Since Covid-19 hit the US in late February, our lives have been impacted in many ways. Researchers have set out to understand the virus’s impact on the Food and Beverage industries. How has consumer demand and buying habits changed over the past few months? Researchers have weighed in, and they all seem to agree: Consumers are stocking their pantries and eating at home. Their research indicates that may be the trend for months to come.
What does the research show?
In a recent study by Suzy and A New Hope Network, before Covid-19, about 50% of all food was consumed via food service. Since March, nearly all of that has shifted to in-home consumption through grocery retail. The research further stated that 42% of their respondents have approached meal planning differently, and 50% reported making their decisions based on longevity – what will last long in the freezer or pantry. Within the past two weeks, 50% of respondents reported they ate more frozen foods than before Covid-19, and 46% reported they ate more boxed or canned goods in the same time frame.
As small quarantines began and borders closed more broadly, Nielsen research echoed these sentiments. Their studies indicated a rise in take-out orders and food delivery, but most notably in eating and cooking at home. Their studies further indicated a spike in grocery store visits, enormous in-store spending, and a stockpiling of pantry items as the virus took hold of our Nation. According to research released by Nielsen on April 17, 2020, there has been a large percentage of growth, particularly in shelf-stable and frozen fruits and vegetables.
In the Suzy/New Hope Network Study, 41% of consumers expect to spend more on food services, grocery visits, and online ordering in the next 60 days. Neilsen’s research indicated that consumers think Covid-19 will last 4-6 months.
How has the shift in consumer buying habits impacted your business?
With the change in buying habits likely to continue over the next several months, are there new opportunities for you to meet consumer demand? What challenges is your business facing as we work through this crisis? How can food and beverage manufacturers do to meet the changing market? Share your thoughts and experiences in the comments below.
See the Nielsen report here.
