The current pandemic is expected to lead to an additional US$ 203billion spent on food and groceries around the world in 2020, with the total spend now expected to reach US$9.4tn, according to data analytics company GlobalData.
Thomas Brereton, retail analyst at GlobalData, said,
“Coronavirus has transformed the way consumers across the world are buying groceries, both in terms of the amount being bought and channel choice. Less or no dining out has meant more people are dedicating time to home cooking (with 43.3 per cent of global consumers stating they are cooking more at home), resulting in much higher sales at supermarkets. Covid-19 has also been a catalyst for growth in the online grocery channel, with 28.9 per cent of global consumers now buying groceries more online. While this will be particularly impactful in countries with a previously low online grocery presence, such as China and India, even countries with a more mature online grocery market will see growth peak substantially.
The UK online grocery retail market is expected to grow 25.5% this year, well ahead of the 10.2% growth previously forecast. But will grocery shopping habits remain changed in the long run?
“With most of the additional spend as a result of foodservice spend transference, how quickly restaurants and other food providers can reopen will be key; however, we expect that, for most of the world, demand for such services will remain subdued for much of 2020, and grocers will continue to gain sales as a result,” Brereton said.