During the recession, foodservice and on-premise channels struggled as consumers began eating and drinking at home more often to save money. As the economy started to improve, shoppers slowly returned to their pre-recession habits, which included dining out more often and making fewer shopping trips, according to analysts. As a result, revenue for supermarkets and grocery stores declined in 2011 and 2012, reports Santa Monica, Calif.-based IBISWorld. However, revenue slightly increased last year because of increasing consumer demand for premium brands as well as private-label products, notes the firm’s October 2013 report “Supermarkets & Grocery Stores in the US.”
“Both [premium and private-label products] have been rising in popularity among consumers,” says Jeffrey Cohen, industry analyst for IBISWorld. “This is largely due to continued economic recovery and increases in per capita disposable income due to declines in unemployment.”