FMCG GURUS: Analyzing key trends driving ... - Fi Global · The Top Ten Trends for 2020 FMCG Gurus...

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FMCG GURUS: Analyzing key trends driving consumption habits in Africa and the Middle East

December 2019


AGENDA

Introduction to FMCG Gurus

Health and Sustainability

Weight Management

Trust and Transparency

Digestive Health

Conclusions



Headquartered in London

Bespoke and syndicated research

Over 700,000 people surveyed in 2019

Focus on trend innovation

Event partner at FI Europe

[email protected]


The Top Ten Trends for 2020

FMCG Gurus has just launched its

Top Ten Trends for 2020

These trends have been put

together based on consumer

attitudes and behavior and industry

sentiment

Key trends covered in the

presentation

Plant-Life

See All, Know All

Good for Me, Good for Earth

Re-Evaluating Health

Snacking Reclassified

Functional Lifestyle


This presentation is based on the following research series

FMCG Gurus Sustainability survey series – 3,000 consumers (1,000 consumers per country)

surveyed in Nigeria, Saudi Arabia and South Africa in Q3 2019

FMCG Gurus Blockchain survey series – 3,000 consumers (1,000 consumers per country)


FMCG Gurus Active Nutrition survey series – 3,000 consumers (1,000 consumers per country)


FMCG Gurus Weight Management survey series – 2,000 consumers (1,000 consumers per

country) surveyed in Nigeria and South Africa in Q2 2019

FMCG Gurus Digestive Health survey series – 2,000 consumers (1,000 consumers per country)

surveyed in Nigeria and South Africa in Q2 2019


AGENDA



Weight Management


Digestive Health

Conclusions


Consumers are Earth Aware

Consumers feel that the environment is at a tipping point and that damage done is irreversible

Exposure to deforestation, climate change, animal and marine life depletion, pollution, and

industrialization is causing a concern for consumers

Concern about the impact this will have on

the health and wellness of consumers

Concern about the impact it will have on

future generations

Proportion of consumers

who say that they are

concerned about the state

of the environment


who say that damage done

to the environment is

irreversible


who say that the

environment has worsened

in the last two decades

66%58%

69%

Nigeria SaudiArabia

SouthAfrica

74%

54%

34%

Nigeria SaudiArabia

SouthAfrica

63% 64%59%

Nigeria SaudiArabia

SouthAfrica


The depletion of natural resources is a major concern

Proportion of consumers in Africa and the Middle East who say that they are concerned

about the following

8%

18%

20%

25%

25%

27%

33%

40%

44%

48%

49%

52%

52%

55%

57%

64%

66%

Other

Acid rain

Insect species going extinct

Environmental pollution to land caused…

Lack of potable water

Food shortages

Landfills full of rubbish

Animal welfare

Food wastage

Marine life species going extinct

Air pollution

Ethical treatment of farmers

Carbon emission

Sea pollution

Global warming

Animal species going extinct

Deforestation

Consumers have a variety of concerns that are directly linked to the food and drink industry

Consumers feel that the depletion of natural

resources is not sustainableThis is driving demand for a collective

solution between individuals and brands


Trust & Transparency is of high importance to consumers

64% of consumers in Africa and the

Middle East believe that brands

should be doing more to help protect

the planet


Middle East believe that retailers

should be doing more to help protect

the planet


Middle East say that they have

become less trusting of

environmental claims made by

brands in the last two years

Consumers want brands and retailers to

demonstrate a genuinely proactive approach to

protecting the environment.

Transparency is crucial for consumers when it

comes to communicating such approaches


Consumers are embracing the concept of Responsible Living

Six in ten consumers across Africa and the Middle East have changed their dietary habits in order

to lead a more sustainable lifestyle in the last two years

Proportion of

consumers who say

that they have made

changes to their diets

to act in a more

sustainable manner58%

51%

73%

South Africa

Saudi Arabia

Nigeria

Top three methods

Nigeria Saudi Arabia South Africa

40%

42%

59%

Made greaterattempts to check out

the environmentalcredentials of

products

Eaten less processedfood

Turned to more localfood and drink

50%

50%

69%

Eaten more freshfood and drink

Reduced/eliminatedeating/drinking dairy

Turned to more localfood and drink

36%

50%

58%

Made greaterattempts to reduce

food waste

Reduced/eliminatedeating/drinking dairy

Eaten more freshfood and drink


Opportunities exist within the plant and insect market

Insects Plants

• Acceptance of insects

• High source of protein

• Less intensity on natural sources

• Animal welfare concerns still an issue

• Acceptance of plant-based diets

• High source of protein

• Ethical issues need to be considered

• Ethical issues around encouraging less

meat consumption


AGENDA



Weight Management


Digestive Health

Conclusions


Dietary habits are changing across the region

Meal-time habits are changing across the region, and this is having an impact on waistlines

This trend is being driven by younger, more affluent consumers in urban areas


Middle East have looked to improve

their diets in the last two years


Middle East say that time scarcity

means that they are reliant on

convenience food


Middle East say that they eat out of

home a lot


Middle East say that the least

healthiest food is often the tastiest


More consumers are struggling with their waistlines

Proportion of consumers who want to

lose weight

Proportion of consumers who say their

weight has increased in the last year

Proportion of consumers who are

currently on a diet in order to lose weight

Proportion of consumers who know what

their recommended weight should be

Changing dietary habits – combined with greater levels of inactivity – are resulting in waistlines

increasing in the region

The World Health Organization states that obesity rates are surging in Africa

49% 50%

Nigeria Saudi Arabia

33%39%


30%

40%


72%

41%



New Diet, Same Me – Consumers can struggle with weight loss

What are the key challenges that you face when trying to lose weight? Please select all that

apply

Consumers currently on a diet

Top five reasons


47%

57%

63%

70%

73%

I find it difficult to stickwith a program

I find it difficult to getstarted on a program

I find nutritional labelingto be complex and

confusing

I am prone to enjoyingtreats and moments of

indulgence

I am not usually fullyaware about how much

sugar is in a product

40%

46%

58%

58%

83%

I eat out-of-homeregularly

I find it difficult to stickwith a program

I find nutritional labelingto be complex and

confusing

I am prone to enjoyingtreats and moments of

indulgence

I am not usually fullyaware about how much

sugar is in a product


Snacking Reclassified and the demand for Healthier Occasions

Consumers want snacks that offer genuine nutritional value, especially as meal-time habits become

more fragmented

Consumers want snacks that they deem to be guilt-free and conveniently nutritious

Proportion of consumers who say they

have switched from traditional snack

products such as chocolate to high

protein/low sugar alternatives in the last

twelve months

Proportion of consumers who say that

they expect snack products to offer a

nutritional boost

58% 60%

41%


43%

73%

29%



Promote the message of Conveniently Nutritious

It is critical that products are seen as offering health, taste and convenience simultaneously


Middle East who are on a diet say that

they are prone to moments of

indulgence


Middle East say they have made

plans to reduce sugar intake but not

actually done so


AGENDA



Weight Management


Digestive Health

Conclusions


Trust towards food and drink brands is falling

Proportion of consumers who say that they have become less trusting of the following

types of brands in the last two years

Nigeria

Saudi

Arabia

South

Africa

Food Beverages Supplements

37%

29%

22%

33%

27%

36%

31%

20%

34%

Linked to the issues of health and

sustainability, consumers are becoming

less trusting of brands – something that will

directly impact loyalty

More so than ever, it is critical that brands

demonstrate maximum transparency when

it comes to how products have been

formulated and distributed


Consumers do not believe brands are doing the right thing

38%

40%

41%

43%

45%

I have witnessed firsthand the damage that big brands aredoing to the environment

I believe that brands can make misleading claims aroundlocality and product

I believe that brands are only interested in profit margins andnot corporate and social responsibility

I believe that brands can make misleading claims aroundenvironmental and ethical policies and practices

There have been too many stories about brands makingmisleading product claims

Top five reasons why consumers in Africa and the Middle East say that they do not fully trust

brands

Consumers believe that brands can make

deliberately misleading claims when it

comes to the health and environmental

credentials of brands – this is a major issue

at a time consumers are linking the two

issues

Brands need to look for new and innovative

ways to help increase trust amongst

consumers. Blockchain technology,

although in its infancy, can help achieve

this


Blockchain can help enhance perceptions of trust


Middle East say that they regularly

research products and brands before

purchasing

Consumers want maximum reassurance when it

comes to the practices and policies. Although

consumer are not overly familiar with blockchain,

when told about it they have favorable perceptions

Nigeria

Saudi

Arabia

South

Africa

Aware of blockchainWould use technology

when given definition

Would use to research

ingredients

14%

14%

10%

60%

57%

48%

25%

43%

14%

Blockchain can provide information on the health, sustainability, and quality of key product

attributes, such as ingredients


AGENDA



Weight Management


Digestive Health

Conclusions


Digestive health problems are common in Africa and the Middle East

3%

8%

15%

16%

17%

21%

21%

22%

24%

29%

29%

Crohns disease

Diarrhea associated with antibioticuse

Abdominal pain

Lactose sensitivity/intolerance

Constipation

Bloating

Stomach aches

Diarrhea not associated withantibiotic use

Gluten sensitivity/intolerance

Gas

Irritable bowel syndrome

Digestive health problems are a major health issue in the region

Proportion of consumers in Africa and the Middle

East who say that they regularly suffer from the

following health problems87% of consumers in Africa and the

Middle East say that they have

looked to improve their digestive

health over the last twelve months

Digestive health problems can impact

quality of life in the short-term and

lead to more serious health problems

in the long-term


Consumers are embracing the concept of Healthier for Longer

Consumers feel that all aspects of health are interlinked and, as such, should not be treated in

isolation

Consumers feel that improving their digestive health will improve other aspects of their physical

and cognitive health


Middle East say that they are

interested in products that address

digestive health, even if they do not

suffer a specific condition


Middle East say that they are

interested in more information around

improving their digestive health


Middle East say that they recognize

the link between good digestive

health and good overall health


Middle East say that they regularly

seek out food and drink products that

they associate with improving

digestive health


Active Nutrition consumers are interested in health solutions

This creates an opportunity to position products and ingredients specifically around helping

improve digestive health

When it comes to such products, it is crucial that they are seen as healthy, tasty, and affordable

Proportion of consumers in Africa and the Middle East who say that they find food and drink

positioned around the following claims either appealing or very appeal

45%

50%

51%

54%

55%

55%

56%

56%

57%

59%

61%

63%

63%

64%

Relieves constipation

Promotes a healthy immune system

Relieves symptoms of Irritable bowel syndrome

Relieves discomfort

Relieves abdominal Pain

Supports bowel regularity

Improves digestive health

Supports healthy gut flora

Relieves cramps

Supports digestive health

Support healthy microbiome

Relieves bloating

Controls symptoms of diarrhea

Relieves gas


AGENDA



Weight Management


Digestive Health

Conclusions


Demographics

Generation Z (born from

1997 onwards) are most

likely to say that they are

concerned about the state of

the environment

Millennials (born between

1981-1996) are the most

likely to be changing their

diets to lead a more

sustainable lifestyle



likely to say that they are on

a diet in order to try and lose

weight



likely to demonstrate

deteriorating levels of trust

when it comes to brands

Baby-boomers (born

between 1946-1964) are the

most likely to report

suffering from digestive

health problems

Generation X (born between


likely to say that they have

looked to improve their

digestive health over the last

six months


Conclusions

Consumers are embracing the concept of “good for me, good for Earth”. As such, they are looking

to make changes to their diets to lead a more sustainable lifestyle. This is because they believe that

protecting the environment is a collective effort. This will drive opportunity when it comes to plant-

and insect-based products

Consumers recognize that changing lifestyles are having a negative impact on their diets. Whilst

they are trying to be proactive in addressing this, they admit that it can be challenging. As such,

consumers are seeking out functional snacks and products that they associate with being

conveniently nutritious and better-for-you

Products and brands are not always seen in a favorable light by consumers. This is because

brands can be seen to be motivated by corporate greed rather than the best interests of the

individual and the environment. As such, it is crucial that brands demonstrate more transparency

than ever before when it comes to policies and practices

Digestive health problems are common across the region. At the same time, consumers are

embracing the concept of holistic health, believing that all aspects of health are interlinked. As

such, they want food and drink products that help aid the gut, believing this will also improve other

areas of their health


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