Food consumption patterns might change for good, thanks to COVID-19

“We need to get used to the new normal. Among these changes, we also observed a general decline in distribution across various sectors. However, within food distribution networks, there has been a very strong decline,” said Will Hansmann, the CTO of project44. “This basically shows that shipments into restaurants and large public facilities have decreased strongly. While the trend has bottomed out, demand continues to be weak today.”

On the other end of the spectrum, there has been little to no surge in logistics-related activity in food production and manufacturing facilities. Food producers are the primary source for both restaurants and grocery stores, and so changes in consumption patterns do not affect food production. 

A drop in labor availability across farms might be a direct consequence of COVID-19. But with major row crops being harvested via mechanized means, labor shortages should not affect supply.

Inbound shipment from raw materials producers to food manufacturers is up by nearly 13% compared to the end of April and is 0.12% higher than February’s pre-crisis benchmark. This shift can be an indicator of the start of an economic rebound, with the market showing signs of dusting its lows.

“As more states and countries loosen up and open their economies, we fully expect food distribution and manufacturing to pick up from where it left off pre-crisis,” said Hansmann. “It is also expected that durable and industrial goods will begin to spike now, and with that, a gradual decline in shipments to grocery facilities.”