Euromonitor, a market research company, recently released a report on 10 global consumption trends in 2019, which summarizes emerging consumption trends in the coming year and explores how consumers'changing values and consumer orientations will change global business.
Ten major trends identified in the report include:
1. Rejecting Aging and Pursuing "Ageless Sense"
2. Return to reality
3. Responsible Consumption
4. Network lets us "be together"
5. Everyone is an expert and believes in "planting grass" rather than advertising.
6. Get rid of social networks and enjoy the "missed surprise"
7. Control shopping by yourself, emphasizing individualization
8. goodbye! Plastic
10. Choose to live alone
2019 seems to be a year out of control. Both developed and developing markets have undergone unprecedented upheavals. Euromonitor's report reveals consumers'new consumption propositions in order to find the power to control in the midst of anxiety and uncertainty.
Refuse Aging and Pursue Agelessness
The growth of global longevity rate has aggravated the aging of society. Euromonitor data show that in 2018, more than two million Japanese residents will be over 90 years old, and by 2025, half of the population will be over 50 years old. Older consumers not only have a large population base, but also have strong consumption power. Their economic situation is better than other age groups in the struggling stage.
Proportion of people over 50 years of age in 2018/2025
Data source: Euromonitor International
The baby boomers (born in 1946-1964) are the most resistant to aging. They do not think they are "old" and do not want to "passive" aging, especially in the developed countries with better medical system and social conditions. Forty-six percent of the baby boomers surveyed believed that they had a positive impact on the world and hoped that they could still play a role in society.
This is a mature consumer group, and they expect products and services that will keep them physically and mentally young. With the aggravation of social aging, the consumption trend of anti-aging will continue to deepen. The key to winning the brand loyalty and trust of the elderly population is to provide universal products and services so that the elderly consumers will not feel the psychological difference with young people.
Recover one's original simplicity
Consumers today reject the complex nature of products and will prefer high-quality products that are simple and return to basic needs. Consumers expect truly differentiated products and experiences to express their personality.
Globalization has enabled consumers to get any kind of product at a low price from all parts of the world, whether it is fruit and vegetable in the current season or the latest fashion trend. Middle-class consumers in developed markets live in a society where almost all products are available. The economic crisis of 2008 reminds us of the risk of developing too fast. Consumers in economically developed areas reassess their consumption habits and change their pursuit of material enjoyment to simplicity, reality and individuality.
The trend in the food and beverage industry perfectly reflects this shift. For example, consumers are more likely to buy local food, which not only supports the local economic development, but also freshens the food, and reduces the environmental impact of the food transport process. The rise of hand-brewed wine shows that consumers are pursuing products that can show their personal identity and taste.
Consumers'desire to return to the true and moral identity will be further deepened in 2019. Generalized products will lose consumers' hearts. Only products with higher quality and unique characteristics can be favored by them.
Consumers are looking for buying behavior that has a positive impact. They hope to alleviate the negative impact of consumption on the world. This responsible and compassionate way of consumption emphasizes respect for others, animals and the environment.
Ten countries with the largest vegetarian population growth in the world, unit per thousand, 2016-2017
Data source: Euromonitor International
This consumer appeal focuses on animal welfare. More and more consumers are beginning to accept vegetarian diet, on the one hand for the sake of healthy diet, on the other hand to reduce the negative impact of meat production on the environment. Plant-based diet and caring for animal welfare is a healthier and more ethical trend of life. The meat-based KFC has established Veggie Burger in Canada and New Zealand, which is popular with consumers.
Responsible consumption has a deep foundation in economically developed areas, and some middle-and high-yield consumers in developing countries also support this consumption trend. Such consumers not only eat meat and dairy products as substitutes, but also choose clothing without animal fur, personal beauty and care products without animal ingredients.
According to Euromonitor data, almost a third of respondents chose products with "free-range" attributes when choosing fresh food, and more than one in nine said beauty products with "no animal testing" and "100% plant" attributes were more attractive to them. In 2018, L'Oreal, France, created a plant production line and introduced 100% plant-based hair care products in Western Europe.
Concerns about animal welfare will also expand in more areas, including food, beauty and fashion, as well as family care, household furnishings, pet food, etc. As consumers pay more and more attention to the source of products, enterprises also need to assume new responsibilities. Products need to meet consumers'demand for animal protection. Future investments in animal welfare will be the key to increasing added value of enterprises in fierce competition.
Network lets us "be together"
Over the past decade, technology has evolved from facilitating communication to providing multi-dimensional interaction and community experience. This development will continue to change the way we interact with friends, colleagues and even strangers. Even if we are not together, we can create and share through online interaction.
Proportion of weekly online activities for each generation of the global population
Data source: Euromonitor International
Affected by this trend, enterprises are also changing their products and services. Legal affairs and medical services are gradually transferring online, and people's daily consumption is mostly accomplished through the network platform. From government departments to daily life, new technology promotes the development of online interaction and makes life more efficient.
Social media will continue to play an important role in our online activities. In addition to personal privacy, users can share daily activities, locations and peers on social platforms, creating online memories that they can review and preserve permanently.
As more and more consumers can use the high-speed network, more and more activities can interact through the network. We also expect these interactions to be more lifelike. Future brands need to meet consumers'needs for online social networking, and provide more products and services based on artificial intelligence, virtual technology and large data analysis and prediction.
Everyone is an expert, believing in "planting grass" rather than advertising
"Everyone becomes an expert" shows the change of the relationship between retailers and customers. In the past, customers acquired knowledge of products through limited information channels, but now they have a large number of information sources. Sellers need to constantly innovate, reduce prices and optimize products to attract customers. Consumers are more inclined to plant grass with each other to choose products, rather than being "led by the nose" by brand marketing.
China is a pioneer of this trend because of its largest network users and online stores. The highly saturated online market covers almost all the goods consumers need. They have a good understanding of the products, no longer superstitious about advertising, but believe in word-of-mouth products.
In the future, network sales will become the main battlefield of consumption, especially in the tourism, beauty, fashion and catering industries, which need to lay out cross-platform sales strategy. In the marketing activities, it is necessary to emphasize the important position of consumers as the consumer leader. "One product is suitable for all people" will no longer be attractive, and personalized and customized products and services will be more popular with consumers.
Get rid of social networks and enjoy the joy of missing
The blurred boundaries between life and work make it difficult to separate personal space from social activities. Social networks give us the illusion that we should share wonderful experiences or opinions with others. Nowadays people are no longer afraid of being left out by social networks, but prefer to have personal space.
Mobile communication and social networking have transformed the joy of sharing life into a burden, the constant pressure to respond to messages and the ubiquitous working environment, which have transformed our life goals into living to meet the expectations of others. In order to protect their mental health, consumers want to better control their time, establish self-space and social boundaries, improve selectivity in daily activities, and pay more attention to protecting online privacy.
These changes mean that consumers will spend less time online or social networking, pay more attention to real-life experiences, and do not have to share social networking for comparison.
Some industries have begun to adapt to this trend. For example, cafes that do not provide WiFi passwords encourage face-to-face communication rather than indulging in mobile phones and the Internet. In the fashion field, the popularity of sports shoes and outdoor clothing is also due to consumers'more attention to real life.
Controlling shopping by oneself and emphasizing individualization
When all the information is available, consumers no longer need to consult experts to decide on clothing, diet, fitness, decoration, etc. In short, consumer behavior skips intermediaries.
Consumers are faced with many choices. They want to be able to control their shopping activities based on their personal needs. For many shopaholics, relying on intermediaries such as shopping guides or social media, shopping activities tend to get out of control, and self-sufficient shopping methods make consumers feel more free.
In the process of self-determination of consumption, many consumers feel that the marketing efficiency of a large number of products on the market is not high. They are tired of brand marketing activities. Consumers begin to use APP and customized services to create unique products that are most suitable for them.
Future brands can provide customized services for each individual based on big data. For example, fashion brand Stitch Fix, relying on big data algorithm and stylist advice, provides consumers with personalized clothing and accessories recommendation.
In the past year, the promotion of the plastic-free society is booming, and consumers'desire for plastics-free will grow in 2019. The disposable plastic packaging of food and beverage, micro-plastics in personal skin care products and home care products, and plastics produced in the fast fashion industry will cause serious pollution to the earth's environment and need to be strictly controlled.
Percentage of products willing to pay premiums for environmentally conscious products or eco-friendly products
Data source: Euromonitor International
At present, 63% of the world's packaging is plastic products. Euromonitor believes that consumers are increasingly concerned about plastic pollution and are willing to pay for resistance to plastic products. In the past two years, the proportion of consumers choosing to buy environmentally friendly packaged food or fresh food has increased dramatically, and more and more consumers are willing to pay premiums for recyclable packaging. In the future, if enterprises want to win the recognition of consumers, they need to take necessary measures to solve the problem of plastic packaging.
At present, a considerable number of enterprises have joined the anti-plastic ranks. Danone, Nestle, Coca-Cola and other food and beverage industry giants have implemented environmental protection of plastic packaging in about 2025. Fast fashion industries such as C&A, H&M have also begun to use recycled plastic bottles as packaging bags. In addition, more than 290 companies worldwide signed pledges last year to combat plastic pollution, including Wal-Mart, Burberry and Target Department Stores.
Recyclable substitutes for plastic packaging will be greatly developed in the future. Pepsi-Cola and Coca-Cola have both introduced plant-based PET bottles. Danone and Nestle have collaborated with Origin Materials to create Natural AlL Bottle Alliance, which produces 100% bio-based PET bottles.
"Now we need it"
Young consumers are often seen as impatient and three-minute hot, but according to Euromonitor's report, the pursuit of efficiency is not just about instant gratification. In this fast-paced era, people's time is very precious. Many consumers expect accessible consumption experience that suits their lifestyle to save time and devote themselves to personal and social life.
The trend of pursuing efficiency is mainly guided by consumers aged 30-44, who are busy and in good economic condition. Almost half of them are willing to pay for time-saving products and services. This trend is more evident in rapidly developing countries and regions. In 2017, about 53.7% of Chinese respondents and more than 60% of Indian respondents expressed willingness to spend money to save time.
Speed has become a key factor affecting the success or failure of retailers, including new and distribution. In the future, enterprises can greatly improve sales efficiency by using technology. User data can provide product and service guidance for enterprises. Artificial intelligence and network can save time and money for consumers. For example, Amazon has created Amazon Go stores, where customers can browse through Amazon's APP without queuing for purchase.
Choose to live alone
Although technology allows us to interact instantly even thousands of miles apart, we have never been so lonely. The Pew Research Center survey shows that the number of single families will grow more than all other forms of family. Baby boomers have a high divorce rate, young people are resistant to marriage and cohabitation, and the number of single people will increase by 30% in 2030 compared with 2018, reaching 120 million people.
People willing to spend money and save time
Data source: Euromonitor International
This means that there will be fewer children and more disposable income in the future. Adults spend more of their spare time traveling, studying and entertaining. They prefer to live in busy urban areas. In addition, people living alone need to bear their own rent, water and electricity charges, and pay more attention to convenience and economic affordability when consuming.
Enterprises tend to ignore the appeals of this group of people, but living alone is not the product of a generation or a culture. The world is gradually eliminating the prejudice against singleness and emphasizing its independent lifestyle. Brands still have a long way to go to win the recognition of people living alone.
Source: FBIF Food and Beverage Innovation
ID: Food Innovation
English source: Euromonitor, Fashion United
Chinese Editor: Yvonne, Wilbur