Toy and game sales to adults are growing

Global market research company Euromonitor International has found that games and puzzles registered 8% growth in 2016 – outpacing construction toys as the fastest growing toy category globally, but also recording the highest growth for the category since 2002.

Globally, construction toys grew 7.8% in 2016 compared to double-digit growth from 2015, but continued to hold the largest share of the traditional toys and games market at US$10 billion, followed by games and puzzles at US$9.5 billion.

Construction toys are expected to make a comeback as the fastest growing toys category globally with a forecasted compound annual growth rate of 6.8% from 2016 to 2021.

“Continued growth in sales to adults illustrates that children are retaining interest in toys into adulthood on a scale not seen in previous generations,” says Matthew Hudak, Toys and Games Analyst at Euromonitor International. “Categories with proven multigenerational appeal like construction, remote control, and action figures are therefore expected to see the fastest growth over the next five years.”

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The sweet spot for candy in Indonesia

Perfetti Van Melle Indonesia PT is known for the Mentos brand in Indonesia.

A large variety of affordable sugar confectionery, coupled with marketing efforts from leading manufacturers in Indonesia has been driving sales in this product category in Indonesia, says research consultancy Euromonitor in its Confectionery in Indonesia report.

Perfetti Van Melle Indonesia PT continues to lead sugar confectionery with a value share of 23% in 2016. The company is known for the Mentos, Alpenliebe, Fruit-tella, Marbels, Golia, Chox and Chupa Chups brands. Over the review period of 2011 to 2016 the company invested heavily in new product development as well as marketing in order to maintain its leadership of the category, Euromonitor said.

Sugar confectionery is expected to increase at a value CAGR of 4% at constant 2016 prices over the forecast period from 2016 to 2021, driven by the Indonesian consumer characteristics such as the willingness  to try new products. Euromonitor believes that manufacturers are likely to work on brand differentiation in the face of tough competition. They are also expected to launch new products regularly, while at the same time maintaining stable prices.

Interested?

Buy the Euromonitor Confectionery in Indonesia report

Chocolate to be the most popular indulgence product in Indonesia

Indonesians are now more aware of the benefits of chocolate if it is consumed in moderation, and continue to buy it as a snack or to gift on special occasions, boosting volume sales of chocolate confectionery in 2016, says research consultancy Euromonitor. In fact, chocolate confectionery is expected to continue as the most favoured indulgence product* for consumers of all ages in Indonesia, the company said.

Ceres PT has retained its clear leadership in chocolate confectionery with a value share of 52% in 2016, thanks to the company’s brand reputation, broad product offering and competitive pricing, Euromonitor said. Ceres markets several chocolate confectionery brands, including Silver Queen, Silver Queen Chunky and Delfi (tablets); Top (second leading countlines** brand); Delfi and Van Houten (boxed assortments); as well as Cha Cha and Chic Choc (chocolate pouches and bags). The company’s aggressive marketing campaigns have also contributed to its performance.

Euromonitor forecasts that chocolate confectionery is likely to post a healthy value CAGR of 6% in constant 2016 terms over the forecast period of 2016 to 2021.

Interested?

Buy the Confectionery in Indonesia report

*An indulgence product is a luxury item which the buyer does not need and may feel guilty about purchasing. 

**Confectionery term for bars of candy or chocolate, often shipped to retailers in cartons. The contents are then sold individually.

Interest in milk and yoghurt based drinks on the rise in Indonesia

Heavy advertising in mass media, more television programmes as well as magazine articles focusing on health issues have led to rising awareness among Indonesian consumers of the benefits of drinking milk over the period 2011 to 2016, says Euromonitor.

Ultrajaya Milk Industry & Trading Company remains the leading player in drinking milk products with a 23% value share in 2016. Its flagship brand is called Ultra. The company's performance in flavoured milk drinks comes as a result of heavy marketing and improved distribution, Euromonitor said. 

Although already popular for its shelf-stable milk, Ultrajaya Milk Industry & Trading is still educating Indonesian consumers about the benefits of consuming liquid milk rather than powdered or condensed milk. In 2016, the company held many below-the-line event promotions, such as Tour de farm, centring around visits to the Ultrajaya farm in Bandung. In May 2016, it also held Preschool Roadshow Ultra Mimi Carafun in the city of Medan. 

Source: Ultra Mimi website. Pictures from an Ultra Mimi Carafun Roadshow held in February 2016.

Euromonitor notes that Indonesian milk consumption per capita is lower than in other emerging countries, so there is still room to grow. 

The yoghurt market is also growing, especially among middle- and high-income consumers, particularly women, Euromonitor said, as it isbeing aggressively promoted in the mass media as offering nutritional benefits and aiding digestion. Female consumers are increasing their consumption of such products as they believe that yoghurt can help them maintain a slim figure, improve their skin and slow the ageing process, the research firm notes. Sour milk drinks, mainly targeted at children, are preferred by some parents compared to flavoured milk drinks, as they typically contain good bacteria for digestion.

In 2016, Yakult Indonesia Persada PT with dominated the yoghurt and sour milk market with its Yakult drinking yoghurt, which had a 69% value share, Euromonitor said. Yakult’s value share gain in 2016 comes down to improved distribution, via both retail channels and Yakult Ladies - Yakult employees who deliver Yakult drinks directly to customers in Indonesia. Apart from the growing number of Yakult Ladies promoting the brand not only in residential areas but also in schools, Yakult Indonesia Persada has also benefited from the rapid expansion of modern retailers in Indonesia, especially convenience stores, hypermarkets and supermarkets.

Yoghurt and sour milk products is likely to continue to benefit from growing health awareness, particularly among middle- to upper-income consumers, Euromonitor predicts. The increasing number of health-conscious consumers is expected to result in the expansion of yoghurt and sour milk products’ consumer base over the forecast period (2016 to 2021). Manufacturers are likely to continue to invest heavily in educating consumers about the health benefits of yoghurt and sour milk products.

Interested?

Read the Euromonitor report on Dairy in Indonesia

Cheese benefits from image as a premium product in Indonesia

More Indonesian families, particularly in the big cities, are expected to start using cheese as a main ingredient in their meals. According to research firm Euromonitor, more consumers have started to prepare Western foods which use cheese as an ingredient by themselves at home. These include pizzas, pasta dishes, cakes, pastries and toast. Cheese has become very popular to serve with white bread as a substitute for chocolate sprinkles, jam or honey.

An increasing number of foodservice outlets and rising number of new menus using cheese by existing foodservice outlets may also prompt faster volume growth of food-service sales of cheese in the forecast period of 2016 to 2021, Euromonitor said.

Kraft was named as the leading cheese brand in Indonesia in 2016, with Kraft Ultrajaya Indonesia PT commanding a 61% share of value sales. The company’s dominant position is attributed to its early entry into the Indonesian cheese market, a wide variety of other processed cheese products and aggressive marketing, using both television advertisements and below-the-line activities.

Interested?

Read the executive summary for the Euromonitor Dairy in Indonesia report, dated December 2016

Read the WorkSmart Asia blog post about popular brands in Indonesia

Food service trends in Australia include limited edition experiences

Australians’ expectations regarding the dining experience continued to evolve in 2015, with consumers becoming increasingly enthusiastic foodies and demanding new culinary experiences. As a response to this trend food service operators continued to innovate and experiment with formats, menus and concepts, says Euromonitor in a blog post.

The research firm describes Hotel Marriott in Melbourne's launch of the “Table for 12” dining concept in in October 2015, which offered customers the opportunity to enjoy a four-course degustation menu for only 12 people. The menu is available only one evening a week, thus reinforcing the uniqueness of the experience.

Demand for novelty gastronomic experiences has also supported the emergence of popup restaurants. Although popup stores are not new to Australia, these gained relevance in the food service industry in 2015, with names like US burger chain In-N-Out Burger and Copenhagen’s Noma participating. Other industry players such as The Keystone Group and Merivale Group, owners of multiple restaurants, have also created spaces that allow them to have temporary restaurants throughout the year, Euromonitor noted. For example, Merivale’s Work in Progress location hosted a number of popup restaurants during the year, including Chef Patrick Friesen’s fried chicken and noodle bar and Chef Eric Koh’s dim-sum restaurant. Similarly, Keystone Group's popup space with Barbarello’s Pizza & Arcade concept was open from June to September 2015.
 
Euromonitor International expects to see additional investment in food menus and outlet formats as well as further experimentation of food concepts that can support demand for unique and adventurous food experiences. With popup restaurants representing a great opportunity for operators to test products and business concepts while promoting their businesses, the concept is expected to continue in Australia. The company also forecasts that chains will also offer innovation, with more chain operators expected to follow initiatives such as “Create your Taste” and The Corner café by McDonalds.

SUVs drive car sales: Euromonitor

Global market research company Euromonitor International has determined that global sales of light vehicles grew 1.7% in 2014-2015, driven by the increasing popularity of sports utility vehicles (SUVs), sales of which surged 22% since 2015.

SUVs overtook lower medium cars to become the largest automotive segment in 2015, accounting for 22.9% of light vehicle sales globally. Sales of SUVs grew from 5 million units in 2000 to 20 million in 2015 and are forecast to hit 42 million units by 2031.

Mykola Golovko, Project Manager at Euromonitor International, comments: “The popularity of SUVs in the early 2000s has precipitated a rush of companies trying to capitalise, with a growing number of brands and new concept offerings like crossovers to appeal to a wider audience.”

An increasing number of consumers in key emerging markets will be in a position to trade up from smaller cars to SUVs. However, a combination of key social changes such as urbanisation, smaller households and an ageing population, in conjunction with increasing emissions regulations, have also boosted the fortunes of the small car segment.

Euromonitor predicts that small cars will see a global CAGR of 2.9% between 2015 and 2031 but this is firmly secondary to the projected CAGR of 4.8% for SUVs. The fastest growing SUVs markets in 2014-2015 for Asia were:

Thailand: +56.4%
China: +47.9%

Golovko concludes: “We’ve seen dynamic growth across most segments and markets through 2015, as pent-up demand from the 2009 recession was realised. However, replacement demand in developed markets will start to slow and global growth will be increasingly reliant on SUVs and emerging markets.”

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Euromonitor: tech playing larger role in toys and games growth

The global toys and games market is poised for growth as favourable demographics in emerging markets, along with a tent pole* movie release schedule, are expected to support a 4.5% CAGR through 2020.

Global market research company Euromonitor International has found that global sales of toys and games reached US$179.7 billion in 2015 with in-game purchases and construction toys accounting for 30% of sales across the industry.

In-game purchases were the biggest driver of revenue growth for video games, increasing 21% in 2015 to reach US$44.6 billion. Mobile games reliant on purchases and the proliferation of smartphones was the main driver, but in-game purchases are becoming common in console and computer games.

Construction toys remained the fastest growing category globally for the eighth consecutive year, and the only segment to see double-digit growth at 14.2% within traditional toys in 2015.

“The release of Star Wars last year was the most significant growth driver within traditional toys with licensed LEGO construction toys recording a 16% increase,” Mykola Golovko, Project Manager at Euromonitor International, says.

Licensed toys totalled US$20.6 billion last year, translating to a 10% increase globally. While toys will see continued influence from licensing, new technologies will lead forecast growth for video games.

Virtual reality (VR) gaming had a limited impact in 2015 with only 2 million headsets sold. However, new products are expected to bring the technology to a wider audience in the period 2016 to 2020.

“With the release of Oculus Rift, HTC Vive and PlayStation VR in 2016, the market is primed to see strong growth in the near future with annual sales reaching 25 million units by 2020,” Matthew Hudak, toys and games Industry Analyst at Euromonitor International, says.

*Tent pole movies contribute heavily to their creators' revenues and often come with merchandise tie-ins.

Dining goes casual around the world

Global market research company Euromonitor International has found that consumer food service sales grew 5.7% globally in 2015, improving on the previous year’s growth rate of 5.3%. Fast casual dining was the strongest growing segment across the industry at 10.4%, increasing US$3.4 billion from 2014 to 2015.

“Consumers are shifting their dining preferences, especially in developed markets,” Elizabeth Friend, Consumer foodservice Strategy Analyst at Euromonitor International, said. “Coffee shops, for example, saw a high increase in sales last year, which shows that the dining-out culture is continuing to evolve toward more modern, premium, casual and social experiences.”

China continues to be the largest market for consumer food service with sales totalling US$617 billion, growing 9.5% from 2014 to 2015 despite the market’s slowdown.

Online orders have become popular in China and South Korea where more than 60% of home deliveries were ordered online. Globally, China placed the most fast food orders online at 26% of all orders in 2015.

“China was the true growth leader during the year and we expect it to continue to offer strong growth opportunities ahead, albeit within the context of very high competition. Over the forecast period [2015 to 2020], more growth is projected in China than we saw in the previous five years,” Friend says.

From 2015 to 2020, China is forecast to achieve US$235 billion in new food service sales, while India with is expected to achieve US$35.7 billion in sales.

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Half of all card expenditure comes from Asia Pacific

Euromonitor International has released new data on the global consumer finance industry today. Consumer card payments continued to take share from cash globally from 2014 to 2015 in terms of value, with the lion's share of growth from the Asia Pacific (APAC) region.

APAC accounted for 50% of the card spend in 2015. Card payment value is projected to reach US$29.2 trillion in 2020 with Asia Pacific representing 54% of that total. China’s positive card and electronic payment regulation contributes to this vast growth.

Payment regulations in China led to the country producing the largest card issuers and card network by total processed payment value over the last ten years. Unionpay International, China’s domestic card network, became the largest card network by total processed value of US$6.8 trillion in 2014. The network was able to reach this position due to a near monopoly of payment processing in China, but has more recently turned to regional expansion to sustain growth.

Key consumer finance trends in 2015:

Debit remains the most common card type: In absolute value terms, debit payment value will represent 57% of card payment growth from 2014 to 2020. Emerging market consumers utilising financial services have driven this growth historically and will continue to do so over the forecast period.

More consumers becoming banked: In 46 global markets, approximately 120 million consumers became banked from 2014 to 2015 due to advances in technology, as well as banks' and non-banks' ability to offer financial products and services through mobile devices. Mobile has helped bypass the traditional infrastructure barrier in many emerging markets.

Card value being driven by markets: the UK, US, Canada, China and South Korea are expected to continue driving global card payment value growth. These five markets are forecast to represent 71% of total card payment value in 2015.

ASEAN Economic Community could be a bonanza for B2C businesses

Market research company Euromonitor International has released a white paper providing a strategic approach on marketing to the ASEAN consumer.

The creation of the ASEAN Economic Community (AEC) in December 2015 will unite the ten members of the ASEAN into a single market and production base. This will thrust Southeast Asia into the spotlight, attracting greater attention from multinationals which have so far been drawn mainly to China and India. Poised to become a global economic powerhouse thanks to its expected strong future economic performance, the AEC also has real potential of becoming a vast market with predominantly young, dynamic and increasingly affluent consumers, in contrast to ageing China and Japan, the company said.

“If the ASEAN was a single economy, it would be the 7th largest in the world with total GDP of US$2.5 trillion in 2014, and Euromonitor International forecasts that by 2030 it could become the third largest economy behind only the USA and China,”observed An Hodgson, Income and Expenditure Manager at Euromonitor International. 

“Currently, the ASEAN market holds more than 622 million consumers and a total consumer expenditure of US$ 1.5 trillion in 2014, which offers unique opportunities across the region and by country.”

The ASEAN consumer market is expected to expand rapidly, with total consumer expenditure forecast to grow by 105% in real terms between 2015 and 2030 – equivalent to an average annual real growth of 4.9% in real terms. By 2030, the ASEAN will be a market worth US$3.1 trillion in constant 2014 prices.

In 2014, an average Singaporean household spent US$72,421, compared to only US$3,398 in Myanmar. However, those ASEAN countries with lower average household spending such as Vietnam, Laos and Cambodia are expected to record some of the strongest growth in total consumer expenditure through to 2030 due to rapid economic growth, increasing trade and investment and rising disposable incomes, Euromonitor believes.

“The ASEAN has excited consumer goods businesses not only with its exceptionally fast pace of economic development over the past decades, but also and more importantly because of its long-term potential as a collectively youthful and dynamic consumer market,” concludes Hodgson. “Southeast Asia is entering a new era and the commencement of the AEC at the end of 2015 will be the start of an exciting journey ahead.”

Interested?

Download the white paper

Euromonitor analyses consumer opportunities for those over 60

Source: Euromonitor website.

Market research company Euromonitor International released today a new white paper on the senior consumer opportunity. While companies have traditionally ignored later lifers, defined as people over 60, because they are seen as frugal spenders with lower incomes and the ability to resist marketing messages, this segment is growing significantly.

The population over 60 stood at 912 million in 2014, representing 12.6% of the global population, and by 2030, this segment will grow to 18% of the total, or 1.5 billion globally, the company said.

While China is the fastest growing ageing market with over 60s forecast to grow by more than 46% between 2014 and 2030, Japan has the oldest population, with a third of the total population aged over 60. Japan is a model on the impact of this demographic shift, showing the effects of different methods of governmental intervention and product development opportunities.

Key findings include:

• E-health, home assistance and elderly-friendly services will drive technology developments in the senior market, with health being the most dynamic consumer expenditure category through 2030. 
• Efficacy and natural features remain key when it comes to marketing beauty products to the over 60s. 
• Luxury goods focusing on heritage and craftsmanship are popular.
• As senior consumers usually invest in timeless, quality clothing, an older population will have a negative impact on sales volume in the apparel market. 
• Presbyopia represents a key market driver in eyewear. 

Download a copy of the white paper here. 

Skincare is in: Euromonitor

Euromonitor International announced today that the beauty industry globally saw continued penetration of staple products in emerging markets, consumers upgrading to more superior products and the adoption of more extensive beauty routines across all product segments.

Skincare remains the largest segment across most markets, with global sales expected to reach over US$130 billion by 2019. “Of all beauty segments, consumers continue to spend most on skin care items at US$15 per person annually, compared to US$10 for hair care and US$7 for colour cosmetics,” said Euromonitor International’s Head of Beauty and Personal Care, Irina Barbalova. “One third of global beauty revenues by 2019 will come from skincare, compared to 23% between 2009 and 2014.”

Product diversification and innovation are transforming the skincare market. Technological developments are encouraging demand for a more personalised and unique product. “Consumers want to experience more with their products and innovation can create a unique experience worth paying for as well as creating brand loyalty,” added Barbalova.

Asia continues to inspire innovation in terms of new formats, textures and product benefits. Eighty percent of global skincare revenue gains by 2019 will come from Asia, with China set to account for 75% of the total regional absolute growth. “Indonesia and India will be the next growth frontiers to watch, with Indonesia expected to enter the top 10 global skin care markets by 2019," added Barbalova.

Read our blog post about Indonesian cosmetics company Martha Tilaar's involvement in the herbal market here.

Ubiquitous Internet has changed everyday behaviour: Euromonitor

Euromonitor International has found that Internet-connected consumers in both developed and emerging markets are expanding their use of technology in everyday life, leading to significant changes in how they interact with the world around them.

Source: Euromonitor website.

In a new survey focused on hyperconnected consumers and their use of technology, including shopping habits and attitudes toward online privacy and security, Consumers in the Digital World: Hyperconnectivity and Technology Trends, 67% of smartphone users rely on their phone for GPS navigation and 33% use the device to book a taxi or car service. However, larger-screen devices such as computers and tablets are still favoured when consumers stream a video or television show.

Constant Internet access also allows the hyperconnected consumer to utilise their phone or mobile device to compare prices, product details, and purchase goods wherever and whenever. Per the latest survey results, 94% of respondents go online to research a potential purchase, regardless of whether they end up buying on a website or in store.

Internet-connected consumers in emerging markets, particularly India and China, are leading the way in online shopping. For example, 87% of Internet-connected consumers in China typically purchase apparel online, as do 73% in India. However, virtual shopping is not the norm in all emerging markets; just 47% in the Middle East buy clothes via the Internet.

“Understanding how the consumer utilises technology in their purchasing decisions is crucial for companies striving to grow their customer base,” says Euromonitor's Senior Survey Analyst, Lisa Holmes. “As consumers continue to become more hyperconnected, the need to market products and make them easily accessible through technology is more important than ever.”

A free extract of the report can be downloaded here.

Euromonitor segments audiences into seven consumer types

Euromonitor’s Survey team has developed seven global consumer types from its Global Consumer Trends survey*: the Undaunted Striver, Impulsive Spender, Balanced Optimist, Aspiring Struggler, Conservative Homebody, Independent Skeptic and Secure Traditionalist.

Source: Euromonitor
website.

Each consumer type has distinct preferences and habits even if there share similar demographics. For example, the relatively young Impulsive Spender believes, “life is hectic but exciting” and is social, indulgent and friend focused. On the other hand, Independent Skeptics, also categorised under 'young consumer', “live life on their own terms” and are unconventional, skeptical, and indifferent. These types illustrate key differences between consumer segments that would not emerge if brands focused solely on broad demographic profiling.

The white paper explores personality traits and buying behaviours of the different consumer types, focusing on their shopping habits, technology use, health and diet and green attitudes. Undaunted Strivers are avid social media users; 42% frequently post new content on social media. At the other extreme, Secure Traditionalists shun new forms of technology; only 11% are active social media users.

“Consumer segmentation beyond demographics, and these seven global consumer types in particular provide a strong starting point for businesses crafting marketing campaigns and strategic messaging,” says Euromonitor Survey Analyst Lisa Holmes. “For instance, Aspiring Strugglers care deeply about how others perceive them, yet do not have the budget to buy the latest items. This makes them a lucrative target for brands and retailers offering affordable versions of on-trend products.”

Read more about the 7 Consumer Types for Successful Targeted Marketing here.

*The survey captures personality traits, preferences and buying behaviors of more than 16,000 online consumers globally.

Euromonitor finds below-average per-person calories purchased in India, China

Euromonitor International has released new research tracking the total amount of nutrients purchased per-person per day through packaged food and soft drinks products. The data, available in Euromonitor’s Passport: Nutrition database, tracks energy, fat, saturated fat, carbohydrates, sugar, salt, protein and fibre in 54 countries globally.

According to the new research, the world buys 1.5 trillion calories a day, with the average global consumer purchasing 765 calories each day through packaged food and soft drinks. While the recommended intake is around 2,000 calories for an adult, countries in North America and Western Europe purchase over 1,500 calories a day while India buys 150 calories per day and China, 510 daily. Mexico buys the most calories a day with 1,928 calories per person, which is 380 calories more than the US. 

“Despite over 40% of the global population being overweight and obese, our nutrition data shows that by 2019 the world will purchase 90 calories more a day,” says Lauren Bandy, Nutrition Analyst at Euromonitor International. “This analysis helps address rising concerns surrounding nutritional value in food while building a picture of what people eat in different countries.”

The Passport: Nutrition database depicts a brand's contribution to the purchase of nutritional content around the world, identifying the contents of the world’s diet and the impact each nutrient, such as salt, has on our diets. The data allows companies and governments to understand consumers' taste and food preferences around the world.

Mobile health will impact consumer healthcare industry in the long run

Market researcher Euromonitor International says mobile health (mhealth) is an emerging market segment to watch in the global consumer healthcare market.

According to Euromonitor, mhealth is about engaging consumers via mobile apps and devices with the purpose of modifying behaviour towards improved health outcomes. 

In 2014, over-the-counter (OTC) remedies such as sleep aids, eye care, dermatologicals and digestive remedies performed very well with US$36 billion in sales globally. Emerging market segment sports nutrition grew strongly in the mass market with US$10 billion in sales globally, but still represents the smallest category within the consumer health industry at 4.7% share.

The company said the global consumer health industry experienced 5.7% growth in current/fixed currency terms, with US$216.4 billion in retail sales globally in 2014. 

"The industry keeps growing at a healthy pace as significant corporate consolidation will transform the competitive landscape and the rise of mobile health will impact consumer behavior in years to come,” said Euromonitor's Head of Industry Research, Monica Feldman.

Top 10 global consumer trends for 2015 deal with multitasking and sharing

Source: Euromonitor.

The top 10 global consumer trends for 2015 have been unveiled today by market research company Euromonitor International.

According to Euromonitor’s Top 10 Global Consumer Trends 2015 report, consumers are time-poor, seek convenience, greater choice, global availability and instant gratification. What they want is to maximise their time and money by finding products and services that combine multiple needs. For example, a Swedish taxi company offers in-car therapists, priced at US$165 per hour, for their stressed and time-pressed users.

“Post-recessionary consumers are prepared to pay for products that simplify their hectic on-the-go lives,” said the report’s author and Euromonitor Consumer Trends Consultant, Daphne Kasriel-Alexander. “Technology plays a big part in attaining convenience, and omnichannel shopping options creates a seamless link between virtual and 'real world' shops with wide consumer appeal.”

According to the report, this year will also see a rise in collaborative consumption and a culture of sharing products and services, something mainstream brands are already reacting to. For example, clothing brand Patagonia has partnered with eBay to redistribute pre-owned items. The sharing mindset has given rise to a plethora of collaborative endeavours from community gardening, to grouped workspaces, and sharing via crowdfunding.

“In 2015, the sharing economy is growing and disrupting the way in which individuals think of space and ownership. Consumers are increasingly preoccupied with access to goods rather than owning them outright,” said Kasriel-Alexander.

The Top Global Consumer Trends of 2015:

• Buying Convenience
• Malls and Shopping Centres in Community Mode
• Privacy Matters
• Consumption as a Route to Progress
• Influencers: More Like Us
• Let’s Share: The Rise and Rise of Lightweight Living
• Millennials
• Shopping the World
• Virtual to Real and Back: A Smoother Convergence
• Wired and Well: Connected Health

Read the report here. 

Euromonitor survey uncovers a new food villain: sugar

Euromonitor International has noticed a backlash against sugar as consumer attitudes change around the world. 

The negative attitude towards sugar is driving changes in food trends as people make a conscious effort to either reduce their sweet food and drink intake, or avoid sugar completely. Euromonitor’s Global Consumer Trends Survey revealed that 42% of consumers seek out food labels with limited or no added sugar.

“Sugar is now seen as a health risk by most, and as toxic as tobacco by some,” says Gina Westbrook, Director of Strategy Briefings at Euromonitor International. “Sugar has endured a tide of negative public opinion as the amount of scientific research linking the rise in sugar intake with obesity has increased, leading the government to become increasingly concerned about the rising cost of illnesses such as diabetes and cancer.”

The World Health Organisation recently said that cutting the recommended daily sugar limit in half to 5% would have ‘additional benefits’ and consequently, manufacturers are being forced to reduce sugar content and develop natural alternatives to artificial sweeteners.

Added Westbrook, “Companies will continue to work with ingredients suppliers to develop new alternatives, with natural sweeteners like stevia holding the greatest growth potential.”

The report covers 34 global markets, including Australia and China. All 34 markets have seen a five-year rise in obesity, and 27 markets have also experienced an increase in diabetes.

Euromonitor shares four pillars to a successful entry into emerging markets

Global market research company Euromonitor International has released Succeed in Emerging Markets: Selection, Strategy and First Steps, an e-book focusing on a four pillar model to assist in entering emerging markets.

The first pillar is market, and it incorporates macroeconomic stability, consumer market size, growth and openness.

The second pillar in Euromonitor’s strategy is population and focuses on demographics. This assists in understanding how a business product or service will fit into a competitive landscape.

The third pillar focuses on access, or the reality of market entry. If a country is not easily accessible, businesses will not successfully produce goods in the market or reach consumers. Other topics discussed within the access pillar are infrastructure, Internet, partners and the retail landscape.

The final pillar reviews the business environment in a particular market, with emphasis on the regulatory environment and corruption.

According to Euromonitor’s Head of Strategic, Economic and Consumer Insight, Sarah Boumphrey, “Too many companies perform inadequate amounts of research prior to launching a product or service in a new market. This is problematic because some markets simply might not work. Utilising Euromonitor’s four pillar model before entering new markets provides a better understanding of the needs of consumers and the business environment in countries of interest.”

Euromonitor’s four pillar market entry strategy model should be tailored on a case-by-case basis based on sector-specific and business-specific factors to ensure the best information is used for each business.

Download a complimentary copy of the white paper about market entry in emerging markets here.