Label Insight, the market leader for transparency, today revealed the top three trends for 2019 based on the consumer mandate for transparency. As discovered in arecent studyby the Food Marketing Institute (FMI), shoppers are demanding greater transparency and a closer connection to their food. Seventy-five percent of consumers are more likely to switch to a brand that provides more in-depth product information, beyond what's provided on the physical label. That sentiment is driving significant changes through the food retailing industry.
Grocery Retailers Will Take the Reins of Health and Wellness An increasing number of grocery retailers is creating transparency-driven, in-store and online experiences focused on delivering better health and wellness information to the consumer. Label Insight is tracking more than 30 retail health and wellness programs in our Explore platform, and expects that number to continue to grow. In 2019, retailers will move beyond health and wellness as brand positioning by leveraging new approaches to data and omnichannel integration. This data will be used to power shelf-edge, in-aisle, marketing, promotions, and online tools that help consumers make personalized choices at the individual product level. Shelf-edge and in-store icon programs from leaders likeRaley's andTarget are the leading edge indicators of what will become the new default setting for grocery shopping experiences.
Category Management Will Be Reimagined to Include Product Attribution Shoppers in today's marketplace demand convenience, personalization, and transparency, and they are more knowledgeable than ever before about their purchases. Many shoppers want to know exactly what a food item is made from, sourced from, and increasingly, the business practices and ethical positions of the manufacturer – before deciding to purchase. One of the keys to delivering these shopper needs is correct product attribution. In 2019, we'll see product attribution evolve beyond existing category taxonomy approaches to include consumer-driven transparency attributes in the management process. Brands that provide high-order attribution will build trust with shoppers and experience market share and revenue increases, even in categories with flat or declining sales.
Better User Experience Will Drive Grocery E-commerce Growth A recenteMarketer report claims that in 2019, more than one in five adults will use a grocery app to order food at least once a month. It also notes that while online grocery sales represent less than 3 percent of all U.S. e-commerce sales, it is one of the fastest-growing categories. Grocery has been considered the golden goose because of the return visit nature of grocery shopping and the potential to develop loyalty through those visits. And although there are many unique logistical challenges to grocery e-commerce, the biggest challenge seems to be developing a user experience that truly reflects and solves the complex needs of today's customers -- the ability to easily find products according to one's specific needs. In 2019, we'll see more powerful search and filtering capabilities based on key attributes powering the next wave of growth. These data-driven capabilities will need to meet three important criteria to drive the market forward: accurate, comprehensive, and consistent.
"Time and time again, consumers have made themselves clear that they want to better understand what's in the products they use and consume and they are willing to vote with their wallets," saidPatrick Moorhead, chief marketing officer at Label Insight. "The need for transparency is driving dramatic shifts in the food retail industry that impact how business as usual is done for both brands and retailers. In response, we've spent the last decade developing proprietary technology with the aim of helping the industry meet these particular challenges, and to master the next wave of innovation. 2019 will be a dynamic year of change and growth."