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Consumer Behaviour: Upcoming trends for the year 2022-23
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Friday, 31 December, 2021, 15 : 00 PM [IST]
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Milind Pingle
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The FMCG sector displayed resilience amidst the pandemic and was quick to adapt to challenges and changing consumer trends. With the world experiencing a new variant, we now must gauge its impact on the current economy and how it is shaping the consumer demand in the ensuing quarters. The new consumer behaviour, which is also influenced by digitisation and new technologies, spans across all aspects of our lives—from the way we shop and conduct business, to the way we entertain ourselves. This dependency is leading to the emergence of multiple channels, resulting in a shift in consumer’s purchasing habits. These shifts have important implications for companies in the retail and consumer-packed goods segment. While health often took a backseat and got compromised earlier, it has now become paramount when it comes to essentials, especially in case of food products & services.
In the FMCG space, the product offerings are now becoming increasingly health-friendly, the packaging progressing to sustainable alternatives to protect the environment and clean labels are becoming the mandatory need for food industry. Consumers are now more aware of what is going inside their food and how it will affect their immunity. As healthier products are becoming more widely available, the food and beverage industry is adapting to showcase transparency to the new generation of consumers who feel enthused about the product and read the label for unfamiliar yet concerning ingredients.
The current buying behaviour reflects consumers are more inquisitive about origins, and environmental impact of the product, and with the pandemic threat still looming large, this habit has deepened its roots. Overall experience with the product matters and consumers
pay in knowing the authenticity and story behind each ingredient they consume. These omni-channel consumers are making notes, comparing features, and evaluating products from multiple platforms—starting from in-stores to official online websites to multiple e-commerce platforms.
Moreover, digitisation, improvisation, and innovation in home delivery system is still evolving and will continue to undergo further changes. The emergence of portals that deliver to their customers instantly are growing further and brands are willing to tie-up with them for the last mile connectivity. Organised retail witnessed an upswing and consumer expenditure largely remained focused on essentials, especially food services.Young Indian consumers are becoming increasingly brand-conscious which has led to a significant shift in their behaviours and buying patterns.
On a broader scale, we have seen shifts in consumer behaviour as below:
• Immunity taking centre-stage: Focusing on immunity is getting firmly entrenched as consumers, look for alternate healthier options. People are aiming towards a lifestyle change that doesn’t look at just convenience but also the quality and food-safety of ingredients that goes into making of the final product.
• Adoption of healthier cooking oils: The focus on health is more than ever, there is an increase in demand for specialised healthy oil for culinary purposes as the consumer demand is shifting towards cleaner and healthier ingredients. Premium oil categories like Olive Oils have seen a surge since the pandemic and people are willing to pay a premium if they perceive that a superior product will positively impact their health.
• Healthy cooking: People are utilising their skills to create innovative dishes at home by using healthier ingredients which are resulting in gluten-free, plant-based proteins and other vegan offerings.
• Home Baking: Home baking is a growing business that is catering to large customer bases. In the coming years, we may witness multiple e-bakeries of home bakers who would be provide a rich and customized experience to their consumers
• Reliance of E-Commerce: The nature of the pandemic necessitated the adoption of digital platforms and millions registered on various social media platforms, applications, and other services for the first time out of sheer necessity. This surge in users, led to the boom of digital solutions offering a wide range of services at multiple levels, starting from video calling to online shopping platforms. The transformation is witnessing food portals to introduce new interface options to accommodate the burgeoning demand for contactless grocery products during the pandemic.
Furthermore, the demand for immunity-boosting products and superfoods, free from toxic ingredients has increased. The race for the next super ingredient is on and with it, we are witnessing the proliferation of products and product categories adapted for specialty diets, different consumer groups, and various demands of the market.
Following the trends, organisations are also more likely to adopt hybrid models where consumers have the freedom to opt for contactless shopping of essential goods and commodities. Health consciousness, immunity focus, and sustainability are the megatrends that are going to overshadow all the other micro-trends in the coming days. We must prepare ourselves to cater to a wide range of customer base with a focus on consumer insights, quality, innovation and sustainability to deliver a superior customer experience.
(The author is CEO, Allana Consumer Products Pvt. Ltd)
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