Happy New Year!
I hope you and your loved ones were able to enjoy the festive period to the fullest and that you're feeling positive as we start 2022.
January begins with a continued level of uncertainty as hospitals remain under pressure and rumoured restrictions remain the hot topic in the UK's headlines.
Grocery Headlines from 2021
As the year began, we continued to eat, shop and live differently.
Once hospitality re-opened and lockdown came to an end, we started to slowly return to our old habits.
Many of us went back to our usual workplaces in the second half of the year, meaning less scratch cooking and more ready meals.
Online remained a staple of our new shopping habits, now worth 12% of total grocery sales. Almost double pre-pandemic levels.
Staff shortages in the supply chain meant that 68% of UK shoppers experienced out of stocks either in-store or online during November.
It's likely we spent even more on groceries over Christmas. We'll know more when Kantar publish their Grocery Market Share results in the next few days.
What can we expect in 2022?
According to an Ipsos survey, consumer confidence is currently at a similar level to the start of 2020.
Although we're not currently expecting restrictions, further announcements may impact sentiment as 2022 progresses.
We'll continue to see higher sales of take-home groceries than pre-Covid. If there are any further restrictions shoppers won't adapt their behaviour drastically.
Many of us will continue to do some of our shopping online. It remains vital for brands to stand out on grocery.com.
The aftereffects of both lockdown and Brexit will continue to impact the economy into 2023 and beyond.
50% of Brits believe food & drink prices are already higher than they were six months ago. We can expect price inflation to continue across 2022.
This means we will cut back our spending in some areas – how can we help people who are trying to save money?
People will be looking for small affordable ways to treat themselves – a great opportunity for many FMCG brands.
For more information on consumer behaviour this year, check out Mintel's 2022 Global Consumer Trends report.
Food & Drink Trends for 2022
In case you missed it, Waitrose published their 2021-22 Food & Drink report a few weeks ago.
It's a concise view of the trends emerging and their predictions for next year.
Some of the key themes include:
- Enjoying time at home
- Return of the dinner party
- Outdoor cooking
- TikTok influences
- Sustainable choices
- Eastern Mediterranean dishes
I've definitely seen most of these trends in my own life - but there are some that are new to me as well!
Here's hoping we will have plenty to celebrate as 2022 goes by.
We will need to continue preparing for various scenarios. If there's anything I can do to help you or your business - please get in touch.
Stay safe, well and positive.
Ella.
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