Seven things you need to know about growth in food and beverage
Nearly every aspect of culinary life has undergone a remarkable transformation over the last two years. Whether you’re a chef, a shopper, or a small business owner, you have a lot on your plate.
But as we return to dining out and inviting friends in, which of these changes are here to stay?
On June 22, Ipsos hosted “On the Menu: Where is the Next Growth for Food and Beverage?” a summit that offered deep insights on both the challenges that the food industry faces today and the growth opportunities that will define the sector in the years to come.
Held in-person at Chicago's Greenhouse Loft and streamed live to an online audience, the hybrid event put Ipsos experts in conversation with executives from McDonald's, Mars Wrigley, Grubhub, Beam Suntory, Kellogg Company and more.
Here are seven crucial lessons on the ways Americans are cooking, shopping, and eating:
Many of our pandemic-era habits are here to stay.
After two years of sheltering in place and working from home, Americans have gotten used eating in: 55% are cooking at home more than they did pre-pandemic, and 92% of households plan to maintain or increase that post-pandemic. Oscar Yuan, President of Ipsos Strategy3, shared data that explained what this means for both our habits (e.g., snack sales have increased 5% between from 2021 to 2022) and our priorities (Americans are less interested in flash diets and more interested in lifestyle shifts).
Consumers want to treat themselves — if retailers can bridge the digital gap.
Impulsive purchases can be emotionally rewarding for consumers, and a powerful business driver for retailers. But according to Sarah Tomasaitis, Associate Director Global Portfolio Insights at Mars Wrigley, “digital is different.” When consumers shop online or order delivery, they can forget to add that bag of chips or an extra stick of gum, because they’ve grown used to those things just being there in the checkout aisle – meaning they don’t need to add them to their grocery lists.
Restaurants have to stay flexible – and stick together – to find new opportunities.
Keynote speaker Kevin Boehm built one of the nation’s most acclaimed restaurant groups by prioritizing hospitality and preparing for the good and the bad—but he never predicted a pandemic. As Boehm reflected on what it took to weather that storm, he encouraged restaurateurs to embrace change, whether that means confronting the fragility of their profit models or creating a safer workplace culture. Above all, Boehm explained why leaders in the food and beverage industry need to stick together — a principle he put into practice as a cofounder of the Independent Restaurant Coalition.
Inflation has far-reaching impacts on consumer behavior.
Since May 2020, Ipsos’ “America in Flux” project has offered an inside look at the lives of consumers from across the country. In a special video presentation, we saw the behavioral shifts downstream of inflation: Some respondents are making brand substitutions, some are buying in bulk, and others are picking up second jobs. As one respondent put it: “I’m [getting] less product, and the prices are higher.”
A good product is no longer good enough.
Consumers want products that are good for their health, their society, and their planet – and ideally, all of the above, said Ipsos Executive Vice President and Senior Client Officer Laurel Ashbrook. But there’s a “say-do” gap between desires and actions: In 2022, 67% of consumers believed sustainable brands could help the environment, but only 44% had tried them, said Executive Vice President and head of Ipsos Innovation Joseph DeVeny.
Representation counts — if you get it right.
Inclusive marketing can build stronger, more meaningful connections between brands and consumers, and food and beverage are no exception: 69% of Americans believe food is a way to share their culture with those they love, and 61% say they express and their individuality through food. But the industry has plenty of room for improvement, as Manuel Garcia-Garcia, Ipsos’ Global Lead in Neuroscience, and Lisa Zielinski, VP of Creative Excellence, explained: While 70% of food and beverage ads include a person of color, only 45% place a person of color in a primary role, and just 1% place a person in a primary role that defies stereotypes. In conversation with Erica Jones of Kellogg’s, Senior Manager, Cultural & Inclusive Marketing at Kellogg Company, they showed how creating advertisements with – not just for – underrepresented communities can be a boon for customer relationships.
The future of food has a marketing problem.
Labor shortages, economic instability, and climate change: The future of food is under threat, and we know it. The good news, according to Matt Carmichael, SVP and head of the Ipsos Trends and Foresight Lab, is that plenty of options exist, from synthetic ingredients to robotic farming. But to implement these solutions, food and beverage providers need to overcome a “marketing problem”: Only 23% of Americans trust foods that are developed or created through science.