Here at jellybean, we are always staying on top of consumer food and drink trends to ensure all our projects are insight-driven and in line with current trends and market demands. So, we take every opportunity to attend webinars to learn what consumers are enjoying in the food and drink sector, hence why a few weeks ago I attended a webinar run by The Food People and Good Sense Research which looked at the Q4 trends from 2023 in Out of Home (OOH) and eating out.

People Are Getting Back Out There!

Despite the turmoil of the last few years, navigating the tough external influences that have been thrown our way, such as Covid lockdowns, wars, rail strikes and cost of living issues, we are finally seeing that consumers are getting back to eating out. This, despite the fact that the majority of these external factors show no signs of going away, with the next year or two bringing many international, economic, social, and political pressures into the fold.

Data has shown that whilst eating-out sales are slowly recovering, they are still down on pre-Covid levels, with full recovery not expected until 2025. However, people are continuing to eat out more often (48%) versus Q1 2023 (38%) across an array of occasions, with an increase also seen in eating out for special occasions (75% in Q1 24 vs 68% Q1 23). This upward trend is not the case for takeaways or meal-kits, which continue to see a decline post-Covid. Hot food deliveries from restaurants have decreased from 81% in Q1 2021 to 57% in Q1 2024, and meal kits are in decline from 43% to 16% across the same period, indicating that these alternatives are not a long-term threat to eating out, as there is no substitute for it! The type of visit is also interesting to look at, as this shows that whilst fine dining visits have stagnated, there are increasing visits to less costly ways of treat yourself, such as coffee shops and food halls, as consumers look for convenient and cost-effective solutions whilst seeking a high-quality treat.

Divergent Diets as Consumers Move Off the Fence

We are seeing a dramatic shift in consumers’ meat-eating habits when eating out, with a +15% increase in eating mainly meat-based dishes – likely due to the fact that eating meat whilst out of home is associated with treat occasions. Similarly, we are seeing a decline in the appeal of having plant-based dishes on menus, often due to the processed and unnatural connotations of some plant-based meat alternatives. In fact, a number of plant-based-only venues have been seen to diversify into offering animal-derived dishes to broaden their appeal. Where we are seeing plant-based winning, it is often where the focus is on the vegetable, rather than ‘fake meats’.

Although we have seen the term ‘nose to tail’ rise in the industry alongside the trend of consumers wanting natural, unprocessed meats, we are finding that this is not widely understood by consumers, with the term being alienating and many being squeamish about it. Despite this, the vegetable equivalent of root-to-stem appeals when it comes to reducing food waste.

Better Processing is Key

Whilst Ultra Processed Foods (UPF) is still considered an industry term rather than a consumer phrase, consumer knowledge of processed foods is growing, with many people tending to believe all UPFs are unhealthy. However, there is still a way to go with consumer education, with consumers wanting more responsibility from governments and food manufacturers, such as traffic light systems on packs to help identification.

Research has found that consumers negatively associate UPFs with certain channels, the worst affected being Fast Food (89%), Service Stations (74%) and Transport (74%), and even Café Chains (38%) and Pubs (32%). There could be opportunities for brands operating in these sectors to educate consumers, as they may not be ultra-processed, despite consumers assuming this.

Seasonal = Local & Natural

Consumers’ perception of seasonal food is adapting, with many now considering it to mean local and natural. ‘Seasonal Ingredients’ have grown as a consumer priority when eating from 38% in 2020 to 58% in 2024. One theory discussed is that the various food shortages of the past few years due to Covid, global conflicts and supply chain issues have bought seasonality front of mind with consumers. In particular, UK consumers are eating more British food seasonally, with Jersey Royals, strawberries and asparagus all being associated with seasonal cues.

Asian Cuisine is in The Spotlight

Although the top three cuisines eaten in the UK are British, Italian and ‘Modern British’ due to their high levels of familiarity, there are opportunities to differentiate with new propositions and innovations. As despite the ever-presence of these cuisines, there is an opportunity to take something that is familiar and give it a twist – such as taking British Cuisine and applying a fire-cooking twist.

Out Of Home, where consumers are broadening their palates, Gen Z in particular is becoming more adventurous. The cuisines of interest are Thai, Modern Korean and Malaysian. It is also worth noting that Gen Z’s food consumption will be interesting to watch as they start to become parents themselves, as their children are expected to have even broader palates.

There are some additional cuisines which, despite being lesser known are seeing appeal with consumers becoming more adventurous with – Burmese, Filipino and Central Asian in particular.  For Filipino cuisine, consumers are showing an interest to try, but they aren’t sure what dishes this cuisine includes, as they on a basic level they don’t know what the cuisine is. In general, it tends to be eaten more by those living in Urban areas. Burmese food is similar, with consumers unsure what the cuisine is, but due to it neighbouring Thailand, consumers are showing interest if it is similar to Thai food. Thai food itself is in the spotlight, as although more foodies consider Thai cuisine to be everywhere, there are still a lot of people who have not sampled it. However, last quarter saw a lot of people experimenting with Thai food for the first time. In addition, we are seeing a new wave of regional Thai foods sweep the nation to re-ignite the love for this cuisine, with some restaurants adding a twist of fire-cooking or using seasonal British ingredients.

Thanks to the teams at The Food People and Good Sense Research for providing this truly insightful webinar.

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