“In the midst of difficulty lies opportunity”. This was the key message issued by IRI at their State of the Industry conference in Auckland to a packed-out crowd at the Vodafone Events Centre on the 18th of November. No-one could have predicted this year in their wildest imaginations. Yet the industry really stepped up and rose to the challenges which saw grocery retail channels up 9.9 percent or $1.5 billion in revenue in the latest MAT period (18th Oct 2020).
Food & beverage accounted for nearly 2 in every 3 dollars spent in pre-packaged goods as consumers focussed on essentials such as frozen foods, baking products and cooking from scratch reflecting the changes in consumer behaviour due to Covid-19.
Debbie Simpson-Pudney, Head of Retail, Innovations & Solutions at IRI led with the overarching societal changes we have experienced driven by the pandemic then discussed the trends we have seen evolve, emerge and continue.
These key trends fell into four buckets; ‘my health’, ‘my home’, ‘my wealth’ and ‘my purpose’. Of particular interest was the growth we have seen in Private label (+13.8 percent value) at the expense of branded products. The recessionary mindset has impacted the way we shop and those most affected are making conscious decisions to find ways to reduce spend. This highlighted the importance of having a relevant price and value proposition strategy.
Other call outs were around the increase in functional foods offering health boosts in immunity, mental wellness and cognitive wellbeing. Consumers favoured buying local and were also prepared to pay more for products that offered them step saving and complete meal solutions.
Click HERE to see the full presentation delivered by IRI.