Page 59 - Retail World Tob - May 2020

THE NEW NORMAL NOW EVERYONE’S CUP OF TEA BTy GlobalData Principal Analyst Katrina Diamonon. HOT BEVERAGES Australia: Consumers buying more/less of the following since the outbreak of COVID-19: tea 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 16% 14% Week commencing 23 March 17% 14% Week commencing 30 March 17% 17% Week commencing 6 April More Less he COVID-19 pandemic and subsequent social distancing measures imposed in cities across the world have confined large populations of consumers to their homes. Almost every aspect of consumers’ lives have been impacted as a result, including what they buy, how and where they go shopping, and what they prepare and consume at mealtimes. A new era of value consciousness According to GlobalData’s weekly COVID-19 Tracker Survey, 60 per cent of Australian consumers surveyed agree that they’re on a tight budget when shopping for household products. Pandemic-driven job losses and economic uncertainty have put significant pressure on household budgets, which in turn is likely to heighten the importance of value considerations when grocery shopping. When looking at category-specific shopping behavior, a notable proportion of consumers are reevaluating purchase quantities as a result of the outbreak. Interestingly, just as many surveyed consumers are buying less tea (17 per cent) as those buying more (17 per cent). However, the most recent wave of research at the time of writing suggests that consumers are making more room for tea products in their pantries, potentially driven by increased interest in beverages with calming or anxiety-reducing properties, functional benefits as well as a general transition into cooler weather. While most Australians have maintained their pre-outbreak coffee buying behaviour, 19 per cent of those surveyed are buying more coffee now, compared with 15 per cent who are buying less. With working from home now the new normal for many consumers, at-home coffee consumption is replacing the habitual coffee run for office workers around the country. In fact, in Australia, 75 per cent of surveyed consumers are visiting coffee shops and cafes less frequently since the COVID-19 outbreak, while 54 per cent have stopped going altogether. Source: GlobalData Coronavirus (COVID19) Tracker Survey Australia: Consumers buying more/less of the following since the outbreak of COVID-19: coffee 25% 20% 15% 10% 5% 20% 15% 18% 13% Week commencing 30 March 19% 15% More Less Week commencing 6 April 0% Week commencing 23 March Source: GlobalData Coronavirus (COVID19) Tracker Survey Hygiene concerns extend to packaging Consumers are being especially vigilant over cleanliness and hygiene. This is likely to extend to packaging, which may be regarded as another surface for germs to potentially spread. GlobalData found that 41 per cent of Australian consumers surveyed are concerned about the safety of product packaging. As a result, sealed products are gaining favour over freshly prepared options as they offer reassurances (whether actual or perceived) that the product has not been tampered with. Significantly, Australians prefer sealed or packaged drinks (43 per cent of respondents) over sealed or packaged food (35 per cent), which suggests more of a compromise is associated with packaged food (lack of freshness, more preservatives, less flavour) compared with drinks. Anxious consumers seek reassurances At a time of heightened health concerns, consumers are seeking guidance and advice to help them make the safest and most nutritious choices. It’s therefore significant that three in 10 Australian consumers surveyed are confused about health claims made by brands. The non-alcoholic beverages category in particular has been the focus of widely circulated false claims, suggesting for example that hot drinks can protect against viral infections or even cure COVID-19. Brands should take on the responsibility of helping consumers make the safest choices through clear, fact-based claims and recommendations. About Katrina Diamonon Katrina has been immersed in consumer behaviour and trends for more than 10 years. She is committed to finding new and innovative research techniques to help clients better understand consumer behaviour and the impacts of cultural change. About GlobalData GlobalData is a market leader in providing actionable insight into the consumer goods industry, with market analysts in 18 countries around the world, along with a team of researchers and consultants. For more information, contact Katrina.Diamonon@globaldata.com. MAY, 2020 RETAIL WORLD 57