In the spring of 2020, consumers made a drastic change in their buying patterns as lockdowns and coronavirus fears kept consumers in their homes. This shift away from restaurants and on-the-go options resulted in much higher demand from retail grocers and the large food companies that stock their shelves. As a result, the large food manufacturers had trouble meeting the increased demand which allowed smaller, lesser-known brands to fill the gap and ultimately gain 1.3% market share; this gain equates to roughly $12 billion in sales. According to data and analytics firm, IRI, smaller manufacturers saw the biggest jumps in the alcohol, frozen food and center-store food categories.
IRI did note that while this is a trend that has been in place for a few years, they are expecting some of the large manufacturers to claw back the lost market share as the pandemic eases. This is primarily due to increased mobility which will send people back to restaurants and convenience stores, as they primarily stock product from large manufacturers.
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