Home cooking is here for the taking.
Even though the majority of Americans have received the COVID-19 vaccination, the Delta form is still spreading throughout a sizable percentage of the nation, suggesting a delayed and unequal pandemic recovery.
In a presentation at the virtual Trends and Innovations webinar given by Food Business News, Darren Seifer, an industry analyst for the food and beverage sector at The NPD Group, Inc., stated, “With back-to-school this year, we’re starting to see things like apparel, footwear, and office supplies start to rebound.” It’s proof that we’re beginning to emerge, and where and what we eat are affected by that. We may be making a little more frequent trips to quick-service eateries. We no longer spend as much time alone in our houses as we formerly did.
That does not imply that at-home usage will drop much in the near future. Even before the pandemic, consumers were beginning to live increasingly home-centric lives, and NPD anticipates that this tendency will continue.
Approximately 80% of meals were consumed at home prior to COVID-19. This disparity increased to almost 90% in the spring of last year and is still there now, with about 82% of meals originating from homes in recent weeks.
The amount spent on groceries is rising in tandem with this persistent trend. Nielsen’s measured channel expenditure on groceries and perishable food was 16% higher for the week ending May 22, 2021, than it was for the same week the previous year.
Mr. Seifer stated, “That’s not just buying more from grocery stores.” Additionally, we have observed this premiumization in action. Customers are recognizing that eating out can cost three times as much as cooking at home, therefore they are cutting back on their restaurant visits. They are still saving money by having that meal at home, so they are using that budget and spending a little bit more on some more upscale groceries.
Another indication that customers are investing in more capacity for meal preparation at home is the growth of compact kitchen appliances.
Sales of small kitchen appliances, such as rice cookers, air fryers, electric grills, and toaster ovens, increased by 26% year over year for the 52 weeks that concluded on May 22, 2021.
“As we come out of the pandemic, that newly installed base of appliances that consumers have won’t disappear,” Mr. Seifer stated. “They will be used by consumers to ensure that they can manage the increasing amount of food and drink in their homes.”
Softness of eatery
NPD projects that restaurant softness will persist despite rising customer mobility.
“When we compare restaurant transactions to pre-pandemic levels, they’re down about 10% every week,” Mr. Seifer stated. “While full-service restaurants continue to struggle, we observe a slight movement in favor of quick-service restaurants. The eateries that were already capable of handling off-premises orders—whether they were for delivery or takeout—were able to survive longer.
He also stated that long-term trends and demographic changes occurring prior to the pandemic will continue to pose challenges for the foodservice industry.
According to Mr. Seifer, “the baby boomer and millennial generations will be in the life stages where we typically have more meals in the home.” “This will present eateries with additional challenges… and in order to handle all of these additional in-home events, these customers will be searching for shortcuts.
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Digital ordering, which is a plus for foodservice providers, is one way they’re addressing this. Prior to the pandemic, 7% of all orders at restaurants were placed digitally. In 2020, that percentage rose to 134% and currently stands at 17%.
Mr. Seifer stated, “There’s evidence that this will remain elevated.” Approximately 80% of those using online buying presently are repeat customers from the previous quarter, according to our analysis of the user base.
Put health first
The epidemic has also exacerbated a trend that NPD predicts will continue: a greater emphasis on wellness and health.
More and more customers are looking for items that boost immune and mental wellness. Elderberry for immunity and CBD for stress and anxiety have been two of the fastest-growing products that people have experimented with throughout the epidemic.
Although the idea of using food as medication is not new, Mr. Seifer said the pandemic brought it to light. “I think there will still be some emphasis on immunity and mental health, but in the future, we’re going to see a rise in the importance of gut and heart health.”
According to him, trendy nutrients for gut health include kombucha, jackfruit, and manuka honey; for hearth health, consider using turmeric, bone broth, and moringa.