COVID-19 has had a significant impact on consumer behavior in the food & beverage industry. Read about the major shifts we’ve seen.

How Covid has Changed Food & Beverage Consumer Behavior | Union

3 Ways COVID Has Changed Food & Beverage Consumer Behavior – and What It Means for Your Brand in 2021

It shouldn’t be a surprise to any seasoned brand manager that COVID-19 has had a significant impact on consumer behavior over the past months. How could it not? Between mandated shutdowns, disrupted supply chains and a pervading cloud of economic uncertainty, consumers have seen their daily lives and shopping habits turned upside down. 
To adapt to the COVID world, food &amp; beverage consumers have had to evolve their buying behaviors. Shifting their mindset and purchase triggers to comply with the new normal. Below, we’ve laid out three significant ways consumer behavior has changed due to the coronavirus and what it means for your F&amp;B brand.

Recently, we partnered with Google to conduct a series of research initiatives to identify the COVID consumer shifts that have had the most impact on F&amp;B purchases. 
We discovered that when compared to previous years, F&amp;B CPG consumers during the 2020 pandemic:
<ol><li>Are more concerned with hygiene, safety and trust</li><li>Are more likely to weigh value in their purchase decision </li><li>Make product substitutions based on need, not want</li></ol>

<a href="https://union.co/white-papers/food-beverage-brands-driving-growth-in-a-covid-and-post-covid-world" target="_blank" rel="noreferrer noopener">Click here</a> to download your copy of Driving Growth in a COVID and Post-COVID World: What Food &amp; Beverage CPG Brands Need to Know About Changing Consumer Trends to Secure Success in 2021.

<h2>Hygiene, safety and trust drive purchase decisions</h2>
According to Google’s F&amp;B CPG research, “77% of consumers around the globe say they will be more cautious about issues of cleanliness, health and safety once the coronavirus pandemic passes.”
We see this claim of health and safety concerns carry over into buyer preferences in a recent survey published by <a href="https://www.adm.com/news/news-releases/emerging-consumer-behavior-shifts-six-ways-food-beverage-innovation-is-evolving-in-the-face-of-covid-19-2">Archer Daniels Midland.</a> This study found that, globally, 57% of surveyed consumers report being more concerned about their immunity as a result of COVID-19.
Survey respondents also stated that: 
<ul><li>18% of alternative protein buyers made their first plant-based protein purchase during COVID-19.</li><li>51% of consumers indicated they were concerned about being less active and gaining weight during the pandemic.</li><li>31% of surveyed consumers are purchasing more items tailored to health and nutrition.</li></ul>
These behaviors are likely to linger for some time after the pandemic has passed, which for F&amp;B brands means a continued consumer preference for products that claim to enhance immunity, microbiome support and overall well-being.
<h2>Value comes first</h2>
According to a recent study conducted by <a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19">McKinsey</a>:
<ul><li>40% of respondents stated they would be more mindful of their purchases.</li><li>31% said they would change to less expensive products to save money. </li><li>21% noted they research brand/product choices before committing to buy. </li></ul>
In times of economic uncertainty and recession, it’s common to see a contraction in overall consumer spending and a higher sensitivity to price. Consumers substitute their go-to brands for similar value-priced options. 
As we move into 2021, F&amp;B brands can expect to see a continued shift in consumer preference for mid-tier and value-priced brands. Consumers will continue to cut back on discretionary spending and forgo premium purchases as they keep a close eye on their bank accounts. 
<h2>Substituting on need, not want</h2>
Price sensitivity and tighter household budgets are not the only factors driving consumer substitutions. One of the unique aspects of COVID’s impact on the economy compared to previous recessions is its disruption on many brands’ supply chains. 
When the lockdowns first began, consumers had to work around empty shelves and reduced retail and online inventory. Part of this was due to product hoarders. That is, consumers, purchasing large quantities of specific products based on the belief that a product would be more scarce in the future or to resell those products at a later time on a secondary market for a profit.
However, as factories, assembly lines, and shipping centers were closed around the globe due to COVID-19, a disrupted supply chain had a significant impact on the ability of CPG brands to restock inventory levels and get their F&amp;B products on store shelves.
Early in the pandemic, these disruptions forced consumers to consider substituting brands/products. In fact, 39% of survey consumers <a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis">cite product availability</a> as the reason they tried a new brand during the pandemic.
A small disruption in available inventory can have a lasting impact on consumer buying behavior and long-term revenue. Of those that switched their preferred brand, more than 50% of consumers intend to <a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis">maintain their choice post-COVID</a>.

3 major shifts in F&amp;B consumer behavior

As COVID-19 <a href="https://www.cnn.com/2020/10/26/health/us-coronavirus-monday/index.html">case numbers continue</a> to rise in the US (and with it the threat of another lockdown), one thing is for sure. With mere weeks left in the year, now is the time to ensure your marketing strategy is in line with the COVID and post-COVID needs of your customer base. Secure a strong ROI on your 2021 marketing efforts by ensuring your campaign efforts align with the new buying behaviors, expectations and habits that your F&amp;B customers have developed during the pandemic. 
Our team of seasoned campaign strategists can help you craft a performance marketing strategy that resonates with your audience and drives sales in a COVID and post-COVID world. <a href="https://union.co/contact">Contact us today</a> to get started. 
Ready for more insight? We’ve put together a brand new whitepaper to help food &amp; beverage brands navigate the COVID and post-COVID consumer landscape. <a href="https://union.co/white-papers/food-beverage-brands-driving-growth-in-a-covid-and-post-covid-world" target="_blank" rel="noreferrer noopener">Click here</a> to download your copy of Driving Growth in a COVID and Post-COVID World: What Food &amp; Beverage CPG Brands Need to Know About Changing Consumer Trends to Secure Success in 2021.

Planning for F&amp;B success in 2021

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