Consumers Break the Mold

Consumers are changing many long-held societal norms, and these breaches in behavior open the door to innovation. From eating less meat and refusing vaccines, to trading in the suburban home for an eco-friendly urban flat and rejecting financial services models in favor of managing ones own portfolio, consumers are starting to just say no to traditional approaches. When they say NO, break the mold, balk tradition and swim upstream, consumers are creating entirely new market sectors for valued products and services, entirely new category opportunities to which they can just say YES!

Transparent and Nutrient Dense

One industry feeling the effects of these new disruptive attitudes and behaviors is the food and beverage industry. Consumers are becoming more focused on what they are putting into their bodies, and are taking a closer look at food and beverage labels. They are showing less tolerance for a long list of ingredients on the foods they buy and are making their voice heard by turning to simpler, more natural products. In fact, in a recent NMI study, almost half of consumers (46 percent) indicate they look for foods and beverages with a short list of recognizable ingredients, and about two-thirds (64 percent) prefer foods that are minimally processed.

Conversely, consumers want those same products to be replete with desired nutrients as they are becoming more savvy about the connection of health management and specific nutrient consumption. Even further, they are less convinced about products that are fortified or have added nutritional ingredients, and are demanding more food and beverage products are naturally rich in beneficial nutrients (Figure 1). These new consumer demands for simple, transparent and nutritionally dense foods are creating new product category opportunities, which may help bring new consumers into otherwise saturated or stagnant categories. One example is Five ice cream by Haagen Dazs. Five simple ingredients listed on the package makes it less objectionable to a more health-oriented consumer, allowing them to justify the indulgence because of its natural dairy and protein benefits.

From Farm to Fork

There is also a growing rumble among consumers not only for more transparency on the ingredient list, but for more information on how and where the products were sourced and manufactured. Consumers are growing discontent with traditional farming and manufacturing practices, and want their foods free of pesticides (62 percent), hormones and antibiotics (49 percent), preservatives (40 percent) and processing (32 percent). While a portion of consumers have turned to organic foods to avoid some of these negatives, consumer confusion and mistrust continue to create challenges for the organic industry, as almost half of consumers admit the benefits of organic foods and beverages are not clear to them, and about two-thirds are not sure that products labeled as organic actually are organic.

In addition, consumer concern is evolving beyond organic and expanding to issues outside the scope of traditional organic benefits. While 40 percent of consumers want their stores to carry organically grown foods, consumers also want their stores to carry foods that are locally grown, foods from farms that practice sustainable agriculture, and meat and poultry from free-range and humanely raised animals. Figure 2 provides a list of other attributes that are moving up consumers priority list of what is important when purchasing food and beverage products.

Consumer concerns are also becoming more global. Labels certifying global workers and global environments are being protected are carrying more weight with consumers as they become more aware of how their purchases affect the sustainability of the world around them. In fact, NMI research shows consumers exhibit increased purchase intent when a food or beverage product carries a Fair Trade certification, a Rainforest Alliance certification or the Marine Stewardship Council logo.

Breaking the Mold of Traditional Aging

Boomers have consistently challenged tradition throughout their lives, and aging is no different as they are seeking ways to break the mold of traditional aging. Therefore, as Boomers transition from one stage of their lives to the next, their desire to maintain independence, vitality and relevance will drive new category opportunities. In fact, the explosion of products and services targeted to a generation now beginning to hit their 60s is filling the market from cosmetic surgery to anti-aging creams to retirement planning in order to address this phase of their lives.

In addition, todays health and wellness surge can be, in large part, attributed to the health-committed Boomers. It is not surprising that significantly more Boomers (57 percent) than any younger generation admit they are very self-motivated about maintaining and improving their health. This self-motivation is helping to drive the functional food and beverage market, organics, and the less is more trend, to name a few.

In fact, Boomers are more likely than younger generations to:

With the downturn in the economy, food safety issues, corporate mistrust, impending retirement, etc., consumers are gradually realizing some traditions no longer fit into their value set. They have begun to look in new directions for better ways to live their lives. In their quest to take the road less traveled, they are breaking new ground, creating prime opportunities for industries that possess the insights into this new, contrary consumer.

Steve French is managing partner with the Natural Marketing Institute (NMI), a strategic consulting, market research and business development firm specializing in the health, wellness and sustainability marketplace. Contact him at [email protected] or visit NMIsolutions.com .