The COVID-19 pandemic will continue to impact consumer attitudes towards shopping and eating this year, according to a new 2022 trend outlook report by sales and marketing firm Acosta.
Even before the current surge of the omicron variant caused infections to skyrocket, consumers surveyed by Acosta in July and October said they were continuing to eat more at home than they did prior to the pandemic. The report showed 26% of respondents ate breakfast at home more frequently, a 28% increase for lunch, 37% increase for dinner, and 20% said they snacked more at home than they did on-the-go.
According to Acosta, consumers’ will continue to cook and eat at home more regularly, while the macro trends for health and wellness and sustainability are primed to keep growing. Sixty-nine percent of respondents said that environmental sustainability factors into their purchasing decisions.
While in-store shopping is “still the norm,” the experience of grocery shopping has likely changed for good. Retailers contacted by Acosta said that health and safety measures implemented during the pandemic are probably to remain in place, though the report did not specify what measures these include. As foot traffic remains down in many places, some retailers are looking for ways to create “amplified store experiences” to draw in more consumers.
Indeed, new in-store attractions have already begun for some retailers. In October, Whole Foods Market announced an expanded partnership with coffee roaster La Colombe to open new cafes in its grocery stores around the country.
Automation in grocery is also on the rise. As the New York Times reported in June, many retailers are adopting backroom tech to optimize stocking and supply management, while consumers are continuing to rely on third-party platforms like Instacart and curbside pickup services to get their goods. Meanwhile, ongoing supply shortages are forcing retailers to emphasize available products to consumers while out of stocks are expected to continue throughout 2022.
“Pandemic-related challenges are certainly carrying over, and we expect consumers and retailers to continue adapting as obstacles arise,” said Colin Stewart, EVP of Business Intelligence at Acosta, in the report. “Automation will be a key focus industry-wide this year with retailers working to increase efficiency and ensure shopper loyalty.”
Ecommerce is also “here to stay,” the report stated. Fifty percent of consumers surveyed in October said they shop for groceries online, and just over half of them started at the beginning of the pandemic. As the ecommerce channel expands, retailers and online platforms are focused on how to streamline and speed up fulfillment via “hyper-delivery options” while maintaining profitable margins.
However, not all shoppers are homebound these days. In August, 85% of consumers told Acosta they had purchased a meal via fast food drive-thru, while 79% had ordered carryout and 75% said they had dined in a restaurant. Even as omicron throws on-premise sales back into disarray and many consumers opt out of indoor dining, the dropoff is not as large as it was in 2020. According to data from SevenRooms, reported by Fast Company, restaurant cancellation rates rose to 17.5% in December and early January, compared to 72.5% cancellation in March 2020.
Acosta predicts that take out, drive-thru and mobile order will continue to rise this year, while limited menus, reduced capacity, long wait times and price increases will remain a challenge. Like grocery, automation solutions are being adopted by some restaurants (including robot chefs and servers) and ghost kitchens are probable to expand to help combat the rising costs.
Finally, operational challenges will continue to be felt in 2022. Supply chain issues are not subsiding and labor struggles are continuing to disrupt the industry: Last month, Kellogg’s production workers ended a three-month long strike and, in the on-premise sector, workers at a Buffalo, New York Starbucks successfully unionized, setting the ground for stores in Boston to file for union elections with more expected to follow.
With inflation at the highest level since the 1980s, price increases are likely to persist, the report concluded.