The ongoing COVID-19 pandemic has already impacted consumer behavior in the short-term and there are forecasts it will leave a lasting impression in the consumer mindset. While businesses are struggling due to lockdowns, quarantine measures and to some extent, global supply chain fracturing, there are several number of food businesses witnessing a significant uptick in demand.
FoodIngredientsFirst takes a closer look at these market shifts, while speaking to experts for guidance on VAT risks for exporters observing an abrupt rise in sales.
According to Innova Market Insights, consumers in Germany, the US and the UK indeed reported shifting their attention to “shelf life” when buying food and drinks during the COVID-19 outbreak. In the US and the UK, soup was one of the largest “more purchased” categories, whereas consumers in Germany went for more baking products, bread and chocolate.
In stark contrast, “health aspects” became an important reason to purchase a food or beverage amid COVID-19 for Brazilian, Indian and Chinese consumers. Accordingly, consumers in these countries reported a notable increase in purchasing “fresh vegetables,” items which many European consumers reported buying less of since the outbreak.
“Not all businesses in the F&B sector are enjoying increased demand – those that supply primarily to restaurants may be struggling, but with people across the continent at home, there has been an increase in demand for a variety of fresh ingredients, as well as frozen and tinned foods,” affirms Andy Spencer, Director of Professional Services at Accordance VAT.