Total grocery sales reached a three-year high during COVID 19 with fresh categories taking out the top five growth contributors.
Grocery was the beneficiary of increased at home consumption to the detriment of food service.
Bigger baskets, increased frequency and an increase in the repertoire of shops visited featured strongly in 2020.
Benefiting from more meals at home, vegetables flourished last year with a three-year volume high; however, fruit fared less well and declined 4.7% on year ago.
Longer lasting vegetables – important to shoppers during the early months of COVID-19 – took out the top four spots contributing the most to vegetable volume growth.
Victoria, burdened with the longest period of lockdown, contributed the most to produce growth during COVID 19.
Assisted by an increase in shop repertoire and consumers shopping more locally, other supermarkets such as IGA, Costco and Asian grocers, picked up share in 2020 to the detriment of major supermarkets.
2021 Produce Predictions Amidst
Home cooking – Consumers will continue the trend of more home cooking. Ready-to-eat produce solutions that add interest to the ‘what’s for dinner’ question will supplement sales.
Food as medicine – Consumers will prioritize health and wellness – fresh produce can capitalize on this with on-pack messaging highlighting key benefits (for example, gut health, immunity boosting).
E-commerce – Consumers will continue to purchase through this growing channel having experienced the convenience during COVID. Having an online strategy in addition to your Bricks & Mortar strategy will be important for 2021.
Pre-packed vs loose – Pre-packed produce will continue to grow as a format, appealing to both convenience and safety concerns of consumers. Sustainability of packaging will be a future focus for industry.