FMCG executives get it wrong on consumer desires
Do FMCG executives have it wrong when it comes to predicting what consumers want? According to new research from Canadean, yes.
The research firm surveyed approximately 100 FMCG industry managers about whether health or indulgence will be most important to consumers over the next three years. 79% said health will be important, while 63% said indulgence will be important.
These responses are quite different from what Canadean’s consumer data says about consumer spending. In 2012, consumers spent US$600,167 million on fulfilling the desire for indulgence and luxury, but only US$323,694 on healthy options.
“Some brands are getting it wrong with their perception of what consumers will want over the next three years. The desire for an indulgent treat will always reign supreme over the need for a health kick,” said Joanne Hardman, Canadean analyst.
While many consumers are becoming more health conscious, Canadean’s consumer data predicts they will continue to favour indulgence over all else in the next three years. Economic uncertainty and everyday pressures will prompt consumers to treat themselves as a reward and coping mechanism.
“If manufacturers are looking to target the health-conscious audience more over the next three years, extending product portfolios as opposed to adjusting current product formulation will be preferred by consumers as it allows them to stay loyal to the brand when they are looking for both indulgent and healthy offerings,” said Hardman.
This information is based on a Canadean consumer survey of 2000 adults conducted in October 2014 and the Canadean report ‘Emerging Consumer Trends and their Future Impact on the FMCG Industry’.
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