We learned a lot about the shift in consumer behavior after the pandemic and during inflation from a recent meta-analysis study conducted by EyeSee. However, different perspectives shed light on different challenges and opportunities. EyeSee excels in connecting and scaling global knowledge since it operates in 50+ territories, constantly accumulating insights through deep behavioral analysis in a wide range of industries.
Our data, insights and business experts, all of whom came from different places, told us how they see consumer behavior changing, what kind of innovation they hope for, and what their predictions for 2024 are.
Perspective #1: APAC aims that traditional beauty ingredients become global trend
Xinyu Tok, Senior Insights Manager, APAC
We’re a diverse market with varying external influences that shape our choices.
The rising costs of living and inflationary pressures are global phenomena that we’re also exposed to.
Yet, the recent COVID crisis has also brought the need for self-care practices to the fore—one that encompasses emotional, mental, and physiological care.
As a self-care advocate and a researcher working a lot in the beauty industry, what makes me excited is to see how brands can connect these phenomena to offer us affordable luxuries in the beauty and personal care space.
Particular to Asia is also our usage of traditional skincare ingredients that vary across the different cultures here. This offers a rich playing field for brands to provide beauty seekers here with a modern take on natural, wellness-inspired beauty products. For instance, Bakuchiol (used in traditional ayurvedic treatments) arose as an alternative to the popular retinol.
In 2024 and the years to come, I would love to see how ingredients used in traditional Asian skincare treatments would be recognized and amass greater mainstream popularity.
Perspective #2: LATAM is all about brand-alliances and cross-selling
Victor Olivares, Internal Business Development Consultant at EyeSee, LATAM
I think brand loyalty is being tested since incomes at home are not enough due to the crisis; people might be switching to cheaper brands or avoiding certain expenses while at the same time spending money on entertainment because of COVID-19 post-lockdown. In markets where the economy is more unstable, things are getting much harder.
There are new flavors in the FMCG category (biscuits, chips, sodas), including brand alliances and the usage of brand licenses for cross-selling, but as a movie fan, the ones I have my eyes on are the new popcorn flavors in cinemas.
It’s hard to pick one future trend because there are a lot of trends lately: eco-friendly products, light/zero sugar versions of some things, but I think consumer experience will become more relevant, so I think we will see a lot of “memory makers” (people making up for the “lost” time and trying to document every moment) reconnecting with things, trying to be heard and seen.
Perspective #3: Sustainability is still strong trend in EUROPE
Nicole Tudosie, Business Development Director at EyeSee, EUROPE
Given this is a global crisis, we in Europe are also strongly affected by the effects of soaring inflation, and with mortgage payments starting to go up for many, shoppers’ disposable income is being squeezed.
In the UK specifically, food has seen some of the highest levels of inflation and considering 86% of people are looking to improve their health, it’s a struggle to do so when these items are usually more expensive.
I think the biggest area of innovation will continue to be sustainability, and I’ve seen some great recent examples, like Penny in Germany launching a ‘true cost’ campaign to raise awareness of the environmental price of producing food; or rolling out our digital screens and labels to reduce waste in stores.
Sustainability, as we saw with Penny, will continue to be important for consumers, and therefore innovation is needed here.
I’m very excited to see what role AI will play in CPG next year! I recently saw that Migros launched the world’s first AI-created drink, where ChatGPT generated the recipe based on recent trends, and the packaging was created by another AI tool called Midjourney. Where next?
Perspective #4: USA consumer confidence and optimism is coming back
Jason Bradbury, Sr. Director Client Service
Despite a difficult economic climate right now in the US which continues to be shrouded in uncertainty, consumer confidence and optimism is slowly improving relative to where it was just a year ago. Consumer spending remains strong, however, they are more cautious about how and where they spend their money. A spending paradox has emerged… On one hand, consumers are making more choiceful purchase decisions – in some cases seeking greater value by trading down to less expensive store-brand items to maximize their spending power. Despite this, there is a clear openness to splurge – to treat oneself by paying premium prices for higher-quality products or those that are driven by spontaneous cravings.
I am excited to see the unique products that emerge following the sale and acquisition of several CPG firms that took place in 2023 and the strong desire by key companies to create news within their respective categories (blending brands, blending product benefits, and core product equities into new products). Companies are constantly looking to expand their offerings to attract new customers, and I think the competition in the industry right now may help to inspire new innovative creativity that will drive unique products to market.
I think, we are going to see a major boom in social commerce spending – particularly on TikTok. Social media has emerged as a powerful platform for driving product discovery and promoting ecommerce. In 2023 we saw brands registering success with TikTok ad campaigns and I suspect that in 2024 we will see a major surge as many others follow suit. With so many younger consumers using TikTok to discover, research, and offer their impressions on products, I foresee that TikTok will naturally become a more relevant part of their shopping process.
Every territory and every market has its own rules, but maybe it is exactly in the differences between the untapped opportunities lie. It is not uncommon for local trends to become global and vice versa, so keeping your eyes on all four sides of the world is strongly recommended.
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