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POULTRY IN MOTION AS OPPORTUNITIES ARISE BTy IRI Senior Consultant Akash Ramesh. he poultry category has consistently evolved as shopper needs have changed, even in light of the growing vegan and flexitarian movement in Australia.1 The onset of Covid-19 has further opened up opportunities for this category, which has benefited tremendously in the current climate. The overall category has grown in value by seven per cent over the 12 months to August, primarily driven by the frozen poultry aisle (up 19.6 per cent).2 Double-digit growth is a consequence of the initial panic buying behaviour followed by increased snacking at home. Nuggets (up 20 per cent), wings (up 22 per cent) and other bites/snacks have leapt since last year and accelerated growth in the recent quarter.3 The pandemic has also brought socio- economic changes that have had an impact. Two-thirds of working Australians have been affected professionally, with 1.6 million working from home due to Covid-19.4 In this uncertain environment, one thing is certain: more households are preferring to cook at home, bringing an upward trajectory for poultry. Proliferation of in-home occasions Working from home has disrupted existing eating habits. We’re seeing more shopping trips feature poultry products (up 8.5 million baskets versus YA).5 For people continuing to work from home, the occasional lunches with work colleagues and afternoon snacks are replaced by quick home-cooked meals and snacking occasions. Meal solutions that offer convenience, such as baking packaged crumbed meals and reheating frozen snacks, have picked up by 9.5 per cent in dollar growth versus YA.6 Large centre-of-table meals such as pot roasts are no longer restricted to occasions such as Easter and Christmas, becoming mid-week or weekend family specials. This is evident in the growth of the fresh poultry whole/ buffet segment (up 20.1 per cent versus YA),7 which suggests that families want to come together for a celebratory meal more often now. This sentiment echoes a pre-Covid trend, with 70 per cent of IRI panellists aspiring to cook from scratch as it provides sense of purpose and fulfilment.8 Opportunity to innovate and drive growth With shoppers becoming more innovative in their cooking, we find new opportunities being created. One is to partner with meal kit companies to cater to the variety seeker. We’ve already seen Woolworths step up to this via a $30 million investment in Marley Spoon.9 The decline in eating out presents another white space for quick in-home fast-food fixes in both main meals and snacking occasions. Segments such as nuggets, chicken wings, other bites and snacks are in a prime position to take advantage of this need state. Shoppers are also increasingly emphasising meal planning. With poultry growing at a faster rate than other meats,10 it will be critical to understand the categories that complement it. Mapping consumer journeys will enable cross-category promotions in supermarkets beyond Covid-19. Looking into 2021, poultry overall is unlikely to be affected by pantry stocking behaviour and will continue to have a bullish outlook. However, shrinking shopper wallets and a grim recessionary scenario may drive the importance of value packs in both fresh and frozen poultry categories. References 1. animalsaustralia.org/features/study-shows- surge-in-Aussies-eating-veg.php#:~:text=2.5%20 million%20Australians%20are%20now%20 eating%20all%20or%20almost%20all%20 vegetarian.&text=Research%20conducted%20 by%20Roy%20Morgan,all%20or%20almost%20 all%20vegetarian. 2. MarketEdge, Fresh, Frozen & Deli Hot Box National Grocery, MAT To 2/8/20 3. MarketEdge, Frozen Poultry National Grocery, MAT To 2/8/20 4. roymorgan.com/findings/8383-roy-morgan- coronavirus-crisis-impact-on-employment- april-24-2020-202004240654 5. ShopperView, Fresh, Frozen & Deli Hot Box, National Grocery, MAT to 24/5/20 6. MarketEdge, Fresh, Frozen & Deli Hot Box, National Grocery, MAT To 2/8/20 7. MarketEdge, Fresh National Grocery, MAT To 02/8/20 8. ShopperView, Psychographic Survey, MAT 01/01/2020 9. afr.com/companies/retail/marley-spoon-s- australian-sales-customers-soar-after-woolworths- deal-20200129-p53vxd 10.theconversation.com/three-charts-on-australias- declining-taste-for-beef-and-growing-appetite-for- chicken-78100 POULTRY About Akash Ramesh Akash Ramesh is a senior consultant at IRI focusing on clients within food, beverages and fresh. About IRI IRI is the leading provider of big data, predictive analytics and forward-looking insights for the FMCG industry. For more information, visit iriworldwide.com. SEP, 2020 RETAIL WORLD 35