The CPG industry and grocery retailers haven’t had an easy ride over the last few years. Inflation, supply chain shortages, and a cost-of-living crisis dampened profits. Nielsen research shows that food giants Nestle, Reckitt, and PepsiCo, have missed sales expectations this year, with consumers opting for cheaper alternatives. 

There is still a huge appetite for grocery shopping, though. The high cost of restaurant prices has seen US consumers switch from eating out to eating in. According to Vericast’s 2024 Restaurant TrendWatch report, this is particularly prevalent among Gen Z and millennials, with almost three-quarters (71%) choosing to cook at home. 

It’s no surprise that online recipe usage has also grown. A Chicory report revealed that 95.7% of millennials (ages 27-42) and 87.2% of Gen Z (ages 18-26) consumers regularly use online recipes. 

Therefore, online recipes are becoming an important meal and grocery shopping inspiration source for these specific generations. As such, they offer a major opportunity for CPG brands and grocery retailers.

Yet, as the poor sales figures for the CPG giants demonstrate, being added to consumer carts is no mean feat.

So, how can grocery brands exploit online recipe ads correctly?  

Also Read: Will Google Make Shopping Season Easier?

The online recipe opportunity 

First, let’s look at online recipe opportunities for CPG brand advertisers. Our research has found that they inspire meal ideas and shape purchasing decisions. 

In fact, 87.98% of Millennials and 78.72% of Gen Z said that they have tried cooking a dish they hadn’t made before, thanks to an online recipe. Moreover, 74.47% of Gen Z and 81.73% of Millennials say online recipes have inspired them to purchase new ingredients or products they had never bought. Meanwhile, 63.83% of Gen Z and 70.19% of Millennials reported that online recipes have led them to purchase a new or different brand from what they usually buy. 

By effectively advertising against contextually relevant online recipe content, grocery brands can convert new consumers who may not have tried their products before or may have been in the habit of buying from a competitor’s range. 

Simplifying the grocery shop

Brands should always prioritize consumers. When it comes to CPG and grocery items, creating an effortless path to purchase will be a big win for both consumers and brands. 

The rise in online shopping has made it easier for consumers to snap up goods. However, what could be simpler than allowing consumers to add all ingredients for an online recipe straight to their basket for delivery or click and collect?

When asked whether they would make a grocery purchase directly from an online recipe if given the option, 55.3% of Gen Z and 60.1% of Millennial respondents said they would likely or very likely do so. And 68.3% of Millennials and 53.2% of Gen Z claim they have previously added grocery products to an online cart after seeing them listed in an online recipe. 

This is a critical point, as it signals that online recipe pages directly influence what consumers purchase online. It also indicates that consumers are comfortable shopping via off-site channels, especially when those channels are contextually relevant and cater to their purchasing needs. 

Also Read: Navigating the AI Revolution: A Retailer’s Guide

Sealing the deal 

With more consumers turning to home cooking to save money and rejecting the more expensive big brands in favor of alternatives, brands offering promotions on their produce can benefit. 

A recent survey found that more than eight in 10 (83%) of US grocery shoppers consider the price when picking a grocery store. Meanwhile, 60% of US consumers are increasingly looking for items on sale this year, up from 53% in 2023. Moreover, 62% of US consumers actively search and use promo codes, discounts, or coupons when making online purchases. 

Therefore, offering promotions and discounts on online ads can help encourage consumer engagement with your grocery brand. This is one way bigger brands can help avoid losing out to less expensive options. 

Crucially, in today’s omni-channel environment, CPG brands must consider online and physical purchase paths when planning promotions to ensure they reach the optimum number of consumers and drive the greatest return on investment.  

Grocery advertising strategies don’t need to be rocket science. Still, they require brands to partner with specialists in this industry who can help them reach consumers correctly and build positive brand awareness. Placing ads against engaging digital recipe content is a great way for grocery brands to ensure they hit the cart and don’t miss the mark.

The post Recipe for Success: How CPG Brands Can Win in the Kitchen appeared first on MartechView.