Recent data has revealed how people worldwide are coping with economic pressures, what consumers prioritise, and what opportunities this has created for brands and producers to meet current and future demands.
Inflation has significantly impacted how and what consumers spend on food and beverages. It has also exacerbated pre-existing concerns regarding health and hunger.
According to Innova, globally, one-in-two respondents to its survey shared that they had spent more on food and beverages since the beginning of lockdowns, led and mandated due to the pandemic.
Furthermore, a similar percentage revealed increased outlay due to inflation, with nearly 70 percent stating that they were actively trying to save money. However, as important as the price is, health was the leading concern for all income brackets.
The research showed that consumers were steadfast in the belief that health should drive new product development, beating out affordability, revealing that consumers are willing to pay more for better products for their general health and well-being.
Secondly, health was a crucial driver of consumption across many food categories. Therefore, growth opportunities in affordable nutrition are the most significant areas for manufacturers to consider.
A third of the respondents said they wanted to cook from scratch to reduce spending and increase their healthy eating. Therefore, the cultivation and accessibility of simple, nutritious ingredients is another key growth area.
To capitalise on these trends, brands have expanded essential ranges offered, with a percentage share of new product launches, utilising terminologies such as 'budget' to promote consumer uptake.
Price has become a significant point of difference. Consumers purchase based on price, health benefits, and messaging regarding the product's sustainability through sourcing, packaging or otherwise.
