Consumers are becoming more intentional with their spending in an uncertain economic environment, looking for value beyond just price. They’re focused on factors like flexibility, durability, and sustainability when evaluating products. In the next 5 years, consumers will increasingly support purpose-driven brands that address long-term challenges faced by industries and communities, with a focus on values such as environmental responsibility and social impact.
This trend originates from the report:
MINTEL - Global Consumer Trends
In a tough economic environment, consumers want to make smart financial choices without sacrificing their quality of life. This goes beyond making budget-friendly choices to considering how factors like flexibility, durability, and sustainability will play increasingly important roles in the value equation. In response to price increases across all categories, consumers are forced to continually re-evaluate their priorities and their budgets.
From "Let's try this brand instead, it's a little cheaper" to "Let's see if I can go without it this month," consumers are exploring, comparing, and removing items from their carts to ensure their needs for today and goals for tomorrow can be met. The next 12 months will be intensely competitive as brands seek to gain new or retain existing consumers through value-for-money propositions. From bulk discounts and price freezes to more mass brands stepping up with premium cues (e.
g. aesthetics, scents, effectiveness of ingredients, or sustainability), consumers will be drawn to the products that provide the best bang for their buck. Over the next 18-months-to-two-years, expect changes in circumstances to lead to changes in habits and lifestyles.
For example, consuming less meat, purchasing near-expired products or purchasing ugly, locally-grown produce because it’s cheaper will have ripple effects, changing consumers’ views on nutrition and the sustainability of food, as well as how they shop in other categories. The experiences they’ve been through, the sacrifices they’ve made, and the skills they’ve gained will guide perceptions of value even when they’ve regained their foothold financially. Expect a stronger focus on durability, flexibility and timelessness as consumers seek to buy less and own products that last longer and serve multiple purposes.
As the market becomes further saturated with added-value claims (e.g. environmentally friendly, local benefits or free delivery), consumers will grow more skeptical and discerning.
Claims will be put to the test and brands’ transparency will be evaluated far more strictly as consumers continue honing in on the qualities they value the most. Recent events have shown consumers how interconnected the world is, and they are increasingly concerned about the future, the environment, and the communities impacted by their everyday choices and habits. In five years and beyond, expect to see purpose-driven brands emerge with tangible plans and innovations that address long-term challenges faced by the industries, nations, and communities they're a part of (and those that have remained unaddressed for too long).
Consumers will seek value in purpose, supporting trustworthy brands that make a difference as they make a profit, to ensure their everyday consumption choices align with the future they aspire for..