How Will Consumer Markets Evolve After Coronavirus?

The per capita consumer expenditure to fall by 5.2 percent in real terms in 2020 globally, and to not return to 2019 levels until 2022. However, it will remain far below where it would have been without the COVID-19 crisis, reports Euromonitor…

- Sarah Boumphrey 

The health crisis and the unprecedented disruption caused by COVID-19 have had profound impacts on economies, businesses and consumers worldwide, changing the way consumers live, work and shop. Uncertainty remains high, but what is clear is that economies will not emerge unscathed and the daily routines and lifestyles of consumers will shift to accommodate continued social distancing. Whilst treatment and vaccine options are investigated, and potentially into the longer term, a new normal will emerge, as fears of a pandemic or other destructive events remain palpable. The global economy is forecast to enter its worst recession since the 1930s, hitting every sector from hospitality to education and finance. Businesses are facing huge challenges in navigating through the turbulence, while coping with disrupted supply chains and rapidly changing consumer needs and habits.

Economic and Consumer Landscape

As consumers continue to struggle with the spread of the virus, lockdowns and new daily regimes, they are also affected by rising unemployment and deteriorating earnings. More households are expected to fall into lower-income segments. Overall, a growing anxiety about future prospects is undermining the global consumer sentiment. Yet the massive change brought about by the pandemic also makes consumers re-evaluate their life priorities, giving rise to new values and spending criteria. Many of the behaviour shifts, including a focus on family or community, health and digital solutions, are expected to last a long time, even in the aftermath of the crisis – particularly if the crisis itself endures.

The Impact of COVID-19 on Market Sizes

With the exception of fresh food, packaged food and home care, COVID-19 will have a negative impact on consumer markets.