The seismic shifts of 2020 can tell us a lot about what to expect in coming years regarding the what, where, and how we eat.
The New Consumer published a recent report that lists some of the major post-Covid consumer trends of 2020, using shopping data from Earnest Research and an in-house survey of 3,500 consumers. Here is what they found:
– Grocery wakes up. While grocery grew at 2% in recent years, sales jumped 10% in 2020. A 10% move in this market translates to $100 billion/year.
– Grocery goes online. Nearly half of consumers say they prefer online grocery shopping. The channel grew by twice the rate that was anticipated pre-Covid. And there is still room to grow; grocery e-commerce penetration lags behind major consumer categories like beauty, fitness, and apparel.
– Strong & sticky trial. 75% of Americans reported trying a new consumer behavior this year, and 73% said they would continue with the new shopping method or brand that they tried, which is great news for challenger brands who showed strong sales growth in 2020 (0.7%), while incumbents have floundered (-1.6%).
What does this mean for 2021 and beyond? The New Consumer report calls out:
– The notion of the ‘grocery store’ is changing. Today’s ‘grocery store’ experience ranges from live shopping (a la brick and mortar and pop-ups) to online subscriptions, delivery apps, native e-grocery, and direct-to consumer sales. Brands must gain consistent loyalty across a variety of platforms, and build a direct voice with their fans. Brands like DiasporaCo, Fly By Jing, and Sitka Salmon Shares have built strong direct-to-consumer (DTC) tribes that will carry them into a stronger position with retail, if they choose, in the future. (Disclosure: I serve on the board of Sitka Salmon Shares.)