The cooking ingredients and meals industry saw the rapid growth of online sales during the pandemic turn to a slower pace as consumers returned to brick-and-mortar stores for in-person interactions and the possibility to save. Inflationary pressures increased traffic to discounters and warehouse clubs from shoppers who tried to economise and shop for best-value deals. Shopping for cooking ingredients and meals is expected to become more calculated but full of innovative solutions.
This report comes in PPT.
Inflationary pressures have forced many households to turn to more affordable options. Shopping at discounters and warehouse clubs has become more prominent as they can offer best prices for staple products like edible oils. Additionally, consumers have turned to private label to save. Improved assortment, better quality and various quality levels mean that various consumers can find a product to suit their needs and budget in the private label range.
The cooking ingredients and meals industry was gravely affected by commodity market fluctuations over the historic period. Products like edible oils saw prices go up in the high double-digit range due to supply chain disruptions and unpredictable harvests. Market volatility is forcing manufacturers to revise ingredients and sourcing practices to ensure steady product supply albeit at a higher retail price.
Premium products are still in demand. Solutions providing convenience, high quality, improved flavour profile and various health claims are well received in the market. Often, online retailing creates a launching pad for new products as e-stores can provide full control of sales and inventory without committing to strict grocery retailer contracts.
E-commerce growth is subsiding in cooking ingredients and meals; however, there is still potential. Consumers have formed a habit of shopping online for certain groceries, especially convenient solutions like meal kits.
The forecast period is expected to show signs of stabilisation both in industry sales and in channels. After the turbulent historic period with lockdowns and high inflation, consumers are expected to become more cautious and calculated when it comes to shopping and budgeting for groceries likes meals, sauces or edible oils.
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