Feeling the impact: Consumer staples sector activity down 71% last quarter

Activity in the Consumer Staples sector was down 71% this quarter, and down 41% for the financial year.

By AnsaradaWed Sep 23 2020Capital raising, Industry news and trends

According to our indicators, among the industries hit hardest by COVID were Food and Staples Retailing (down 82% YoY) and Food, Beverage and Tobacco (down 41% YoY).

With wide scale shutdowns and restrictions, the food service industry has been one of the worst affected. Those who have been able to pivot to offer takeaway and delivery options have been able to offset some of these challenges, but it’s clear that consumer propensity for convenience will have a lasting influence on the new normal.

A study by McKinsey shows that food consumption habits across Australia and the globe will be fundamentally altered by COVID, paving the way for a significant shift to online options.

As food delivery services surge, meal kit services like Marley Spoon have had to expand quickly to keep up with demand. Marley Spoon secured $16.6 million in May to support its growth initiatives.

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