Research shows consumers contemplate how their their food affects health, environment

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Consumers continue to pay close attention to the impact of their food choices on their health and the environment, which spills over into their retail experience. According to research from NielsenIQ, “the pandemic only served to increase the pace of this trend as health took center stage for millions of Americans.”

Inflation has slowed this trend, but research shows it will continue to grow through 2025 and beyond. Here are three things to keep in mind as you market your product to consumers and work on promotions with your retail customers.

Inflation and price sensitivity

Inflation continues to play a significant role in shaping the fresh food market, with rising prices altering how consumers approach their grocery purchases. Many households are prioritizing essentials, often scaling back on premium items or purchasing in smaller quantities to stay within budget. This price sensitivity is driving a surge in demand for value-oriented options, such as private-label products and bulk purchasing, as consumers look for ways to stretch their dollars without compromising on essentials.

However, fresh food remains a key priority for many consumers, especially those who view it as integral to health and wellness (see below). As a result, shoppers are making deliberate trade-offs between quality and affordability. Some are willing to pay a premium for organic or locally sourced produce, while others are opting for conventionally grown items or smaller portions to manage costs.

Brands and retailers that strike the right balance between price and perceived value — whether through promotions, tiered product offerings or messaging around quality — are better positioned to capture the loyalty of health-focused consumers in 2025 and beyond.

Sustainability in fresh food

Consumers care about sustainability, and they’re backing it up with their wallets. In the NielsenIQ Green Divide report, 92% of consumers say that sustainability is important when choosing a brand. New and emerging claims around regenerative agriculture, carbon footprint, water footprint and responsibly sourced are emerging and growing rapidly.

Make sure to leverage sustainability attributes on your packaging or in the product descriptions to highlight your alignment with sustainable practices and meet shifting consumer needs.

Health & wellness priorities

Health and wellness continue to be powerful drivers of fresh food purchases, with consumers prioritizing options that align with their desire for healthier lifestyles. Fresh produce remains a cornerstone of this trend, as shoppers increasingly seek out fruits (+4% YoY), vegetables (+1.2%) and minimally processed foods to support their nutritional goals, according to a NielsenIQ survey from October 2024. Organic and clean-label options are also gaining traction, with consumers willing to pay a premium for products that promise transparency, fewer additives and sustainable farming practices.

This shift highlights an opportunity for brands and retailers to emphasize the health benefits of fresh offerings while incorporating messaging around quality and authenticity.