- ECONOMIC IMPACT -

Latest update: 17 June

According to the OECD, real GDP in the G20 area grew by 0.8% in Q1 2021 when compared to the last quarter and has reached pre-pandemic level. 

The UK’s real GDP grew by 2.3% in April 2021, the fastest since July 2020 with the service sector growing by 3.4% during the month, as per ONS estimates.

205 million

According to the International Labour Organization, 205 million people will be unemployed globally with the unemployment rate forecasted at 2.7% in 2022.

6.6%

According to the OECD, the unemployment rate in OECD nations stood at 6.6% in April 2021. The unemployment rate among G7 nations also increased to 5.7% in April 2021.

Impact of Covid-19 on employment outlook

- SECTOR IMPACT: FOOD -

Latest update: 7 July

sales impact

7.4%

Second quarter 2020 sales increased 7.4% versus the year-ago period.

5.7%

Second quarter hit by global lockdown with sales down 5.7% on a like-for-like basis.

value chain impact (mid-term)

Consumer goods companies are likely to be forced to analyse their sourcing strategies.


As restaurants begin to open with social distancing measures demand will increase but lower than in previous years.


As events, schools, and companies begin to get back to normal, catering service providers revenues will increase.


Social distancing measures will decrease restaurant capacity, negatively impacting revenue.


Online deliveries are likely to keep growing in popularity.

Key Food developments

The easing of Covid-19 restrictions will benefit the foodservice industry significantly, though consumers will remain cautious of both social interaction and their spending in future.


Behavioural changes including scratch cooking and working from home will likely have a long-term impact on the restaurant industry.


Long-life products including canned, dried, and frozen foods will benefit most, in part attributable to the scratch-cooking trend born out of the pandemic.


Fast-food chains will see 20.0% value growth in 2021 and are anticipated to recoup 2019 pre-pandemic values in 2023.


Health consciousness remains high, highlighting opportunities for players offering healthy menu items, while price consciousness will also play a role in the recovery of the category.

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