OUTLOOK
MAKE MY WORLD CONVENIENT TO ME
Convenience is key , but consumers brands must also deliver on health , provenance and sustainability .
As we re-open with promises of no more lockdowns amidst high vaccine uptake , what will the world of 2022 look like for Australians ? It will partly be an extension of their own bubble that they built around themselves during the pandemic – but with much greater freedoms and personalisation of choice .
Our new at-home habits will need to find their way as we move back amongst the world – and for many that means the world of their own choosing , be it remote , a relocation or a return to how it was before . Local communities will be the heart of our hybrid lives as our old and new worlds ( and expectations ) collide and we clamour for indulgent convenience how and where we want it , leaving the commute behind . We ’ ll move out of our hybrid happy places for the reopening of travel , but for our daily lives we ’ ll seek the convenience of “ what works for me where I want to be ”.
Bye-bye baking : get ready for ready As pandemic baking fell out of favour last year , Australians became hungry for fresh food convenience – and they still are . The reopening of food services will moderate at-home consumption occasions , 13 while clever retailers are also capitalising on closed cafe storefronts to highlight fresh , healthy convenience alternatives that are positioned to interrupt shoppers .
Appealing to Aussies seeking simple hybrid work lunches away from pre-pandemic rushes to city cafes and suburban shopping centres , ready meals are essential purchasing for four in five households (+ 2.5 pts to 80.5 per cent ) and growing in value (+ 19 per cent ) thanks to premiumisation and increased trips . The drivers ? Health forward claims such as high protein , cuisine variety , and “ ready in 90 seconds ” helped Fitness Outcomes , Coles Kitchen , My Muscle Chef and Youfoodz surge in popularity . 14 “ Grab and go ” also enjoyed substantial dollar growth (+ 32 per cent ), reaching one-quarter of shoppers , spearheaded by retailers using frontof-store placement and increased SKU counts across fresh salad and wraps . 15 And don ’ t overlook frozen snacks – they ’ re growing at 15 per cent , 16 largely thanks to the air fryer trend . McCain swiftly capitalised on this obsession with speed , ease , and health in food prep – and have updated cooking instructions accordingly .
The fast-food fight back Convenience is not just about pack-to-mouth speed . Decisionmaking , shopping , delivery , prep , and food waste are driving those Aussies seeking convenient culinary escapism . There are more ready-made and finish-at-home options than ever before . Home meal kits are offered across 30 + providers with market-leaders HelloFresh and Marley Spoon attributing success to solving the “ what to have for dinner ” decision fatigue . Meal kits also offer inspiration to try health-oriented recipes and are a foray into independent cooking for many younger Australians .
Delivery and pick-up were pandemic game-changers for food services operators , underpinned by # supportlocal campaigns helping Menulog and Uber Eats thrive . But fast food isn ’ t all about cheap . The high-end restaurant-at-home experience netted new operators like Providoor , which achieved more than $ 70 million in sales in under 18 months since launching in Melbourne in mid- 2020 and fast-tracking its operations to Sydney in 2021 . It now has Brisbane and international expansion in its sights . 17 Another one to watch is FoodByUs , a start-up that secured $ 10 million to scale and appropriate restaurant kitchens for the burgeoning market in professional-grade dining experiences at home enabled by simple online transactions . 18
Reimagining retail for the roaring twenties
We ’ re gravitating from culinary indulgence to quality ingredients Flavour and cuisine exploration are an enduring trend , accelerated by pandemic homesickness but helping satisfy our desire to travel . For example , growth will continue across fresh noodles and Asian meals that don ’ t deliver a back-of-cupboard expiry date . But a warning to manufacturers : private label launches , and range expansions will be the next battleground after the instore bakehouse cornered the fresh bread market . 19
Overall , this fast-food fight back is putting pressure on traditional grocery aisle cooking ingredients . To remain successful , you must inspire cooking through premiumisation while focusing on portability and ease of use . High-value attributes standing out on shelf will attract shoppers . Think sustainability ( good-for-you and good-for-the planet ) products supporting physical and emotional health , and indulgent products for instant gratification .
“ Since Covid-19 , we have seen a growing demand for Australian restaurant-quality food that won ’ t break the bank and provides healthier alternatives to fast food .” Charlotte Rhodes , General Manager , Coles 12
Cocktail culture meets pub nostalgia As lengthy lockdowns closed on-premise , Australians re-created their favourite cocktails at home . At-home mixology drove glass spirits growth (+ 15.7 per cent ) and supercharged demand for larger pack formats . 20 And we ’ re going bolder with more indulgent varieties to entertain in our home bars . Liqueurs are experiencing strong value growth (+ 12.4 per cent ) while aromatics are also crowd pleasers . Spiced rum alone recorded +$ 25.7 million to become Australia ’ s sixth-largest segment in 2021 . We expect this trend to continue as NPD shakes up the category but don ’ t overlook the fightback of beer and wine as Australia opens up .
Nostalgia also saw drinkers re-create pub classics – a trend that will likely continue . Smirnoff (+ 32.1 per cent ), Jack Daniel ’ s (+ 12.8 per cent ) and Wild Turkey (+ 16.2 per cent ) enjoyed phenomenal growth while soda water , tonic water , and cola are all jostling for top position in our home bar carts . 21 Experimental home bartenders and mixologists will win as Australians embrace different flavour combinations led by citrus . For example , Gordons Mediterranean Orange Gin has generated $ 5.6 million in sales since its February 2021 launch 22 and we anticipate orange-themed extensions to continue to fuel spirits growth to compensate for the “ pink ” decline . Flavour trends are reflected globally and should continue . Jameson Orange is growing twice as fast as the whiskey category in the UK , with sales + 15 per cent globally 23 targeting younger novelty seekers .
Toasting 2022 through premiumisation Champagne (+ 28.3 per cent ) is still cheering us up and headlining at-home celebrations . It is responsible for Australia ’ s top three growth wine category brands , with Moët & Chandon (+ 27 per cent ), Veuve Clicquot (+ 26.3 per cent ), and Mumm (+ 22.5 per cent ) enjoyed as an almost “ everyday indulgence ”. 24 High demand and issues with freight and shipping have caused Champagne shortages , however . ‣