The Growth of the Away-From-Home Market
The away-from-home (AFH) market has emerged as a pivotal growth engine for consumer goods companies, fueled by the resurgence of social activities in a postpandemic world. Whether it’s breakfast at the airport, popcorn at the movies, or late-night snacks from a corner shop, AFH consumption is becoming an integral part of daily life. Over the past year, the AFH market has consistently outpaced traditional grocery retail in growth. This trend is expected to continue, with the AFH channel projected to grow by approximately 8 percent annually in Europe through 2028, compared to just 3 percent for traditional grocery retail.
This rapid expansion of the AFH market is reshaping the consumer goods landscape, offering companies a unique opportunity to tap into a dynamic and lucrative sales channel. AFH not only provides 24/7 revenue streams and higher margins but also reduces dependence on traditional retail while creating new avenues for customer acquisition. Leading consumer goods companies are already prioritizing this segment, recognizing its potential to drive sustainable growth.
To unlock the full potential of the AFH market, companies are adopting tailored strategies that address its unique dynamics. Microlevel growth strategies enable businesses to identify and capitalize on hyperlocal opportunities, while digital route-to-market approaches streamline operations and enhance customer engagement. Additionally, channel-specific revenue growth management practices are helping companies optimize pricing, promotions, and product portfolios to maximize returns. Together, these approaches are equipping consumer goods players to thrive in the fast-evolving AFH landscape and secure a competitive edge in this high-growth market.
Key Recommendations for Consumer Goods Companies
- Invest in microlevel growth strategies to capitalize on hyperlocal opportunities.
- Implement digital route-to-market approaches to streamline operations and enhance customer engagement.
- Utilize channel-specific revenue growth management practices to optimize pricing, promotions, and product portfolios.
Market Trends in the AFH Segment
Recent market trends in the AFH segment include:
- Increased demand for convenient, on-the-go food and beverage options.
- Rise of delivery services and online ordering platforms for AFH consumption.
- Focus on health and wellness products in the AFH market.
Organizational Impact of AFH Market Growth
The growth of the AFH market has significant organizational implications for consumer goods companies, including:
- Shift in revenue streams towards AFH channels.
- Need for specialized marketing and distribution strategies for AFH products.
- Opportunity to diversify product portfolios to cater to AFH consumer preferences.
FAQs
Q: What are the main drivers of growth in the AFH market?
A: The resurgence of social activities postpandemic, increased demand for convenience, and the shift towards on-the-go consumption are key drivers of growth in the AFH market.
Q: How can consumer goods companies optimize their AFH strategies?
A: Consumer goods companies can optimize their AFH strategies by investing in microlevel growth strategies, implementing digital route-to-market approaches, and utilizing channel-specific revenue growth management practices.
Conclusion
In conclusion, the away-from-home (AFH) market presents a significant growth opportunity for consumer goods companies. By adopting tailored strategies that address the unique dynamics of the AFH segment, companies can capitalize on the rapid expansion of this market and secure a competitive edge. With the right approach, consumer goods players can thrive in the evolving AFH landscape and drive sustainable growth in the postpandemic world.
To read the full article, download the PDF here.
