Divergent behavior drives Euromonitor's top consumer trends

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Divergent behavior drives Euromonitor’s top consumer trends

16 Jan 2023

Joanie Spencer

Since 2008, Joanie Spencer has covered the retail and wholesale sides of the baking industry.
Serving associations such as the American Society of Baking (ASB) and BEMA, Joanie is also in demand as an industry presenter on bakery operations and trends. She holds a bachelor’s degree in communication from Rockhurst University and a master’s degree in journalism from the University of Missouri.

When she’s not running or playing soccer, Joanie spends her time with her husband and 11-year-old son.

LONDON — Following three years of disruption for food manufacturing, global market research firm Euromonitor International has released its Top 10 consumer trends for 2023 to help companies plan for the year ahead.

“The past few years have been anything but ordinary, and 2023 will be no exception,” said Alison Angus, head of innovation practice at Euromonitor.

Around the world, consumers are becoming more responsible with their spending, but at the same time, they’re spending emotionally, according to Euromonitor. Digitization, disruption and equity are among the top drivers, especially with Gen Z at the wheel.

“Companies should expect quite divergent behavior as consumers cope with ongoing challenges while getting back in their stride,” Angus added.

Below are the trends Euromonitor predicts that bakery manufacturers can expect from consumers in the year ahead.

Authentic automation. As artificial intelligence permeates nearly every facet of the human experience — and automation drives the baking industry — consumers still need balance between humans and machines. While automation is making life easier in a workforce-challenged world — Euromonitor reported that 42% of companies will be using robotics and automation in the next five years — the consumer perspective much depends on age and circumstance. In Euromonitor’s report, eight out of 10 consumers under age 29 don’t mind interacting with robots. In a foodservice establishment, 81% of consumers aged 15-29 are comfortable with a robot preparing their entire meal, while 57% of those 60 years and older feel the same. However, a niche group that Euromonitor deemed “digital seniors” will be closing that gap.

In consumer-facing situations, it’s all about the experience. “Emotional connections are not to be underestimated, and tech benefits should outweigh the need for personal interactions to create a seamless experience,” according to the Euromonitor report.

Budgeteers: Around the world, Euromonitor has identified a “cost of living crisis.” A 5.8% global annual inflation rate and an impending US recession are undermining purchasing power. Saving money is on everyone’s radar. According to Euromonitor, 75% of consumers said in 2022 that they did not plan to increase overall spending. The research also revealed that 46% of consumers plan to increase their savings.

Meanwhile, 66% of retailers indicated rising raw materials costs had an “extensive impact” on their company in the past 12 months, and 55% said they had to increase prices due to inflation. Many manufacturers said they are swapping raw materials or reformulating products to combat those rising commodity expenses.

Control the scroll. Euromonitor data revealed that 62% of the population using the internet around the world. But despite a dependence on technology, screen time is an issue that many consumers plan to address in 2023.

As 57% of consumers reported having deleted smartphone apps in 2022, Euromonitor suggested that screen use is transitioning “from mindless to mindful.” While digital streaming and social media use remain relatively unchanged, overall screen time is seeing a slight downturn. Euromonitor reported that the consumer responses indicate less of a desire to detox and more of a focus on functionality and efficiency.

To connect with consumers digitally, brands must be efficient and curated with integrated capabilities. The Euromonitor report indicated a 50% increase in tailored marketing and personalized recommendations with a focus on time management and solutions that better support digital wellness.

Eco economic. Reduction is driving consumption, according to Euromonitor. With a focus on waste reduction for a positive influence on the planet, Euromonitor reports that 43% of consumers reduced energy consumption last year.

In polling consumers intentions for green activities, reducing food waste topped the list at 55%, followed by reduced energy consumption at 43% and reduced water usage at 42%.

For businesses, Euromonitor reported that 45% of professionals said investing in sustainability initiatives is a strategic priority for their company in the next five years.

Game on. Gaming has gone beyond the arcade and become a part of everyday life for consumers around the world. It’s a leading form of cross-generational entertainment, which presents huge marketing opportunities for brands to get their products in front of communities designed specifically for gamers. Euromonitor indicated that some of the top brands are signing multi-year sponsorships with gaming franchises and elite gamers. Brand recognition at touchpoints in the gaming journey can bring new awareness in the online universe.

Here and now. After a highly challenging few years, joy in the moment is a driving force for consumer purchasing. Euromonitor reported that in 2022, “buy now, pay later” purchasing reach $156 billion. This year, flexible solutions will allow consumers to focus on purchases that provide the feeling of instant gratification when the “urge to splurge” strikes during economic challenges. Intentional spending of discretionary dollars makes that urge become a little more strategic, but emotional benefits will often justify the spend.

Euromonitor indicated that 44% of consumers are willing to spend money to help them save time, and 50% of consumers in 2022 said they are focused on enjoying life and not worried about planning for the future.

Revived routines. Although there’s not an official declaration of the pandemic’s end, the world has moved into “post pandemic” behavior, including a return to in-person activities and travel. According to Euromonitor research, 39% of consumers plan to do more of their everyday activities in-person during the next five years.

Euromonitor predicts that in 2023, 56% of global consumer foodservice sales will come from on-site dining. The firm also indicated that on-the-go consumption is back on the rise.

She rises. Gender equality is a hot topic for global consumers, putting women’s purchasing preferences high on the radar. Euromonitor reports that women around the world are seeking fair representation, equality and inclusivity when choosing what to buy.

Euromonitor predicts a steady increase in spending power for women between 2021 and 2024. And as female empowerment continues to rise, 56% of professionals surveyed indicated that their company helped support gender equality in 2022.

The thrivers. Major disruption in the past few years has left people feeling fatigued. In fact, Euromonitor said that exhaustion is at an all-time high, and people are keeping their own wellbeing on the front burner, with 53% of consumers reporting they have strict boundaries around work-life balance.

Additionally, health and wellness will maintain its hold on consumers, with 48% saying they believe they’ll be healthier in the next five years.

Euromonitor also indicated that in 2022, global sales of CBD products reached $12 billion.

Young and disrupted. With major purchasing power, Gen Z shoppers are standing up for their beliefs, often rejecting traditional advertising methods and focusing on authenticity and social impact.

In Euromonitor research, 48% of Gen Z consumers said they want to engage with brands to influence their product innovation. That could pave the way for a new era of consumer-driven innovation that goes far beyond influencer marketing.

For more information on 2023 consumer trends, visit the Euromonitor website.

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