The trend towards handmade –

what consumers like about craft products

They used to be niche items, but now hardly any business can do without them. Craft products are all the rage and many manufacturers are focusing on this trend to expand their SKUs.

Consumers in Germany, Russia and the UK provide valuable information and their preferences for craft products make it possible to deduce key data to determine the success of certain products. This is the starting point for the Symrise craft study, which provides tangible suggestions for craft beverages.

Four main success factors make craft products stand out on store shelves. If the ingredients come from credible sources they tend to inspire confidence. If handcrafted products appear authentic and genuine, they entice consumers to make a purchase. When craft products are based on countryspecific preferences, the chances of success are significantly higher. What counts most however is quality. The “premium seal” that craft products carry lends them a charm of their own inspired by their particularly high quality.

What do these findings mean for manufacturers of craft products? The top factor is transparency. Companies that speak about their products honestly and disclose their manufacturing processes enjoy the trust of consumers. This is directly connected to the history of the product. Its credibility depends on the degree to which communication is transparent. The more detailed the story behind a product, the more interesting it will be, as consumers assume that it takes a lot of time to produce a craft item. The more regionally a product is produced, the more consumers identify with it. This leads to an enormous balancing act for manufacturers of craft products. On the one hand, they need new sales channels for their product in order to be economically successful. On the othe, they have to accept that the appeal of these products lies in the fact that they are only available in selected stores.

DAVID VS. GOLIATH – THE POWER OF SMALL COMPETITORS

What makes craft products so popular in Europe and other markets? The answer is size. Small manufacturers are challenging large mainstream companies and successfully wrestling market share from them. Independence ensures successful sales figures. Showcasing a passion for high-quality handmade products gives a manufacturer credibility and sets them apart from the crowd. When manufacturers emphasise their personal passion for their product, they can set themselves apart from mass-produced goods and raise their profile.

The same applies to consumers. If you look at the store shelves, there is a seemingly endless number of flavours. The more surprising the tonality, the higher the added value. Consumers emphasise their own character and individuality by choosing a certain flavour. Many craft products therefore have the potential to become tomorrow’s bestsellers. Large companies are by no means spectators here. Rather, they are able to place craft items in both large and small stores as long as they pay attention to authenticity.

THE CRAFT BOOM SLOWS AN INCREASINGLY DYNAMIC ENVIRONMENT

While it may sound strange, the craft boom and our dynamic pace of life are directly related. Financial ups and downs, our globalised society, digitised media and increased mobility all create a desire for closeness and a stronger sense of community.

This calls new market participants onto the scene. They understand people’s desires and use modern technologies that enable individuals to produce craft products themselves and to perfectly stage and distribute them via social media. Social networks have developed into primary information channels through which consumers receive information and recommend products to each other.

INGREDIENTS & TASTE DECIDE

The Symrise study shows that consumers in Germany, the UK and Russia are convinced that high-quality ingredients are crucial to the success of a craft product. They are even willing to pay more for quality because they are sure that high-quality ingredients have a direct influence on

A lot of importance is placed on seasonal and regional ingredients

taste. By contrast, they reject industrially produced or unnatural additives in craft products. In Germany and the UK, consumers also place a lot of importance on regional and seasonal ingredients.

If these ingredients taste good, the craft product almost sells itself. At the same time, experimental, unusual or even unique tastes that don’t stand out too intensively do especially well. Highquality, natural ingredients and careful, traditional manufacturing processes are popular.

IT’S THE PACKAGING THAT COUNTS

Another reason craft products are so popular with European consumers is because they are produced in a traditional way. These products are especially popular if the old manufacturing process has been creatively changed and the taste and texture have been improved. A product’s appearance matters, too. When products are attractively packaged, they appeal to consumers even more. British consumers, for example, like goods that have been originally and creatively packaged. German and Russian consumers, by contrast, want goods that are packaged naturally with recyclable materials.

When craft products are released in small quantities, it suggests careful manufacture according to traditional methods. Products made in this way trigger positive emotions for many people. Older consumers also attach importance to handmade products. The health aspect of craft products is also becoming more important and natural ingredients are vital. Russian consumers look at the label to see if the products contain fruit, vegetables and herbs with health-promoting effects, and consumers in Britain and Germany assume that consumer craft products are healthier to consume than industrially produced variants.

PERSONAL & SOCIAL MOTIVATION

The survey also uncovered personal and social reasons for consuming craft items. On a personal level, psychology plays an important role. People use craft products to express themselves, and craft products make people feel self-confident. Emotionally, these trend items promise joy, excitement and appreciation. Physically, the focus is on supplying the body with the right nutrients.

Socially, craft products brings people with common interests together and creates a sense of community. German and British consumers in particular attach great importance to this, unlike in Russia, where this aspect is less important. Consumers in Russia and Britain value communication while enjoying craft products together. For Germans, however, this plays a subordinate role. The respondents from all three countries agree on one point: Craft items satisfy consumers’ need to belong to a group.

Today, craft products can be found all over the world. Their adherents view themselves as a sworn community with individual characteristics. Because of highly unique preferences and manufacturing traditions, many craft products typical of a region have emerged. In Germany, for example, there is a very active scene constantly launching new varieties of beer and spirits, as well as new coffee specialties on the market. Here, craft products are enjoyed less frequently compared to other countries. And when they are, the choice is often made for the very best quality. The UK remains the undisputed trendsetter for innovative, handmade beverages. Driven by the demand for healthy and natural products, British manufacturers are constantly introducing new alcoholic and nonalcoholic drinks to the market.

Asia is right behind Europe in this regard. In Japan, trends are being set with innovative, high-quality recipes, with the aim of winning over new consumers of traditional drinks such as sake or green tea while in India, many restaurants now offer craft products. The demand for highquality coffee, tea and beer is increasing, as it is important for people in India to keep in touch with their numerous social contacts and they like to make plans to eat and drink together. This group would not be complete without the largest domestic market in the world. China’s growing prosperity is making high-quality, healthy and natural beverages very popular. This also applies to Thailand, where the emphasis is on trendy packaging.

US MANUFACTURERS WILLING TO EXPERIMENT

In the motherland of the craft trend, the US, demand continues to grow rapidly and the market is thirstily absorbing new creations. New entrants thus need to be more innovative than elsewhere to stand out from the crowd. The willingness to experiment with flavours makes this market one of the most exciting.

This enthusiasm has quickly spread to Latin America. The vibrant coffee and craft beer scene inspires beverage manufacturers to bring tasty premium beverages to market. Healthy and natural products sell well and bars and restaurants are aware of this trend and offer their own homemade drinks.

The demand for premium products is increasing globally and in South Africa. It offers several significant opportunities for manufacturers of craft items. A company that is aware of the personal and social needs of consumers is in the best position to develop tomorrow’s bestsellers. If manufacturers offer their customers credible stories about their products while also convincing customers through their ingredients, taste, naturalness and production, then these companies have a good chance of success. •

Symrise – www.symrise.com