Flexible food-to-go operators likely to succeed in 2020: IGD
As more new entrants join in the scene, existing players must “move more quickly,” the research firm suggested.
Those who can “flex fast” or focused on building flexibility into their proposition can get the best return of their investments amidst rising costs of format types, use of space and service or range, IGD claimed in its latest food-to-go trends report.
According to the research firm, the food-to-go sector, forecasted to grow at 4.7% each year up to 2024, is four times the growth rate of foodservice.
IGD noted the transformation of underused space in large stores, like Sainsbury’s, to create mini food halls, and restaurants chains launching spin-off concepts, such as the case of Wagamama’s grab-and-go concept Mamago which had opened last November.
Increasing market pressures have led both foodservice and retail sectors to seek opportunities from food-to-go concepts.
As more new entrants join in the scene, existing players must “move more quickly,” IGD suggested.
Aid on changing consumer habits
“More targeted and refined” offers are expected in 2020 to satisfy consumers’ diverse needs.
Customers have been looking for ways to strike a balance between healthy eating and indulgence, according to IGD’s shopper research. Food operators, especially from big fast food chains, can aid them in making informed choices in their consumption.
With the pressing challenges brought by climate change and impact of consumers’ modern lifestyles to the environment, for the new year, consumers want retailers and food chains to deliver on their promises of sustainability.
“All parties in the food supply chain will need to work together to overcome the more complex sustainability challenges,” the report added.
