Covid-19 briefing

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- ECONOMIC IMPACT -

Latest update: 22 November

Rising inflation signals looming issues for major economies. In the US, the consumer price index jumped 6.2% in October compared to a year earlier, the biggest 12-month increase since 1990. Across the Atlantic, the UK announced its consumer prices index rose 4.2% in October, the fastest rise in a decade.

India is to be the fastest-growing of the major economies in 2021. Rising demand for goods and services and a revival of key economic sectors is expected to result in a V-shaped recovery in the country.

44%

More than four in ten employees report an increase in productivity while they’ve been working from home, according to a GlobalData survey.

43%

The percentage of employees still working at home on a full-time basis, GlobalData research shows. Some 27% of survey respondents said they are now working at the office all week.

All major economies are expected to bounce back in 2021

- SECTOR IMPACT: FOOD -

Latest update: 3 November

value chain impact (mid-term)

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

Companies need to renew their logistics operating models to increase resilience, efficiency and responsibility.

Businesses should seek to add, where appropriate, value-for-money ranges to account for tightened consumer budgets.

Food manufacturers must develop new channel management strategies to reflect a greater complexity in their sales channels. Online retail will become ever more important.

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

FOOD SECTOR TRENDS TO WATCH

Food consumption at home remains elevated compared with pre-Covid times, driven by factors including risk-aversion, scratch-cooking and continued working from home.

Meat substitutes are expected to continue to see strong value growth, albeit from a small base, this year as new players continue to enter the market.

In foodservice, the easing of restrictions will benefit the industry, although consumers will remain cautious of social interaction and be prudent in their spending. Scratch cooking and working from home are likely have a long-term impact on the restaurant industry.

Fast-food chains returned to growth this year and are anticipated to recoup 2019 pre-pandemic sales values in 2022. Health-consciousness remains elevated among consumers, highlighting opportunities for healthy menu items, while price-consciousness will also play a role in the recovery of the channel.

Delivery services have helped many smaller foodservice operators stay afloat during the pandemic. However, they remain impacted by reduced consumer spending. Nevertheless, over half (51%) of consumers claim to be staying at home as much as possible, and 51% also claim to consume food delivery at least once per week, according to a GlobalData Q3 consumer survey.

04/12/2022 09:16:32