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

African Swine Fever confirmed in Germany

African Swine Fever confirmed in Germany

25 Sep 2020

Earlier this month, German officials confirmed African Swine Fever (ASF) has arrived in Germany. As Europe’s largest pork producer, analysts anticipate that the spread of this disease within the country's pork populations will lead to depressed pork pr...

Read more 
Olam Cocoa research reveals UK consumption habits are changing for the healthier

Olam Cocoa research reveals UK consumption habits are changing for the healthier

24 Sep 2020

In the UK, consumers are snacking with gusto as continued lockdown measures drag on. However, instead of indulging in snacks that are better for the soul than one's health, the British are reaching for healthier options and plant-based foods, according...

Read more 
Tastewise, the AI-powered food intelligence solution, launches in the UK

Tastewise, the AI-powered food intelligence solution, launches in the UK

21 Sep 2020

AI-powered platform Tastewise predicts the way consumers order, cook and eat through analyzing restaurant menus, social media interactions and online home recipes. After debuting in the U.S. last year, the insights company is now launching in the UK.

Read more 
Stericycle releases an analysis of food recalls in the U.S

Stericycle releases an analysis of food recalls in the U.S

10 Sep 2020

As a result of the limited regulatory oversight activities by the U.S. Food and Drug Administration and the U.S. Department of Agriculture during the pandemic, food recalls dropped 44% in the second quarter, according to a report from the Stericycle. A...

Read more 
Scientists discover the key to garlicy-ness

Scientists discover the key to garlicy-ness

26 Aug 2020

Researchers from Virginia Tech have discovered a biological process in garlic that creates allicin and that may lead to the creation of bulbs with differing levels of pungency. The scientists also said this discovery can contribute to farmers having be...

Read more 
The British Meat Processors Association calls for a shelf life extension for fresh meat

The British Meat Processors Association calls for a shelf life extension for fresh meat

20 Aug 2020

Current UK food regulations limit the shelf-life of fresh meat to 10 days when stored at 3-8 degrees Celsius. However, the British Meat Processors Association (BMPA) is aiming to persuade the UK’s Food Standards Agency to extend those guidelines to all...

Read more 
Dutch researchers work to discover the key to consumers’ ideal snack

Dutch researchers work to discover the key to consumers’ ideal snack

17 Aug 2020

Dutch researchers found that people associated their ideal snack with the words “warm,” “sweet,” “cold,” “savory,” and “healthy.” The study, which looked at divorcing healthy and unhealthy labels from an ideal snack, found that these specific adjectiv...

Read more 
PepsiCo partners up to sequence the oat genome

PepsiCo partners up to sequence the oat genome

20 Jul 2020

PepsiCo and its partners sequenced the complete oat genome for the first time, only taking four months to complete the process. The data was published on an open source platform for use by other companies looking to develop and improve new oat varietie...

Read more 
Gates Foundation leads $45 million investment in crop protection startup

Gates Foundation leads $45 million investment in crop protection startup

10 Jul 2020

Crop protection company Enko Chem announced that it raised $45 million in a Series B funding round led by the Bill and Melinda Gates Foundation with participation from Anterra Capital, Rabobank, Finistere Ventures, Novalis LifeSciences, Germin8 Venture...

Read more 
Spending on U.S. advertising for sugary drinks increases 26% to over $1 billion

Spending on U.S. advertising for sugary drinks increases 26% to over $1 billion

9 Jul 2020

Beverage companies increased their spending on advertising sugary drinks by 26% to over $1 billion between 2013 and 2018, according to a new study from UConn Rudd Center for Food Policy & Obesity. This increase in advertising primarily targets communit...

Read more