ANKO FOOD MACHINE EPAPER Jun 2020
How has COVID-19 changed the ways we consume?
16 Jun, 2020COVID-19 has hit the world hard and brought many changes. In this issue, we will talk about the impact on eating and spending habits and how the food supplier responds to the challenges.
The Post-COVID Pandemic Food Market Shifts and Opportunities
This year, with the outbreak of COVID-19 pandemic, the virus had spread across borders and continents. With such a sudden impact from the infections, not only people's lives have been affected, but also the ways how we consume.
Within the F&B industry, due to travel and quarantine policies, restaurants have been suffering the most from not having enough customers. On top of which, in order to enhance public health, social distancing is enforced and has started to encourage consumers to do food take outs, or use delivery services instead of dine in the eateries; hence, how food is prepared, packaged, traveled and being consumed is turning the tables and becoming new opportunities for various businesses.
Food buying behavior is changing: convenience and safety are the top priorities.
Since it's relatively inconvenient to go out shopping, more people have decided to cook at home, and tend to purchase foods and ingredients that have longer shelf-life. Frozen foods, in this case, can meet the needs for nutritious, simple to cook/reheat, and it's relatively more affordable, and could be stored in freezers for longer periods of time. According to statistics from the AFFI (American Frozen Food Institute), the sales in April, 2020 had risen 30-35%; and up until mid-March, 86% of the American consumers suggest that they would consume frozen foods. On top of the existing consumptions from regular customers, whom are eager to try new products, there's also a 7% growth of new shoppers that joined to broaden this food category. Frozen foods are not only convenient, but with modern technologies applied, it helps to protect food flavors and textures with consistency, which attracts return customers and creates long term sales development advantages.
In response to the pandemic, consumers are more cautious about where their food comes from and safety. SGS hence suggests all F&B businesses, producers and factories to enforce work sanitation, personal hygiene, and health management. Through self-declaration and certification issued by the third-party, these acts could help build consumer confidence, brand loyalty and success in the competitive market place.
The demand for frozen food is soaring. Flexible supply capacity is the key to success.
The food supply chain has been facing numerous changes in the ways/channels and how food products are distributed, it's difficult for many businesses to keep up with the latest food safety regulations, which may further affect inventory management and cash flow. Take China for example, after the pandemic started, many frozen food companies have experienced an increase in sales up to 80% in retail; online business reached approximately 20 times more than previous. Dumplings in particular are amongst the best sellers in this category, however, some production was affected by the shortage in fresh ingredients, or lacking efficiency in the product lines. Therefore, having the ability to solve these issues in time, finding substitution and alternatives are all challenges the industry is facing, yet, these may hold the keys to success.
In this booming wave of food take-out and frozen food products sales, products like dumplings are easy to store, convenient and can be enjoyed as snacks or a proper meal, which explains the popularity. Similar products can be culturally translated into potstickers(鍋貼), bao(包子), ravioli, empanada, samosa, piergi or pelmeni in different food markets, whether it's boiled, fried, or baked, they are the all-time favorites.
Another well-liked item is the Chinese spring rolls, which performed well in the post-COVID food market shift. Other wrap-like products such as burrito, kebab and etc., are also big hits in different retail outlets.
Has the potential in the frozen food market triggered by the global pandemic inspired you in anyway?
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