01.24.22
Euromonitor, a consumer research company covering global markets, released its “Top 10 Global Consumer Trends 2022” report, detailing some of the underlying motivating factors behind purchase decisions across all consumer product categories.
“Businesses need to transform alongside rapidly evolving consumer preferences,” Allison Angus, head of lifestyles at Euromonitor International, said. “Reverting to a pre-pandemic playbook will not likely generate the same results moving forward.”
The full report, which is available online, broke down projections for the year ahead:
- Backup Planners: Consumers find creative solutions to purchase their go-to products or search for next best options as supply chain disruptions cause massive shortages.
“Certain consumers are relying on subscription services or community group buying to secure deliveries. When thwarted, backup planners are reverting to the next best option, seeking alternatives and in some cases, delaying purchases or changing shopping habits,” Euromonitor reports. “Two extremes are influencing shopping behaviors of backup planners—paying a premium or switching to cost-effective options, such as buying secondhand or renting.”
Further, companies will need to rethink their supply chains, the company said. Mobile apps, direct-to-consumer services, and local sourcing have been important to overcome resource constraints, along with splitting costs with other players to buy ingredients or components in bulk to ensure continuous supply.
- Climate Changers: Eco-anxiety and the climate emergency drive environmental activism for a net-zero economy. In 2021, 35% of global consumers actively reduced their carbon emissions.
Commitments to net zero emissions and meeting the demand for transparency from brands will be key market strategies for environmentally-aware consumers, as a gap between awareness and intention to take action shrinks. Reducing plastic use, cutting food waste, and recycling lead this mindset, while low-carbon dieting, energy-efficient homes, and sustainable travel are still in nascent stages.
One of the biggest barriers to climate-friendly consumer products remains affordability, Euromonitor reports, with 43% of professionals reporting to the company that a lack of consumer willingness to pay more for these products is hindering business sustainability initiatives.
- Digital Seniors: Older consumers become savvier tech users. Virtual solutions must be tailored to the needs of this expanded online audience, Euromonitor reports.
60% of consumers over the age of 60 have visited a social network at least once a week, while 21% play video games on a weekly basis, survey findings show. For these reasons, it’s important to factor the growing presence of this cohort, which is predominant in the top income band. “More than 65% of consumers aged 60+ are seeking simpler lives. Businesses that successfully cater to this cohort should develop easy-to-use devices and simplify existing technologies. Companies can also offer training and support to help educate these consumers.”
- Financial Aficionados: Democratized money management empowers consumers to strengthen financial literacy and security. More than half of global consumers believe they will be better off financially in the next five years.
“Retailers and brands should collaborate with financial service corporations to facilitate alternate forms of payment, such as cryptocurrencies or buy now, pay later. The potential impact of Financial Aficionados, from increasing their investment rates and growing their financial acumen, cannot be underestimated,” Euromonitor reports.
- The Great Life Refresh: Consumers focus on personal growth and wellbeing, making drastic life changes that reflect their values, passions and purpose.
In 2015, only 12% of consumers prioritized time for themselves, the company reports, compared to double that (24%) in 2021. “They are now changing their careers or leaving the workforce entirely to discover or pursue their purpose […] Activities and products that positively impact mental health and physical health […] are influencing purchase decisions.”
Mental wellbeing products, as well as pet adoptions, skyrocketed in the past year, and, looking ahead, consumers will continue to be loyal to brands and products that support their personal growth.
- The Metaverse Movement: Immersive, 3D digital ecosystems begin to transform social connections. Global sales of AR/VR headsets grew 56% from 2017 to 2021, reaching $2.6 billion last year.
Brands are leveraging new ways to advertise, such as by crowdsourcing content and designs, and promoting products by building unique followings. “The primary goal is to build brand awareness among influential consumers who are pioneering platform engagement,” Euromonitor said. “Companies that start establishing a presence now will be at the forefront as virtual social environments and AR/VR develop.”
- Pursuit of Preloved: Secondhand shopping and peer-to-peer marketplaces flourish as consumers seek unique, affordable and sustainable items, Euromonitor reports. According to their surveys, 33% of consumers buy used or secondhand items at least every few months – while thrifting may not be applicable to the nutraceuticals industry, reusable packaging initiatives do appeal to a growing number of thrifty-minded consumers who want to partake in such programs, the company noted. Reusing and recycling materials for either new product development or waste reduction will continue to characterize this trend in the year ahead.
- Rural Urbanites: Consumers relocate to safer, cleaner and greener neighborhoods. For this reason, strengthened e-commerce distribution and expanding sustainable product lines will be winning strategies for rural urbanites.
- Self-Love Seekers: Authenticity, acceptance and inclusion are at the forefront of lifestyle choices and spending habits as consumers embrace their truest selves, the company said, and self-love seeking consumers will be willing to spend a premium on products that position themselves with these values.
“Businesses are investing in technology to provide tailored care. Personalization will advance and shift toward mass acceptance across sectors, such as beauty, personal care, and consumer health,” Euromonitor wrote. “Additionally, marketing and offerings need to be inclusive. Brands are breaking stereotypes and societal norms, allowing self-love seekers to feel comfortable and confident expressing their true selves.”
- The Socialization Paradox: Fluctuating comfort levels create a conflicting return to pre-pandemic life. In 2021, 76% of global consumers took health and safety precautions when leaving home.
The level of comfort consumers have with returning to their usual routines will continue to fluctuate in 2022 – what bridges the gap across different types of consumers is a desire for a form of normalcy, Euromonitor said.
“Businesses need to transform alongside rapidly evolving consumer preferences,” Allison Angus, head of lifestyles at Euromonitor International, said. “Reverting to a pre-pandemic playbook will not likely generate the same results moving forward.”
The full report, which is available online, broke down projections for the year ahead:
- Backup Planners: Consumers find creative solutions to purchase their go-to products or search for next best options as supply chain disruptions cause massive shortages.
“Certain consumers are relying on subscription services or community group buying to secure deliveries. When thwarted, backup planners are reverting to the next best option, seeking alternatives and in some cases, delaying purchases or changing shopping habits,” Euromonitor reports. “Two extremes are influencing shopping behaviors of backup planners—paying a premium or switching to cost-effective options, such as buying secondhand or renting.”
Further, companies will need to rethink their supply chains, the company said. Mobile apps, direct-to-consumer services, and local sourcing have been important to overcome resource constraints, along with splitting costs with other players to buy ingredients or components in bulk to ensure continuous supply.
- Climate Changers: Eco-anxiety and the climate emergency drive environmental activism for a net-zero economy. In 2021, 35% of global consumers actively reduced their carbon emissions.
Commitments to net zero emissions and meeting the demand for transparency from brands will be key market strategies for environmentally-aware consumers, as a gap between awareness and intention to take action shrinks. Reducing plastic use, cutting food waste, and recycling lead this mindset, while low-carbon dieting, energy-efficient homes, and sustainable travel are still in nascent stages.
One of the biggest barriers to climate-friendly consumer products remains affordability, Euromonitor reports, with 43% of professionals reporting to the company that a lack of consumer willingness to pay more for these products is hindering business sustainability initiatives.
- Digital Seniors: Older consumers become savvier tech users. Virtual solutions must be tailored to the needs of this expanded online audience, Euromonitor reports.
60% of consumers over the age of 60 have visited a social network at least once a week, while 21% play video games on a weekly basis, survey findings show. For these reasons, it’s important to factor the growing presence of this cohort, which is predominant in the top income band. “More than 65% of consumers aged 60+ are seeking simpler lives. Businesses that successfully cater to this cohort should develop easy-to-use devices and simplify existing technologies. Companies can also offer training and support to help educate these consumers.”
- Financial Aficionados: Democratized money management empowers consumers to strengthen financial literacy and security. More than half of global consumers believe they will be better off financially in the next five years.
“Retailers and brands should collaborate with financial service corporations to facilitate alternate forms of payment, such as cryptocurrencies or buy now, pay later. The potential impact of Financial Aficionados, from increasing their investment rates and growing their financial acumen, cannot be underestimated,” Euromonitor reports.
- The Great Life Refresh: Consumers focus on personal growth and wellbeing, making drastic life changes that reflect their values, passions and purpose.
In 2015, only 12% of consumers prioritized time for themselves, the company reports, compared to double that (24%) in 2021. “They are now changing their careers or leaving the workforce entirely to discover or pursue their purpose […] Activities and products that positively impact mental health and physical health […] are influencing purchase decisions.”
Mental wellbeing products, as well as pet adoptions, skyrocketed in the past year, and, looking ahead, consumers will continue to be loyal to brands and products that support their personal growth.
- The Metaverse Movement: Immersive, 3D digital ecosystems begin to transform social connections. Global sales of AR/VR headsets grew 56% from 2017 to 2021, reaching $2.6 billion last year.
Brands are leveraging new ways to advertise, such as by crowdsourcing content and designs, and promoting products by building unique followings. “The primary goal is to build brand awareness among influential consumers who are pioneering platform engagement,” Euromonitor said. “Companies that start establishing a presence now will be at the forefront as virtual social environments and AR/VR develop.”
- Pursuit of Preloved: Secondhand shopping and peer-to-peer marketplaces flourish as consumers seek unique, affordable and sustainable items, Euromonitor reports. According to their surveys, 33% of consumers buy used or secondhand items at least every few months – while thrifting may not be applicable to the nutraceuticals industry, reusable packaging initiatives do appeal to a growing number of thrifty-minded consumers who want to partake in such programs, the company noted. Reusing and recycling materials for either new product development or waste reduction will continue to characterize this trend in the year ahead.
- Rural Urbanites: Consumers relocate to safer, cleaner and greener neighborhoods. For this reason, strengthened e-commerce distribution and expanding sustainable product lines will be winning strategies for rural urbanites.
- Self-Love Seekers: Authenticity, acceptance and inclusion are at the forefront of lifestyle choices and spending habits as consumers embrace their truest selves, the company said, and self-love seeking consumers will be willing to spend a premium on products that position themselves with these values.
“Businesses are investing in technology to provide tailored care. Personalization will advance and shift toward mass acceptance across sectors, such as beauty, personal care, and consumer health,” Euromonitor wrote. “Additionally, marketing and offerings need to be inclusive. Brands are breaking stereotypes and societal norms, allowing self-love seekers to feel comfortable and confident expressing their true selves.”
- The Socialization Paradox: Fluctuating comfort levels create a conflicting return to pre-pandemic life. In 2021, 76% of global consumers took health and safety precautions when leaving home.
The level of comfort consumers have with returning to their usual routines will continue to fluctuate in 2022 – what bridges the gap across different types of consumers is a desire for a form of normalcy, Euromonitor said.
