10 Jun 2020
Posted in Retail
COVID-19 will result in an additional $200bn being spent on food & grocery globally in 2020
Following the unprecedented impact of COVID-19, the 2020 global food & grocery market is now forecast to reach over $9.4 trillion, with an additional $203bn more than previously anticipated, says GlobalData, a leading data and analytics company.
Thomas Brereton, Retail Analyst at GlobalData comments: “Coronavirus has transformed the way consumers across the world are buying groceries, both in terms of the amount being bought and channel choice. Less/no dining out has meant more people are dedicating time to home cooking (with 43.3% of global consumers stating they are cooking more at home*), resulting in much higher sales at supermarkets.
“COVID-19 has also been a catalyst for growth in the online grocery channel, with 28.9% of global consumers now buying groceries more online*. While this will be particularly impactful in countries with a previously low online grocery presence, such as China and India, even countries with a more mature online grocery market will see growth peak substantially. For example, in the UK, online grocery retail is expected to grow 25.5% this year – well ahead of the 10.2% growth previously forecast and at a speed not seen since 2009.
“For all across the food industry, the question is now to what extent grocery shopping habits have changed in the long run. With most of the additional spend as a result of foodservice spend transference, how quickly restaurants and other food providers can reopen will be key; however, we expect that, for most of the world, demand for such services will remain subdued for much of 2020, and grocers will continue to gain sales as a result.”
*Data is taken from GlobalData’s weekly global consumer survey of over 5,000 respondents, week 10 (26th May – 1st June).