How COVID-19 disrupted food

and drink priorities

How the pandemic has shifted six key macro-drivers underpinning food and drink shopping behaviour
in the EMEA region.

Jonny Forsyth

Associate Director - Mintel Food & Drink

October 2020

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Watch a recorded presentation of this article here

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TODAY'S AGENDA

Mintel's experts identified six macro-trends which were crucial consumer drivers pre-pandemic:
• Health and wellness
• Convenience
• Value
• Premiumisation
• Sustainability
• Trust and Safety

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How have these trends influenced shopping habits before, during and after COVID-19?

BEFORE COVID-19 DURING COVID-19 POST-COVID-19

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Cast your mind back to the world pre-COVID-19

Source: Time; Sky News; Mother Jones; Fandango Read on mintel.com

What were consumers' priorities pre-COVID-19?

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What have been consumers' priorities since COVID-19?

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How much has COVID-19 really impacted consumer behaviour?

Humans are very slow to change

BUT historically, big events have Select EMEA markets: consumer worry about life not being the same
as it was before the pandemic, July 2020*
accelerated change that may have
66%
otherwise taken decades. 62%
60%
51%
47% 46%

40%

% agree
20%

0%
Nigeria South Africa Spain Ireland (NI & RI) Saudi Arabia

Things are not just going to 'return to normal'. COVID-19 has created the 'next normal'

Base: 1,000 internet users aged 16+ in each market

Source: Lightspeed/Mintel Read on mintel.com

Back to the bottom of the pyramid

When people experience high levels

of anxiety and uncertainty, survival
mode dominates over 'higher level'
needs.

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People prioritise personal safety over the planet

IN SPAIN IN ITALY IN FRANCE

67% 67% 47%

of adults care more about their of adults prefer to buy products of adults think it's more important
own health than the environment with packaging that will protect to protect food hygiene than it is to
(May 2020) the contents from contamination minimise plastic packaging waste
(Jun 2020) (Jun 2020)

Base: 500 internet users aged 16+ in each market

Source: Lightspeed/Mintel Read on mintel.com

Health moves from lifestyle to life protection

Starbucks with vitamins! Plant-based yogurt immunity 'A natural antibiotic'

Medium Roast Ground Coffee with Essential B
Vitamins
. Launched in the US during Feb 2020, this
claims to be crafted with vitamins B1, B3,
B5, B12 and biotin 'to help keep the body
running at its best' (US).
Dairy Free Mango & Passion Fruit Almond & O
at Based Drink
contains added vitamins, including vitamins
D and B6 'to support the normal function of
the immune system' (UK).
Organic Black Garlic is fermented for a long
time without bacteria, yeast, additives and
preservatives. This product is described as a
natural antibiotic with a strong
antibacterial effect (Poland).

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Indulgence is a psychological coping mechanism

Healthier diets enhance protection, while people indulge to de-stress.

IN GERMANY

23%
of adults have eaten more treats
(ie ice cream, chocolate) since the
COVID-19 outbreak vs 11% who
have eaten less (May 2020)

Base: 2,000 internet users aged 16+

Source: Lightspeed/Mintel Read on mintel.com

Brands need to prove their value to survive

Premiumisation may have been a strong driver of sales in recent years, BUT

IN FRANCE IN POLAND IN GERMANY

33% 44% 73%

of adults are worse off since the of adults are cutting back on non- of shoppers switch to private label
start of the outbreak (Aug 2020) essential spending (Aug 2020) when they are saving money (Mar
2018)

Base: France, Poland: 500 internet users aged 16+; Germany: 1,839 internet users aged 16+ who have bought own-label or branded products in the
last three months

Source: Lightspeed/Mintel Read on mintel.com

But hyper-nesting does mean some premium opportunities

Consumers are seeking to make the most of their time

indoors.

Premium food/drink brands can target consumers

seeking elevated "me-time"or social events.

Source: Instagram; Mintel: Value and premiumisation in a post-COVID-19 world Read on mintel.com
Convenience becomes redefined

Pre-COVID-19 Since COVID-19

"Before the pandemic, convenient food/drink was "The concept of convenience changed as more
easy to prepare or purchase, easy to use and the consumers prepared all meals at home, left the
ultimate solution for on-the-go house only rarely and discovered new types of
lifestyles....consumers were seeking easy solutions". convenience.

"Easy to make" became "easy to make from scratch"

as consumers were not commuting. Instead they
were rediscovering the convenience that existed
before the pace of the world accelerated".

Source: Marcia Mogelonsky, Director of Insight, Mintel Food and Drink Read on mintel.com
As life slows down, old occasions re-emerge

Since the COVID-19 restrictions were put in place, 22% of UK breakfast

eaters have spent more time eating breakfast. This rises to 30% for 16-34
year-olds.

Base: 1,867 adults 16+ who eat breakfast

Source: Lightspeed/Mintel Read on mintel.com

HOW WILL COVID-19 IMPACT THE KEY TRENDS IN TWO
YEARS TIME?

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What will consumers' priorities be in two years time?

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Sustainability on steroids

As spending power increases and anxiety reduces,

sustainability will be bigger than ever as consumers
seek to make up for lost time.

People have seen in lockdown how quickly humans can

affect positive environmental change.

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Brands that care about the planet are buying future goodwill
P&G and Lidl Poland clean the Baltic
coastline
P&G and Lidl Poland have collaborated on a
campaign to clean the Baltic coastline in Sep
2020. Cleaning of the Hel Peninsula can be
supported by buying specific P&G products in
Lidl stores from 17-30 August.
Source: YouTube/Nestlé; Instagram/brewdogofficial
Nestlé trials refillable petcare and coffee
From May 2020, Nestlé started a four month
trial in three of its Swiss stores. Consumers
can bring reusable containers to purchase
Purina cat food and Nescafé.
The French government is looking at
increasing percentage of stores in refillable
format.
Brewdog goes carbon negative
In Aug 2020, Scottish 'punk' beer brand
Brewdog claimed to become 'the world's first
carbon negative international beer business'.
It is using wind power and planting a
'Brewdog Forest' to remove twice as much
carbon in the air as it emits.
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Sugar and alcohol become the new tobacco

COVID-19 has shifted perception of health from an individual to a societal

problem.

This means more interventionist governmental policies.

Plus, less societal tolerance for 'gratuitously unhealthy' food/drink which

puts too much strain on national health services.

Source: Instagram/borisjohnsonuk Read on mintel.com

Make it medicinal

There will be a heightened demand for launches that are functional as well as tasty.

Source: Mintel GNPD Read on mintel.com

Keep an eye out for fast-emerging functional demands

Eye health Cognitive health Gut health

Active Salad Mix: "The vitamin A helps to
support healthy eyesight".
With screen time increasing during lockdown,
eye health will move even more to the
forefront (Spain).
Soylent Stacked contains a 'stack' of L-
theanine and caffeine for focus; and l-
tyrosine for improved cognition and memory.
COVID-19 has increased awareness of mental
health and consumers are struggling to
navigate the 'Information Age' (UK).
Gut A Problem? Probiotic Rooibos Shot.
Demand for gut health claims has increased
dramatically in recent years. But it will
escalate further post-COVID-19 as consumers
seek natural ways to boost mood, digestion
and immunity (South Africa).

Source: Instagram/justambaa Read on mintel.com

Consumers will seek more help to de-stress

For many consumers, already-heightened levels of anxiety have increased since COVID-19.

Select EMEA markets: agreement with the statement "I am actively seeking ways to reduce stress", July 2019 vs
July 2020*
60% 57%
54%

46% 47%
45%
43%

40%
Jul-19
Jul-20
% agree

20%

0%
Denmark France Germany:

Base: 1,000 16+ online adults in each market

Source: Lightspeed/Mintel Read on mintel.com

Nutrition gets personal

The next step for functionality is personalisation

rather than crude 'one fits all' pre-made solutions.

As science improves and costs decline this will start to

infiltrate the mainstream.

Personalised Protein Co: 'the first personalised protein company' (UK)

Source: Instagram/goulding.danny.pt Read on mintel.com

Consumers will again pay a premium for quality

As spending power returns, more

Select EMEA markets: prioritisation of food and drink choice factors people will be able to afford to buy
following COVID-19, July 2020
the quality they seek.

41% This will enable companies to

40%
36% target added value claims and
34%
higher margins.
% agree

20%

0%
A higher quality product Made locally The lowest price

Base: 1,000 internet users aged 16+ in each market

Source: Lightspeed/Mintel Read on mintel.com

New rules of convenience: omnichannel goes into overdrive

Food/drink shoppers have had their eyes opened to

the convenience of shopping online – there will be no
going back!

Shoppers will opt for brands which deliver a seamless

experience between off and online.

Brands can no longer rely purely on 'bricks and mortar'

stores.

eCommerce's value lies in its data.

Heinz to Home initiative offers three 'bundles' priced £10-20 with a £3.50
delivery charge.

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Focus on product attributes which overlap post-COVID-19 trends
VEGAN meets health and sustainable needs
Stone-Baked Veggie Mexicana Pizzaa 'is a
source of proteins and an 85% lower carbon
footprint than a meat version. The vegan
product is made in Sweden with
consideration to consumers, animals and the
environment' (Sweden).
Source: Instagram/auchan_pt
LOCAL meets sustainability and trust/safety
needs
Plain Cancoillotte Cheese. The product is
made with Metton and Concoillotte cheese
from the Franche-Comté region by
manufacturers with know-how and local milk
sourced from producers situated 25km from
the dairy (France).
NO WASTE meets sustainability and value
needs
Auchan Retail Portugal partnered with 'Too
Good To Go' app in Jan 2020. App users can
buy 'Magic Boxes' food and drink items close
to their sell-by date or blemished for a cut
price €3.99 per unit. Buyers pick them up at
service counters.
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Final takeaways
Safety first
For now, consumers are focused on
survival needs – both for themselves
and for their local community. Brands
must focus on the 'bottom of the
pyramid'.
Health needs are heightened
COVID-19 has made people aware of
what's important in life – and their own
fragility. Healthy diets are no longer a
'nice to have' but an essential way of
life.
Sustainability on steroids
As economic and anxiety levels
recover, concern for the planet will go
into overdrive as consumers seek to
make up for lost time.
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Meet the Expert

Jonny Forsyth
Associate Director - Mintel Food & Drink
jforsyth@mintel.com

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