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Trends in Brief 2011


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Trends in Brief 2011

  1. 1. Trends in brief - 2011 FMCG and Consumer Trends DIRECTION FIRST May 17, 2011 Authored by: Amanda Osenton
  2. 2. Trends in brief - 2011 FMCG and Consumer Trends Nutrition & Health vs Indulgence Focus shifting towards „quiet reduction‟ – removing/reducing salt, sugar and HFCS, but communicating the „positive nutrition‟ and inclusion of healthy ingredients. Functional foods are a manifestation of this (although still have some credibility barriers) Balance is important, eg; “eat a little better some of the time”. People struggle with health and indulgence, they don‟t want to compromise and taste has become important again, with a rise in home-cooking Sustained health and wellness beyond middle-age due to people working longer and beyond retirement age; may see a trend to food and beverage products that cater to vitality, energy and longevity Health as an indicator of success Kids‟ nutrition – fruit and vegetables on the side; nutritionally balanced children‟s dishes On the other hand, obesity trends may mean more products that cater to this, eg; portion controlled. Note - in 2010 obesity became the no. 1 (premature) killer in Australia (above smoking). Sustainable & Green Sustainability still on the list, but especially important in sustainable packaging (named as key trend for 2011. Note over half of Australians think food and beverage products are over-packaged). Expected to be a greater focus on reduced packaging that promotes environmental responsibility in combination with uniqueness, such as boxless cereal bars Sustainable seafood: Increasing concern for the plight of bluefin tuna, and the impact of swordfish fishing on sensitive ecosystems means we are trying new species of fish! Consumers buy green IF it‟s worthy and the price is right Organic, FairTrade, local sourcing etc. also continue to gather momentumTrends in brief - 2011 | 5/17/2011 1
  3. 3. Back to our roots & Simplicity Retro – big brands revitalizing old products and advertising – tapping into the escalating trend of nostalgia, returning to a time and place when life was simpler Simplicity, back to basics – natural flavours, minimal ingredients Durable hunger for comfort food develops an appetite for Homestyle, old-fashioned fare non-traditional cuts of meat, ancient grains, organic, artisan cheeses The days of chemistry set cooking in high end Australian restaurant kitchens are fading. Rustic food, natural wines and dishes with a strong element of fun are the order of 2011.Professionalisation: a trend towards professional strengthcleaning products or chef-endorsed mealsLocal sourcing and traceability Shift away from celebrity chefs to putting farmers/producers and artisans in the spotlight Estate or farm-branded ingredients Locally sourced and grown produce; traceable ingredients Hyper-local – trend to allotments, growing own fresh foods, may be boosted through rising food prices Craft beers, locally produced, micro-distilled/artisan liquor, locally-produced wine and beerEthnic and Exotic Flavours Exotic and ethnic flavours, eg; ethnic inspired breakfast items (Asian-flavored syrups, chorizo scrambled eggs, coconut milk pancakes), or ethnic/street food-inspired appetizers (tempura, taquitos, kabobs, hummus) Seasonal flavours used to spice up menus Superfruits, eg; acai, goji berry, mangosteen, purslane Trends in brief - 2011 | 5/17/2011Increase of Private Label Private Label brands continue to increase, initially driven by the down-turn, but are now evolving and being purchased especially by the younger generations Getting a better quality reputation Up from 9% a few years ago to around ¼ purchases 2
  4. 4. Considered purchasing Frugality fatigue: penny-pinching was a novelty when the recession began; now it‟s gotten old. Anyone who can afford it will dip back into luxury dining in 2011 Thriftiness: consumers globally have become adept at practicing thrift to the extent that for many it has become routine Considered purchasing - consumers became more mindful during the recession about selecting/spending wisely – but consumer trend in proactively sourcing information to aid selection continues At the same time, consumers are more open to luxury, high-end goods and services and affordable indulgences, especially if artisanal or green in flavour Consumers using new technologies to help make wise choices - social media, mobile APPs etc., to check value Digital Natives / Technology New technologies and mobile phones „empower‟ the consumer, but also create the potential to reinvigorate relationships with brands, retailers and each other Mobile phones become cherished and personalized, even in emerging markets: mobility, cocooning, digital, sustainability, personalisation and technology will be the themes of the coming year. Digital Natives need to be connected, entertained and informed 24/7; social networks and social shopping are a big part of their lifestyle: Expect changes to retail at the hands of social networking in 2011, with GPS-driven deals, group buying sites and access to user reviews in store via smart phones, accelerating the integration of retail with our social communities “Unrelenting advances are establishing technology and the internet as integral to modern life, but our nature acts as a counterbalance, maintaining the need for traditional, human interaction and activities. As a result material possessions are being down-weighted with health, relationships and life experiences becoming important success indicators”…. Experiential / Culture Experience is key: 2011 consumers seek a dimension of experience in consumption taking in everything from cultural breaks to the joys of unwrapping an iPhone Good retail experience which means good customer care, and which for many consumers is part of the valueTrends in brief - 2011 | 5/17/2011 equation Retail experience will become even more critical as the battle against price increases and competition from online. Retailers will need to do more to lure customers into the store Culture: how successful brands connect with consumers. “Culture in a broad sense, being the meaning consumers make of themselves and their surroundings, is central to consumption. Culture is physical, digital, high, low, authentic and ideal. A grasp of culture is a must for brands wishing to understand consumers and get the register right in their attempts to enter and fit into the dialogue which is moving consumers more than traditional ads.” 3
  5. 5. Me as a Product Consumers are transforming themselves like brands – revising the presentation of themselves and what they are about/they offer online and in the real world. Consumption is still about defining yourself through what you buy in terms of sending out signals to others, but its gotten more personal. Consumers care less about brands. They want self-focused content but it will now be more up to them to embody a story with what they consume Brands will start to proactively offer personalised recommendations and suggestions based on customer data. The mentality of ‘I don’t have to fit to the brand, the brand has to fit to me’ will emerge in 2011.GRIT – GreenBook Research Industry Trends Report (Spring 2011) Two studies were conducted in 2010, with many of the topics being trended since 2003. In the research conducted last year, over 650 responses were obtained across full service providers, research consultants, research clients/buyers and advertising agencies etc. of which 2/3 were from the USA. Key trends/insights 2011: The industry is facing major challenge and change; there are also some concerning attitudes towards the market research industry, concerns about the ability to keep up with the pace of technological innovation and „a growing tension between quality of work output and the demand for speed’. A worrying trend in „erosion in self-perceived respect for research‟ was also observed, with perceptions of decreasing value gained through research Overall, research/methodological quality is becoming less important than speed, but there is a blurring of the meaning of quality, especially in relation to online; on the other hand, data quality remains the top issue within the research community and is likely to persist Future research spend remained favourable despite the current economic climate, with most seeing or expecting stronger growth, and this in terms of volume (not due to higher cost) but more of this will be Qualitative Trends in brief - 2011 | 5/17/2011 Mostly, the types of research most likely to be used remain fairly traditional - internet/online, CATI and face to face Focus Groups; of the newer technologies/techniques, the most mentioned /likely to be embraced were social media monitoring, mobile phone surveys and text analytics (quant), plus online discussion boards, blogs and communities etc. on the Qual side. However, less than 10% of buyers or suppliers predicted that they would use these newer approaches (social media, online communities etc.) in the near future and fewer were using emerging technologies such as neuroscience, gaming, biometrics, crowd-sourcing, mobile ethnography etc. First and foremost, any data collection methodology must still address at least one of these 4 basic requirements: effectiveness, timeliness, quality and cost. Novelty in and of itself is not enough to drive take-up. 4
  6. 6. The report authors conclude that we are likely to see a phase of consolidation (in terms of the businesses), but also change, with most expecting the changes to be significant but also positive. Nevertheless, the same business issues need to be answered in this shifting context, but against a backdrop of increasing budgetary constraints, doing more with less, sample and data quality issues and falling response rates Despite the changing landscape, new data collection methods and technologies, relationship factors remain the most important in choosing a research partner; “listening well and having a good relationship with the client – along with familiarity with the client’s needs, rapid response, meeting deadlines, and having a knowledgeable staff – are key discriminators. In an age of high-tech solutions, the “high-touch” factors… remain as important today as they have ever been”.Trends in brief - 2011 | 5/17/2011 5