Americans Now Spend More at Restaurants Than Grocery Stores

Data shows that millennials, in particular, are gravitating toward prepared foods

In an interesting reversal of historic trends, more money is now being spent at restaurants than at grocery stores. According to Quartz, "retail sales at U.S. eating and drinking establishments have outrun those of grocery stores [over the last year], upending a longstanding pattern in which the bulk of American spending on food occurred at the supermarket."

Consumers are, however, still shopping at grocery stores. Increasingly, though, they're shopping prepared foods rather than raw ingredients. Business Insider reports that millennials, in particular, are spending their hard-earned dollars at "grocerants," grocery stores offering freshly prepared, restaurant-quality meals.

According to a report by NPD Group, the consumption of prepared foods from grocers has grown nearly 30 percent since 2008.

The prepared foods market is growing in popularity at the same time the meal kit industry is booming. Meal kits, which offer consumers pre-portioned ingredients and recipes delivered direct to their doorstep (and therefore require cooking but no actual grocery shopping), have become a $1.5 billion industry — and growing.

There are currently more than 150 brands aiming to bridge the gap between takeout and from-scratch home cooking and more startups continue to join the fray. Fabian Siegel, co-founder of meal kit service Marley Spoon recently offered researchers at Packaged Facts his prediction for the future of the grocery industry: "Supermarkets will be replaced: Amazon will take care of the pantry; meal kit delivery services...will take care of the 'what we are cooking tonight.'"

from Eater - All http://ift.tt/1UQCLUR
via IFTTT