Covid-19 boosts demand for local products

GlobalData Retail 28 April 2020 (Last Updated April 28th, 2020 17:15)

Covid-19 boosts demand for local products

Consumers’ concerns over developing Covid-19 have led them to trust locally sourced products more than imported ones. This preference for locally produced items will continue to rise and will last beyond the pandemic as shoppers seek to reduce the perceived risk posed by imported goods that travel through several global touchpoints.

Over the four weeks to the 19 April, trust in local goods rose in all countries except the US and Brazil. Trust in local products is highest in India, where the government has recently allowed small neighbourhood shops to reopen to support communities and restart economic activity.

The trust index is also high in Australia, where supermarket chain IGA has recently implemented shelf labels that show which products are Australian-owned. Consumers have since called for larger Australian retailers such as Woolworths and Coles to do the same.

In the UK, many consumers have depended on local grocers and butchers for products that supermarkets have run out of due to increased demand, leading to trust in local products rising +4.9 ppts over the past four weeks.

Sustainability and a desire to support local businesses will drive demand for local products, and social media is a powerful tool that local producers can harness to promote products, especially as consumers now spend more time browsing online.