CPG and Foodservice Trends Impacted by the COVID-19 Crisis

Every country in the world has been impacted by the recent COVID-19 health crisis, some more than others.  In the U.S. food and beverage industry, we are seeing the following trends:

• CPG Trends
  • Brand switching from mainstream to value (decreased brand loyalty)
  • Increase in Private Label
  • Cost valued more than convenience
  • Shift from premium to value channels (Mass & Club)
  • Decrease in Foodservice and increased eat at home
• Foodservice Trends
  • In 2019, U.S. foodservice experienced +4.1% growth
    • 25% of total eating occasions were in a restaurant
  • In 2020 expectations are for a -13% to -28% decrease
  • The winners in foodservice are restaurants which deliver and/or consumers take out:
    • +30% curbside pick-up since crisis
    • +22% delivery
    • +20% take out
  • We will see initial pent up demand as the crisis mitigates and restaurants open
  • Longer term there will be fewer restaurants (IRI estimates -100,000) and less choices

These trends will continue through the crisis, but North American consumers will begin to return to their original purchase patterns over time.  In the meantime, food and beverage brands and foodservice establishments must adjust to the new normal in consumer behavior.  It will not be “business as usual” for quite some time, and brands will need to pivot to remain relevant in a depressed local economy.