FMCG trends analysis under COVID-19: > Consumers‘ changing preferences > COVID19 impact on FMCG market > FMCG Business implications

1. Proof is in a pudding
FMCG MARKET TRENDS
GLIB ALEKSIN
gleb.aleksin@gmail.com
+380 63 961 3463

2. 2
Changing external environment pushes both Consumers and FMCG companies to adjust to a new reality
Executive Summary
Sources: internal analysis
greater disposable
income in Asia & Africa
urbanization
aging population
COVID-19
+
external environment
Consumers’ Share of Wallet
Up / Down-trading
category Re-Focus in a
household’s budget structure
Changing Ways of Shopping
New Consumption Occasions
FMCG business implications
Digitalization
Supply & Distribution
chain disruption
Efficient Operations
M&A
glocalization

3. 3
brands are pushed to work with a savvier & more mindful consumer
Consumers‘ changing preferences
Sources: McKinsey & Co. 2021 „Feeling good: The future of the $1.5 trillion wellness market“; sproutsocial „#BrandsGetReal: Social media &
the evolution of transparency“; Euromonitor „Top10 Global Consumer Trends“; internal analysis
Health &
Wellbeing
Brand
Transparency
Less is More,
Deconsumerism
Phygital
83%
consumers
purchase fewer
items and focus
more on quality
(Yuka/Kismo)
55% of consumers
(aged 30-44) used
AR / VR in 2020
(Euromonitor)
74%
48%
35%
Brazil USA Germany
increase in
wellness
prioritization –
compared to 2-3
years ago, % of
respondents
(McKinsey & Co.)
ASICS offers runners the
opportunity to win
prizes by uploading the
results of their runs
Blockchain technology
enables consumers to
buy Fairtrade, Climate
Neutral traced bananas
at PLUS supermarkets
73%
of consumers are willing to pay
more for products that
guarantee total transparency
(sproutsocial)
Consumer trends realized

4. 4
new consumer trends have emerged: recessionary behavior, digital engagement, wellness & hygiene
focus, home-centricity
COVID19 impact
Sources: BDO 2021 „How does COVID-19 impact the environment?“; McKinsey & Co. 2020 „How COVID-19 is changing consumer behavior now
and forever“; Euromonitor „Top10 Global Consumer Trends“; NilsenIQ 2020 „COVID19 concerns are a likely tipping point for local brand
growth“; internal analysis
Safety
Sustainability &
Local brand
preference
Staying home
Thriftiness
ManiMe created custom,
3D-printed nail varnish
stickers that can be
applied in five minutes,
replacing the need to
visit a salon
Haier introduced a self-
sterilising air conditioner
to appease air quality
concerns
55%
“healthy eating”
has remained the
highest priority of
food shoppers in
Europe in 2020
(net sentiment)
(McKinsey & Co.)
+60%
Amazon’s fitness-equipment
sales weekly increase in March
2020 in Germany and the UK
(McKinsey & Co.)
COVID19 trends realized
46% of Koreans
changed to less
expensive products
to save money in
2020
(McKinsey & Co.)
54%
Consumers globally mostly
bought local brands in 2020
(NilsenIQ)

5. 5
FMCG companies should aim for both top-line & bottom-line growth with a digital lever in mind
FMCG Business implications
Sources: McKinsey & Co. 2020 „Perspectives on retail and consumer goods “; internal analysis
Digitalization
Supply &
Distribution chain
disruption
Efficient
Operations
M&A
FMCG industry trends implications, points
► Relevance-led brand building, innovation and
marketing (Occasion- and purpose-led portfolio,
Data-driven marketing)
► Partnering with all growing channels and
embracing digital sales (E-marketplace,
Omnichannel)
► Building brands and distribution in developing
markets (Local success models)
► Evolving the operating model to excel at local
consumer closeness and ever greater
productivity (Automation, AI, Agile mindset)
► Using M&A to acquire small brands and
capabilities and to divest low growers
Success levers for FMCG companies