Data Shows 2024 to Bring AI-Powered Efficiency and Standout Creative Measures
Consumer goods companies and retailers are already deep in 2024 planning, looking to get ahead of swiftly changing trends. What does the future hold?
According to Acosta Group, a collective of retail, marketing and foodservice agencies, the new year will bring creative ways to drive growth, redefined shopper experiences, and AI-powered efficiencies.
The company recently released its 2024 predictions, pulling insights from its Retailer Confidential Report as well as varied industry sources. A key takeaway is that brands and retailers will need to get creative next year to drive growth, launching strong promotions and retail media initiatives that don’t break the bank amid a year of cautious spending and a complex retail environment.
- 71% of top retailers are increasing promotions in 2024 (Acosta Group)
- U.S. retail media ad spend will reach $60B in 2024 (Insider Intelligence)
"Consumers will respond to bold, creative promotions that provide them enriched value," said Kathy Risch, SVP, thought leadership and shopper insights, Acosta Group. "Smart retailers, brands, delivery services, and restaurants are stepping up to create promotions that resonate.”
Acosta Group suggests that companies create promotions that don’t erode margins for retailers, brands, or shoppers; launch updated RGM programs; and diligently capture post-promotion analytics.
[More Like This: Kraft Heinz Leaning On RGM To Maintain Promotion ROI]
Shifting Trends
The sentiment across promotion strategies may need to shift, however, as consumer expectations continue to change. With these changes comes the opportunity to integrate updated trade, marketing, and retail media efforts; strengthen product detail pages; and put a larger emphasis on shelf and assortment optimization.
- 56% of omnichannel shoppers prefer shopping in-store for groceries and household items (Grocery Doppio)
- 69% of grocery sales in 2023 were digitally influenced (Grocery Doppio)
- 63% of shoppers use a mobile app in-store while grocery shopping – jumping to 80% for Gen Z and 81% for millennials (Acosta Group)
- Omnichannel shoppers spend two to four times more than single-channel shoppers (Groceryshop, 2023)
A Heavier Emphasis on AI
Perhaps one of the most notable shifts comes from the potential for AI-powered shopping experiences, leveling up personalization tactics and introducing more efficiencies.
- AI investment is expected to drive $113B in value by 2025 (Grocery Doppio)
- Three quarters of retail executives believe they could go out of business if they don't adopt AI in the next five years (Grocery Doppio)
Among the potential AI use cases are implementing localized assortment and price/promotion optimization; providing personalized dietary and nutrition recommendations; supporting workforce efforts with technology; launching new products; and enacting supply chain and logistics initiatives.
A New Consumer Experience
2024 could also see a trend toward increasingly savvy shoppers who prioritize clean labels, moving away from processed foods. In response, companies may be highlighting what’s not found in their products, tapping AI to provide customized shopping lists.
Lastly, Acosta Group predicts that the line between foodservice and retail will be blurred, with companies elevating the in-store experience with cross-promotions, increased sampling, and elevated digital integrations.
"We are excited about the opportunities to connect with consumers in more customized ways in 2024, building brand and retailer growth with the right mix of services and solutions," said Colin Stewart, EVP, business intelligence, Acosta Group. "Insights-based innovation and the ability to stay nimble remains critical in meeting changing shopper behavior and market needs."
