The packaged food industry has seen fundamental shifts on the back of the Coronavirus pandemic with increased demand for staple foods, cooking ingredients and meals. This report gives an overview of the dynamics seen across the world and analyses the key trends that are driving growth in the industry, including the continued demand for plant-based food and functional offerings and the unprecedented uptick of the online channel.
This report comes in PPT.
The economic fallout on the back of Coronavirus (COVID-19) is likely to be felt long into the future. With spending power reduced, demand for value for money offerings and private label is gaining ground. Manufacturers need to pay attention to delivering affordable solutions for consumers.
Health and sustainability continue to be the two key pillars driving demand for plant-based food. The trend will continue to be led by Western markets and developments continue to expand beyond plant-based milk and meat substitutes, including cheese, fish and seafood alternatives.
Targeted functionality as a key component of wellbeing has become crucial for consumers, which is benefiting functional foods. Probiotic-rich foods to boost immunity have been important winners and further opportunities are set for mood-enhancing and stress-relief ingredients.
Although single-use plastic, recyclability and food waste remain important topics in the food industry, the pandemic has shifted the attention to corporate responses focused on social action, including support to the vulnerable and local farmers and communities.
Given stay-at-home rules, online grocery is one of the most significant trends in the packaged food industry. Food players are prioritising this channel at the top of their corporate strategies as it is set to continue to be the fastest growing channel moving forward.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.
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