Over the course of the year, pandemic habits became consolidated. But these new patterns of purchasing were not positive for the Food and Beverage industry overall.
Mobility restrictions brought an end to out-of-home consumption and, despite the significant increase in spending for in-home consumption, this was not enough to eliminate the drop in total revenues.
Even in Brazil, where restrictions were not so intense, out-of-home consumption fell from the beginning of the pandemic before showing some stability in Q3 once measures of confinement were partially relaxed. Towards the end of the year, however, the negative trend resumed despite the holiday season.
Delivery is becoming a way of life across the region and in Brazil, fast food spending has grown by up to 62% through applications or phone orders.
Delivery rates grew gradually through the year, driven mainly by wealthier consumers, with metro areas such as Sao Paulo particularly benefiting.
The indulgence of the dinner table moved seamlessly into a need for entertainment. Screen usage across the day increased but was markedly higher in the evening. In Mexico, for example, screen time peaked after dinner.
Consumers may have eaten at home more in 2020 but they spent less time preparing their food. Data from Mexico shows that while health was on the menu in the morning but indulgence became more important in the evening.
Consumers changed the way they shopped in 2020, buying more categories on each trip as they sought to make every minute spent out of home count.
Stock up trips – those where consumers bought items from at least 10 categories – dominated. Year-on-year the number of such trips rose but the value of each trip fell. This trend was particularly evident in countries such as Brazil, Mexico, Colombia and Ecuador.
The new equation for retail was a rise in frequency but a decrease in the quantity of products bought and hence a fall in the total basket value.
