The coronavirus pandemic has significantly changed where and how consumers shop. Businesses must analyse this evolution and reshape their selling strategies accordingly. This report delves into these two important aspects of shopping, where and how, from the point of food and nutrition and gives a clear understanding of which channels to invest in and what kind of solutions businesses should adopt to be agile and stand out as the competition intensifies.
E-commerce was already becoming a phenomenon in food shopping pre-COVID-19 with investments from both e-commerce giants such as Amazon and FMCG giants such as Unilever which is focusing on the direct-to-consumer model as a result of soaring online food sales. With the home seclusion effect of COVID-19, the adoption of online buying among global consumers reached record-breaking levels at the expense of in-store shopping and this shift online is expected to stick post-COVID-19.
COVID-19 changed consumers' priorities in food shopping in line with the downturn in disposable income led by increasing unemployment rates. Consumers increasingly prioritise value for money, which impacted speciality shops that typically offer premium/ artisanal products. Convenience stores were also impacted by the pandemic due to home confinement which reduced foot traffic significantly.
As health took centre stage throughout the pandemic, consumers increasingly sought solutions that enable them to make purchases by reducing the risk of contamination to a minimum. In that context, “contactless” emerged as the safest way for consumers to avoid risky touch points. These health concerns of consumers led retailers to develop solutions, such as fully-automated stores, allowing consumers to avoid all the front-end hassles in brick-and-mortar stores, including scanning and payment.
Subscription boxes, especially meal kits, had already been gaining traction among urban shoppers wanting to undertake home cooking but spend less time doing so. With the success of initial start-ups specialised in this format, such as HelloFresh, the application of subscription models has been extended to different food categories including snacks. COVID-19 boosted the demand for these models as consumers either want to experience new recipes or indulge themselves with curated boxes.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page