73%) was the most common reported challenge in adopting AI, followed closely behind by technical challenges (71%) such as infrastructure, data, and integration. Notably, 43% of respondents reported a lack of AI strategy as a barrier for adoption. These obstacles underscore the complexity of digital transformation in an industry traditionally focused on physical operations. Moreover, retailers face a nuanced landscape where consumer preferences vary significantly across demographics. While younger shoppers readily embrace AI-driven innovations, a substantial 56% of overall consumers express hesitation about sharing personal data with AI systems, highlighting critical privacy concerns that retailers must address. 

Looking ahead, the future of grocery retail hinges on thoughtful AI implementations that prioritizes consumer trust while delivering operational excellence. Smart shopping carts equipped with personalized offer displays, AI-powered chatbots providing instant customer or store associate support, and sophisticated inventory management systems are becoming standard features rather than exceptions. This technological shift represents not just an operational upgrade but a fundamental reimagining of the grocery shopping experience, promising enhanced convenience for consumers, improved efficiency for retailers, and more effective engagement opportunities for brands. As the industry continues to evolve, success will increasingly depend on retailers’ ability to implement these AI solutions while maintaining consumer trust and delivering the personalized, efficient shopping experience that modern consumers demand. Continue reading by downloading the full report below.

Download the Full 2025 Grocery Trends Report Here