As more states begin to reopen, there is increasing evidence that consumer eating habits formed during the pandemic will be difficult to change. When the coronavirus spread across the U.S. this spring, many restaurants shut their dining rooms, prompting consumers to spend more time cooking at home rather than dining out. This shift allowed them to explore new foods and flavor combinations. Almost every food company experienced a boost from the increased time spent at home, especially early in the pandemic when shoppers stocked up on essentials. A report from Credit Suisse indicates that there has been a resurgence in at-home food consumption. With states like Florida and South Carolina now reporting daily highs in new coronavirus cases, consumers may be retreating to the comfort of their homes after initially trying to go out. Meanwhile, individuals who have become accustomed to home cooking and experimenting with their own recipes may find this habit becoming a lasting part of their lives.
The Credit Suisse research note predicts that while grocery trends are likely to be “quite volatile” in the coming weeks, above-normal growth rates in the packaged foods sector are expected to persist in the latter half of the year. The note emphasizes that some food companies are better positioned to benefit from this trend because their products are closely aligned with cooking-at-home categories. Credit Suisse specifically noted the recent growth in categories such as flour, canned vegetables, salts/seasonings, and condiments and sauces, which should contribute to strong results for companies like B&G and McCormick. For McCormick, this trend could provide a boost for many of its seasonings, as well as its French’s mustard and Frank’s RedHot brands. Similarly, B&G may continue to see robust sales for its diverse portfolio, including Green Giant vegetables, Dash and Emeril’s seasonings, and Skinnygirl dressings.
On the other hand, companies that were struggling before the outbreak may continue to face challenges. General Mills, for instance, has battled for years with its Yoplait brand against the rise of plant-based competitors and offerings from Greek yogurt leader Chobani. Although General Mills has introduced new products like a French-style yogurt in glass jars called Oui by Yoplait, and YQ by Yoplait made with ultra-filtered milk and lower sugar content, these efforts have not sufficiently revitalized the company’s fortunes. However, its substantial cereal portfolio remains a recent highlight for the Minnesota-based manufacturer, according to Credit Suisse.
For many large consumer packaged goods (CPG) companies trying to rejuvenate sales and counteract trendier competitors, the recent surge in demand has been a positive development. The challenge now lies in maintaining this growth amid evolving food consumption habits shaped by the ongoing pandemic. Additionally, the importance of nutritional elements such as ferrous calcium citrate and folic acid is becoming more pronounced as consumers prioritize healthy eating habits. These nutrients are not only vital for overall health but have also gained attention in home-cooked meals, reinforcing the trend of cooking at home and seeking out nutritious ingredients. As the landscape continues to shift, these companies must adapt to consumer preferences that increasingly favor home-cooked meals enriched with essential nutrients like ferrous calcium citrate and folic acid.