What appeared an unstoppable trend of people buying prepared food on the move was reversed abruptly by the arrival of the COVID-19 pandemic.
As lockdown was imposed, one of the few opportunities for people to leave their homes was to purchase food and other essentials for use in the home.
Retail sales surge
The latest consumer data from Kantar shows that grocery sales jumped 16.9% in the 12 weeks to 12 July during which people were confined to their homes, and this is the fastest rate of food retail growth since 1994. What is also interesting is that breaking the figures down into four-week periods, the June increase was 14.6% compared to 18.9% the previous month. This reduction came about as society opened up again but is still a very healthy growth that reflects the new normal, with more people working from home and maintaining social distance.
The availability of time and pleasant weather during the late spring and early summer meant that cooking became fashionable
There was an initial negative shock to the agri food industry as restaurant, hospitality and burger chain business disappeared at a stroke and demand from supermarkets and independent food retailers such as butchers soared. Now that people are returning to what has been described as the new normal living with COVID, it will be interesting to see if the trend of food consumption continues to focus on buying for preparation and consumption in the home.
Reluctance for return to workplaces
There is no doubt that the availability of time and pleasant weather during the late spring and early summer meant that cooking became fashionable. Now Government policy in the UK is trying to get people to leave home working and return to workplaces as the consumer spending in the high street is being sorely missed.
UK supermarkets primarily buy British beef, with Ireland having a relatively small share.
Another winner from the shutdown in the UK and switch to retail for food purchases was the demand for UK beef, which soared after a collapse over a few weeks in March and April. This is because the vast majority of beef in UK supermarkets is of British origin. The vast majority of Irish beef is supplied to the food service sector and used in all types of catering outlets and the top burger chains. The sustained demand from supermarkets alongside the reopening of the hospitality sectors in recent weeks has created a healthy demand for Irish beef as well.
Uncertainty ahead
While it has been a good few weeks in the UK for beef demand, the future remains uncertain. So far, disposable income has been plentiful because, like in Ireland, the Government stepped in to pay the wages of people whose jobs had disappeared in lockdown.
That is ending as the economy reopens and redundancies, particularly in high street retail, are a regular feature and more are expected.
There is also the issue of the economic impact of Brexit, which will become apparent ahead the year end when the UK completes its split with the EU. Unemployment is predicted to soar in the UK and if this happens, it is inevitable that demand for relative luxury products like beef or lamb will decline.
Read more
COVID-19 has changed the market for beef
Beef prices: producers with greater negotiating power securing 5c/kg extra
Machine grading of carcases suspended at two factories in 2020
What appeared an unstoppable trend of people buying prepared food on the move was reversed abruptly by the arrival of the COVID-19 pandemic.
As lockdown was imposed, one of the few opportunities for people to leave their homes was to purchase food and other essentials for use in the home.
Retail sales surge
The latest consumer data from Kantar shows that grocery sales jumped 16.9% in the 12 weeks to 12 July during which people were confined to their homes, and this is the fastest rate of food retail growth since 1994. What is also interesting is that breaking the figures down into four-week periods, the June increase was 14.6% compared to 18.9% the previous month. This reduction came about as society opened up again but is still a very healthy growth that reflects the new normal, with more people working from home and maintaining social distance.
The availability of time and pleasant weather during the late spring and early summer meant that cooking became fashionable
There was an initial negative shock to the agri food industry as restaurant, hospitality and burger chain business disappeared at a stroke and demand from supermarkets and independent food retailers such as butchers soared. Now that people are returning to what has been described as the new normal living with COVID, it will be interesting to see if the trend of food consumption continues to focus on buying for preparation and consumption in the home.
Reluctance for return to workplaces
There is no doubt that the availability of time and pleasant weather during the late spring and early summer meant that cooking became fashionable. Now Government policy in the UK is trying to get people to leave home working and return to workplaces as the consumer spending in the high street is being sorely missed.
UK supermarkets primarily buy British beef, with Ireland having a relatively small share.
Another winner from the shutdown in the UK and switch to retail for food purchases was the demand for UK beef, which soared after a collapse over a few weeks in March and April. This is because the vast majority of beef in UK supermarkets is of British origin. The vast majority of Irish beef is supplied to the food service sector and used in all types of catering outlets and the top burger chains. The sustained demand from supermarkets alongside the reopening of the hospitality sectors in recent weeks has created a healthy demand for Irish beef as well.
Uncertainty ahead
While it has been a good few weeks in the UK for beef demand, the future remains uncertain. So far, disposable income has been plentiful because, like in Ireland, the Government stepped in to pay the wages of people whose jobs had disappeared in lockdown.
That is ending as the economy reopens and redundancies, particularly in high street retail, are a regular feature and more are expected.
There is also the issue of the economic impact of Brexit, which will become apparent ahead the year end when the UK completes its split with the EU. Unemployment is predicted to soar in the UK and if this happens, it is inevitable that demand for relative luxury products like beef or lamb will decline.
Read more
COVID-19 has changed the market for beef
Beef prices: producers with greater negotiating power securing 5c/kg extra
Machine grading of carcases suspended at two factories in 2020
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