Latest news with #TheFoodIndustryAssociation
Business Wire
15-07-2025
- Business
- Business Wire
FMI Report: Amid Uncertainty, Food Industry Succeeds in Offering Shoppers Value
ARLINGTON, Va.--(BUSINESS WIRE)--Today, FMI – The Food Industry Association, releases its signature research, The Food Retailing Industry Speaks 2025, which reveals how the industry is evolving into a modern grocery experience while navigating a complex operating environment. The analysis highlights successful strategies across the sector and offers a deeper exploration of how food retailers and suppliers are adapting their businesses. Our industry, long accustomed to operating on narrow margins, is once again feeling economically squeezed, with food retail profit margins settling at 1.7%, while food product suppliers reported a net income of 7.7%, consistent with 2023 figures. Share The food industry continues to face a challenging macroeconomic situation. Approximately 80% of both retailers and suppliers anticipate that trade policies and tariffs will continue to impact pricing and disrupt supply chains. Additionally, most expect operating costs to remain elevated. FMI President and CEO Leslie G. Sarasin reflected on the annual report, saying, 'Our industry, long accustomed to operating on narrow margins, is once again feeling economically squeezed, with food retail profit margins settling at 1.7%, while food product suppliers reported a net income of 7.7%, consistent with 2023 figures. 'These performance pressures remain persistent, and the outlook presented in our recent analysis highlights a broader trend – a sharp rise in costs associated with regulatory actions at the federal and state levels and their impact on the food industry in recent years. As regulatory burdens and complexity continue to grow, our industry braces for even greater costs ahead. With more than half of suppliers and over one-third of retailers expecting increased compliance expenses in 2025, we are focused on advocating for changes to these policies and on providing tools to our members to help reduce the compliance burden.' Despite these hurdles, retailers and suppliers reported significant progress in workforce stability last year due to continued efforts to boost employment incentive offerings. The share of retailers citing recruitment and retention challenges dropped dramatically from 85% in 2022 to just 52% in 2024. Suppliers witnessed an even steeper decline in recruitment and retention challenges, falling from 65% to 28% over the same period. This positive shift reflects substantial investments in talent development across the food industry, specific to enhanced wages, expanded benefits, performance bonuses, and robust training programs that have contributed to a notable reduction in employee turnover – falling to 48% in 2024 from a historic high of 65% in 2022. It is unclear how the current immigration and deportation policy changes will impact these numbers in 2025. Nearly 50% of food retailers and suppliers note the positive impact of consumers leveraging food to manage or avoid health issues, and most are offering products with beneficial nutrition attributes for health and well-being. While shoppers remain concerned about food prices, FMI's recent consumer trends research found customers are willing to invest in key needs related to 'eating well,' including health, entertainment, exploration and convenience. 'While being sensitive to the budgets of consumers, our members are reimagining the grocery store as a destination and one that reflects how today's shoppers want to live and eat,' Sarasin said. 'From expanded fresh offerings and wellness hubs to foodservice solutions and seamless omnichannel experiences, they are focused on delivering quality, personalization and loyalty-driven value at every touchpoint.' For Media: Members of the media may contact FMI for a gratis copy of The Food Retailing Industry Speaks 2025 report. To access online charts, visit About FMI As The Food Industry Association, FMI works with and on behalf of the entire industry to advance a safer, healthier, and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers to producers to companies supplying critical services — to amplify the collective work of the industry.
Miami Herald
06-06-2025
- Business
- Miami Herald
Grocers need to do a better job of explaining prices, shoppers say
Grocery shoppers have only a lukewarm impression of the steps supermarket operators have taken to communicate about factors that could or already do affect what they pay for food, according to survey results released Thursday by research firm The Feedback Group. Respondents to the poll of about 1,100 shoppers, conducted this spring, gave an average score of about 2.5 on a scale of 1 to 5 when asked if their primary grocery store has "communicated in some way" about how tariffs might impact prices. People were only slightly more pleased with the way stores have explained why groceries have become more expensive over the past few years, giving an average grade of just under 3. While people who participated in the survey placed the highest level of blame for increases in supermarket prices over the past few years on government policies and actions, they also indicated that they think grocers are benefiting from price increases. Respondents said they believe grocers have a profit margin of 30%, a figure that was down slightly from a similar poll The Feedback Group conducted last year. Grocery chains recorded a net profit margin after taxes of 1.6% in 2023, according to figures from FMI - The Food Industry Association. The majority (87%) of participants said they expect the tariffs the Trump administration has announced - but not fully implemented - would cause their grocery bills to increase, with only about half saying they thought their costs would increase significantly. Sixty-one percent of respondents said they are "stressed about rising grocery prices," although the figure varied significantly by generation. Seven in 10 participants who belong to Generation X reported that grocery inflation is stressful for them, compared with 65% for Generation Z and 36% for the Silent Generation. Asked which types of groceries they expect to become more expensive because of tariffs, almost 90% of poll participants said they think the prices of imported foods would increase. Two-thirds believe household goods will become pricier because of tariffs, while 63% of respondents said they think meat and poultry costs would go up. More than 60% of participants said they are buying more items on sale because of grocery inflation, which has recently eased. Half said they eat at home more frequently, while about 40% have bought more private label products. Copyright 2025 Industry Dive. All rights reserved.
Yahoo
23-05-2025
- Health
- Yahoo
The Food Recall System Is Broken, and Experts Say We're All at Risk
Recall alerts are often delayed, with serious cases taking three to five weeks — or even longer — to be officially classified by the FDA. Most consumers never see recall notices, with only 13% visiting recall websites and just 3% subscribed to alerts, according to behavioral research. Experts say the system fails to reach at-risk communities, citing vague language, legal limitations, lack of direct consumer contact, and poor communication tools as major you hear about a food recall — whether through the news, social media, or a grocery store sign — it's often already been days or even weeks since the issue was first identified. In many cases, the most serious recalls aren't even officially classified by the U.S. Food and Drug Administration (FDA) until three to five weeks after the problem is discovered. At this year's Food Safety Summit, a panel of public health and industry experts convened to examine this exact breakdown. Their focus wasn't solely on how recalls are issued — but on why so many still fail to reach the individuals they're meant to protect. Despite better tools, more data, and increased urgency, experts say the way we communicate recalls continues to fall short. Although high-profile recalls often grab headlines, the actual number of U.S. food recalls has remained fairly consistent in recent years. 'It feels like there are more recalls,' said Hilary Thesmar, chief science officer at The Food Industry Association (FMI). 'But when you look at the numbers, we're seeing a pretty steady baseline.' Related: Recalls Are Rising: This Is How Food Safety Experts Decide What's Safe to Eat The FDA typically posts more than 175 public recall alerts each year, while the U.S. Department of Agriculture (USDA) manages fewer, generally between 30 and 60 annually. However, classification can be slow, even for the most serious cases. 'It takes about three to five weeks to classify a Class I recall,' Thesmar said. 'In one case, it took almost three years.' Dr. Donald Prater, principal deputy director for Human Foods at the FDA, echoed the concern: 'Getting products off the shelves rapidly — that's what the whole process is about.' Technically, recalls happen. Products are flagged. Notices are posted. However, the way that information travels — or fails to — still leaves too many consumers in the dark. Dr. William Hallman, a behavioral scientist and professor at Rutgers University, shared years of research on how people actually respond to recall messaging. His findings point to a system that assumes far too much from the public. 'Only 13% of Americans have ever visited a government website for food recall information,' Hallman said. 'And just 3% are subscribed to emails or text alerts.' Even when notices are received, many consumers don't take action. Some don't believe the product is genuinely dangerous. Others simply don't know how to identify what they bought. And far too often, communication is vague — relying on phrases like 'out of an abundance of caution' or 'no illnesses reported to date,' which can unintentionally downplay urgency. 'We're great at selling food to specific people,' Hallman said. 'We're terrible at getting it back.' Despite the hundreds of food recalls issued each year, many Americans either never learn about them or don't realize that the products in their own kitchens are affected. Hallman pointed to a key flaw: Even when recall notices go out, they often aren't designed to be useful. Identifying affected products is often challenging. Lot codes can be confusing, expiration dates are printed in illegible fonts, and many items — such as fresh produce — lack any identifying labels. In some instances, the individuals most impacted never see the notice at all. 'Recall notifications are typically written — and only in English,' Hallman noted, pointing to immigrant and food-insecure communities as especially vulnerable. 'If we want people to act, we have to be clearer.' Dr. Prater acknowledged the need for improvement, stating that 'we have more tools now to reach consumers — and we need to use them better.' He said improving the effectiveness of communication, not just volume, is one of the agency's top priorities. 'Speed and communication are essential,' he said. 'But we also know we can't do this alone.' Related: Hospitalizations and Deaths From Contaminated Food Doubled in 2024 — Here's Everything You Need to Know Panelist Amy Philpott, a crisis communications expert and founder of Philpott PR Solutions, highlighted a significant gap: many manufacturers lack a direct line to consumers. 'The first notice often comes from the wrong messenger,' she said. 'Firms often don't know exactly where their product was sold, especially if it moved through multiple distributors.' Even when they do, legal limitations can stall or strip recall notices of essential context. 'A public notice is a legal document first — which means it often doesn't say what people need to hear,' Philpott added. She also noted that many companies actively avoid using social media during recalls for fear of consumer backlash. 'That silence can backfire,' she warned, especially when other tools for reaching consumers are already underperforming. The recall panel didn't conclude with a single solution, but it did provide a rare kind of clarity. As Dr. Darin Detwiler, food safety advocate and author of Food Safety: Past, Present, and Predictions, put it: 'Recall readiness cannot be built on best-case scenarios. It must be grounded in true likelihood — not what's convenient or comfortable.'Delays, confusing language, legal hedging, and poor visibility not only render the system inefficient but also diminish its trustworthiness. 'Every time we hesitate or delay, there's not just the opportunity — but the reality — that someone pays the price,' Detwiler said. Read the original article on Food & Wine
Miami Herald
09-05-2025
- Business
- Miami Herald
How Gen Z's power over the grocery industry is growing
It's time for grocers to pay more attention to Generation Z. That generation, which includes consumers as young as 13 and as old as 28, is projected to be the most connected, influential and populous generation to date, with an estimated buying power of $12 trillion by 2030, per a recent report by FMI - The Food Industry Association and NielsenIQ. Catering to Gen Z allows grocers to keep up with ever-changing food trends as well as create impactful and memorable omnichannel shopping experiences. Look for grocers to continue building out e-commerce offerings while simultaneously updating in-store experiences. With Gen Z's influence rising, it would serve grocers well to download TikTok and get to know these teens and twenty-somethings. To that end, here's a collection of our recent coverage on this rising generation of shoppers. Copyright 2025 Industry Dive. All rights reserved.
Business Wire
07-05-2025
- Business
- Business Wire
FMI Unveils Key Trends Shaping the Future of Food Shopping: Consumer Tradeoffs, Grocery Sentiment and the Future of SNAP
ARLINGTON, Va.--(BUSINESS WIRE)--American consumers continue to enjoy grocery shopping and have kept their shopping habits remarkably consistent despite persistent economic challenges, according to the latest annual survey by FMI – The Food Industry Association, conducted by The Hartman Group. The analysis, which kicks off FMI's 2025 series, U.S. Grocery Shopper Trends: The Logic of Food Shopping, offers timely insights into consumer grocery shopping behaviors and shoppers' logic behind food budgets and shopping decisions. Our U.S. Grocery Shopper Sentiment Index is currently holding steady at 72 out of 100. FMI found that despite several years of economic uncertainty, shoppers' attitudes and habits around grocery shopping have remained stable. To better understand this dynamic, FMI explored shopper aspirations to 'eat well,' an outlook that forms the foundation for how shoppers think about value and shapes their choices about what food to buy, how to cook and where to shop. 'Despite the economic pressures they face, consumers overwhelmingly tell us they enjoy grocery shopping and that they are willing and able to budget in order to 'eat well' based on their specific values and needs,' said Leslie G. Sarasin, president and CEO of FMI. 'In fact, our U.S. Grocery Shopper Sentiment Index is currently holding steady at 72 out of 100. While individual needs vary, by and large, most shoppers prioritize four things when shopping for food: health, entertainment, exploration and convenience. Satisfying these key needs are important to shoppers, and they tailor their overall budgets and food spending behaviors to ensure they 'eat well'.' Still, several factors are weighing on consumers. Most Americans (70%) say they are extremely or very worried about rising grocery prices, and 78% said they are at least somewhat concerned about the impact of tariffs on the cost of imported food and ingredients. The analysis revealed a silver lining: most consumers (75%) report feeling in control over their grocery spending. However, that confidence has declined in recent months; 85% of consumers expressed confidence in control over food spending in September 2024. In response, shoppers report using various strategies to stretch their food budget further. Traditional methods like list-making (83%), taking household inventory (79%), meal planning (69%), and seeking out coupons or discounts (60%) remain the most common. Sarasin emphasized, 'Our latest grocery shopper research underscores a critical opportunity for the industry to meet their customers where they are—navigating rising costs and economic uncertainty—while reinforcing the importance of the Supplemental Nutrition Assistance Program, SNAP, a vital anti-hunger program that provides just $6 a day to those most in need.' 'The American public is clear on this: 70% support SNAP, and a majority oppose any effort to reduce its funding, according to an FMI national survey by leading pollster, Fabrizio, Lee & Associates. The future strength of this program isn't just a policy issue—it's a moral imperative and an economic necessity.' For Media: Members of the media may contact FMI for a gratis copy of the U.S. Grocery Shopper Trends 2025: The Logic of Food Shopping report. Learn more and find related resources at Access the Fabrizio, Lee & Associates survey commissioned by FMI via Methodologies: FMI's U.S. Grocery Shopping Trends 2025 study consists of qualitative and quantitative research among a representative mix of 2,019 shoppers across the country. The research is designed to provide insights into the who, what, where, how, and most importantly, the why of grocery shopper behavior. With a representative sample of shoppers, we are able to look at these behaviors and attitudes by a range of demographics, household structures, income levels, orientations to food and cooking, shopping habits, and geographic areas across the U.S. The findings further FMI's 51 years of year-over-year shopper research. On behalf of FMI, Fabrizio, Lee & Associates conducted a national survey of 1,000 registered voters from April 21-23, 2025. The interviews were split 35% live-operator cell phone/25% live-operator landline/40% SMS to web. Gender, age, race/ethnicity, party registration/affiliation, and education were matched to demographic profiles of registered voters based on voter file data and census data on registered voters. Respondents were randomly selected from lists of registered voters. The margin of sampling error at the 95% confidence interval is ±3.1%. About FMI As The Food Industry Association, FMI works with and on behalf of the entire industry to advance a safer, healthier, and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers to producers to companies supplying critical services — to amplify the collective work of the industry.
