US COVID-19 Impact on Food and Drink: One Year Later Market Report 2021
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Providing the most comprehensive and up-to-date information and analysis of the US Food and Drink Consumer market including the behaviors, preferences, and habits of the consumer.
While most retail food and drink categories experienced significant sales gains in 2020, growth was not universal. Performance-related categories, such as nutrition drinks, weight loss drinks and performance bars saw dollar declines. These categories have multiple routes to turning the tide moving forward, including leaning into their ability to help consumers meet renewed health goals or widening positioning beyond a strict fitness focus to highlight healthy convenience and portability.
A natural recalibration of retail food/drink performance is expected through 2021, with dollar declines projected in most categories. Consumers are eager to return to old habits, including eating away from home, which will again shift where and how dollars are spent.
Despite the venture back to foodservice, food at home will be helped along by a significant percentage of the population who will stick close to home due to changes in work situations. Close to half of US adults expect to work from home to some degree through 2021, necessitating easy and quick meal solutions. The lasting shift in work site will provide opportunity for brands to continue to resonate via the at-home meal occasion, primarily for lunch, breakfast and snacking throughout the day.
On the health front, a global health crisis accelerated the demand for functional foods/drinks. In effort to protect against infection, many turned to options with immune-boosting ties, from the old basics of vitamin C to more integrative tools such as ginger, oregano, and elderberry. This will translate to a continued focus on ingredients, ingredient quality and a desire for ingredients that contribute to specific desired outcomes, including weight loss, mental wellness and anti-aging.
Read on to discover more about the US Food and Drink consumer market, read our Future of Ingredients: 2021 report, or take a look at our other Food and Foodservice and Drink research reports.
Brands include: Nuun, Southern Grove, Kellogg’s, Oikos, Junior’s, Kryssos, Frito Lay, M&Ms, Cheetos, Giant Eagle, Republica, White King, Bakery on Main, Aldi, Signature Select, College Inn, CJ Foods, Bibigo, Mamma Emma, Annie’s, Kroger, Tylina Sweetshop, Life Cuisine, Harris Teeter, John Soules Foods, O Organics, Good & Gather, Stop & Shop Nature’s Promise, Lean Cuisine, Wegmans Organic, Signature Select Soleil, 365 Everyday Value Organic, Traditional Medicinals, Great Value, Genuine Muscle Milk, Mi Tienda by HEB, Vör, Greenlee’s Lindt, Godiva, Ghirardelli, Ben & Jerry’s, Lay’s, Sutter Home, Silk.
This report, written by Beth Bloom, a leading analyst in the US Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
The COVID-19 pandemic afforded food and drink brands across the board an unparalleled opportunity to prove their worth. While the strong dollar gains will be short-lived, the relevance can resonate. 2021 will be marked with continued uncertainty for consumers eager to reclaim power as they navigate the opportunities and limitations of a new normal. As such, brands must continue to step in as convenient, accessible, functional and enjoyable solutions.
Beth Bloom
Associate Director, US Food and Drink Reports
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