Consumers Favoring New Brands, Retailers During Coronavirus
New consumer behaviors emerging during the coronavirus pandemic suggest that previously preferred brands and retailers are being displaced, leaving market share up for grabs
MINNEAPOLIS, April 21, 2020 – 37% of Americans are purchasing new brands or products, while another 30% are shopping at new retailers, according to research consultancy Magid. The findings, released today, are detailed in their “Food and Beverage Consumer Insights Tracker.”
Among those who have tried new brands or products, 45% are likely to continue purchasing them after the coronavirus. 48% said they would continue to shop at new retailers following the coronavirus, suggesting that consumers’ desired value proposition has changed as a result of the pandemic.
The research, conducted March 31 through April 3, also found that consumers have largely shifted to online shopping for their groceries, with 38% of respondents reporting an increase in online shopping. This number rises to 50% for Gen Z and 58% for millennials. Of note, the shift to online shopping has led to fewer impulse purchases and more price awareness and sensitivity, as 46% of consumers made fewer impulse purchases and 35% compared prices of products across brands.
Purchases are highly driven around comfort, especially for Gen Z and Millennials, as 43% report eating more comfort food at this time, which includes salty snacks, frozen foods and homemade treats like cookies. Consumers are also turning to alcohol to ride out the pandemic, with one out of five saying they’re drinking more alcoholic beverages.
Given more time in the home, consumers are motivated to learn new things in the kitchen. 30% of respondents are trying more new recipes, while 23% are learning new cooking methods. Easy-to-make recipes and health recipes were the most popular forms of content, at 68% and 59% respectively, but consumers also expressed an interest in hearing from brands and bloggers at this time. 42% of consumers are interested in cooking/recipe ideas from specific brands and 36% are interested in recipe ideas from bloggers or influencers, suggesting retailers and brands explore creating their own branded content during the coronavirus pandemic.
Additional information on this study can be found at https://courageous.magid.com/covid-19-food-and-beverage-insights-tracker.
Magid is a consumer-centered business strategy company delivering courageous thinking that shapes better experiences, products and services. Since 1957, thousands of local and global brands in over 40 countries have engaged the firm for bold ideas that have helped achieve innovation and success. The Magid team is passionately curious and driven by the pursuit of improving human experiences with every engagement.