HOW MARKET TRENDS HAVE EVOLVED DURING COVID-19
Ulrik Nyberg from GI’s Market Research and Insights (MR&I) team gives us an update on some of the latest key market and consumer developments in relation to the pandemic
Market trends do not appear all of a sudden. Neither do significant trends fade in the short term. While the Covid-19 pandemic has affected us to a great degree during a relatively short period of time, many of the trends that it has affected were present before the outbreak. However, Covid-19 has accelerated some previously existing trends enormously. Developments that before the pandemic were expected to take years, have taken place in just a couple of months.
Consumer dietary lifestyles influenced by health matters, the environment and COVID-19
Unsurprisingly, Covid-19 remains among the key influences on consumers’ lifestyle as we move further into 2021. Interest in “preventative health” is steering consumers towards healthy eating patterns. A new major global study by Bord Bia across nine key markets, including Ireland, highlights the macro themes driving dietary lifestyles. These are:
- Health
- Back to Basics
- The Environment
- Covid-19
- Identity
Dairy sales in Ireland keep growing strongly during COVID-19
Now in early 2021, we are still seeing significant Irish retail growth trends, with some dairy categories performing well. Over the 52 weeks to 31st January, Milk grew by 10% while both Cheese and Yellow Fats recorded 15% year-on-year growth. However, in March/April it is likely that we will see a slowdown as the effects of Covid-19 on the market with movement restrictions and school closures annualise.
Irish consumers are interested in supporting local and sustainable
Over the last year, we have seen several reports highlighting how the pandemic has changed Irish consumers’ shopping habits. Supporting local shops and businesses is one of the major changes pinpointed. Increased focus on sustainability is another one. According to NielsenIQ, 67% of Irish shoppers agree/strongly agree that they try to choose products made in Ireland. More than 60% say that they try to choose products from the regions where they live.
Outlook for 2021 and beyond
Without a doubt, Covid-19 has changed the way we live permanently. Some of the trends that accelerated quickly in 2020 will slow down once vaccines are rolled out and markets open up again. We might not see trends like home cooking and baking continue into 2022 but consumer focus on health, natural products and the environment is likely to remain for a long time.
Also, consumers have discovered that supporting local/regional brands and businesses is a good thing. In consumers’ minds, dairy remains as a key and versatile source of nutrients. And (of course), online grocery shopping is so far showing no sign of slowing down.
