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.”
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.
Chickpea revolution? Companies looking to innovate could face higher prices as global shortage hits
5 Aug 2022
From coffee to ice cream, recent product launches demonstrate how companies are betting on chickpea in the plant-based revolution… but could a global shortage scupper innovation?Read more
Swedish food packaging company Tetra Pak exits Russia amid mounting sanction-led supply chain pressures
4 Aug 2022
Tetra Pak has become the latest big company to exit its remaining operations in Russia as the country faces increasing shortages under ongoing sanctions.Read more
European soft drinks industry celebrates sugar reduction milestones as the ‘war on sugar’ continues
3 Aug 2022
The European soft drinks sector has achieved a 17.7% reduction in average added sugars since 2015, says its industry association, UNESDA. However, experts warn that the “war on sugar” will intensify from both consumers and governments in the next few y...Read more
Diageo unveils plans for €200 million carbon-neutral brewery in Ireland
1 Aug 2022
Diageo has unveiled plans for a €200 million carbon-neutral lager and ales brewery in Ireland – the country’s first.Read more
Mexican packaged food companies to feel profit squeeze as inflation continues
29 Jul 2022
Mexican packaged food companies are set to feel bigger profitability pressures over the next year as commodities price inflation and slowed growth continues, said credit rating agency, Fitch Ratings.Read more
Gut health is the biggest growth area for US personalised nutrition brands
28 Jul 2022
Gut health will be a key growth area for personalised nutrition brands in the US throughout 2023, fuelled by the development of more user-friendly microbiome testing kits and the importance of gut health for US consumers, according to the Nutrition Bus...Read more
How (and why) should food brands leverage social media?
27 Jul 2022
Social media is a powerful and far-reaching tool which allows brands to get closer than ever before to their consumers. To reap its value, brands should closely monitor consumer attitudes on social media and proactively engage with them.Read more
Canada rolls out new front-of-pack ‘magnifying glass’ label for high salt, sugar and fat foods
26 Jul 2022
Canadian authorities have launched a new front-of-package nutrition label designed to help shoppers make more informed product selections as they purchase groceries by highlighting foods high in specific ‘unhealthy’ nutrients.Read more
Shifting trends: Analysing the impact of high inflation in India
25 Jul 2022
Despite food and beverage categories in India feeling the pinch of increasing inflation, the overall outlook remains upbeat as governmental support steps in and evolving consumer purchasing patterns shape the sector.Read more
A switch to alternative proteins could be cheapest and highest impact solution to climate crisis – report
22 Jul 2022
Shifting to alternative proteins could be the “most capital-efficient and high-impact” solution to today’s climate crisis, according to a new report from Boston Consulting Group (BCG), which suggests more than 30% of consumers are willing to fully swap...Read more
Are you a supplier?
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation