Something is changing in the way people buy food. It is not just about price – though that is certainly part of it. Shoppers across the United States are rethinking where they spend their grocery dollars, and increasingly, that journey leads them away from the fluorescent-lit corridors of big-box retailers and toward something more personal, more rooted, and more intentional. This is the Great Grocery Shift, and the data behind it tells a compelling story.
Inflation’s Long Shadow Is Pushing Shoppers to Rethink Everything
Consumers are paying approximately 30% more for groceries today compared to 2019, despite inflation softening. That accumulated price shock has not disappeared from household memory, even as the rate of increase has slowed. Food prices rose by 2.3 percent in 2024 and 2.9 percent in 2025, lower than the surges experienced during 2020 through 2023, with food-at-home prices increasing just 1.2 percent in 2024. Still, consumers are far from comfortable. Around 90% of shoppers said they were somewhat, very, or extremely concerned about rising food prices, while 78% expressed the same concern about tariffs, according to FMI’s 2025 U.S. Grocery Shopper Trends report.
Rising food prices are forcing many consumers to rethink their grocery budgets, with over 43% of respondents saying they somewhat reduced grocery spending over a recent six-month period, while roughly 16% reported making significant cuts. This financial pressure has turned ordinary grocery trips into strategic missions. Notably, 87% of shoppers have adjusted their habits, utilizing an average of nearly four cost-saving strategies, including shifting to value-focused retailers, opting for private-label products, taking advantage of promotions, and purchasing items in bulk. Local markets, often perceived as offering fresher quality at transparent prices, have found a natural audience in this era of budget-conscious, quality-hungry shoppers.
The Rise of the “Value Plus Quality” Mindset
FMI found that in order to manage higher prices, today’s grocery shoppers navigate purchasing decisions through a more expansive understanding of value – even channels strongly positioned around low prices are often evaluated in terms of other value criteria, such as the quality or healthfulness of their product selection or the overall shopping experience. This dual demand has become one of the defining consumer behaviors of the mid-2020s. Fresh formats are currently the fastest-growing segment in grocery retail, with health, wellness, and convenience serving as the primary motivating factors.
When asked to identify the top factors consumers consider when choosing foods and beverages, more than three-quarters of respondents included price at the top of the list, well above taste in second place, followed by nutritional content and convenience. Yet price alone does not win loyalty anymore. Consumers saved money by trading down from national or high-end brands to store brands or less premium alternatives, while simultaneously gravitating toward more innovative, high-quality, or specialty products – helping retail volume grow, according to Circana. Local markets sit at a sweet spot in this equation, offering both perceived quality and a sense of genuine connection to the product’s origin.
Farmers Markets Are Building a Loyal, Regular Customer Base
According to USDA’s Agricultural Marketing Service, from 1994 to 2019, the number of farmers markets in the U.S. rose from 1,755 to 8,771, averaging growth of nearly 7 percent per year. That rapid expansion has since stabilized, but what the numbers now show is something arguably more meaningful: depth of loyalty rather than just breadth of growth. Survey results from Penn State Extension show that 38% of respondents shop at farmers markets weekly, up from 34% in 2024, a strong indicator of growing customer loyalty and market relevance.
A significant portion of customers – 34% – visited a farmers market every week, with another 32% shopping two to three times per month, indicating a strong base of regular shoppers, according to Penn State Extension’s 2024 Farmers Market Assessment Survey. Regular shoppers also spend significantly more per visit. Research published in Frontiers in Sustainable Food Systems found that regular farmers market shoppers spend an average of $46.36 per visit, compared to $33.19 for non-regular shoppers, and they also purchase more products per visit. This pattern of loyal, higher-spending customers makes local markets a disproportionately powerful economic engine for their communities.
Local Markets Are Stimulating Entire Community Economies
Over 48% of survey respondents said farmers markets positively impact the local economy by supporting local agriculture and small-scale farmers; another 15% said they boost local businesses by increasing foot traffic, 10% said they create jobs in the community, and 20% said they encourage local spending. The ripple effects extend well beyond the market stalls themselves. Growers selling locally create 13 full-time jobs per $1 million in revenue earned, while those that do not sell locally create only 3.
Research found that 41% of shoppers at Portland, Oregon, farmers markets said their main reason for shopping there was to support the local economy. That sense of civic participation is a powerful motivator that big-box grocery chains simply cannot replicate. In a survey from the Community-University Institute for Social Research, 90% of respondents identified the value of supporting small businesses as a key benefit of visiting these markets. When consumers shop locally, they are not just filling their carts – they are making a deliberate choice about where their money lands and who it benefits.
Sustainability and Fresh Produce Are Driving the Switch
The Fresh Trends 2025 survey reported that 68% of respondents felt strongly about buying fresh local produce, and about a third of respondents reported buying more locally grown produce in 2024 compared with 2023, with 58% saying they would buy even more if price were no object. This appetite for local freshness is deeply intertwined with a broader sustainability consciousness. Almost all consumers – 95% – say they are trying to take some action to live sustainably, according to NIQ data.
Pesticides were the strongest influence on fresh produce purchasing decisions for 49% of respondents in 2024, a dramatic rise from 27% in 2023, according to the International Fresh Produce Association’s Consumer Tracker report. That near-doubling of pesticide-related concern in a single year is striking. Research has established a positive correlation between farmers market shopping and increased fruit and vegetable consumption, suggesting that farmers markets not only provide access to fresh produce but also contribute to healthier eating habits within their communities. Shoppers increasingly see local markets as a route toward cleaner, safer, more transparent food choices.
Younger Shoppers and the Multi-Channel Revolution
Research from FMI shows that younger shoppers are more likely to have shifted their trips away from supermarkets and toward mass and other channels, with Gen Z and Millennials more actively diversifying where they shop for food. This generation does not rely on a single grocery destination. As Penn State Extension educator Brian Moyer observed, “People aren’t doing once-a-week grocery runs as often; they’re shopping at multiple locations, multiple times a week,” with younger people especially making farmers markets an increasingly regular stop among their favorite stores.
Modern customers want to shop local when they can, craving a personal touch that independent grocery stores and local markets are well-positioned to provide. Technology is enabling this shift rather than hindering it. Government support for farmers markets continues to grow, recognizing their vital role in local food systems – for example, New York State’s Farmers’ Market Resiliency Grant Program in 2024 offered grants ranging from $25,000 to $50,000 for market infrastructure improvements and online sales platform development. The combination of youthful shopping habits, institutional support, and digital tools is giving local markets a foundation to grow their reach well into the coming years.
