Consumer Trends Analysis: Understanding Consumer Trends ...

[Pages:11]Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the UK Bakery & Cereals Market

FD0026IS

Insight Report June 2014

Example table of contents

Definitions

Category classifications

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Demographic definitions

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Summary methodology

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Trend framework

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Market context

Drivers and inhibitors of consumption

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Overall market value, (US$ millions), 2008-2018

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Overall market volume, (millions of KG), 2008-2018

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Market volume, (millions of KG), 2008-2018, by segment

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Number of consumption occasions in 2012, by gender

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Number of consumption occasions in 2012, by age

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Global country comparison of market value and growth, (US$millions), 2008-2018

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Global country comparison of market volume and growth, (millions of KG), 2008-2018

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Volume of sold globally and forecast CAGR over the period 2013?2018 (size of bubble denotes market volume)

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Demographic cohort consumption patterns

Breakdown of consumption occasions 2012, by gender

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Over/under consumption compared to the proportion of society represented

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Breakdown of consumption occasions 2012, by age group

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Over/under consumption compared to the proportion of society represented

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Breakdown of consumption by whether it is the result of heavy, medium or light consumption, by gender, 2012

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Breakdown of consumption by whether it is the result of heavy, medium or light consumption, by age group, 2012

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Consumer trend analysis

Level of influence each trend has on overall consumption, by volume, 2013

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Level of influence each trend has on overall consumption across the globe, by volume, 2013

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Example table of contents - continued

Consumer trend analysis - continued

The Changing Lifestyle mega-trend

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The Connectivity mega-trend

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The Convenience mega-trend

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The Ethics mega-trend

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The Experience & Enjoyment mega-trend

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The Health & Wellness mega-trend

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The Individuality mega-trend

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The Trust mega-trend

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The Value mega-trend

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Innovation examples

Innovative country-specific launches in the sector

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Innovative global launches in the sector

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Recommended actions

Recommendations for manufactures, marketers and retailers

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Appendix

An explanation of the sub-trends

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Detailed methodology

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About Canadean

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Reasons to buy this report

This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers. This is based on Canadean's unique consumer data ? developed from extensive consumption surveys and consumer group tracking ? which quantifies the influence of 20 consumption motivations within your industry.

Consumer trends analysis An overview of the key demographic groups driving consumption in your industry, and what their motivations are for doing so. This enables the reader to identify the most important trends within the market and also determine whether beliefs over what influences consumer behavior within the category are accurate.

Market sizing Market value and volumes are given over 2008?2018 for 10 leading countries across the globe. Coverage includes major European markets, the US, and the emerging markets of Brazil, Russia, India, and China.

Demographic analysis Key demographic groups driving consumption within the US market are identified. The figures showcase the number of Dairy occasions attributed to specific age groups and genders, as well as identifying whether these demographic groups "over" consume in the category.

Product innovation examples Examples are provided of innovative international and country-specific product development within your industry, with analysis of how these products effectively target the most pertinent consumer need states.

Recommended actions Strategic recommendations of how to capitalize on the evolving consumer landscape are offered, allowing product and marketing strategies to be better aligned with the leading trends in the market.

Future outlook The report provides insight to highlight the "so what?" implications behind the data, and analysis of how the need states of consumers within your industry will evolve in the short-to-medium term future.

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A desire for tasty, affordable snacks is driving Bakery & Cereal consumption in the UK

There are a number of reasons why consumers turn to Bakery & Cereals and a number of reasons they don't. It is crucial for manufacturers to understand what consumers want from the actual products that they purchase

Snacking: A desire for on-the-go

snacks is helping increase the

consumption of Cereal Bars and Cookies.

Indulgence: Consumers look to treat themselves with tasty Cakes, Cookies, and Pastries & Sweet

Pies.

Value: Consumers see Bakery & Cereal products as a

relatively low-cost, affordable food option,

providing value and satiety.

Freshness: Consumers associate

Bakery & Cereal products with being fresh, with artisanal ? influenced offerings driving consumption.

Energizing boost: Consumers look to

Bread & Rolls, Breakfast Cereals, and

Cereal Bars as an energizing boost during

busy days.

DRIVERS OF CONSUMPTION INHIBITORS OF CONSUMPTION

Obesity concerns: Consumers are

avoiding high amounts of carbohydrates as they can contribute to obesity.

Changing breakfast habits:

Busy consumers opting to skip breakfast is

acting as an inhibitor of Breakfast Cereals consumption.

Breakfast substitutes: Some consumers are opting for yogurt or fresh fruit for breakfast, limiting demand for Breakfast Cereals and Bread &

Rolls.

Lunch alternatives: Consumers are looking

for lighter, more exciting lunch options, limiting consumption of

Breads & Rolls for sandwiches.

Intolerance and avoidance:

Some consumers are avoiding products containing wheat or gluten for digestive reasons.

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The UK Bakery & Cereals market is fourth largest amongst top 5 EU countries in volume terms

Volume 2013 (Kg m)

Volume of Bakery & Cereals sold globally and forecasted CAGR over the period 2013-2018 (size of bubble denotes market volume)

China

US Brazil

Germany Italy

Russia

France

UK

Spain

India

UK is showing slow growth in the Bakery & Cereals market: The UK Bakery & Cereals market is a mature market, with the current high penetration level leaving little room for further growth. The UK has a low value consumption compared to other European countries such as Germany, France, and Italy. Busy lifestyles, coupled with growing health concerns, drive the consumption of healthy products like Breakfast Cereals and Cereal Bars, while there is growing demand for healthy breads, such as high fiber loaves, gluten-free ranges, and low-fat flat breads. Bakery & Cereals in the UK grew at CAGR of X.X% during 2008-2013 and is forecast to grow at a CAGR of X.X% during 20132018, in volume terms.

High per capita occasions amongst EU nations: The average UK consumer enjoys 788 Bakery & Cereal occasions per year, second only to Italy among the top 5 EU countries, indicating that hectic lives are causing consumers to have less time and inclination to prepare home-cooked meals.

CAGR 2013-2018

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Consumption will be increasingly driven by the desire to indulge in innovative bakery products

Degree of influence the Experience & Enjoyment mega-trend has on demographic groups

Gender

Both genders are significantly influenced by all of the Experience & Enjoyment sub-trends across the board. The difference in consumption influence in the Indulgence and Quality Seeking trends is marginal, whereas in Experience Seeking, XX% of women's' consumption is influenced by the trend, as opposed to XX% of men's consumption.

Age groups

Older Young Adults and Pre-Mid-Lifers are the most affected by both the Experience Seeking and Indulgence trends with volume influenced greater than XX% and XX%, respectively. These age groups often have young families while maintaining a career, therefore they seek indulgent products for escapism. Kids & Babies are the most influenced by Fun & Enjoyment.

How the Experience & Enjoyment mega-trend will evolve

As UK consumer lifestyles become increasingly busy and time scarce, the Experience & Enjoyment trend will continue to increase in importance, with consumers seeking escapism from daily pressures. There will be an increase in products that are specifically targeted to aid relaxation during a busy working day. As Kids & Babies drive the Fun & Enjoyment trend, manufacturers should launch products with a fun element that are positioned to appeal to both children and their parents, by incorporating both fun and healthy attributes. With increasing exposure to different cultures and cuisines, Experience Seeking will emerge as an important factor influencing Bakery & Cereals consumption. Consumers will look to get more from their chosen products through new flavor and mouthfeel innovations. Manufacturers need to underline indulgent taste credentials at all times, and should consider novel limited edition flavors to keep their product range fresh and innovative.

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Manufacturers, marketers, and retailers need to capitalize on the aging population and remember the importance of value

Older Consumers: Manufacturers should cater to the specific nutritional needs of aging consumers. Older Consumers are a large share of the population in the UK, yet they remain largely untargeted. These consumers are driven to seek healthy foods and lifestyles because of their increased awareness of the importance of heart and brain health, and for improved digestion. This age group require specific nutrients and vitamins that are commonly found in wholegrain bakery products; these products therefore need to be effectively positioned.

Product: Healthy Life Bread

Manufacturer: Lewis Positioning: This is a 100% whole grain loaf

available in the US which has the benefits of being heart healthy, high fiber and low fat.

Manufacturers need to expand their range to include better value products: UK Consumers continue to seek brands which offer better value for money, a trend which has been seized by retailers such as Aldi, Asda, Morrisons, and Tesco. Retailers are using marketing methods including TV advertising, social media, and promotional campaigns to secure consumers for their private label ranges. Private Label has gained market share through the prolonged economic slowdown. Manufacturers need to consider the effect that rising private label success will have on their business. In order to compete with the improving and good value private label ranges manufactures need to expand their own product portfolios to include a budget range, comprised of lower cost products that attract

the value seeking consumers.

Product: Wholemeal Rolls Manufacturer: Kingsmill Positioning: Established

bread brand Kingsmill has introduced a range of pricemarked products that are good value and compete directly with private label products.

Organic and Natural: Marketers can target the gradually increasing numbers of health conscious consumers, who are increasingly trying to migrate to more organic and natural baked options. The demand for gluten free, and no artificial colors, additives, and preservatives is set to rise, as consumers' dietary preferences develop. Furthermore, wholegrain bakery products with high fiber content are increasing in popularity, due to their association with improved digestion. Such products all grant the consumer an additional benefit, be it of health or perceived higher quality.

Product: Weetabix Organic

Manufacturer: Weetabix Positioning:

Organic version of a traditional cereal with

ingredients of a perceived higher quality.

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