Where Consumers Shop for Cooking Ingredients and Meals

Delivery

This report comes in PPT.

Key Findings

Inflation hits value sales in 2022 by bringing consumers back home

In 2022, while the overall industry grew by 3% in constant value terms, inflation hit the market and pushed sales growth in current terms, with a 5% increase globally. As affordability becomes a priority amid the inflation surge, consumers tend to switch to private label and seek cheaper outlets.

Convenience becomes paramount as consumers spend more time at home under hybrid lifestyles

Hybrid working environments have naturally led to healthier growth in convenient meal offerings in line with the ongoing demand for convenience, driven by cooking fatigue.

Among offline retailers, large grocery retailers dominate but small grocery sees stronger growth

The share of offline retail channels has been declining due to a continuous consumer shift to e-commerce, but the supermarkets channel is still at the forefront. Small local grocers recorded the greatest growth with strong presence in developing markets.

E-commerce continues to grow post-pandemic with the success of meal kits

E-commerce continued its strong performance in 2022, by sustaining organic growth within all categories. Developed regions are the leading space in e-commerce, backed by high urbanisation and well-established delivery infrastructure, and meal kits is the key contributor to the surge in e-commerce sales.

Consumers will continue to be price-sensitive in the near term

Amid ongoing uncertainties, discounters and warehouse clubs will gain continued traction as global consumers are more likely to focus on prices. Global consumers tend to value basic and fundamental urges in food; however, health and nutritional aspects remain the core values that consumers barely compromise while tightening their budgets.