Eating occasions have evolved significantly with changes in consumer habits, and home as a hub will be a core focus in the next few years. Meanwhile, experiential dining out and food discovery at specialist retailers have been under threat, leading to a surge in experimentation and self-creation at home. Value for money positioning is more important than ever as consumers seek novel experiences despite tightened budgets. This report delves into the drivers and innovation examples that businesses
This report comes in PPT.
Experimentation and cooking-at-home habits triggered by the pandemic quarantines merge with consumers’ rising desire for convenience, the latter an ongoing trend for years that will not abate. Companies are aggressively tapping on partially prepared food that suits a variety of dishes, cuisine and skill sets.
E-commerce, delivery and social media have been crucial in driving business in 2020 as mobility and foot traffic in brick and mortar outlets declined. In addition to point of sale, digital platforms have also been heavily utilised by companies to engage customers. Consumers make up for the loss of physical gatherings through social media.
The fall in foodservice and the on-trade channel in 2020 has paved a way for restaurant operators to enter the retail market. The fight for share of stomach at home is expected to provide consumers with more choice and separate the weaker brands from the more resilient ones.
Premiumisation trends may have taken a backseat in markets where economic conditions are not faring well. However, consumers remain discerning of premium trends and possibilities of indulgence. To justify spending more, consumers actively seek product attributes that balance out indulgence, such as healthfulness.
Consumer desire to seamlessly blend various aspects of their lives necessitates food firms to collaborate with players in the home and technology space as well. Cross-compatible, multi-functional and complementary products are all set to sit well with consumers provided they are easy to adopt and integrate with existing habits.
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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