Consumers are expected to be more willing to spend after a year of repressed spending in 2020, and innovation is essential for businesses to tap into revived purchase occasions. Changes to mobility, digital acceleration and an evolving perception of value will inspire a new approach to innovation, alongside themes from before the pandemic. Strategies that meet these new needs while still reflecting pre-COVID-19 values could cause new disruptive concepts to emerge.
Consumers are expected to wish to relieve pent-up demand after a year of repressed spending in 2020, and innovation is essential for businesses to tap into revived purchase occasions. Industry players must be mindful of household members’ unique challenges and adapt to their new lifestyles.
Products positioned to reflect consumer values will gain popularity as consumers become more willing to justify higher priced purchases amidst reduced spending on out-of-home leisure activities. Innovation will be key to revive categories that have been negatively affected by restrictions on dining out and travel during the pandemic.
Grocery will continue to be attractive, especially as foodservice struggles to return sales to pre-COVID-19 levels. Packaged food through retail is expected to broaden in scope on the back of new business models, convenience and experiential cooking aids at home, and more brands are set to explore take-home options.
Mobility and financial pressure on economies will continue to favour channels like mass-market grocery and e-commerce. The growth of digital development and the adoption of technology in consumers’ path to purchase are expected to accelerate the shrinking of supply chains.
Food occasions at home may continue to change, depending on stay-at-home measures and mobility trends, and some of these new business models and newly established consumer habits are likely to persist. Prioritising of health, purposeful spending and digital adoption will retain their stickiness, and may cause disruptive concepts to emerge in the future.
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