Consumers in a Covid-19 world
In part three of our Keeping the Chain Going series, we examine the impact of COVID-19 on consumer trends and consumption habits
So far in our Keeping the Chain Going series, we’ve looked at how COVID-19 has become a new reality for the food and beverage industry. And we’ve seen that SIG has been united in a crisis to ensure food remains safe and available. But what about consumers? How has the pandemic changed the way people choose, purchase and consume products? And what does this mean for brands and producers in the future?
Shopping in a pandemic
Since the WHO declared COVID-19 a global pandemic, billions of people have had to drastically rethink the way they live. And an area where this has been keenly felt is normal shopping routines and habits. Because with the majority of the world in states of lockdown, quarantine or isolation, consumers have understandably changed the way they consume products.
In recent months, it’s been well reported how many people have been stockpiling grocery basics and essentials, such as packaged goods, toilet paper and cleaning products. Another immediate impact is that out-of-home consumption has dropped significantly while at-home consumption has increased. Online grocery shopping, meanwhile, has also risen in popularity.
According to research from the International Food Information Council this has resulted in a marked change in eating habits with consumers buying more packaged foods, shelf-stable products and easy-to-prepare meals, as well as more snack products. It’s also lead to an increased awareness of product safety with consumer concerns focused firmly on hygiene and food safety.
All of which are areas where SIG’s aseptic packaging, technology and solutions can add real value, enabling producers to provide more safe, convenient and differentiated shelf-stable products.
Sentiments and segments
In the recently published EY Future Consumer Index – designed to help companies understand and track emerging consumer behaviours and sentiment around the world – analysts found that four key trends have emerged during the COVID-19 pandemic. These are "Cut deep", "Stay calm, carry on", "Save and stockpile" and "Hibernate and spend".
Consumers within the Cut deep" segment (27%) are spending less across all expense categories. "Stay calm, carry on" (26%) are continuing to spend as normal. "Save and stockpile" (35%) are pessimistic about the future and reflecting this with negative purchasing. And "Hibernate and spend" (11%) are spending more across the board and looking to brands they can trust.
Before the pandemic, consumer demands and behaviours were already changing at a rapid pace. And reports like these serve to show that now more than ever it’s critical for companies to anticipate how consumers will change and respond to specific segment needs – and to be ready for whatever the future holds.
The long-term look
As the world emerges from lockdown and economies look to recover, the key question is whether any of the recent consumer behaviours and sentiments we’ve seen will stay and become long-term trends. And whether we’ll see fundamental shifts and changes in the way consumers choose food and beverage products.
We’ll be exploring these issues and more in our upcoming Post-Pandemic World series, taking a broader look at the trends and expectations of life after COVID-19. And, crucially, we’ll highlight the new opportunities on the horizon for brands and producers, and how SIG is well placed to help you realise them.
In the meantime, look out for the final part of our Keeping the Chain Going series when we’ll examine some of the long-term impacts of COVID-19 on food and beverage supply chains, and how they can become more resilient to future shocks and disruptions.
- May 27, 2020