If there was one industry that we saw that dramatically changed this last year it was retail. Businesses without the vision or resources to digitally adopt found themselves in ruins due to lockdowns and the pandemic.
According to reports retail store closures topped 11,000 in 2020 with only 3,368 new outlets opening.
That hasn't necessarily changed the demand for consumer packaged goods (CPG), though. Consumers went online where they had the products shipped to them or they did store pickup.
RangeMe is an online platform that enables retail buyers to discover emerging products while empowering suppliers to manage and grow their brands. They've produced this detailed infographic on the top retail and CPG trends for 2021.
22021 will be a time for businesses to future-proof themselves as we carry on navigating the effects of the global pandemic. For consumers, suppliers, and retailers, new product discovery will have a hyperfocus on health and wellness and growing sustainability and diversity initiatives. There will also be an emphasis on shopping convenience, sourcing local, and price-consciousness.
Top Retail Trends
- Price-conscious Purchasing – 44% of shoppers plan on cutting back on non-essential purchases as unemployment rates continue to rise.
- Buy-Now-Pay-Later – There's been a 20% increase Year-over-Year (YoY) for buy-now-pay-later purchases – accounting for $24 billion in sales.
- Diversity – In this new era of conscious consumerism, the industry is working on bringing inclusivity and diversity to the forefront and putting minority-owned products front and center.
- Sustainability – Environmentally conscious consumers want brands to reduce the amount of packaging they use.
- Shop Small, Shop Local – 46% of consumers were more likely to shop with local or small businesses this last holiday than previous holidays.
- Convenience – 53% of consumers plan to shop in ways that save them time, even when it's not the lowest price.
- Ecommerce – There was a 44% increase in online shopping, triple the annual growth rate in the United States for previous years!
- Altered Brick & Mortar – 44% of the top 500 retailers with physical stores offered curbside pickup, ship-to-store, and Buy Online, Pick Up In-Store (BOPIS)
Consumer Purchase Behavior Trends
- Luxury and Premium Indulgences – Luxury sales in 2020 increased 9% in the last year as people working from home looked to improve their environments and pamper themselves.
- Mind and Body Nourishment – 73% of shoppers are committed to supporting their wellness; 31% of buying more items tailored for their health (including weight, mental health, immunity, etc.)
- Gut Health – 25% of global consumers suffer from digestive health issues. Consumers are reaching for products that support it and are avoiding products that don't.
- Apparel Bounce Back – As the pandemic retreats, the industry is expecting a 30% growth in apparel sales this year.
- Plant-Based Boom – There was a 231% YoY growth in March of fresh plant-based grocery sales driven by health, meal variety, and product availability.
- Mocktails – There was a 42% rise in Google searches for non-alcoholic beverages!
Global Consumer Purchase Behavior Trends
- Preventative Health – 50% of Chinese consumers plan to spend more on preventative health care, vitamins and supplements, and organic foods.
- Free-From Products – There was a 9% growth for food intolerance products. In Vietnam, for example, dairy-free milk alternatives like nut-based kinds of milk are growing in popularity.
- Vegan – 400,000 British Consumers tried a vegan diet in 2020! 600 UK companies promoted Veganuary and launched 1,200 new vegan products.
- Domestic Sourcing – 60% of consumers in Spain saw Spanish origin food products as an essential factor in purchases. German consumers fueled a buy local trend for sustainability and social responsibility.