The US food and beverage industry has been impacted heavily by COVID-19. In 2020, more consumers than ever before were deciding to order food and beverage items online to avoid grocery shopping in crowded stores, where they might be exposed to the COVID-19 virus.

The long-established trend towards proactively managing our health and well-being has been brought into sharper focus by COVID-19. Research by Innova Market Insights reveals a new wave of opportunity for functional nutrition product launches for 2021 and beyond, which will be explored further in a webinar on July 19.

“Last September, an operator approached us to help alleviate some labor challenges they were experiencing,” notes Elise Carlson, CFS, King & Prince senior research and development manager. “They were taking frozen, cellophane-wrapped cod, thawing it and then cutting it into pieces. Kitchen staff then cut the cod by hand so not all pieces were exactly the same, which is a desirable attribute."

Innova Market Insights’ consumer research indicates that one in four people globally has become more concerned about their immune health since before the pandemic. The most significant increase was among Millennials (aged 26 to 35 years) and younger Gen X (aged 36 to 45 years). Higher levels of concern among these relatively young age groups indicate the potential for longer-term consumer interest.

Despite significant hurdles created by the COVID-19 pandemic, many new products managed to beat the odds and emerge as winners, making their way into shoppers' carts during unprecedented times and resulting in multiple $100 million launches. More than a quarter of the New Product Pacesetters launched in the fourth quarter of 2019 or January 2020 saw big performances, accounting for 51 of 200 Pacesetter products, with 27 in the food and beverage sector.

The past year has been a rollercoaster ride for the cheese category. While the COVID-19 pandemic drastically reduced demand for cheese in foodservice, the category’s growth at retail was extensive, notes Kelly Slentz, associate brand manager, cheese for La Farge, Wis.-based Organic Valley.

Consumers have been trying foods, ingredients, and substances that help them build immunity, prevent inflammation, aid their digestive health, and relieve stress and anxiety, according to NPD’s Health Aspirations and Behavioral Tracking Service, which continually tracks consumption habits linked to wellness goals and identifies long-term, mainstream trends. 

Kerry has released findings from its latest research on North American consumer attitudes, behaviors and purchasing choices as they relate to food safety, sustainability and preventing food waste.  

As the coronavirus pandemic caused lockdowns and a number of office workers relocated to working at home full-time in 2020, many consumers began to spend most of their time at home and looked for more home-based activities. Baking activity took off, and subsequently, sales of baking-related products soared by 24% last year to reach to $26.5 billion, reports market research firm Packaged Facts in the new report Home Baking: US Market Trends & Opportunities.