Top 10 Trends 2020

1. FMCG GURUS: Top Ten Trends for 2020 January 2020

2. FMCG Gurus identifies Top Ten Trends to watch our for in 2020.

3. Trend 1: Plant-Life: Alternative proteins appeal but consumers can be concerned about the taste and texture of products Alternative Proteins Botanicals Taste & Texture Fruit and vegetable consumption is increasing as consumers look to address health issues Consumers are looking to remove meat from their diets, replacing it with plant-based alternatives Consumers are turning to fruit and vegetables more as they take a more proactive approach to health Changing dietary habits are driving demand for alternative plant products. Proportion of consumers who have increased their intake of fruit and vegetables to address the following in the last twelve months Consumers are adopting a “back to basic” approach when it comes to health maintenance 16% to lose weight 18% to improve immunity • Consumers are looking to remove meat from their plates. This is being done for a mixture of health, financial, and ethical reasons. • FMCG Gurus research shows that across the globe: • 15% of consumers identify themselves as being a flexitarian • 13% of consumers say they are vegetarian • 3% say that they are vegan 8% to improve eye sight 15% to improve overall health 42% of consumers admit that they can find plant-based food and drink products to be “bland and boring”

4. Trend 2: See All, Know All: Blockchain technology can be used to promote responsible practices Blockchain Responsible Way of Life Trust & Transparency Brands need to be seen to be doing the right thing Transparency is needed across the whole of the supply chain Only 18% of consumers have heard of blockchain. However, when given a definition, 50% said that they would be likely to use this technology Consumers do not feel that brands are not acting in the best interests of humanity or the environment. It is crucial that brands are seen to be acting in an ethical and environmentally friendly manner. Proportion of global consumers who say they distrusted the following brands Food: 31% Beverages: 32% Supplements 31% Proportion of global consumers who say this trust has worsened in last two years 51% of global consumers say it is important that brands monitor the supply chain of their suppliers for corporate and social responsibility initiatives Food: 25% Beverages: 25% Supplements 25%

5. Trend 3: The Big Picture: Futuristic and innovative technology can tell the story behind brands Storytelling Augmented Reality Tech Future 48% of global consumers regularly conduct research into the different food, drink, and supplement brands that they purchase 33% of global consumers say they have used their smartphone to scan a QR/game/promotional code on packaging when buying food, drink or supplements Consumers are more difficult to impress than ever before as a result of being exposed to a wide range of products. Innovative and futuristic packaging is a key way of helping capture consumer attention, enabling them to engage with brands Packaging innovation can be used to give consumers more information into the story behind products than ever before Near Field Communication technology and QR codes can allow consumers access to content and competitions via packaging At a time when consumers want more information on products than ever before, innovations such as blockchain technology can be used to allow consumers to find out information about the origin of products and how they were formulated. Technology can be used as a key way of breaking routine and inertia when shopping and making products fun, interactive, and engaging

6. Trend 4: Good for Me, Good for the Earth: Consumers want products that are green and clean Green & Clean Back to Basics Sustainable Living Earth Aware Consumers recognize that environmental damage is directly impacting on their health Consumers want products that they deem to be green and clean In 2019, Innocent launched its new range of Innocent Plus brands High in vitamins, the products are touted as natural, vegan friendly, and are made with botanicals Consumers want brands to demonstrate sustainability initiatives In 2019, Diageo announced that it was scrapping plastic packaging for its beer brands 73% 63% I am concerned about the state of the environment It is important that food and drink is 100% natural I believe the state of the environment has worsened in the last two decades 32% 54% Natural claims are important to protect the environment Damage done to the environment is irreversible Natural claims are important as it makes products healthier 44% 48%

7. Trend 5: Re-evaluating Health: Consumers are looking to improve their diets, with varying degrees of success CBD Mental Wellness New Diet, Same Me Rest & Recuperation Weight management plans continue to fail Time to recognize that the war on sugar has been lost Sugar has long been seen as the number one dietary evil amongst consumers. However, despite the negative perceptions that exist towards sugar, it is important not to over-estimate the extent they are cutting down intake Dieting plans continue to follow boom and bust cycles. That is, many consumers are looking to lose weight, but will often given up on diets after a relatively short time. This is because consumers still associate dieting with compromise 27% of consumers across the globe classify themselves as overweight Proportion of consumers who admit to have done following this year Say they have planned to cut down on certain food an drink but not actually done so Say they have planned to cut down on sugar but not actually done so 23% of consumers say that they have put weight on over the last year 28% of consumers say that they are currently on a diet to lose weight 33% 33% The fact that obesity rates are at a record high across the globe at a time when consumers are making more attempts than ever to lose weight means that ultimately, dietary plans are failing This is something the industry needs to take into consideration when it comes to product reformulation and sugar reduction

8. Trend 6: Sensory Overload: Consumers want to experimental flavors on a global scale Simplify me Everything Artisanal Favour Experience Global to Local Brands will continue to push the sensory elements of everyday product categories There will be a focus on regionalized flavors from around the world that encourage consumers to sample new cultures 57% of consumers like products with new and unusual flavors. 46% of consumers like moments of indulgence where they pay no attention to nutritional intake. Genuine experiences 42% of consumers deem themselves to be adventurous when trying new food and drink 72% of consumers have become more experimental with their choice of food and drink in the last five years. 65% of consumers say that they like hot and spicy food. 52% of consumers say that they like food with new and unusual colors Adventurous consumers want new tastes and sensations that match their sophistication Consumers will continue to push the boundaries of hedonism when it comes to food and drink

9. Trend 7: Snacking Reclassified: Consumers want hybrid products as the concepts of meals and snacks become more blurred Conscious Indulgence Hybrids Conveniently Nutritious Healthier Occasions Time to making the word snacking redundant? Focus on light meals to fill this niche • Traditional meal-times are a thing of the past. FMCG Gurus research shows, that in the average week: • 31% of consumers say they do not eat breakfast every day • 32% of consumers say that they do not eat lunch everyday day • 22% of consumers do not eat dinner everyday Half of all consumers classify a snack as a light meal What do you consider a snack to be? 2019 Top five answers Brands need to launch products that blur the boundaries between meals and snacks

10. Trend 8: Functional Lifestyle: Consumers want good fats and ingredients they deem better-for-me Good Fats Active Nutrition Healthier for Longer Better-for-me Consumers are seeking out more products that contain “good” fats Lutein and Zeaxanthin can target eye problems caused by modern lifestyles Fat is no longer classified as a dietary evil. In moderation, consumers believe that fats offer a variety of health benefits Proportion of consumers who actively seek out food and drink that contains the following ingredients (%) 34 19 Omega 3 Krill oil 35 18 23% of consumers are unsatisfied with their eye health. Of these consumers, 37% say that their condition has worsened in the last two years, 52% cite spending too much time on digital devices as a reason for their poor eyesight Omega 6 Fish oil Proportion of consumers who seek out products with fatty acids who say they have increased consumption in the last year (%) Only 17% of consumers have heard of lutein and only 10% of zeaxanthin. There are major opportunities to raise awareness of the ingredients amongst consumers who are concerned about their eyesight or the amount of time they spend in front of digital devices 56 54 Omega 3 Krill oil 57 48 Omega 6 Fish oil

11. Trend 9: Raw & Pure: Consumers are adopting free-from diets as they embrace the concept of my body, my temple Free-From My Body, My Temple Abstaining Streamlining Actively avoiding ingredients Consumers want meat and dairy out of their diets Consumers are abstaining from certain types of food and ingredients. They are also looking for reformulated products that contain fewer “bad” ingredients. Proportion of consumers who say that they make conscious efforts to afford food and drink that contain the following ingredients Proportion of consumers who are adopting the following types of free-from diets (%) 10 Meat 15 Dairy You state that you do not eat food or drink that contains these ingredients. Why is this? Health and sustainability are key reasons for eliminating meat and dairy from diets

12. Trend 10: Evolution of Nutrition: Consumers are adopting a long-term approach to health maintenance and improvement Healthy Ageing Holistic Health Nutrition For Me DNA Profiling Active Nutrition Personalized nutrition Focus on seeking out “better-for-you” options that offer a convenient health boost and reduce guilt associated with current lifestyles and dietary habits Focus on adjusting dietary habits and lifestyles to address specific health issues. This creates a desire for products that are formulated to help with this Mainstream integration of sports nutrition products Consumers do not believe themselves to be in the best of health and feel that current lifestyles could impact on long-term health Consumers are taking a proactive approach to health maintenance and management, even when they deem their current lifestyle to be healthy

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