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.
This report comes in PPT.
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.
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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