The 2025 Grocery Tech Trends Study

Two-thirds of grocery retailers are looking to ramp up their technology investments this year, and their plans regarding new implementations seem to be in sync with what today’s shoppers want: better deals, more convenience and fewer hassles, both in store and online. This is one of the major themes of the 10th annual Grocery Tech Trends Study, which includes survey findings from both retailers and consumers.Another notable insight from this year’s survey is that different generations of consumers continue to exhibit widely distinct shopping habits, especially when it comes to how they perceive and use technology. So, while grocers will certainly need to cater to the immediate needs of shoppers at their local stores, they also must continue investing in and trying new tools to stay relevant to the Gen Z shoppers of tomorrow, the majority of whom are very comfortable with technology and often prefer to purchase online – or at least get in and out of stores faster.Grocers’ Investment PlansAbout a quarter of retailers surveyed expect to spend “somewhat more” on technology and automation in 2025. Only 2% think that they’ll spend “significantly more” – that’s slightly fewer than last year – and the majority – 37% – say that they’ll spend “slightly more.”Among the specific tech they’re planning to add, electronic shelf labels, workforce technology and artificial learning/machine learning are getting the most attention, with around 40% of retailers planning to add these tools in the next 12 to 18 months. In-store QR codes, self-service touchscreen order kiosks and supply chain automation are also gaining ground compared with last year, with roughly one-third of retailers planning to add these tools. On the whole, it appears that retailers are prioritizing customer-facing tech that enhances convenience and engagement, which is smart, since these tools also appeal to shoppers, based on PG’s consumer survey (read more about consumers’ attitudes in the next section).As for tech that’s already in place, the leading categories include data analytics platform/reporting tools (70% currently implement these), data security tech (69%), digital loyalty program/apps (68%), and online grocery for delivery (also 68%). In fact, 29% of those surveyed rank digital loyalty program/apps as one of their top three priorities over the next 12-18 months, suggesting that they recognize how important pricing remains to budget-conscious shoppers.Similar to last year’s survey, half of retailers are focusing on back-end tech in their stores – versus the 26% who are focused more on distribution centers – and they continue to be split on whether to prioritize customer-facing tech or back-end tech in general. One noticeable difference from last year is that a larger number of retailers – 55% – are planning to implement new tech, which is a positive development, since companies will need to continue investing in the latest tech to keep up with the quick pace of new apps, and the investments of larger competitors.Topping the list of newer/innovative technologies that retailers are either currently implementing, plan to add or would like to know more about are digital signage (89%), retail media networks (88%), smart labels (79%), AI-powered employee tools (79%) and digital shelves (71%). AI-powered tools, both employee- and customer-facing, are clearly gaining traction as grocers learn more about them.What Shoppers ThinkThe consumer portion of the Grocery Tech Trends Study reveals some interesting characteristics about today’s shoppers, particularly when it comes to generational differences. Most shoppers continue to visit a traditional grocery chain at least once a week, but Gen Z is the demographic most likely to avoid this channel entirely. In fact, Gen Zs and Millennials overindex on shopping for groceries regularly at supercenters/mass retailers, convenience stores, dollar stores and independent grocers. In contrast, Baby Boomers tend to rely on fewer store types for groceries and shop less frequently overall.Out-of-stocks remain the top in-store pain point, excluding price, for 50% of shoppers, while 37% struggle to find products. Customer service concerns have eased somewhat this year, likely due to better staffing and training, as well as the shifting of shopper priorities.When asked what their regular grocery store could do to serve them better, 25% of shoppers cite more/faster checkouts, and 12% desire better stock/inventory management. One in 10 would appreciate better deals, including, in their own words, “digital discounts without membership,” “more digital coupons and the ability to scan products on the shelves,” and “more rewards for groceries.”When shoppers think of technology related to the supermarket, the first thing that comes to many of their minds is self-checkout, which isn’t surprising, since this is one of the most noticeable devices in stores. Self-checkout kiosks remain the most preferred checkout method (among 46% of shoppers), with Gen Z leading this trend. “Just walk out” payment technology is preferred by about 10% of shoppers (the same as last year), and less than half (46%) use mobile app/contactless payment regularly, which is down from last year. It’s important to note that 40% of shoppers still prefer traditional checkout with a cashier, especially Boomers, at 57%, so retailers still need to balance automation with human service.As for other in-store (and pre-trip) technologies, most consumers take advantage of digital coupons, loyalty programs and digital sales flyers. Half of shoppers use cash-back reward programs like Ibotta and Shopkick. However, fewer shoppers are willing to try customer support chatbots, shoppable videos and livestream shopping, although younger generations show more interest in these offerings than their older counterparts do.Appetite for New TechA sizable majority of shoppers (72%) say that they’re open to trying new technology, although that number is down slightly compared with last year. This decrease could be driven by the increasing complexity of emerging technologies, data privacy concerns or frustration with digital experiences that don’t meet expectations. When this question is analyzed by generational preference, 87% of Millennials and 84% of Gen Z say that they’re open to new tech. Meanwhile, just over half of shoppers consider themselves “tech-savvy,” although, again, younger generations overindex on this response. Also, while only half of shoppers feel that new tech has made grocery shopping easier for them, 66% of Millennials and 64% of Gen Z agree with this statement.Among newer/innovative technologies, electronic shelf labels have gained recognition – one-fourth of shoppers are now using them – while digital signage, although still popular, has decreased slightly compared with last year. Other tools that show promise include smart labeling, ultra-fast grocery delivery, digital shelves, smart vending machines and VR/AR experiences. Even though interest in smart carts has waned a bit, 57% of shoppers say that they’d be willing to try this technology.As for which technology would be most valued in the months ahead, a clear majority – 57% – would like to see more digital discount offers and promotions, which should come as no surprise, considering the economic concerns that Americans have dealt with in the past several years. One-third of shoppers prioritize a hybrid experience – meaning more tech but not cutting back on in-store staff – and 24% have an appetite for more cashless/contactless checkout options, a figure that shoots up to 47% among Gen Z. That demographic and Millennials are also driving demand for interactive tech and personalized recommendations.These findings match up well with what retailers foresee for the next year and a half: Nearly three-fourths predict that their customers will find the most value in having more digital discounts/promotions, followed by a hybrid grocery experience (60%) and personalized product recommendations (53%). Grocers would be smart to leverage these discounts and personalized promotions in the next year to drive engagement and repeat trips. At the same time, they can use electronic shelf labels and digital signage to better support real-time pricing/marketing.Tackling the Digital FutureWhile nearly 80% of retailers are confident that their existing front-line workforce can be trained to succeed in a digital grocery environment, fewer feel that they currently have the right talent or are well positioned for the future. This highlights a gap between optimism in training potential and broader organizational readiness. Last year, 75% of executives felt that their companies were well positioned for digital success, while this year that number dropped significantly to 55%. This could indicate retailers’ recognition of just how hard the road to digital success can be, especially when it’s led by tech-first companies that have encroached on the grocery space.Asked to share more about why they feel that their companies either are or aren’t set up for future digital success, retailers offer a range of opinions, including the following from those who feel confident:“We have the right leadership.”“We stay informed on new technology.”“We have the right talent and culture to keep learning and pushing.”“We have an intelligent core of younger workers who are tech-savvy.”“My company is committed both financially and from a workforce perspective to succeed.”While from those on the less optimistic side:“We are too small and independent.”“Cost and slow training, along with high turnover in the workspace.”“Our customer base and employees are not open to change.”“The technology available is too expensive for independent grocers.”“Aging front end workforce that is resistant to change.”Looking at e-commerce specifically, most retailers predict that standard delivery, ultra-fast delivery and curbside pickup are the online ordering methods that will drive the most growth in the next year and a half. This is similar to last year’s survey findings. And while most grocers still prefer to have complete control over the e-commerce shopping experience, its perceived importance is trending down: Only 46% now consider it “very important” or “extremely important” to have control, while last year that number was 54%.The consumer survey finds that 20% of shoppers continue to use online grocery store sites/apps at least once a week, while 22% use this service every two to four weeks. Millennials and Gen Z shoppers overindex in this area, with 32% of Millennials and 30% of Gen Z using grocery store sites or apps on a weekly basis.Consumers’ top pain point when shopping online is that products are too often out of stock (47% cite this), followed by poor substitutions (32%), which is a new survey option this year. Meanwhile, concerns about incorrect selections, limited variety and pickup time issues have declined.Among consumers who don’t shop online for groceries, 77% say that it’s because they prefer to pick products themselves, and around 40% don’t like items to be substituted or don’t trust the quality and accuracy of the products selected for them. These concerns trump the feeling that prices/fees are just too expensive (35% of shoppers cite this barrier). Interestingly, while a fairly low percentage (10%) complain that the process of online grocery shopping is too complicated, Gen Z overindexes on this response, at 19%. This suggests that even among younger shoppers, there are those who find the current process for ordering groceries online to be either too slow or at least not as intuitive as they’d like it to be.Challenges and Growth DriversThis year’s survey finds retailers noticeably more concerned about the potential for an economic recession: 65% cited this as an obstacle to future investment, compared with only 36% last year. Other recurring challenges include inflation, price competition and the labor market/employee retention.Looking at the year or so ahead, retailers expect the biggest tech growth drivers for grocery to be e-commerce/online grocery ordering (48%); artificial intelligence, including machine learning (45%); electronic shelf labels (41%); data analytics tools (35%); retail media networks (32%); and tech to solve workforce challenges (32%). Several respondents also cite social media and automated ordering, suggesting that more grocers are embracing new ways that technology can expand their businesses. Methodology: The retailer survey portion of the Grocery Tech Trends Study was fielded March 21-April 7, 2025, and included responses from 91 grocery retailers. Respondents were sourced from PG’s audience and were required to be at least somewhat knowledgeable about their company’s current use of technology and/or future technology strategy. The consumer survey portion includes responses from 1,000 grocery shoppers who were surveyed March 6-13, 2025. Representatives from multiple generations were included: Gen Z, Millennials, Gen X, Boomers and a small portion of Mature/Silent.

The 2025 Grocery Tech Trends Study

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