admin The effects of the Covid-19 pandemic has been felt differently by different sectors of the economy. However, the pandemic has affected the food and beverage sector in a favorable manner. Reports suggest that restrictions across the world opened up opportunities for e-commerce food companies to sell their products to an expanding consumer base with most e-commerce brands seeing an increase in sales as consumers shift to shopping for groceries and food items online. This trend is expected to continue for the foreseeable future.
Expanding Market Demands
The consumer trend of buying food, beverages, and related products online is projected to continue, offering a new market for companies. Food and beverage companies like Else Nutrition, Walmart Inc., Amazon.com Inc., Kroger Inc., and Uber have all witnessed significant hikes in demand. They have all shared the benefits of this industrial boom and are currently re-orienting themselves to further exploit the expanding market conditions.
Capitalizing this Boom
Walmart experienced formidable growth during this period as it became the largest US grocer, with grocery shopping accounting for 56% of its revenue, passing the e-commerce giant Amazon. Walmart recently scrapped the $35 order requirement for its express delivery service, to attract an even larger share of e-commerce shoppers. Amazon also capitalized on this growth by opening its first physical grocery store in 2020. Since then it has opened several other outlets under the Amazon Fresh brand, with same-day deliveries and pickup for Prime members.
Uber has expanded its food delivery services through Uber Eats in the course of 2020. The company also announced in February 2021 that it was going to enter into a collaborative deal with Drizly to expand its beverage offerings. Kroger is also taking steps to maintain its position as a top e-commerce giant in the US. The company recently announced an expanded partnership with 80 Acres Farms to widen its reach through both online and offline conduits. Kroger Group’s Vice President of Fresh Merchandising, Dan De La Rosa commented on this upcoming partnership stating, “This newly expanded partnership means more communities will have just-picked produce at their fingertips 365 days a year.” Thus, this trend is here to stay for the foreseeable future.
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