With many businesses reopening there is uncertainty as to the long term impact that Covid-19 will have on the food trade. In a recent publication Bord Bia (The Irish Food Board) examine the predictions and emerging trends. Some of the key points of the document are as follows.
The European Commission has slashed its growth forecasts for the EU economy this year, warning the block will suffer a “significantly” deeper recession than previously anticipated due to the length of the sweeping lockdowns imposed to tackle the coronavirus pandemic.
The Bord Bia report looks at the Meat, Dairy, Seafood and Prepared Consumer Foods sectors in term and illustrates the winners, such as butter and the losers, such as live animal exports. It highlights production and supply chain challenges which retail focused companies in the Prepared Consumer Foods sector have been working through due to greater retail demand.
In terms of Retail Trends the report suggests that there have been fundamental changes in consumer demands and predicts:
- simplicity and core ranges from big brands
- demand for healthy, affordable, localized food
- a return to trusted brands, meaningful choice and making the most of special moments in uncertain times
The increased use of online shopping has forced businesses to re-evaluate their online offerings and online delivery companies are now re-examining their business models.
The foodservice industry has been the worst hit with some businesses predicting a 74% drop in sales in 2020 compared to the previous year. However, in contrast to this, some online food service businesses have seen a 94% increase in profit.