Manufacturers
and retailers must face up to the fact that the days of
conjuring up new products without basing them on these
consumer megatrends are numbered. Now, it is changing values
and attitudes calling the shots. To be successful, a product
or service will have to be founded on at least one and ideally
several of these megatrends.
'Age complexity' - kids are growing up younger, but
more adults want to be teenagers
The aspirational age of many 12 year-olds today is more like
17. Manufacturers are therefore developing children's products
with cool teen attributes. Then there are the adults who are
also behaving more like teenagers in their dress sense,
snacking habits and PC gaming pastimes. Little wonder that Sun
Valley has launched cheese strings with olives for adults!
'Gender complexity' - the feminization of society
Traditional distinctions between men and women are becoming
blurred.
Over the last century women have entered traditional male
worlds such as the workplace. The once-predictable course of
women's lives in Europe and in the US has undergone
considerable upheaval. More women than ever before go into
tertiary education, marry later in life or stay single, and
more enjoy increased earning power. Women's drinking habits
have radically changed too. Per capita consumption of
alcoholic drinks among women in the UK increased by almost 27%
between 1998 and 2003 and shows no sign of slowing down.
Men are becoming more feminized as they take a more active
role in parenting, become more fashion-oriented and develop
beauty regimes, up to and including plastic surgery. British
men spend the equivalent of GBP45.5 per head a year on
personal care products, and Datamonitor forecasts this will
increase to GBP51 by 2008.
A clear impact of this can be seen in the TV adverts for
Pampers nappies that feature a Dad, or All Bar One bars with
lighter female-friendly decor.
'Lifestage complexity' - traditional lifestages being
delayed or abandoned
Due to the age and gender complexity, traditional lifestages
are becoming more delayed or abandoned altogether. There has
been a sharp decline in the numbers of people living in
nuclear families and rapid growth in of those living alone,
not getting married or not having kids. In 2005 there will be
21 million (14%) fewer nuclear families in western Europe than
in 1995. Expect to see even smaller pack sizes, fewer
family-size shopping trolleys and more one-person shopping
baskets.
'Income complexity' - parallel movements towards both
everyday luxury and anti-luxury
Consumers are curbing spend in one area so they can splurge in
others. This will mean food and drink manufacturers having to
supply many people's everyday purchases through the growing
discount grocery channel. At the same time, British consumers
spent a total of GBP920 million on premium treats and comfort
foods in 2003. Datamonitor forecasts that UK consumers'
expenditure on premium indulgence will increase by 27%, to
GBP1.2 billion in 2008.
This trend also means there is growing demand for occasional
luxuries on a budget such as Boots' range of spa-branded home
treatments. Upmarket luxury is changing too, with many higher
income consumers abandoning conspicuous consumption and
instead looking for professional quality in things like
kitchenware, food and beauty products - still expensive but
much more understated.
'Individualism' - the march of self-expression
Consumers want ever more personalization, be it in the way
they live (46 million people now live alone in Europe), the
marketing they receive ('Your M&S' and those adverts about
'your inner self') and the products and services they consume
(coffee bars that allow you to customize your drink, for
example). Food and drink companies are starting to respond
with customized labels (such as Jones Soda) and customizable
single serve machines (Senseo coffee).
'Homing' - consumers becoming more rooted in home and
family life
Thanks to DIY and new gadgetry, consumers are spending more
money on (and time in) their homes. It is this megatrend that
has brought us words such as downshifting, cocooning,
pampering and everyday treating. It has also brought us Pizza
Express-branded products in the supermarket and Stella Artois
home draught beer on tap.
'Connectivity' - the increasing desire for belonging
We are now more connected through technology. But this
megatrend also encapsulates many people's increased desire for
belonging at the community, national and even world levels. It
is evident in the success of schemes such as Walkers
"Books for Schools" and Co-op fair trade products.
Manufacturers are also tapping into the idea of friendship
with more sharable products (Pringles with Trivial Pursuit
questions printed on them) and innovations such as Molson Twin
Label beer bottle labels that get people talking and help to
break the ice at parties.
'Sensory' - the importance of experience
Consumers- particularly the young - are becoming more tolerant
of risk and change and are actively seeking out more intense
experiences. This is why extreme sports and short, busy
weekend breaks are now so popular. And in our everyday lives
consumers are more prepared to experiment with new products,
discover authentic ethnic foods and try intense flavors such
as sour soft drinks, peppery liqueurs and chocolate-flavored
water.
'Convenience' - the demand for easier, faster,
disposable products
As the pace of life gets faster still, there will be more
multitasking, grazing on-the-move consumption and other
"quick fixes". UK consumers are Europe's biggest
on-the-go eaters and drinkers in Europe. Over 22% of all
eating occasions in the UK happen on-the-go, compared to a
European average of 16%. Already on the horizon are products
such as self-heating cans, fast-chilling drinks and
tea-in-a-spoon that cater to this megatrend.
'Health' - the growing recognition that physical and
mental wellbeing matter
Almost three-quarters of Europeans claim they are now more
concerned about their health and well-being than they were a
year ago. People are putting greater value on healthiness such
that sales of healthy, de-stressing and self-medicating
products are booming. UK consumers are among the biggest
spenders on functional foods and drinks in Europe, spending on
average GBP110 a year each. Over the past five years, the
number of functional food and drinks consumers in the UK has
more than doubled and is set to reach the 5 million bar by
2007. But for manufacturers, the biggest prizes will be found
in products that cross-over trends: health on-the-go such as
salad pots or healthy indulgences such as Danone's Actimel.
These 10 megatrends all have longevity. Like all true trends
they have been and will be with us for the next decade at the
least. To be successful, a product or service must be founded
on at least one and ideally several of them.
