Euromonitor’s market research experts have identified 20 megatrends that will shape our world by 2030. Scientists believe that eight of these have a far-reaching impact on industry and consumers. But how do they influence the design and implementation of packaging and displays?
In itself, premiumisation is nothing new; what has changed is the motivation behind consumers’ purchasing decisions. At its core, premiumisation is about priorities. With more products available at more price points than ever before, consumers can choose to spend more on the things that matter to them and are able to fund this by cutting back – often significantly – on those that do not.
High moral and ethical values are an increasing focus for consumers and corporations alike. This is clearly reflected in corporate decisions based on sustainability, animal welfare, and production and working conditions. More companies are looking to authentic environmental strategies and moving beyond simple ‘greenwashing’; in doing this they carve out a new path of innovative and profitable green business for others to follow.
How and where consumers shop is also changing. The sheer variety of shopping options, different platforms and the integration of social media into the purchasing process lead to an agile customer journey. To sell successfully retailers and brands must make shopping a more fun and engaging experience, ensuring that products and themes match the interests and lifestyle of the target audience. Every touchpoint should be a positive step leading towards the brand.
For many, a healthy lifestyle is becoming part of who we are – not least due to the rise in obesity and growing number of people suffering from food intolerances and lifestyle-related diseases. Demand for products and services that promise physical and mental wellbeing is on the increase as shoppers seek tailor-made solutions that support their efforts to improve their overall health.
Consumers are using more and more digital devices to experience and interact with digital content. One of the most important words relating to the needs of the connected consumer is ‘Experience’. Digital networking not only changes the way consumers shop, it influences how they live, work, and interact socially with family and friends. The same instant access, speed and convenience that they are accustomed to in other facets of their lives are now a prerequisite for scoring points in the retail trade; networked consumers expect nothing less.
MIDDLE CLASS RETREAT
The middle classes has been key in supporting the advent and triumphant growth of grocery discounters. However, the thrifty middle class also appreciates good quality, durable and re-usable products, and so is more open to buying goods that meet these criteria. Winning over these frugal consumers means businesses must design for longevity, good quality, ease of maintenance and re-use, looking for revolutionary takes on the concept of value.
SHIFTING MARKET FRONTIERS
As the markets in some parts of the world become over-farmed, over-populated or otherwise reach saturation, new markets gain prominence for their unexploited potential. Politics, business and science are being called upon to make rural regions more attractive whilst also promoting city growth. The business challenges here include building brand recognition among target consumers and expanding distribution channels.
Another shift in behaviour is the increased emphasis people are placing on experiences rather than possessions; one reason why the market for experience gifts is booming. Looking ahead, spending on services is expected to continue accelerating faster than spending on durable goods. The increased demand for experiences is driving demand for goods to be better presented and for shopping to be more of an experience per se. Customers also want to help shape products more, to experience the feeling of something being made ‘just for me’.