Report Says Growth In Global Grocery Sales In 2020 Driven By Home Cooking And Booze Demand

A report based on industry data prepared by the market research firm Kantar showed that there was a record 10 per cent growth in the global grocery sector in 2020 as people were forced to stay back home because of the Covid-19 restrictions and lockdowns and hence engaged in cooking, baking and drinking more than usual.

There was high demand for everything – from canned meat and beer to sugar and bleaches, the report said. It also noted that the largest chunk of the spending was done by consumers in the United States and was followed by consumers of Western Europe, Latin America, Eastern Europe and Asia.

Kantar said in the report that the report was based on data gathered from households in 42 countries which accounted for about 66 per cent of the total population of the world and represented 83 per cent of the gross domestic product (GDP) of the world.

The highest demand and sale were for beverages, dairy and food – which generally comprises of almost two-thirds of global grocery sales. According to Kantar’s 2021 global FMCG Omnichannel report released recently, these sectors accounted for 15 of the top 20 categories that were most positively impacted by Covid-19 induced surge in demand.

There was 26 per cent growth in sales of canned meat, 15 per cent in the sale of sugar and sweeteners, and 13 per cent in the sale of sugar and sweeteners because of a rise in trend of scratch cooking and home baking by people forced to stay back home, showed the Kantar report. The surge in sugar and sweeteners were led by consumers in Latin America.

The sale of alcohol during 2020 was five times higher than that in the previous year and the driver of this surge were consumers from Western Europe who had to deal with some of the most prolonged lockdowns and hence chose to drink.

There was growth of 25 per cent and 20 per cent in the sale of alcohol in Western Europe and Latin America respectively. In sharp contrast there was a drop of 10 per cent year on year in the sale of alcohol in Asia as consumers there chose to stay more sober during the pandemic.

The pandemic also led to a big shift in where people shopped.

The highest growth in retail sales was seen in e-commerce as a channel, which was followed by growth in sale of cash-and-carry stores and discounters.

The report noted that 6.5 per cent of grocery sales globally is accounted for by e-commerce channels on the whole now.

With respect to retailers, there was strong growth of supermarkets in the United States while Eastern Europe saw growth of discounters.

(Adapted from NewsDeal.com)



Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability, Uncategorized

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