Grocery gains are here to stay

After a pandemic-driven sales surge in 2020 followed by strong sales in 2021, the grocery industry will likely see even higher sales as consumers are planning to spend more in 2022. With the lengthy pandemic increasing the desire to eat more meals at home and many consumers still able to work remotely, cooking at home remains popular, driving up grocery spend.

The results of KPMG Consumer pulse survey | Grocery 2022 forecast – special edition reveal an increase in consumer grocery budgets, which are expected to total a monthly average of $611 per household in 2022 compared to $532 in 2021.1 Last year, online grocery delivery services increased significantly – a growth spike that has remained strong. In 2022, we believe overall grocery spend (year over year) will trend up; however, reaching margin targets will be increasingly difficult with rising inflation and continuing labor and supply chain challenges