A first look into the consumption lens
How people eat, drink, and shop is evolving every day. Let’s find out about the consumption trends that are relevant in 2023 in the first post of our new series.
Consumer trends are generally an extension of consumer sentiment. As the global population continues to be rocked by uncertainties – from the altered lifestyle brought about by the pandemic to the challenges of the economic and geopolitical turbulences – it is no surprise that people are rethinking their consumption habits. So, how have consumption trends and consumer preferences evolved in the recent years?
Value goes multidimensional
In today’s climate, consumers are re-evaluating their spending. Even though food and beverage remains a top priority, consumers want value for money. But instead of opting for the most cost-efficient option, they are looking for products that offer maximum value. The perception of value, however, can vary between consumers, from nutritional value and affordability to sustainability credentials and convenience.
Plant-based moves to mainstream
More and more people around the world are looking towards a plant-based diet. The shift has been gradually going stronger over the last decade. Interestingly, even people who are not vegetarians or vegans, are buying more plant-based products – making the category more mainstream. And as with any growing market, consumers are also demanding more from plant-based products, in terms of taste, new combinations, and nutrition, among others. See our take on trends in plant-based beverages here.
A focus on functionality
Functional benefits of food and beverages continue to be important to consumers.
From boosting immunity, a singular focus during the pandemic, to physical, mental, and emotional wellbeing – the ask for functional benefits is expanding, as discussed in-depth in our earlier series, Functionality Rules. More recently, functional nutrition is emerging as a medium to influence cognitive capacity and manage stress levels.
Changing consumers
Not just the demographics of the consumers but also the ways in which they connect with brands and products are changing. Younger consumers, especially Gen Z and Millennials, are connecting to brands that echo their values and offer the products they want. They are more conscious about their personal footprint but at the same time do not want to compromise on taste and convenience .
Omnipresence of omnichannel
Consumers want simplicity in their experiences while being able to shop or interact with the brands online in a meaningful way. This is a tricky combination. People are back to being out and about, which means lesser time and more touchpoints of consumption and interaction. Going forward, omnichannel customer journeys across physical and digital locations are likely to become the new standard.
Different strokes
Consumer behaviour has many aspects. And consumption patterns can often vary as per the need of the hour. For example, people on their way to work may shop differently from when they are heading back home at the end of the day. The purchase decisions are also affected by when and where the product is to be consumed. Think shopping for a lunchbox vs shopping for entertaining at home. Throughout the rest of the series, we will explore the different priorities of consumers at different times, focussing on at-home consumption in the next post. Watch our blog to know more or subscribe to our exclusive bi-weekly newsletter to get the story in your inbox.