Emerging Consumer Trends and their Future Impact on the FMCG Industry. Reference code: CS4245PR Sample Pages Published: October 2014
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1 Emerging Consumer Trends and their Future Impact on the FMCG Industry Reference code: CS4245PR Sample Pages Published: October 2014
2 AGENDA Introduction Business attitudes towards consumer trends Identifying the importance of trends in the FMCG arena from a consumer, organization and industry perspective An analysis of how organizations plan to target consumer trends over the next three years 2
3 Definitions Asia-Pacific: Includes Asia and Australia. Rest of the World: Includes the Middle East, Africa, and South America. Small companies: Companies with annual global revenue of less than US$100 million are termed as small companies. Medium-sized companies: Companies with annual global revenue ranging between US$100 million and US$1 billion (both inclusive) are termed as medium-sized companies. Large companies: Companies with annual global revenue of more than US$1 billion are termed as large companies. 3
4 Methodology and sample size Objectives: This Hot Topic report draws on the expertise of Canadean s exclusive panel of industry executives to provide the latest thinking about the prominence of key trends for consumer behavior, organization business strategy, and industry dynamics over the next three years. This report highlights the steps or activities planned by organizations over the next three years to improve customer satisfaction and convenience, increase environment friendliness and ethical quotient, enhance personalization and customization, and improve the premium credential of the product. Methodology: This report is the result of an extensive survey drawn from Canadean s exclusive panel of industry executives. These respondents are drawn from the Canadean Industry Insight Panel, an exclusive industry panel covering over two million business professionals worldwide. These business communities are made up of highly qualified professionals who rely on our flagship media brands in their respective markets, enabling Canadean to access knowledgeable and informed industry opinion. Comprehensive desk research was also conducted across FMCG industry sources, with a focus on examining the future impact of key consumer trends and activities undertaken by organizations to improve customer satisfaction and product ranges. Sample size: The research source in this report is based on the surveyed opinions and expectations of 81 global FMCG industry executives in September
5 Respondent profile Designation % CEO / president / MD / board member / C-level executive 9% Director / VP / SVP 36% Head of Business Unit 5% Head of Department 10% Professional and technical staff (e.g. lawyer, engineer, architect) 12% Company type % Food producer/manufacturer 41% Wines and spirits/alcohol 22% producer/manufacturer Non-alcoholic beverages 29% producer/manufacturer Cosmetics and toiletries 8% producer/manufacturer Manager 23% Other staff 0% Others 5% Turnover % Less than US$100 million 35% US$100 million US$1 billion 25% Region % North America 20% Europe 51% Asia-Pacific 21% Rest of the World 8% More than US$1 billion 28% Don t know 12% 5
6 The highest percentage of respondents who operate in North America agree that xxx is a good way to keep connected and update consumers To what extent do you agree with the following statements when it comes to following trends? (Analysis of responses who said 5 = strongly agree and 4 = agree on a regional basis for statement ) North America Europe 67% 65% 33% 15% Asia-Pacific Rest of the World 50% 29% 31% 71% 6
7 and will be significant consumer trends over the next three years Over the next three years, how important do you think these trends will be to the consumer? (Analysis of responses who said 5 = very important and 4 = important across trends) 80% 79% % 4 63% 5 57% 6 48% 47% 7 Represents rank The survey results reveal that 80%, 79%, and 73% of executives highlighted xx, xx, and xx, respectively, as the most prominent consumer trends over the next three years. Growth in xx and xx changes have increased the value of a consumers shopping experience, where xxx in terms of shopping duration, time, and place is anticipated to impact consumers xx and xx process. A growing acceptance of xx has contributed immensely towards the significance of xx, with consumers now displaying a higher preference towards xxx as it offers a xx, xx, and xx. Evidencing the trend, in October 2014, xx, an xx retailer based xx, announced plans to sell packaged food and beverages in xx. In line with the plans, the company has initiated acceptance of booking for xxx. Overall, respondents expect xxx and xxx to emerge as the least impacting trends for consumers over the next three years. 7
8 The xxx of large and medium-sized organizations are offering xxx for products to enhance xx for consumers during And are you taking steps to make products more convenient through product packaging? (Analysis of response by size of business) Steps to increase product convenience through product packaging Large companies Percentage Medium-sized companies Percentage Small companies Percentage x 64% x 41% x 32% x 27% x 23% x 18% x 18% x 5% x 65% x 35% x 30% x 20% x 15% x 10% x 15% x 5% x 40% x 40% x 32% x 28% x 28% x 4% x 20% x 8% 8
9 Related reports The Impact and Influence of CSR Policy on the FMCG Industry This report by Canadean provides the latest thinking about the about the significance of corporate and social responsibility (CSR) policy and key challenges encountered in implementing CSR within their organizations. This report highlights the key causes for consumer skepticism towards ethical and environmental claims among organizations and identifies measures taken by the organizations to implement CSR policy. The impact and influence of social media and online retail on the CPG industry This report by Canadean provides the latest thinking about the current state of e- commerce and it s future impact on the product strategies and investment plans of CPG companies worldwide. This highlights the key areas of disruption caused by the growth of online retail technologies, and pin points emerging opportunities for product manufacturers, packaging converters and other suppliers to the industry. 9
10 About Canadean About Canadean Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution, and consumers. Canadean s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting, and advanced statistical expertise. We offer value-added market research, insight and strategic analysis, and our products help companies to make better, more informed, strategic, and tactical sales and marketing decisions. Canadean s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and actionable insights. In addition, Canadean has built a network of consultants and specialist researchers across more than 60 countries, each with in-depth industry experience and expertise, enabling us to conduct unique and insightful research via our trusted business communities. Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions, and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. 10
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