A changing consumer landscape of great expectations · means for the future of your heritage...

1 © Leatherhead Food Research 2018

A changing consumer

landscape of great

expectations 21 November 2018

Emma Gubisch


Market

Advisory

Consumer

& Sensory

Insight

Applied

Science

Global

Regulatory

Leatherhead Food Research supports global food and beverage

companies to innovate and realise new market opportunities


The changing

consumer

Nutrition

Food safety

Innovation

Consumer sensory

Regulatory


We live in challenging times

The changing consumer Status quo found wanting

Emerging

options

• Hypersensitive

• Demanding / entitled

• With a voice

• Fickle

• Inconsistent

• Wanting ‘others’ – natural /

‘free from’/ local / organic

• Calling for personalisation

• New technical challenges

(reformulation)

• Set up for mass production

– high volume & low cost –

not local supply chain

• Legacy equipment

• Hard to respond with

existing business model

• New competitors – nimble start-ups

• New models – direct to consumer, new

manufacturing models

• New technologies


Consumer appetite for change

½

are trying to eat

less sugar

1 in 3

are trying to eat

less meat

1 in 10

are trying to cut

gluten from

their diet

1 in 10

are trying to cut

dairy from their

diet

¼

are trying to drink

less alcohol

1 in 3

are trying to cook

more from raw

ingredients

1 in 6

are trying to eat

more protein

Consumers are trying to make considerable changes to their eating and drinking

habits

Base: All (COUNTRY) Adults (6196)


• Half (50%) of all those surveyed across

the whole sample were trying to eat less

sugar compared with 12 months ago

• Highlights consumer desire for changing

behaviour, although does not translate

into success

Sights on sugar

50%

65%

48% 48% 47% 44%

0%

20%

40%

60%

80%

100%

All countries Brazil China USA France UK

The percentage of respondents trying to eat less sugar by country Base: All (COUNTRY) Adults (6196)


• China, Brazil and France lead the way in

their efforts to cut meat from their diet –

as many as 37% of consumers in China

said they were trying to eat less meat

• Not about cutting out meat altogether

and becoming vegetarian, but reducing

Hold the meat, I’m flexitarian

29% 37% 36% 34%

22% 14%

0%

20%

40%

60%

80%

100%

All countries China France Brazil USA UK

The percentage of respondents trying to eat less meat by country Base: All (COUNTRY) Adults (6196)


• Brazil and China show the highest

percentages: we believe two groups

• Affluence

• Awareness of multi-functional benefits

e.g. satiation and weight/muscle gain

• The protein trend is one which is more

common among the younger age groups

Protein packs a punch

5%

5%

13%

26%

24%

14%

8%

10%

18%

24%

26%

17%

0% 10% 20% 30%

UK

France

USA

China

Brazil

All countries

I am eating more products containing protein(excluding meat)

I am drinking more products containingprotein

The percentage of respondents trying to eat

more protein by country Base: All (COUNTRY) Adults (6196)


Part-time teetotaller

25% 37% 33%

21% 19% 16%

0%

20%

40%

60%

80%

100%

All countries China Brazil UK France USA

• 37% of consumers in China were

trying to drink less alcohol, the

highest percentage of all countries

• Those in their early middle ages (25-

44) are trying hardest to reduce their

alcohol consumption

The percentage of respondents trying to drink less alcohol by country Base: All (COUNTRY) Adults (6196)


Consumer-led

innovation

Nutrition

Food safety

Innovation

Consumer sensory

Regulatory


Innovation starts and ends with the consumer

“The main purpose of our

innovation is continuous

improvement for the customer –

to provide the customer with a

better than before experience.

It’s not just about the food.”

Brand, Global Director, Food Safety


Easier to reach but harder to interpret

The consumer

Agriculture

Ingredient

companies

/cooperatives

Retailers

Food service

Food/bev

manufacturers

e.g. meal kits, personal ingredients

e.g. fruit and veg boxes, from farm to fork

e.g. tailored products

Greater consumer dialogue, engagement and co-creation

e.g. places to

experience brands


Consumer-led innovation puts consumer and sensory insight at the

heart of innovation decisions

Brand

Protect

Margin

Optimisation Brand

Stretch

Disrupt

Understanding

where consumer

appetite is heading

and what this

means for the future

of your heritage

products

Defining how to

optimise margins

without compromising

consumer experience

and priorities

Identifying where your

brand has permission

to go and recognising

the opportunity areas

likely to deliver

success

Understanding the

consumer view of a

new technology,

ingredient or early-

stage product concept

to inform innovation

strategies


Understand how technology is disrupting consumer behaviour

• Understanding

what consumers

really want (and

not just what they

seem to be

asking for)

Being the disruptor not the disrupted

Resolving the

consumer

paradox

Ethnographic

approaches

Smart connected

devices

Is disruption on the

agenda?

What equipment

and automation are

necessary?

Giving the

consumer control

Mass

personalisation:

an oxymoron?

Factory of the

future

Future of retail Homes of the

future

• Product or

packaging

customisation

• The human

genome and gut

microbiome

project

• Manufacture in

store

• Manufacture at

home

• Through smaller

companies

• Amazon or Hello

Fresh

• Creating

experiences

• Internet-enabled

fridges

• Turbo ovens

• 3D printers

https://youtu.be/cnlm2e3EN78


Consumers are looking for companies who

sell them experiences and solutions to

navigate their increasingly complex lives

Consider the consumer experience not just the product

Convenience-related products and services

consumers would like to be more readily

available Base: All (COUNTRY) Adults (6196)

20% 20%

0%

10%

20%

30%

40%

50%

Ways to make foodand drink shoppingmore convenient

Products whichcontain the ingredientsand recipes to make

complete meals


Help consumers achieve their goals

½

are trying to eat

less sugar

1 in 3

are trying to eat

less meat

1 in 10

are trying to cut

gluten from

their diet 1 in 10

are trying to cut

dairy from their

diet

¼

are trying to drink

less alcohol

1 in 3

are trying to cook

more from raw

ingredients 1 in 6

are trying to

eat more

protein


• In Leatherhead’s Consumer Perception

Index, UK perception that products are

made ethically and sustainably is falling

• Significant reputational damage to a

brand if they are exposed as a company

not behaving ethically and responsibly

Let’s talk ethics

Ethics-related products and services

consumers would like to be more readily

available

Base: All (COUNTRY) Adults (6196)

29% 28%

0%

10%

20%

30%

40%

50%

Products madewith locally-sourced

ingredients

Productsmanufactured

ethically and withminimal

environmentalimpact


Be bold on the right issue


Convince consumers of your credentials

Changes in the political arena have left consumers feeling uncertain. The

word of traditional commentators and experts have been called into

question. Companies need to convince consumers they deserve their trust.


Watch for dissonance

between your product and

messaging


Technology is

disrupting the

industry – new

entrants are using

tech developments

to their own

advantage

Considerations for the industry

Consumer mood

is curious and

open-minded to

new eating habits

and products

presented in new

ways/formats

Helping

consumers

achieve personal

goals &

ambitions is a

key challenge for

the industry

Successful

innovations

will focus on

experiences

rather than

products

Drone picture from Small Business Trends

Digital vending picture from Gawker Media

https://smallbiztrends.com/2016/03/delivery-drones-grounded-by-faa.html

https://i.kinja-img.com/gawker-media/image/upload/s--ofW3dcdt--/c_fill,fl_progressive,g_center,h_358,q_80,w_636/18mqnkr4tudgojpg.jpg


Any questions?

Nutrition

Food safety

Innovation

Consumer sensory

Regulatory


Thank you

Emma Gubisch

[email protected]

UK Regulatory Day, 13 September 2018


Epsom

Yew Tree Bottom Road

Epsom

KT18 5XT

UK

Phone: +44 1372 376761

[email protected]


Disclaimer

Some parts of a report of this nature are inevitably

subjective and/or based on information obtained in good

faith from third party sources. Where opinions are

expressed, they are the opinions of the individual author

and/or the relevant third party source and not those of

Leatherhead Food Research or its group. Furthermore, if

new facts become available and/or the commercial or

technological environment evolves, the relevance and

applicability of opinions and conclusions in this report may

be affected. Accordingly, while this report has been

compiled in good faith, no representation or warranty,

express or implied, is made by Leatherhead Food

Research as to its completeness, accuracy or fairness.

Except where limited by law, neither Leatherhead Food

Research nor its group shall be responsible for any

actions taken or not taken as a result of any opinions and

conclusions provided in this report and you agree to

indemnify Leatherhead Food Research, its group and/or

personnel against any liability resulting from the same.

A changing consumer landscape of great expectations · means for the future of your heritage...

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