Top 10 Global Consumer Trends 2021
Top 10 Global Consumer Trends 2021
Top 10 Global Consumer Trends 2021
January 2021
INTRODUCTION
TOP 10 GLOBAL CONSUMER TRENDS
▪ Build Back Better
▪ Craving Convenience
▪ Outdoor Oasis
▪ Phygital Reality
▪ Playing with Time
▪ Restless and Rebellious
▪ Safety Obsessed
▪ Shaken and Stirred
▪ Thoughtful Thrifters
▪ Workplaces in New Spaces
CONCLUSIONS
INTRODUCTION
Scope
Build Back Better Consumers demand that companies care beyond revenue, and they no longer
perceive businesses as profit-driven entities. Protecting the health and interest
of society and the planet is the new expectation, following Coronavirus (COVID-
19), in order to Build Back Better. Companies should help reshape the world in
a more sustainable way, leading a shift from a volume- to a value-driven
economy and turning the tide on social inequity and environmental damage.
Craving Convenience Consumers are craving the convenience of the pre-pandemic world, longing for
the ease taken for granted before daily habits were upended. Businesses are
under pressure to rapidly adapt their operations to develop a resilient customer
experience while maintaining convenience. Companies must preserve the swift
and seamless shopping journey across all channels.
Outdoor Oasis Health threats, indoor meeting and mobility restrictions and the rise of remote
working results in consumers turning to an Outdoor Oasis for leisure and
recreation. Some are even considering moving from densely-populated cities to
rural areas. Businesses incorporated advanced health measures and moved
events outside, allowing consumers to reconnect out of the home more safely.
Companies should pivot their product development strategy to encompass the
tranquillity of rural living in urban environments to better satisfy city scrapers
Phygital Reality Digital tools allow consumers to stay connected while at home and re-enter the
outside world safely as economies reopen. Phygital Reality is a hybrid of physical
and virtual worlds where consumers can seamlessly live, work, shop and play
both in-person and online. Businesses can integrate virtual processes into their
physical spaces to give consumers who prefer to stay home the comfort to
venture out instead. Delivering virtually-enabled at-home experiences remains
imperative to drive e-commerce sales and gather data.
Playing with Time Consumers are now both able and forced to be more creative with their time in
order to get everything done. Businesses should provide solutions that address
the consumer desire to maximise time, offering increased flexibility, especially with
products and services that can be accessed from or near the home.
Restless and Rebellious Consumers are fed up. Distrust in leadership has become the norm. Bias and
misinformation are causing a crisis of confidence. Having suffered, put others first
and gone without, these self-care aficionados are now rebelling, placing their own
needs and wants first. Companies can cater to the Restless and Rebellious via
more precise marketing on social media and gaming, where they can give
consumers a voice and pressure social giants to take on misinformation.
Safety Obsessed Safety Obsessed is the new wellness movement. The fear of infection and
increased health awareness drive demand for hygiene products and pushes
consumers towards contactless solutions to avoid exposure. Companies should
implement enhanced safety measures and innovations that target concerns to
reassure consumers.
Shaken and Stirred The global pandemic reconfigured daily lives, testing mental resilience, restricting
experiences and provoking economic shocks. Consumers have a new
understanding of themselves and their place in the world in pursuit of a more
fulfilled, balanced and self-improved life. Businesses must provide products and
services that support resiliency for mental wellbeing and to help Shaken and
Stirred consumers weather adverse circumstances to gain trust.
Thoughtful Thrifters Consumers are cautious and frugal. Discretionary spending is declining due to
the uncertain economic environment. Thoughtful Thrifters are prioritising value-
added and health-conscious products and services. Companies should pivot
towards value for money propositions, offering affordable options without
sacrificing quality. Premium attributes should be reinforced with a new empathetic
story and have a strong tie-in with health and wellness, self-care or mental
wellbeing.
Workplaces in New Out of office took a new meaning in 2020. Workplaces in New Spaces had a
Spaces rippling effect on consumer life, from clothing choices to technology spend to
eating habits and beyond. Consumers are searching for new ways to define the
beginning and end of their workdays, as they struggle to manage their time.
Businesses must support work-life balance, productivity and communication
needs. Understanding the benefits and challenges of working remotely allows
companies to bring the best of the office into the home.
▪ With consumers paying closer attention to companies’ actions during lockdowns, brand activism gained a
new sense of social purpose. In 2020, 73% of professionals believed sustainability initiatives were
considered critical to success. Businesses had to prioritise social action and help consumers achieve more
sustainable lifestyles.
▪ Business leaders openly communicated with compassion during the pandemic, taking the initiative to
protect staff, customers and communities. In Euromonitor’s October 2020 COVID-19 Voice of the Industry
Survey, 89% of professional respondents agreed their companies were offering support to employees and
65% were offering support to local communities and suppliers and business partners.
▪ COVID-19 has given companies the chance to Build Back Better and stand up for the most vulnerable
which is helping them connect emotionally with consumers. They will have to continue to act with purpose
beyond the pandemic to retain consumer trust.
Businesses Social Initiatives 2020
Offering support to employees
▪ Build Back Better consumers are expected to take social and environmental issues more
Force seriously, rewarding businesses that use their profits as a force for good post-lockdown.
for good
▪ Embracing purpose-driven initiatives is the way to build back better for positive effects on the
People triple bottom line.
planet profits
▪ Brands thriving to re-adjust and rebuild a greener and more equitable world will gain not only
Social a competitive advantage, but also the necessary social licence to operate.
licence
▪ Build Back Better will not only improve business resilience but also brand reputation and
Purpose- financial value.
driven
movement
▪COVID-19 disrupted supply chains, overwhelmed Preferred In-Store Shopping Features 2020
customer service and caused delivery delays.
Select items, immediately walk out
▪Companies are now challenged to cultivate a resilient of store with purchase executed
customer experience while upholding what made their Scan items while shopping, pay by
business convenient in the first place. mobile phone
Key takeaways
▪Agile innovation allows digital solutions to compete
with the care and attention usually reserved for in-
person services.
The retail value of the premium nail polish ▪Shortened application time and quick removal
market was USD98.5 million in 2019 becomes preferable to scheduling in-salon
appointments.
Source: ManiMe
68% of consumers over the age of 60 prefer speaking with human representatives
Source: Currys PC World
▪Currys PC World launched ShopLive, a video- ▪The consumer benefits by being able to combine
calling service with in-store experts to assist while expert advice, a virtual in-store visit, and the
shopping online. convenience of being able to fact check or compare
prices while shopping online all from the comfort of
▪In-store experts serve to replicate their
their home.
assistance for customers via one-way video call.
▪Pop-up messages ask online customers if they Key takeaways
would like advice on their purchase, and only ▪Replicating the in-store customer experience with
need a microphone to participate. digital convenience overcomes the disparity between
young and old consumers' preferences for online or
in-person interactions.
▪ Consumers want seamless experiences that cater to their established preferences and
shopping patterns. High-touch and relationship-driven businesses have an opportunity to test
Covid as self-serve, touchless or unattended operations to create streamlined customer service.
testing
ground
▪ Businesses can save time, guarantee availability and fulfil delivery through QR codes,
reservations and identifying busy and calm shopping periods, among other initiatives -
Time control all of which cater to new consumer routines.
Making it ▪ Solution-based products and services will drive Craving Convenience forward.
easy
▪Businesses are recreating indoor occasions and Global Gardening Sales 2016-2024
experiences for the outdoors such as open-air 140 6%
concerts, movies, fairs and operas.
▪Restaurants, cinemas and fitness studios adapted 120
5%
quickly, introducing outdoor cafés, drive-in cinemas
and open-air exercise classes. Lodging options 100
such as secluded property rentals and glamping
Y-o-y growth
80
▪In addition, DIY trends and the desire to connect
3%
with nature are driving the growth of home and
60
gardening products and services around the world.
Public transport and ride-sharing have also been 2%
replaced with healthier and safer habits such as 40
Key takeaways
▪Agile adaptation to hold indoor events in open-air
venues is crucial for entertainment business survival.
By relocating outside, the organisers manage to
avoid major ticket returns, recover at least part of
their investments and even increase popularity of the
events compared to those held indoors.
Recreation, entertainment and arts across
the world generated USD1.4 trillion ▪Rediscovering historic open-air venues can benefit
businesses through creating higher awareness and
turnover in 2019
the right atmosphere for the event too.
Source: Vilnius City Opera, Photo taken by Gabrielius Jauniškis
▪ Integrating Outdoor Oasis features will become essential for leisure and entertainment
providers to attract new customers and retain loyalty. Investment is needed whether it is to
Replicate build temporary structures, improve existing infrastructure or even reinvent for the long term.
indoor
experiences
▪ Open-air activities remain beneficial, especially the therapeutic effects of the outdoors on
Open air still mental wellbeing.
beneficial
▪ Adapting to suit adverse weather conditions and addressing health concerns will be major
business tactics to cater to Outdoor Oasis consumers. Creating both indoor and outdoor
Adopting offerings will ensure business continuity.
business
models to
suit
cosmetics, beverages and other personal goods Mobile PC Tablet Wearables Other Devices
Source: Euromonitor International
with support and tools from retailers and brands.
▪These blended physical and digital realities give
more consumers access to much more while giving USD15.8 billion global personal accessories
business a wider target audience. e-commerce sales in 2020
Key takeaways
▪With large, in-person sporting events typically
representing key marketing opportunities for brands,
especially those in sportswear or packaged foods,
42.6% of global consumers run or jog at hosting such events virtually by themselves or in
least weekly partnership with others can be a cost-effective option
Source for image: Asics Runkeeper Press Kit for reaching target audiences.
▪ Newly developed habits will keep consumers engaged in virtual events and interactions for
New habits both convenience and entertainment. Virtual tools will become integral to operations.
support
engagement
▪ Businesses can develop a Phygital Reality strategy using apps to facilitate onsite virtual
experiences and partnering with technology providers to recreate in-person occasions at
Social home.
licence
▪ Companies that deliver safe and memorable experiences via multiple methods and platforms
will develop loyal customers. Incorporating Phygital Reality will continue driving sales and
Safety first assist with data collection, both online and in-store.
▪Playing with Time consumers have greater flexibility across "Time for Myself" Priority by Year
all areas of their lives. They can work, shop, play, learn and 2016/2017/2019/2020
60
exercise at any time of the day or night.
▪Businesses can respond by developing a 24-hour service
culture, tailoring offerings around increasingly varied 50
consumers’ schedules. For example, always-available
virtual services such as on-demand workouts and
40
entertainment give consumers similar experiences in their
% of respondents
own homes, at a time that suits them. For example, Apple’s
Fitness+ subscription service enables consumers to 30
workout at home at a time that suits them.
▪Brick-and-mortar business locations will also evolve to offer
20
consumers the flexibility their new schedules demand.
▪Spending less time outside and staying closer to their
10
homes means less footfall especially in city centres.
Businesses need to pivot to remain visible, may be even
consider relocating to give consumers easier access near 0
the home. 2016 2017 2019 2020
▪Foodservice operators and retailers are also reimagining Source: Euromonitor International
their physical outlets, using the spaces for takeaways,
online order fulfilment or curbside pick-up services, in 46% of consumers value online virtual
response. experiences
▪ Playing with Time will remain a strong trend as consumers continue to stay at home and
Remains a travel less.
force
▪ Companies catering to Playing with Time stand to be seen as partners, helping consumers
adapt to a new way of life whereby activities are scheduled in a non-conventional order to
Buddying up suit individual time demands.
▪ This new level of flexibility will change how businesses operate, requiring a 24-hour service
Resetting culture.
the business
clock
▪ Companies must be aware of how customers are adjusting routines and using their time to
Adjusting to better position products and services and develop new solutions.
new patterns
▪Actions taken to control the pandemic increased debt to Metrics of Disillusionment from Prior to the
households, governments and businesses. However, COVID-19 Pandemic
50
after the lockdown was lifted in China, buyers flocked to
luxury brand stores; French fashion luxury brand Hermès
sold USD2.7 million in Guangzhou in a single day. 40
▪The Restless and Rebellious are “revenge shopping” -
shopping extravagantly after being restricted and
% of respondents
homebound for several months. In addition, consumers 30
▪Companies and social media players must work together Source: Euromonitor International Lifestyles Survey, fielded
January to February 2020
to ensure accurate and relevant information is shared or
run the risk of losing consumer confidence, trust and 29% of consumers are actively involved
credibility. in political and social issues
Key takeaways
▪Having suffered, put others first and gone without,
consumers are rebelling, putting their own needs
and wants first. Companies should consider how
to cater to a me-first mindset.
▪More precise marketing on social media and via
gaming will be key companies navigating the
rough waters of 2021; they can give a voice to
those that are increasingly plugged in and online.
▪Virtual spaces will be increasingly relevant for
socialising, gathering, and organising, and
Video game sales are set to increase by businesses will be at a loss if they do not
over 9% in value terms globally in 2020 consider them as avenues for growth and
Source: Euromonitor International
branding.
Key takeaways
▪Maintaining solidarity in the face of destruction and
theft speaks volumes; this can be accomplished by
acknowledging the generosity that large companies
are capable of.
▪In 2020, Brian Cornell, chairman and CEO of Target
acknowledged the injustices and pain black people in
the US face and noted the company’s emergency
Walmart sales in Chile via e-commerce response for affected communities and employees.
grow by 32% in 2020 on 2019 ▪There is a business case for corporate social
Source: Euromonitor International responsibility: value-driven companies gain a
competitive advantage.
▪ Disillusioned consumers plugged in during 2020 more than at any point in history,
Sceptics foreshadowing a continuation of the Restless and Rebellious.
rule
▪ VR and AR solutions can help drive service and connections through online streaming
V-events events, building relationships and trust with consumers.
crucial
▪ The pervasive distrust of media and online content means companies have an opportunity
and an obligation to ensure that marketing dispels misinformation. Consumers want the facts
Stand and expect brands to act.
against
conspiracy
▪ More precise marketing on social media and via gaming will be key for a company navigating
37% of 2021. Business can leverage consumer data as more online activities prevail.
consumers
share data
▪COVID-19 was the catalyst that drove sanitation Global Sales of Steam Vacuum Cleaners 2015-2024
concerns, requiring prompt responses from
10 10%
manufacturers to meet stricter health and safety
procedures. Service and payment industries were 9
among the first to respond. 8 8%
▪Grocers quickly adapted to consumers’
7
reluctance to visit crowded stores and interact
with humans, offering online ordering and even 6 6%
Y-o-y growth
Million units
robot deliveries. Society was already moving 5
towards cashless payments, and the pandemic
accelerated this transition. 4 4%
Key takeaways
▪Catering for social distanced business in response to
46% of global consumers think of growing demand for touchless transactions.
enhanced security as the most influential ▪Cashless payment, which was already in motion, is
features for them using in-person mobile set to pick up speed with safety-obsessed consumers
payments globally, post-COVID-19.
Key takeaways
▪Opportunities for tailored innovations in home
appliances are opened as consumers seek better
ways to manage at-home hygiene.
▪COVID-19-driven value-added innovations can help
operators to secure long-term growth, meeting
Haier ranked top in the global major demand from increasingly safety-obsessed
appliances market with a volume share of consumers as hygiene innovation products become
15.7% in 2019 more relevant again.
Source: Euromonitor International Digital Consumer survey 2020
▪ Safety and health will be at the forefront of consumer behaviour. Companies across
Pivoting to industries should develop robust hygiene initiatives in response to heightened concerns.
safety
▪ Businesses that incorporate exceptional sanitation features into products and services, while
Hyper focus communicating these benefits, will attract Safety Obsessed consumers.
on sanitation
▪ Consumer needs will evolve from basic hygiene to general health. As consumers turn to
Keeping an necessities, a safe and trusted brand image will be an intangible asset for businesses.
eye on
health
▪Companies offering digital products and services are Global Sales of Educational/
best equipped to help Shaken and Stirred Hobby-related Toys and Games
consumers access information and virtual 2014/2019/2024
engagements to promote self-improvement and 6,000
lifestyle balance.
5,000
▪Pre-pandemic, 46% of Generation Z and 50% of
Key takeaways
▪Nostalgia is a marketable strategy when consumer
confidence is shaken, as shoppers are less eager
to try new products.
▪This trend is also visible in the music industry,
where the remote concerts with highest
attendance are among artists with a more avid fan
following (many without hit singles in recent
years).
Sales of cereals in the US fell by 2.5% each ▪The new composition of the concert crowd is
year from 2015 to 2019, but in 2020 sales are changing the dynamic of the performances,
expected to jump by 20% whereby artists appeal more to their most die-hard
fans.
Key takeaways
▪Other remote learning platforms specialising in
marketable jobs skills are thriving through the
pandemic.
▪For example, Brazilian e-learning company Hotmart
purchased US Teachable in March 2020 for USD250
The global online education market is million. Together, the platforms have a combined
expected to reach USD350 billion by 2025 110,000+ creators teaching a variety of classes and
skills.
▪ Short-term pivots in 2020 will leave lasting scars. Consumers will continue seeking holistic
Focus on solutions over topical ones to maintain mental health.
holistic
▪ Existential threats such as unemployment and lower budgets will urge consumers to seek
Battening products and services that help them withstand future crises and life-altering events.
down
▪ Products and experiences that offer self-improvement, skill development, life balance support
Life support and financial resilience will gain traction even as the pandemic wanes.
▪ Companies should communicate how their product serves consumers in a world where they
At your are dedicating more time for themselves.
service
▪Value-conscious consumers are boosting Global Consumer Expenditure Growth by Type 2020
the sharing economy, reimagining rental,
resale and remade business models with Transport
marketing around affordability and Leisure & Recreation
sustainability.
Household Goods & Services
▪Buy now, pay later is a beneficial option for Hotels & Catering
financially cautious Thoughtful Thrifters to
Misc Goods & Services
allow these consumers to shop full price and
increase their basket size. Clothing & Footwear
Key takeaways
▪Though this is not Apple’s direct response to the
current economic recession, the launch is well-
timed, despite some challenges. As the COVID-19
pandemic has resulted in sweeping layoffs and a
global recession, consumers, particularly the youth,
are becoming more price conscious and planning
Consumer expenditure on to cut back their spending.
telecommunications equipment in North ▪It is a great case in point for other premium brands
America is forecast to drop by 12% in real to look at new launches at a more affordable price
terms in 2020 point to entice consumers amidst financial
Source: Apple uncertainly.
▪ As consumers switch to generic brands amidst economic hardship, expanding private label
offerings will benefit retailers. At the same time, companies should identify and market
Economy attributes consumers are willing to pay a premium for.
influences
spend
▪ Readjusting product portfolios, distribution channels, promotions and supply chains to cater
to Thoughtful Thrifters will futureproof businesses for a new normal. There is no one-size-fits-
A flexible all solution.
approach
▪ Brands should find innovative ways to regain value and enhance the price-value equation.
Convenience, increased online penetration, fast last-mile delivery or add-on services are
Enhancing ways companies can achieve this.
▪Some categories benefit from this migration to remote Global Fresh Ground Coffee Pod
working. Global sportswear sales for example have Sales 2018-2024
performed much better than the overall apparel and 25 12
footwear industry in 2020. Simplified grooming,
dressing and beauty routines are forcing businesses 10
to rethink their product positioning as consumers 20
resort to more casualwear and natural make-up looks. 8
% y-o-y growth
6
compact equipment to repurpose the home office 15
31% of businesses expect to invest in automation and new supply chain technologies such as the
Internet of Things, artificial intelligence, robotics, 5G and DSN
▪GoBe Robots is headquartered in Denmark, a ▪This is not just a response to social distancing post-
subsidiary of Blue Ocean Robotics which COVID-19 but is also positioned on environmental
develops and provides professional service robots credentials - reducing travel and CO2 emissions.
for humans and is a global leader in telepresence.
▪GoBe Robots creates technology that facilitates a
Key takeaways
more natural way of interacting across a virtual
workplace by reproducing the user’s face in real ▪Loss of the subtleties of human connection in a virtual
size on the screen. It uses features such as workplace is a growing concern.
multiple cameras, echo-reducing speakers, touch ▪GoBe Robots enables a more human-like workplace
screen and navigation in order to humanise virtual connection, growing social inclusion and creative
interaction. collaboration, without the need for physical presence.
In 2020, Joyoung ranked third in retail sales volume of small cooking appliances in China
▪Joyoung is a Chinese small appliances ▪Occasions such as office pantry coffee breaks
manufacturer, providing fast and efficient and picking up refreshments on the way to work
home preparation solutions such as coffee, soya trend are replaced, having them at home instead.
milk and juice making machines. Key takeaways
▪Joyoung's appliances such as its quick fix, self- ▪Focusing innovation towards changing consumer
cleaning coffee machine “One Cup” behaviour is crucial for businesses. Coffee machines
provide consumers with the opportunity to bring with minimal maintenance, cleansing requirements
“drink on the go culture” from en-route to work, into offering wider flavours of pods provides an
the home, especially during COVID-19 when opportunity for higher consumption of self-
increased time is spent at home including working. made refreshments, fulfiling demands.
▪ Office buildings will be redesigned to create connection and collaboration. Finding the right
balance between professional and personal priorities will be critical as business efficiencies
Rethinking and mental wellbeing rely on these.
office model
▪ Purchase decisions will shift towards casualisation in terms of workwear and beauty routines,
but affordable premiumisation will drive food and beverage choices to create premium drinks
Both casual and restaurant-quality meals at home.
and
premium
▪ Businesses that thrive on office footfall will need to adjust their models away from densely-
Moving out populated cities and focus on suburban locations as well as e-commerce and delivery.
of town
▪ Issues around privacy may arise as companies look to monitor employees while working
remotely. Businesses should give consumers a sense of belonging and connection through
Mindful use interactive digital engagements. Advanced technologies can help both companies and
of tech consumers maintain the same level of productivity remotely as in an office setting.
Methodology