Food and Beverage Industry Trends: Post-COVID EditionĀ
The 2020 food and beverage industry trends have been significantly impacted by the COVID-19 pandemic. The novel coronavirus has changed how we shop, where we shop, and what we consume. Consumers have adapted to a new normal, creating and shifting trends that will outlast the current pandemic.
Buying Local
With constraints among national brand supply chains, and consumers becoming more conscious of a productās origin, they are choosing to purchase locally. Ranking as the most important cause consumers care about, at 46%, the concept of buying local has gained traction over the past year. With the growing concern surrounding product origination, consumers are supporting local efforts and not solely relying on brand loyalty. Post COVID-19, consumers will continue to appreciate and prioritize initiatives whose impact on the future is beneficial and sustainable.
SpikedĀ Seltzer Segment
Illustrating a shift from last year, whenĀ half of US adults were showing interest in drinking less,Ā the COVID-19Ā pandemicĀ has seenĀ aĀ 16% increase in adultsĀ stating they increasedĀ theirĀ alcocholĀ consumption.Ā This is aĀ complete shiftĀ in consumer activity,Ā and combined with an increased desire forĀ ābetter-for-you productsā,Ā hard seltzers have skyrocketed in popularity.Ā Nearly 40 brandsĀ haveĀ launchedĀ sinceĀ 2019 andĀ hard seltzer sales from June 2019 to June 2020Ā grew byĀ 127%.Ā WithĀ a better-for-youĀ mindset and an increasingĀ array of product selection,Ā consumer support for this segmentĀ will continue to grow.
Increased Interest in E-commerce
Pandemic safety concerns haveĀ rapidlyĀ shiftedĀ consumer shopping trends toward eCommerce.Ā The contactlessĀ experienceĀ and orderingĀ from homeĀ broughtĀ many consumersĀ to services,Ā such asĀ grocery delivery,Ā resulting inĀ soaringĀ sales.Ā Customer demand exceededĀ manyĀ companyāsĀ year-endĀ forecasts,Ā andĀ according to Instacart,Ā theirĀ demand projections for the nextĀ two to four yearsĀ was exceededĀ inĀ a period ofĀ 2-4 weeks.Ā Even though there have beenĀ labor shortages and delivery delays,Ā 83% of consumers are still willing to shop online,Ā provingĀ consumersĀ are adapting to,Ā and willing to,Ā thisĀ newĀ environment.
BrandĀ Loyalty
SignificantĀ decreases in disposable income and product availability have forced consumersĀ toĀ adjust their purchasingĀ habits. This has resultedĀ inĀ 48% of consumers being open to new brands.Ā WithĀ both national and private brands becoming replaceable,Ā consumers are branchingĀ out andĀ engagingĀ newĀ brands.Ā WhileĀ availability isĀ stillĀ a key consideration for shoppers,Ā 72%Ā sayĀ their decisionĀ isĀ influencedĀ by the brandās response to theĀ COVID-19Ā pandemic.Ā TheĀ 33%Ā increase inĀ AmericansĀ thatĀ areĀ willing toĀ considerĀ new brands,Ā and a strongĀ opinion ofĀ aĀ brandāsĀ actionsĀ during theĀ COVID-19Ā pandemic,Ā showsĀ a trend towardsĀ brandĀ disloyaltyĀ and an opportunity to earnĀ newĀ consumersāĀ loyalty.
Navigating the New Food and Beverage Industry Trends
As with essentially every industry, the 2020 food and beverage industry trends have been significant impacted by the global pandemic of 2020. Looking forward into the new normal, business leaders can begin to capitalize on the new 2020 food and beverage industry trends by approaching their business challenges with human-centric thinking to understand how shoppers and consumers are now purchasing, engaging with brands, and gathering information.