14 minute read
Consumers want products that they deem to be 100% natural
Consumers want beverages that they deem to be green and clean
In recent years, there has been much attention given to the increased demand for products that are deemed to be clean label . However, the reality is that clean label remains something of an industry-led term rather than something that is consumer driven . As such, simply labeling a product as clean label is something that will not significantly influence consumer behavior when it comes to buying beverages. Instead, it is important to understand what the underlying trend is when it comes to the clean label movement and relate this to what evolving need states are driving consumption patterns .
Clean label is the evolution of consumers wanting products that they deem to be 100% natural . This is because consumers associate beverages that are 100% natural with a variety of benefits.
Proportion of consumers who deem it important that food and drink is 100% natural Proportion of consumers who deem it important that food and drink is 100% natural
Global: 72% Africa/ME: 80% Europe: 72% Asia-Pacific: 71% North America: 62%Proportion of consumers who deem it important that food and drink is 100% natural South America: 71%
55%
55% Global: 72%
51% 55%
51% 55% 57%
57% Africa/ME: 80% Asia-Pacific: Europe: North America:
Why is it important that products are 100% natural. Products are…. Consumers who believe it is important that products are 100% natural Why is it important that products are 100% natural Products are… 72%71% 62% Global Africa/Middle East Asia-Pacific Europe North America South America Consumers who believe it is important that products are 100% natural Why is it important that products are 100% natural. Products are….
Consumers who believe it is important that products are 100% natural
62%
51% 51% 45% 48% Global 44% 45% 43% 41% Africa/Middle East 46% 44% 47% Asia-Pacific 45% 50% Europe 46% 52% 53% 62% North America 50% 53% 49% South America
42% 47%
51% 51%
45% 48%
44% 45% 43% 41% 46% 44% 47% 45% 50%
46% 52% 53%
50% 53%
49%
42% 47% South America: 71%
39%
39% 40%
40% 38%
38% 50%
50%
Better-for-me More sustainable Better quality Healthy
Better-for-me More sustainable Better quality Healthy
Source: FMCG Gurus Clean Label survey, Q1 2019/Q1 2020
Tasty
Tasty
However, whilst consumers have favorable perceptions towards products that are deemed to be 100% natural, they are also becoming more skeptical of claims and questioning whether products can be 100% natural . This relates to wider trust issues that consumers have towards brands, especially larger multinationals . Indeed, consumers are becoming increasingly skeptical of the practices and policies of brands, often believing that they do not have the best interests of the consumer at heart and that they are focused purely on profit maximization. Related to this, consumers can often feel that brands can make misleading claims around topics such as health and sustainability to charge a premium price . These suspicions are something that are the result of high-profile cases where brands have seen to make such claims, only for these claims to later be undermined . Unfortunately for the industry, in times of uncertainty, these levels of skepticism are something that tend to intensify .
As such, the demand for clean label products is effectively the evolution of the demand for natural products, with consumers wanting maximum transparency when it comes to such claims . Consumers want products that they deem to contain real and authentic ingredients that they believe offer nutritional value and are not detrimental to their health . In addition, consumers want products that they believe to be environmentally friendly . This is especially important as consumers adopt the notion of Good for Me, Good for the Earth and believe that the topics of health and sustainability are interlinked . Something that will be discussed later in this chapter, whilst health has become more important to consumers in a pandemic environment, so has the environment, meaning consumers want products that are good for them and the wider environment .
When it comes to natural claims, it is important to remember that it is a phrase that is subjective in nature and can mean many different things to consumers, meaning it is important for brands to validate what they mean by such claims .
What does the word 'natural' mean to you when it comes to food and drink?
Source: FMCG Gurus Clean Label survey, Q1 2019/Q1 2020
Given that the word natural is something that can mean many different things to different consumers, it increases the risk of consumers believing that a product is natural for one reason, when actually the brand has labeled it natural for another reason . Such misconceptions are something that will increase levels of skepticism towards claims in the long-term . Highlighting the need for maximum transparency when it comes to labeling a product as natural .
When it comes to offering maximum transparency when it comes to natural claims, there are two steps that the beverage industry can look to adopt:
• Consumers will appreciate nutritional labeling that is as simplified as possible. One of the reasons why consumers have become more skeptical towards claims made by brands in recent years is because consumers can believe that brands make nutritional labeling deliberately confusing in order to try and disguise certain ingredients used in product formulation . A prime example of this is the issue of hidden sugars that consumers believe are a real issue in products . As such, consumers want nutritional labeling to be as simple and easy to understand as possible . This is especially true given that consumers are conscious about ingredients that sound chemical and can make conscious efforts to avoid ingredients that they have not heard of .
• In the long-term, brands can look to become early adopters of blockchain technology, offering consumers maximum transparency when it comes to natural claims (and environmental initiatives along the supply chain) . In Q3 2019, FMCG Gurus surveyed twenty-six countries about blockchain technology .
The research found that across the globe, only 18% of consumers said that they had heard of such technology. However, when given a definition, a total of 50% said that they would be likely to use such technology, at least some of the time . Given how consumers are becoming increasingly tech-savvy, it highlights new opportunities to communicate product claims in a transparent way to enhance credibility claims when it comes to natural formulation .
Proportion of consumers who want nutritional labeling to be as simplified as possible Proportion of consumers who want nutritional labeling to be as simplified as possible
Global: 69% Africa/ME: 90% Asia-Pacific: 64% Europe: 64% North America: 82% South America: 69%
Source: FMCG Gurus Country Profile survey, Q1 2019/Q1 2020
Consumers want beverages that have a minimum impact on the environment
For many years, consumers have felt that the environment is at something of a tipping point, with many feeling that levels of damage done is irreversible . This negative sentiment is something that has been driven by firsthand exposure to the destruction of natural resources, as well as consumers witnessing more adverse weather conditions that they attribute to the consequences of globalization and industrialization . As a result of this, consumers are becoming increasingly fearful of the impact that a deteriorating environment will have on the quality of life of the current and future generations .
Something that will also be touched upon later in this chapter, one of the few positive sentiments to arrive from the COVID-19 pandemic is the renewed sense of optimism that consumers have towards the environment . This is due to consumers witnessing natural resources begin to replenish themselves relatively quickly because of lockdowns and restrictions on movements . As a result, consumers are becoming more optimistic that damage done to the environment is reversible, something that will increase the appeal of products that are deemed to be green and clean in the future .
Historically, protecting the environment has been seen as something that is more the responsibility of big businesses than the individual . After all, consumers attribute damage done to the environment to globalization and can feel that simply changing their behavior is less impactful compared to large companies changing their policies . However, in recent years, this attitude has evolved, and consumers now associate protecting the environment as being a collective effort between brand and individual . This is something that is having a direct impact on eating and drinking habits, with 45% of consumers across the globe saying that they have changed their diets in the last two years to behave in a more sustainable manner .
Proportion of consumers who say that they have changed their diets in the last two years in order to lead a more environmentally-friendly lifestyle Proportion of consumers who say that they have changed their diets in the last two years in order to lead a more environmentallyfriendly lifestyle
Global: 45% Africa/ME: 65% Asia-Pacific: 47% Europe: 38% North America: 36% South America: 57%
What steps have you taken? Consumers who have made changes to their diets What steps have you taken?
Global Africa/ME Asia-Pacific EuroConsumers who have made changes to their diets pe North America South h America
Reduced/eliminated eating meat 33% 29% 33% 35% 31% 29% Reduced/eliminated eating/drinking dairy 42% 41% 38% 48% 37% 38%
Reduced/eliminated eating fish 14% 15% 13% 13% 16% 15%
Followed a vegetarian diet 22% 27% 22% 19% 28% 21%
Followed a vegan diet
10% 14% 10% 10% 10% 10% Turned to more local food and drink 46% 47% 44% 47% 54% 38% Made greater attempts to reduce food waste 48% 28% 42% 57% 53% 41% Eaten less processed food 22% 37% 23% 18% 23% 14% Eaten more fresh food and drink 42% 39% 36% 43% 54% 45% Made greater attempts to check out the environmental credentials of products before buying 30% 28% 28% 31% 46% 21% Other 9% 7% 10% 9% 8% 8%
Source: FMCG Gurus Sustainability survey, Q3 2019
To lead a more environmentally friendly lifestyle, consumers have taken a variety of steps, something which will especially increase the appeal of the following types of beverages:
• Plant-based beverages Across the globe, consumers are adopting vegan, vegetarian and flexitarian diets as they look to moderate or eliminate their intake of animal produce . As well as the related sustainability benefits, consumers also associate reduced intake of animal produce with being healthier.
This is something that will drive demand for plant-based beverages over the next couple of years as an alternative to dairy for instance, or products that are high in plant-protein and are touted as being functional as well as sustainable . Like many other trends, this is something that will intensify in importance over the next twelve months because of COVID-19 . FMCG Gurus research for instance shows that over the period April-July 2020, 23% of consumers said that they plan to increase their intake of plant-based food and drink products because of the virus .
• Locally produced beverages Consumers have favorable perceptions of products that they deem local, associating such products with being natural and more environmentally friendly as well as more trustworthy . This is because consumers associate small-scale farmers and suppliers with having more artisan production techniques and being more likely to have the best interests of the consumer heart,
meaning they can offer greater quality as well as health and sustainable benefit. As such, consumers will have favorable perceptions of beverages with shortened supply chains, especially because of COVID-19 and consumers becoming more conscious about the country of origin of products .
Again, when it comes to claims such as locality it must be remembered that such phrases can be subjective in nature and as such, consumers want maximum validation when it comes to such claims . This is also an area where simplified nutritional labeling and blockchain technology can be especially useful.
The importance of beverages being green and clean will intensify because of COVID-19
COVID-19 is having a significant impact of the beverage habits of consumers because they are becoming more health conscious and more environmentally focused . Whilst much attention has been given to consumers becoming more health conscious in this report, attitudes to the environment are also evolving . FMCG Gurus research for instance conducted over the period April-July 2020 shows that because of the virus, a growing proportion of consumers say that they are becoming more conscious about the long-term implications of the environment . This is because consumers have a renewed sense of optimism that the environment can be improved meaning a proactive response from brands is required – especially as this is related to health .
y heyave bhaveecomebecom Proportion of consumers who say that they will be more concerned about environmental Proportion of consumers who say that they will be more concerned about environmental Proportion of consumers who say that they will make attempts to stay healthier in themore conscious about their Proportion of consumers who say that they will make attempts to stay healthier in thee more conscious about their ultsu oltf COVID-19of COVID-19 issues after COVID-19 passed issues after COVID-19 passed future as a result of COVID-19future as a result of COVID-19 MayMay JulyJuly
48%48%
36% 36%36% 36% 39%39%
26%26% 24%24% 33%33% April AprilApril May MayMay July JulyJuly
71%77% 83% 84% 77% 83% 84% 69%77% 82% 85% 77% 82% 85% 68% 75%82% 86% 88% 82% 86% 88%
55% 62% 59% 48% 61% 66%73% 78% 79% 73% 78% 79% 68%75% 82% 84% 75% 82% 84%
51% 57% 58% 47%
80% 93% 94%93% 94% 69% 65% 81%81%
21%21%
10%10%
EuropeEurope North AmericaSouth AmericaNorth AmericaSouth America Global GlobalGlobal Africa/Middle Africa/MiddleAfrica/Middle East EastEast Asia-Pacific Asia-PacificAsia-Pacific Europe EuropeEurope North AmericaSouth AmericaNorth AmericaSouth AmericaNorth AmericaSouth America
Source: COVID-19 survey, Q1 2019/Q1 2020
As a result of this, the demand for clean label style beverages will increase in importance over the next few years, as consumers put more importance on brands carrying natural claims and related to this, locality, and sustainability claims . If consumers believe that a beverage is genuinely 100% natural and carries over favorable product traits it is something that will significantly influence purchasing behavior. However as stressed already in this report, it is important that beverage brands validate such claims .
Proportion of consumers who say that they are being more attentive to natural ingredient claims as a result of COVID-19 Proportion of consumers who say that they are being more attentive to natural ingredient claims as a result of COVID-19 (April – July, aggregated) (April – July, aggregated) Proportion of consumers who say that they are being more attentive to locality claims as a result of COVID-19 (April – July, aggregated)
Global: 56% Europe:Asia-Pacific: North America:Africa/ME: Proportion of consumers who say that they are being more attentive to natural ingredient claims as a result of COVID-19 67% 56% (April – July, aggregated) 53% 57% South America: 64%
Global: 56%
Global: Global: 56% 50% Europe:Asia-Pacific: North America:Africa/ME: Proportion of consumers who say that they are being more attentive to natural ingredient claims as a result of COVID-19 South America:
Proportion of consumers who say that they are being more attentive to locality claims as a result of COVID 53%56% 57%67% (April – July, aggregated) -19 64%
(April – July, aggregated)
Europe: 50% Asia-Pacific: 51% North America: 47% Africa/ME: 54% Proportion of consumers who say that they are being more attentive to locality claims as a result of COVID-19 (April – July, aggregated) Europe: 53% Asia-Pacific: 56% North America: 57% Africa/ME: 67% South America: 51% South America: 64%
Global: 50% Proportion of consumers who say that they are being more attentive to nutritional benefit claims as a result of COVID-19 (April – July, aggregated) Europe: 50% Asia-Pacific: 51% North America: 47% Africa/ME: 54% Proportion of consumers who say that they are being more attentive to locality claims as a result of COVID-19 (April – July, aggregated) South America: 51%
Global: 69% Europe: 67% Asia-Pacific: 68% South America: 77% North America: 73% Africa/ME: 71% Proportion of consumers who say that they are being more attentive to nutritional benefit Proportion of consumers who say that they are being more attentive to nutritional benefit claims as a result of COVID-19 (April – July, aggregated) Global: 50% Europe: 50% Asia-Pacific: 51% South America: 51% North America: 47% Africa/ME: 54%
Global: claims as a result of COVID-19 Europe:Asia-Pacific: North America:Africa/ME: Proportion of consumers who say that they are being more attentive to nutritional benefit claims as a result of COVID-19 South America: 69% 71% (April – July, aggregated) 67%68% (April – July, aggregated) 73% 77%
Global: 69% Africa/ME: 71% Asia-Pacific: 68% Europe: 67% North America: 73% South America: 77%
Source: COVID-19 survey, 2020
