United Natural Foods Details Five Trends Driving Growth in Grocery Retail
August 1, 2025 5 minute read
Today’s grocery retailers and suppliers are navigating an evolving, fast-changing industry and shifting consumer expectations. Staying competitive and driving sustainable growth requires a proactive approach that reflects trends shaping the sector and responding to them strategically.
At UNFI’s recent Holiday and Winter Selling Show at the Mohegan Sun Convention Center in Uncasville, Conn., conversations and insights among UNFI experts, retailers, and suppliers were centered around the trajectory of the industry and how brands can best position themselves for growth.
Here are five of the industry trends that were shared with show attendees:
1. Promotions are on the rise – Promotional activity has ramped up with one-third of grocery volume focused on deals or value.
Ongoing pricing uncertainty is pushing more shoppers to actively seek out not just lower prices, but promotions and deals that deliver greater value.
What it means: We're heading into a promotion-led environment. Expect deeper in-store displays, more aggressive digital offers, and a fight for endcap space as brands battle for attention and incremental volume in a slowing market.
2. Private label is gaining popularity – Investment in private label continues with an expected 40% sales growth by 2030.
Private label brands are present in about 90% of homes, and that rate is climbing as consumers seek both affordability and innovation-driven “premium” experiences.
What it means: Now is the time to double down on distinctive, health-forward store brands that protect margin while reinforcing price trust.
3. Disruptors are picking up speed – Challenger brands are gaining an edge, generating 27% growth in the food sector last year.
Brands that can drive value and enhanced experiences – either in-store or online – stand to gain market share in today’s grocery landscape.
What it means: To stay competitive, brands must embrace disruption, act decisively, and innovate with purpose.
4. Health and wellness brands are booming – Fresh, high-protein and better-for-you options are outpacing the rest of the store.
Consumers are changing how they shop and the product attributes they care about. With greater access to information than ever before, more shoppers are moving toward healthier options, which is creating opportunities in fresh, organic, and functional foods.
What it means: Now is the time to be intentional about cutting low-turn SKUs and replacing them with high-potential, on-trend winners. Promotions and experiential elements that highlight a move toward health and wellness can drive greater awareness and engagement.
5. Experiences are essential – Unique assortments and in-store experiences continue to drive traffic and volume for retailers of all sizes.
Consumers are looking for more meaningful, seamless experiences both in what they buy and how they shop.
What it means: Retailers that create memorable moments through unique events, access to in-store expertise, and “treasure hunt” products and promotions that encourage shoppers to seek out top deals can enhance the shopping experience.
Learn more about UNFI’s services and solutions that are helping customers stay ahead of pressing trends and capitalize on growth opportunities.
Sources:
- Power of Produce, 2025 NielsenIQ Discover
- Morgan Stanley “Private Label Tipping Point”
- J.P. Morgan “U.S. Food Producers”
- NielsenIQ Better for You
- SBI Team Analysis and Opinion