Executive Summary

The COVID-19 pandemic had a significant impact on all Americans and their buying habits. Moreover, these buying habits were different depending upon ethnicity. In this report, we examine how households coped with food shopping and preparation during the pandemic.

Census Bureau Household Pulse Survey data indicate that food insecurity was a major challenge for many households, especially households of color, particularly given the greater likelihood of negative labor and income dynamics for these groups. Nonetheless, our survey of 2,000 US multicultural consumers indicates that, of goods that consumers report they enjoy buying, they prefer purchasing food the most.

In the second quarter of 2021, an outsized 81 percent of respondents stated that they most enjoyed buying food compared to clothing (72 percent), footwear (69 percent), and high-tech gadgets (63 percent). This suggests that buying food, while a necessity as many families sheltered at home during the pandemic, was still a treasured part of the American experience.

Insights for What’s Ahead

• The Pandemic Experience The pandemic and the resultant recession were difficult for all households. Nonetheless, households of all ethnicities were becoming more optimistic and largely hopeful about their financial futures in the second quarter of 2021. This signals continued scope among all ethnic groups and households of different composition to continue to fuel the US economic recovery and expansion with their consumption habits.
• Satisfaction Matters Across ethnic segments, the biggest potential to improve food shoppers’ satisfaction with the offering is in categories of more processed foods, including packaged dinner, refrigerated baked goods, and dessert mixes, as well as various salty and sweet snacks.
• Potential for Grocery Sector Considering the increased consumer interest in convenient food preparation (or buying), snacking, and healthy eating, there may be opportunities for grocery manufacturers and retailers to better serve households without children.
• Trust and Taste Among households of all ethnicities, trust and taste are the most highly valued when it comes to purchasing food. Trust is a particular sentiment that is at the core of what businesses do. It takes time and effort for firms to build trust, creating financial value, but it can also be easily lost if not nurtured.
• Cultural Identifiers Food plays a vital role in cultural identification, with implications for product and service development, messaging, and providing experiential consumption.
• Consumer Values Consumers by ethnic group and household composition have strong views on social values and philanthropy. These insights are pivotal for businesses to internalize as stakeholders take on greater importance in operations, marketing, and outreach.