• Continued rise of e-commerce in the grocery sector. The rise of the COVID pandemic in 2020 drove a dramatic acceleration of ecommerce for groceries. This shift will continue, even in “the new normal,” as there is a fundamental transformation in the market that will overcome the barriers that have slowed adoption of online shopping in food.
During COVID, consumers shifted their patterns and overcame those concerns/barriers, which resulted in the establishment of critical trust and developed a habit. This will only continue throughout 2021, with an estimated ongoing share expansion to 20% of the market.
• Families will continue to cook more at home. As we go into 2021 and restrictions continue for indoor dining, there will be an increase in the number of meals families have at home. This will result in consumers changing their habits – from those who cook from scratch and work on menu and culinary skills to those that look for retailers that can help with prepared meals, meals to go and do-it-yourself meal kits.
Retailers need to realize this isn’t just dinners — now that many of us are at home as the new normal, this will include breakfast and lunch as well. Retailers should focus on products that help us all manage in this environment.
• Retailers that personalize win. The changes in ordering online and eating more meals at home also means that consumers are buying different brands, different products and different pack-sizes. While we are still managing through COVID, consumers look to reduce the number of trips to store/online, have bigger baskets and are stocking-up. Those retailers who understand shifts in products and response to price/promotion will better meet customer needs.
