I was recently doing background research within Food & Leisure Industry and came across two McKinsey reports that showed a trend we have noticed at Polestar for a while – a shift towards clean eating.
Within Europe and the UK, Mckinsey’s State of Grocery Retail 2021 Report outlines that during 2020, the grocery was one of the few retail subsectors that grew due to remote working, school closures, and restrictions on dining out. While the report suspects that this growth may not sustain forever, some new habits may prove more permanent, such as working from home and therefore having more time to cook from scratch.
According to the report, over the course of 2020, “consumers shifted their spending significantly toward products that are healthy, environmentally friendly, and local. Around 60% of them – across many ages, genders, or other demographics – say that they are willing to pay more for sustainable alternatives. 30% of European survey respondents reported that they plan to focus on healthy eating and nutrition more in 2021 compared with 2020.”
Across the pond, there is a very similar trend in the US. North American grocery grew by c.12% in 2020 due to similar trends of working, living and learning at home.
In addition to buying more groceries, consumers were also focusing on healthy eating and nutrition, a rise of 38% over 2020. Consumers specifically sought out naturally healthy, high-protein, low-sugar, and low-calorie foods.
The McKinsey reports crystallise a trend that we’ve noticed for a long time, which was accelerated by the pandemic. While the growth of the grocery sector may not be sustained as workers go back into the office, healthy, clean eating will be a trend that is here to stay.
If you are interested in learning more, feel free to check out our other blog posts: my colleagues and I have previously written about the agri-tech market, food waste, alternative meat market, and sustainable food. Polestar also has previous experience and research within the Food & Leisure space, so give us a shout if you are looking to expand your business.