24th May 2021
Consumers are Turning to Local Products
The COVID-19 pandemic has left a number of global consumers feeling anxious about the future to come. In a time of uncertainty, ethnocentric attitudes can be common amongst societies. People are becoming more favorable to locally grown products and less trusting of products with extended supply chains. Local products are associated with a number of benefits including, healthier, safer, tastier, and better quality. So, what opportunities does this create for local, smaller brand products?
Shortened Supply Chains
Over the last twelve months, consumers have placed more emphasis on food safety than in recent years, as they have looked to minimize their vulnerability to germs, viruses, and bacteria. FMCG Gurus research shows that this has created an opportunity for smaller local brands to succeed. This is highlighted as 58% of global consumers state that they have become more attentive to locality claims as a result of COVID-19.
The desire for locality claims is also linked to consumers wanting products that they deem to be green and clean, seeking out products that they believe are healthier and better for the environment. Shortened supply chains are deemed to be synonymous with these traits. This has led to a number of consumers putting greater emphasis on sustainability claims. This is highlighted as 47% of global consumers agree that they are now more attentive to these claims as a result of the pandemic.
Country of Origin
Consumers are showing favorable perceptions towards homegrown brands and in comparison, are less trusting of foreign products. In April 2020, 34% of global consumers stated that they were more attentive to the country of origin of products as a result of COVID-19. This has significantly grown by 21%, with 55% being more attentive in February 2021.
Story-based marketing around formulation, such as the sourcing of ingredients and production techniques, as well as the distribution methods of products, will be of high importance to consumers over the next few years, so that they can make informed decisions about the safety and quality of products.
FMCG Gurus consumer insights show that 76% of global consumers state that they plan to eat and drink more healthily as a result of COVID-19. This desire has led to consumers to look for locally produced food and drink as they often associate these with being healthier and better for them. This is also highlighted as 60% of global consumers say that they plan to source more local. This means for many consumers; it is crucial that local products are also seen to carry natural claims.
Healthy and natural claims are of high importance as consumers are now more aware of their health than ever before. The pandemic has led to consumers to understand that all aspects of health are interlinked. Therefore, it is important that local brands offer natural claims with easy-to-read ingredient lists.