Inflation is shifting how consumers shop for groceries. Discounters and warehouse clubs are expanding quickly, as shoppers look for value. Small local grocers are also regaining popularity, due to tighter budgets. E-commerce continues to grow, supported by rising comfort with online shopping and subscription models. This report examines how key retail channels for cooking ingredients and meals are evolving, shaped by changing consumer needs and economic pressures.
This report comes in PPT.
Inflationary pressures have forced many households to turn to more affordable options. Shopping at discounters and warehouse clubs has become more prominent as they can offer best prices for staple products like edible oils. Additionally, consumers have turned to private label to save. Improved assortment, better quality and various quality levels mean that various consumers can find a product to suit their needs and budget in the private label range.
The cooking ingredients and meals industry was gravely affected by commodity market fluctuations over the historic period. Products like edible oils saw prices go up in the high double-digit range due to supply chain disruptions and unpredictable harvests. Market volatility is forcing manufacturers to revise ingredients and sourcing practices to ensure steady product supply albeit at a higher retail price.
Premium products are still in demand. Solutions providing convenience, high quality, improved flavour profile and various health claims are well received in the market. Often, online retailing creates a launching pad for new products as e-stores can provide full control of sales and inventory without committing to strict grocery retailer contracts.
E-commerce growth is subsiding in cooking ingredients and meals; however, there is still potential. Consumers have formed a habit of shopping online for certain groceries, especially convenient solutions like meal kits.
The forecast period is expected to show signs of stabilisation both in industry sales and in channels. After the turbulent historic period with lockdowns and high inflation, consumers are expected to become more cautious and calculated when it comes to shopping and budgeting for groceries likes meals, sauces or edible oils.
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