After record-high growth in 2020, staple foods saw decline in retail value in 2021 as governments eased pandemic-related restrictions and foodservice outlets reopened - although sales remained higher than in 2019. E-commerce and discounters increased their channel shares as consumers sought convenience and affordability, respectively. These factors are set to remain important for future staple foods purchases, while supermarkets are losing share due to demand normalisation.
This report comes in PPT.
Easing restrictions and reopening of foodservice outlets led to the decline of retail value sales of staple foods in 2021. Categories skewed towards home cooking, such as rice, pasta and noodles, and processed meat and vegetables, recorded the strongest decline. Sales remained higher than pre-pandemic, however.
Despite the overall staple foods category witnessing a decline in 2021, e-commerce maintains positive growth as consumers developed the habit of online purchasing and as more players either enter or improve their online platforms.
Supermarkets remains as the most important channel for staple foods, although this channel experienced a decline in 2021 following demand normalisation.
While the discounters channel was already on the rise, it experienced a boost as in 2021 consumers increasingly chose it for cost savings. Also, private label brands are increasing in discounters, allowing the prices of staple foods sold in this channel to be even more competitive.
New lifestyles that emerged with the pandemic have caused consumers to spend more time at home. This, coupled with consumers feeling the pinch of inflation, will reshape the choices consumers make on staple foods purchases, as will wanting to shop via more convenient and affordable options.
NOTE: Couscous, polenta and quinoa are excluded from staple foods.See All of Our Definitions
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