Reference -

1. Trends in brief - 2011
FMCG and Consumer Trends
DIRECTION FIRST
May 17, 2011
Authored by: Amanda Osenton

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 momentum
Trends in brief - 2011 | 5/17/2011
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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 strength
cleaning products or chef-endorsed meals
Local 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 beer
Ethnic 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 | 5/17/2011
Increase 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
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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 value
Trends 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.”
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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 it's 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.
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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
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