Key takeaways and outlook

Take-home consumption will be more important than out-of-home consumption in most categories for as long as COVID-19 remains out there. Even though in-home and out-of-home occasions aren’t the same, brands should adapt to stay relevant to consumers’ needs for take-home consumption, then once the pandemic fades away they can continue to recover out-of-home occasions.

As COVID-19 lockdowns hit we found some stock-up behaviour in the Food sector, especially in Consumable Food. Then Food Preparation categories increased their number of buyers due to most restaurants closing or opening for takeaway only, restrictions on movement, and social distancing. These additional buyers mainly came from the Greater Bangkok/Urban area. Buyers in Rural areas increased their consumption instead.

It’s possible that Cooking Preparation products will be able to maintain their growth through next year. Even though Thai consumers are looking forward to dining in restaurants again, concerns around COVID-19 will permanently change behaviour to cooking at home more than in the past.

Buyers are looking for easy to cook or instant food products, with the top growing category in urban areas supporting this trend. The rise in popularity of Cold Cut, RTE and RTC products is also a result of consumers’ new need for convenience.

Buyers want to discover something new in Food. The growth of some minor Snack categories implies that shoppers are seeking new varieties. In addition, Alternative Cooking Oil is growing among shoppers in Greater Bangkok and the Upcountry Urban area, and some sales have switched from high income buyers in rural areas which indicates new opportunities and white space in the Food market.

COVID-19 has driven buyers to look for smaller format channels, while the Thai government’s subsidy campaign has also disrupted Modern Trade.

The Online channel became more important as shoppers changed their behaviour to reduce unnecessary contact with others, and took advantage of delivery services. Online sales and buyers have been growing significantly every year – even in the Food sector. This will be the new strategic channel for brands to drive awareness and sales in the ‘new normal’, in particular to connect with younger buyers.