Euromonitor report: How will Covid-19 change consumer focus in retail?

25 Jun 2020

The global pandemic that arrived this spring has upended the food and beverage market for both manufacturers and consumers in unpredictable ways. In a new report from Euromonitor, the market research firm looked at the future state of the FMCG sector and how the events of the last few months will have lasting effects on consumer purchasing habits.

In its white paper, Euromonitor predicted that sustainability, home cooking, e-commerce and healthy eating will become the driving trends behind consumer purchasing behavior as the world enters the “new normal.”

Euromonitor report: How will Covid-19 change consumer focus in retail?

While sustainability will remain important for consumers, food waste, animal welfare and food security will be brought to the forefront while prior concerns around packaging sustainability and sustainable sourcing take a back seat. This shift is occurring in tandem with Euromonitor’s other observation that the rapid movement to e-commerce and direct-to-consumer delivery is accelerating and package-heavy meal kits have seen a surge in popularity.

At the same time that these preferences are altering, Euromonitor predicts that food that is considered healthy is ripe to be redefined as limited mobility contributes to more sedentary lifestyles that demand a new balance between exercise and nutrition. Furthermore, premium products will see a bump in popularity as consumers attempt to recreate the restaurant experience at home and happiness becomes a tangible commercial prospect.

While the consumer packaged goods industry anticipates that it will return to normal in most cases, the economic fallout from COVID-19 has left many consumers with diminished discretionary spending capabilities that have forced them to reconsider their shopping habits. Euromonitor expects per capita global consumer expenditure to decline by approximately 5% and the global economy to enter the worst recession since the Great Depression. Food innovation lab Mattson found in a survey from the end of April that 49% of consumers surveyed will be hunting for products with good value. Euromonitor data echoed consumer interest in bargain brands but noted that well-positioned premium products will also have a place in the market going forward.

Confinement has also widely contributed to a resurgence in cooking from home. With limited access to foodservice, home cooking has become the norm and has contributed to a strong demand for innovative products in retail. Mattson showed food and beverage manufacturers are expected to emerge from this crisis in a better position than previously thought due to continued consumer appetite for innovative products. Consumers will largely be searching for innovative products that feature nods to nostalgia and commitments to plant-based health, according to the Euromonitor report.

E-commerce has unsurprisingly seen a jump in popularity. By March, a survey from Brick Meets Click and ShopperKit found that 31% of households in the United States did their grocery shopping online in the prior 30-day period – that is nearly double what was recorded last August. Not only that, but the survey indicated that 43% of respondents will continue ordering groceries online going forward. Euromonitor supported this finding calling the pandemic a “turning point” for e-commerce. This has been especially true for the meal kits sector where the Wall Street Journal reported revenue has doubled in the last year after slipping downward in the initial pre-pandemic months of 2020.

These trends will continue to play out over the coming months as consumers, retailers and manufacturers adjust to the “new normal” and wait to see how the pandemic continues to progress.

Download the White Paper Here

Related news

Research shows adding iodine to salt may pose risks to some populations

Research shows adding iodine to salt may pose risks to some populations

23 Jun 2020

A new study by the Norwegian’s Scientific Committee on Food and the Environment (VKM) concluded that although the addition of iodine to salt used in products throughout the country would benefit adolescents and women of childbearing age, the same incre...

Read more 
UK organic food sales soar despite lockdown

UK organic food sales soar despite lockdown

22 Jun 2020

Sales of organic food in the UK have reached record levels and increased during the COVID-19 lockdown – but can the sales be sustained now that the panic buying has subsided?

Read more 
New tracing technology to help identify Salmonella outbreaks

New tracing technology to help identify Salmonella outbreaks

18 Jun 2020

Australian researchers from the University of New South Wales Sydney have developed a technique to identify Salmonella strains in order to more effectively trace outbreaks. The multilevel genome typing (MGT) method, which took two years to develop, ide...

Read more 
Study: lower-calorie diet and exercise led to diabetes remission in 61% of patients

Study: lower-calorie diet and exercise led to diabetes remission in 61% of patients

16 Jun 2020

A new study from Qatar published in the Lancet Diabetes & Endocrinology journal found that lifestyle intervention that focused on a low-calorie diet and exercise let to diabetes remission in 61% of patients.

Read more 
Apeel Sciences on track to save 20 million pieces of fruit from food waste

Apeel Sciences on track to save 20 million pieces of fruit from food waste

9 Jun 2020

At the end of May, Apeel Sciences raised $250 million dollars in new financing, bringing the startup’s total funding to more than $1 billion. This infusion of funds will be put toward the company’s mission of food waste prevention, an area in which it ...

Read more 
Cargill’s FATitudes survey indicates attitudes toward fats and oils are changing

Cargill’s FATitudes survey indicates attitudes toward fats and oils are changing

3 Jun 2020

Twenty years ago fat was bad. Today, however, there are just bad fats. According to Cargill’s annual FATitudes survey, 68% of consumers are closely monitoring the amount and type of fat that is in their packaged food choices.

Read more 
Nielsen: Indian commodities became more expensive during lockdown

Nielsen: Indian commodities became more expensive during lockdown

2 Jun 2020

In India, Nielsen found that basic commodities, including soft drinks, ghee, packaged tea and refined oils skyrocketed in price. In tandem with these price hikes, overall FMCG sales slumped by 34% in April, reported The Hindu Business Line.

Read more 
Report: Frozen Food sales to remain strong post-COVID 19

Report: Frozen Food sales to remain strong post-COVID 19

21 May 2020

March represented the peak for all frozen food sales in the U.S. with dollar figures rocketing 94% above the levels for the same time last year. However, things cooled off in April where volume sales were 30% to 35% above the same period last year. Ove...

Read more 
Ethanol shortages may affect the shelf life of packaged foods

Ethanol shortages may affect the shelf life of packaged foods

20 May 2020

As demand for fuel has collapsed during the pandemic, so too has ethanol production – which is blended into gasoline – and its byproduct CO2. Due to CO2’s integral role in food production, fears about a shortage of carbon dioxide have spurred predicti...

Read more 
Study shows coffee brewing methods are linked to heart health

Study shows coffee brewing methods are linked to heart health

6 May 2020

Norwegian researchers published a new study in the European Journal of Preventive Cardiology that demonstrated an association between drinking filtered coffee and a 12% lower risk of heart disease in men and a 20% lower risk in women. Drinking filtered...

Read more