Impact of quarantine on the personal care and food sectors in Brazil

With the current measures to contain the COVID-19 pandemic and the quarantine recommendation, the whole world is looking to mitigate the effects of the virus and changes in consumption and purchasing habits have emerged. The 2nd Edition of Kantar's Consumer Thermometer, a global leader in data, insights and consulting, points out that 78% of Brazilians seek to leave home only for what is needed, in addition to being more concerned about health. For example, in January and February 2020, compared to the same period a year earlier, 784,000 more households bought painkillers, 330,000 started buying vitamins, especially C, and 224,000 households became buyers of anti-flu. In addition, 27% of Brazilians claim to seek healthy foods and 22% seek cleaning products. In this scenario, new forms of consumption arise and deliveries from supermarkets become a choice for 7% of the national population. Brazilians are concerned about keeping the pantry full and this is already reflected in the performance of the categories of mass consumption. A year ago the FMCG basket grew only 1% in value and was negative in purchased units (-5%), but at the beginning of the year grew 8% in value and 4% in units, with the supply mission being responsible for more than 50% of the disbursement of this consumption. In relation to the prominent channels, the attacks continue to gain new home buyers – they have won more than 2.2 million, as well as hypermarkets, which have gained more than 560,000 new homes. Pantry categories are the ones that grow the most in the atacarejo, such as industrialized bread, snacks, biscuits, soda and UHT milk. It is the main supply channel, reaching almost 75% of importance for this type of purchase, which represents almost 20 categories. In the Hypermarket, purchases are smaller and bring spare categories for everyday life, such as mayonnaise, multipurpose, coffee, detergent and presumptive, in addition to a smaller number of categories purchased, which are only 11. Another important change is the increase in the home office: 23% of Brazilians already say they are working remotely and this action has consequences in habits already well established, such as personal care. If we measure the impacts, we can say that more than one billion occasions are at risk, since 21% of the occasions of use of this basket are focused on the act of getting ready to go to work or school and 4% focused on the act of going out and socializing. For example, in the United States, makeup faces potential loss on occasions of use due to the different habits of those who work in and out of the home. There alone, it could be 402 million fewer occasions. In addition, other customs such as washing the face and hair may undergo some changes. In China, for example, the hashtag #NoHairWash has become popular. In the division by gender, the differences are even more relevant, where 15 categories aimed at women have the potential to be impacted, such as liquid and bar soaps, makeup and removers, toothpastes, facial and body moisturizers, epilators and slides, deodorants, fragrances and other products for styling, intimate care and bathing. Among men, only 7 categories should miss occasions of use: shampoos, bath products, toothpaste, tools for styling, dental floss, fragrance and mouthless. "Changes in beard habits tend to be important, considering that 32% of men claim to shave strictly for professional reasons. The consumption of deodorants is also at risk, considering that 40% of their drinking occasions in Brazil are related to preparing to work or going to school," says Elen Wedemann, Managing Director Brazil at Kantar. What will differentiate the negative impact on consumption of these categories will not only be the duration of the quarantine, but how the shopper will resurface after going through this transformative experience. According to Kantar data in China, the legacies of this crisis will bring more conservative attitudes. In addition to greater attention to the benefits of products and search for disinfectant devices, new attitudes and behaviors arise that will permeate consumption from now on, aligned with concepts such as savings for difficult times, reduction of unnecessary expenses, search for instant pleasures and appreciation of moments and actions that cannot be bought. Among them, more time with family and friends, greater spiritualization and improvement as a human being. Kantar's research in China also signals other changes in post-crisis habits. Among the categories that must be decreased or cut are those of luxury and online entertainment. Electronics, household items, home fitness equipment, alcoholic beverages and medicinal cosmetics must remain or have limited impact. The expenses that can increase are those with prevention against epidemics, clothing, cosmetics, medicines, food, beverages, gymnastics, beauty salons, household cleaning, life and medical insurance, nutritional supplements, personal care, meals and entertainment outside the home, tourism and actions or wealth management.