Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on food and drink shopping
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the food and drink shopper, November 2020
- Opportunities and Challenges
- Tap into deeper motivations to keep home meal prep cooking
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- Figure 2: Changes in meal purchase and prep behaviors due to COVID-19, August 2020
- Offer a taste of the familiar, with a twist
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- Figure 3: Changes in food priorities, August 2020
- Facilitate planning and stocking up
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- Figure 4: Changes in shopping behaviors during COVID-19, August 2020
- Help shoppers plan for snacking
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- Figure 5: Changes in meal and snack behaviors during COVID-19, August 2020
The Market – Key Takeaways
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- Pandemic brings major realignment in food and drink spending
- Desire to limit time in-store alters food and drink shopping habits
- Declining cooking enthusiasm both a threat and opportunity for retailers
Market Overview
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- Pandemic brings major realignment in food and drink spending
- In-home food
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- Figure 6: Total US retail sales and forecast of in-home food, at current prices, 2015-25
- Non-alcoholic beverages
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- Figure 7: Total US retail sales and forecast of non-alcoholic beverages, at current prices, 2015-25
- Dining out
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- Figure 8: Total US retail sales and forecast of dining out, at current prices, 2015-25
Market Factors
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- Overarching concern about virus exposure and lifestyle impact
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- Figure 9: Coronavirus exposure and lifestyle disruption concerns – any worried, March-November 2020
- Desire to limit time in-store alters food and drink shopping habits
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- Figure 10: Coronavirus lifestyle changes – Online shopping, April-October 2020
- Comfort with in-store shopping, dining out slips as cases rise
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- Figure 11: Comfort level with restaurant/bar patronage – Very or somewhat comfortable, July-November 2020
- Declining cooking enthusiasm both a threat and opportunity for grocery retailers
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- Figure 12: Enthusiasm for cooking, 2018-20
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- Figure 13: Reasons for cooking, 2018-20
Market Opportunities
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- Address cooking fatigue to keep food and drink sales growing
- Build on the familiar to get to something new
- Leverage technology for a more efficient in-store shopping experience
- Extend meal planning help to snack planning
Competitive Strategies
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- Meeting shoppers where they are in terms of shopping method
- Offering all the options
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- Figure 14: Kroger social media posts, November 2020
- Moving quick fill-in trips online
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- Figure 15: FreshDirect, Hy-Vee, Walmart social media posts and digital ads, November 2020
- Meeting shoppers where they are in terms of home meal prep
- Offering meal-prep choice
- Bringing meal planning and shopping together though entertainment
The Consumer – Key Takeaways
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- Supermarkets still lead, but younger shoppers are looking to other options
- Pandemic restrictions help to propel home cooking
- Key product factors grow even more important
- More planning and stocking up, new brands and new stores
- Opportunity to help shoppers plan for snacks
- In-store safety measures remain top priority for shoppers
Food and Drink Purchase Locations
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- Traditional supermarkets lead among a wide range of options
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- Figure 16: Food and drink purchase locations, August 2020
- Younger shoppers tap into wider array of retail channels
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- Figure 17: Food and drink purchase locations – Top three, by age, August 2020
COVID-19’s Impact on Meal Purchase and Prep Behaviors
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- Pandemic restrictions pair with deeper motivations to propel home cooking
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- Figure 18: Changes in meal purchase and prep behaviors due to COVID-19, August 2020
- Young consumers more likely to look to convenient options
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- Figure 19: Changes in meal purchase and prep behaviors due to COVID-19, by age, August 2020
Changes in Food Priorities
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- Some key product factors grow even more important
- A taste of the familiar
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- Figure 20: Changes in food priorities, August 2020
- Older shoppers less likely to report changing food priorities
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- Figure 21: Changes in food priorities – Net increase or decrease in importance, by age, August 2020
Changes in Food and Drink Shopping Behaviors during COVID-19
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- More planning and stocking up
- New brands, new stores
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- Figure 22: Changes in shopping behaviors during COVID-19, August 2020
- For younger shoppers, less planning, more new brands and ideas
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- Figure 23: Changes in shopping behaviors during COVID-19, by age, August 2020
Meal and Snack Behaviors due to COVID-19
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- More snacking during pandemic
- Healthy or indulgent? More of both
- Planning for snacks
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- Figure 24: Changes in meal and snack behaviors during COVID-19, August 2020
Anticipated Shopping Priorities
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- In-store safety measures remain top priority for shoppers
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- Figure 25: Anticipated shopping priorities, August 2020
- Older shoppers especially likely to prioritize masks, social distancing
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- Figure 26: Anticipated shopping priorities – Top three, by age, August 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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