From a revenue perspective, the pandemic will be a boon for many food and beverage brands. Yet that does not mean that the new normal will be easy to navigate for brands in this category. The consumer behavior shifts in grocery have been dramatic: fewer trips, bigger baskets, BOPIS, brand switches, and delivery are all larger segment factors than they were prior. Food and beverage brands will need to digitally transform faster; food and beverage is now predicted to be 2020’s fastest-growing ecommerce category, with a 58.5% YoY increase. As we review in this infographic, consumers like shopping for groceries in-store, but the pandemic will increase digital grocery buyers by 41.9% this year, to just over half the population. Many adopted behaviors will have staying power, and food and beverage brands will need to adapt quickly to remain in lockstep with their consumers.
UNDERSTANDING GROCERY IN 2020: THE HIGHLIGHTS
- Revised predictions expect an increase in sales to 707.3B in 2020, up from 675.75B in 2019.
- Food and beverage is now predicted to be 2020’s fastest-growing ecommerce category, with a 58.5% YoY increase.
- Digital grocery buyers will increase 41.9% this year, to just over half the population.
- Still, pre-pandemic 63% agreed that they enjoy grocery shopping, so many will likely return to store once they feel safe (and have already done so).
- Baskets are bigger, trips less frequent: In April, trip frequency to the top 12 grocery chains was down 19.7%. That stat improved in May, with a 10.1% decline.
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Additional sources: eMarketer, “Food and Beverage Will See Biggest Gains in Retail Ecommerce Sales Growth This Year,” 28 July 2020