Sales of Edible Grocery products slowed but remained positive in 2023, with average sales per store increasing by 4.1% to $104,737. This growth rate is a decline from the robust 14.8% increase seen the previous year, indicating a slowdown in the growth trajectory of the category.
Other dairy/deli products led the category in dollar sales growth, increasing by 7.7%, and maintained their position as the top-selling segment by a substantial margin. Meanwhile, frozen foods, condiments, packaged bread, and other edible grocery items posted modest growth. However, breakfast cereal and packaged coffee/tea experienced declines, with sales per store dropping by 2% and 4.7%, respectively.
Total industry sales of Edible Grocery rose by 5.7% last year, marking a significant drop from the nearly 15% growth in 2022. Notably, the total unit volume for edible grocery declined for the first time in the last five years, falling by 1.4%. Despite these changes, the category’s share of in-store sales remained relatively stable at 5.5%.
In conclusion, while the Edible Grocery segment saw slower growth in 2023, it managed to stay in the green, thanks largely to the performance of dairy and deli products. The decline in growth rate and unit volume indicates that the category is experiencing a period of adjustment after the rapid expansion seen in previous years. Retailers and suppliers may need to innovate and adapt to sustain growth in the face of evolving consumer preferences and market conditions.
Source: Hanson, Angela and Linda Lisanti. “A Trying Year: Inflation, Higher Operating Costs and Lower Fuel Prices Took Their Toll in 2023.” Convenience Store News, Industry Report 2024
