Health stores may need to adapt as lifestyle grocery takes growing market share

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Health food retailers may need to adapt to changing consumer preferences says Health Stores Ireland, as a new survey shows an increasing appetite for experiential and convenient shopping options.

New polling of 220 regular health store shoppers carried out by the trade association  shows they spent around 60% more in lifestyle grocery/delicatessen outlets than in local health stores (€247 versus €158, out of an average monthly €1,000 household spend across all relevant channels).

The increasing share of spend in lifestyle grocery in Ireland reflects the growing presence of these types of retail outlets on local high streets since the pandemic, together with a growing consumer preference for experiential and convenient shopping options. 

Commenting on the headline findings, Health Stores Ireland chair, Leroy Smith, told Health Food Business: “The level of spend via lifestyle grocery/delicatessen outlets is a significant finding and suggests that traditional health stores may need to adapt to changing consumer preferences. By investing in experiential retail formats and developing online channels retailers can remain competitive and meet the evolving needs of health conscious consumers”.  

Other striking findings include a strong preference for in-person shopping at dedicated health stores (94% preference – with online/home delivery, in-store supermarket/grocery and in-store pharmacy rated 31%, 26% an 15% respectively). When it comes to technology adoption, mobile app based loyalty schemes get strong backing (54% preference) from health store shoppers, suggesting a significant customer retainment opportunity for retailers who have not yet explored them.  

Other key insights from the survey show: 

  • Health goals are diverse but digestive health (69% preference) and sleep quality (59%) are primary concerns, followed by energy improvement and stress reduction
  • Gut health tops the list of emerging health food categories (73% preference), followed by natural skin care (48%) and immunity boosters (45%) 
  • Local sourcing and price are the most important purchase factors, followed by organic certification and environmental considerations
  • Staff expertise is the most trusted information source (68% preference), followed by health professionals 
  • Mediterranean (30%) and plant-based diets (21%) are the most popular dietary approaches, followed by gluten-free (11%) and intermittent fasting (10%)

Talking to Natural Newsdesk, Health Stores Ireland’s national adviser, Alan McGrath, said: “We plan to repeat the survey which will then begin to give us a better understanding of some of the biases that are perhaps locked into its beta format findings. Longer term, I think the real value will be looking back at a set of findings and being able to track trends and spot new business opportunities. I also think that gathering all this information in one place where members and partners can all access it to better inform their own business  decision-making will be really useful for the whole trade.”

Photo by Bri | Content Writer on Unsplash

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