Accelerating shifts in consumer trends during the pandemic has agribusiness making strategic moves to increase agility and drive growth.
As the pandemic continues to unfold, many companies are beginning to transition from a crisis response to planning for what’s next in the short term, while also preparing for long-term changes in the beyond.
Consumer behaviors were already shifting pre-pandemic. The current crisis has only served to accelerate these changes. For example, the EY Future Consumer Index indicates that while 16% of consumers prioritized locally sourced products in their shopping prior to the COVID-19 crisis, 49% of respondents view this as more important now. Also, 58% of consumers have changed the way they eat during the pandemic, with 52% cooking more meals at home. Agribusiness companies need to consider what impacts these trends may have on their business.
The EY Global Capital Confidence Barometer (pdf) confirms the significance of anticipating future trends. Four out of five agribusiness companies had activated more future-facing modeling of market changes. Given the heightened levels of uncertainty, this will become increasingly important.
To plan for the future, take steps now to align your strategy review process
Agribusiness companies are following the trend of their global peers in increasing the frequency of their strategy reviews. The accelerated change in consumer trends and market segmentation requires agribusiness companies to make more use of data and analytics. This is reflected in the way companies conduct strategic reviews, with 65% of agribusiness respondents reporting they had changed their processes.
As part of these changes, agribusiness companies are more frequently utilizing customer data and better market data in strategic planning, driven primarily by the market’s increasing pace of change.