Why CPG Brands Can’t Afford to Overlook Independent Grocers

ousehold penetration is down. Volume is down. And let’s be honest — most brands are scrambling for growth in the same overcrowded handful of national retailers. But what if the growth you’re chasing is hiding in plain sight?

What if the most important thing isn't to double your shelf space, but double your mind? The reality is, there's a huge chance in underperforming channels, underpenetrated areas, and unactivated consumer groups. Local stores, independent retailers, e-commerce specialties — these are not substitutes, they're accelerators. Diversified reach and reinvigorated approaches are the kinds of brands taking flatlines to front-runners.

The $50 Billion Opportunity You're Ignoring

On a recent episode of The CPG Guys podcast, Michael La Kier spilled a truth bomb that all brands need to hear: Independent grocery stores make up one-third of the U.S. grocery market.

That's a staggering $50 billion market — one that many brands still undervalue in favor of splashy deals with national chains. But independents are not mini versions of the big chains. They're unique, robust, and intricately woven into the neighborhoods they serve.

And that's why they're valuable. Independent grocers typically have strong relationships with their customers, established over years — occasionally generations — of individualized service and community involvement. They're able to act quickly, pilot new products with minimal red tape, and sell shelf space on relationships, not algorithms. Often, they're the first to support emerging brands, offering a platform national retailers simply can't.

Why Independent Grocers Matter More Than Ever

Let’s break it down:

• They represent a huge slice of the market — nearly one-third of grocery sales.
• They’re embedded in local culture — trusted by their communities and often family-run.
• They’re underserved — most brands chase scale through big-box retailers, leaving independents out of the media mix.

That equates to fewer competing brands, more genuine community involvement, and an opportunity to actually be noticed.

But beyond the statistics, independent grocers are cultural anchors — the destinations where neighbors run into one another, local goods flourish, and purchasing decisions are guided by actual relationships, not anonymous algorithms. These stores possess the nimbleness to experiment, the loyalty to drive repeat business, and the voice to genuinely tell your brand's story.

For marketers willing to lean in, independents provide not only shelf space, but significant market traction. In a world where personalization and purpose lead the way on purchasing, independent grocery stores are more than just relevant — they're crucial.

They provide something the national chains don't: direct access to the pulse of the community. Winning in independents is not just winning sales — you're winning trust, building equity, and growing with a community that will defend your success.

It's time to flip your growth mindset — from pursuing reach to establishing relevance. Because the retail future isn't one-size-fits-all. It's hyper-local, values-based, and waiting in plain sight — right down the street.

The Key? Hyperlocal Retail Media

Independent Grocers Alliance (IGA) is showing that independents can win when they're armed with the proper tools.

IGA is arming stores with the following:

• Geo-specific targeting
• Localized retail media
• Community-first storytelling that drives trips and transactions

It's retail media — smarter, sharper, and designed for real-world results. Through local-tailored campaigns that speak to the cultural subtleties of each community, IGA enables stores to connect with customers on a deep, emotional level, converting traffic into loyalty. Their method combines digital savvy with neighborhood appeal — a potent mix national chains often can't match.

The outcome? Independents aren't merely holding on — they're thriving, crafting customized shopping experiences that big-box retailers can't replicate. For brands, doing business with IGA-affiliated stores is more than about placement — it's about presence, connection, and relevance in the communities that count most.

Crafted’s Approach: Local Creators, Real Influence

At Crafted, we’re building on this momentum by helping brands activate where it counts: in-store, on the shelf, and within the community. We connect brands with trusted local creators who influence purchase decisions right at the point of sale.

So, while your competitors are fighting over ad space on the big-box retailer’s digital shelf,

You could be capturing real attention in everyday stores where your consumers are already shopping — places like Nam Dae Mun Farmers Market in Atlanta, a beloved IGA grocer deeply rooted in its neighborhood.

Stop Chasing the Crowd. Start Owning the Moment.

If you’re still ignoring independents, you’re missing one of the biggest and most accessible growth channels in the market today.

It’s time to stop fighting for space in overcrowded retail media networks — and start meeting your customers where they already are. Independents aren’t your backup plan — they’re your growth unlock.

They provide authenticity, flexibility, and speed that national chains can't replicate. They greet their shoppers by name, understand local tastes, and have the trust that makes first-time customers lifelong devotees. With the right approach, independents can become your brand's most valuable supporters — fueling velocity, expanding visibility, and driving real ROI.

The future of retail expansion isn't about scaling up — it's about showing up where it counts. And for more brands than ever before, that means showing up on your local grocer's shelves.