Health-conscious consumers are not only selective about what they buy but also about where they shop. A new report from data science company Dunnhumby highlights the significant buying power of this shopper segment and their preference for specific grocery banners.
The report underscores the real impact of health-focused consumers, who contribute $285 billion annually to the grocery industry and make up approximately one-third of the U.S. population. Catering to these shoppers can drive meaningful results, as retailers that over-index to this group see an average 7% long-term sales growth. These customers often have higher incomes (over $100,000), tend to be younger, and are more likely to have children.
“With health and wellness predicted to be the most critical trend for decades, retailers and brands have unprecedented opportunities to meet emerging customer needs.” said Dunnhumby President of the Americas, Matt O’Grady, “As the grocery landscape continues to evolve, understanding and adapting to these health-centric consumer trends will be crucial for retailers and brands aiming to remain competitive in an increasingly wellness-oriented market.”
Dunnhumby identified the top-performing retailers that appeal to health-focused shoppers, with Natural Grocers, Amazon Fresh, and The Fresh Market leading the list. At these retailers, 60% of shoppers prioritize health, compared to just 32% at the average U.S. grocer.
Other banners in the top 10 include Sprouts Farmers Market, Amazon, Trader Joe’s, Target, Walgreens, Fresh Thyme, and CVS. The report also explored mid-market loyalty among health-conscious consumers, naming The Giant Co., Fry’s, and Vons as the top three performers in this category.
At the store level, health-conscious shoppers gravitate toward seafood, ready-to-eat meals, and fresh produce more than the average consumer. These departments are strongly associated with key priorities for these shoppers, including healthy choices, organic variety, and sustainability.
The report also highlights untapped opportunities for grocery retailers to better serve this valuable segment. Dunnhumby’s analysts note that success with health-focused shoppers often aligns with strong performance in high-priority areas that matter most to these consumers.
Dunnhumby’s findings are based on data from the Grocery Retailer Preference Index (RPI), which includes over 70,000 consumer survey responses collected annually since 2017, and the Consumer Trends Tracker (CTT), with 14,000 responses gathered since April 2022 across multiple waves. The report includes the largest 73 U.S. grocery retailers, offering deep insights into how health-conscious shoppers are shaping the industry.