It’s important to stay ahead when the food and bakery sector is changing rapidly. Based on insights from Innova Market Insights and Australian Bakels’ global trend scouting, the company has compiled the influences that are currently shaping consumer behaviour.
From health and nutrition to cost-conscious choices and environmental concerns, Australian Bakels highlight factors that influence the consumer’s purchase decision and advise on what your business can do to meet the new demand.
FIVE ASPECTS SHAPING CONSUMER BEHAVIOUR
In a tougher world, consumers today face many challenges that directly affect purchasing behaviour and preferences. Major influencing factors include::
Focus on health and nutrition
As health and maintaining a healthy lifestyle become more central to consumers’ lives, there is a growing demand for easy access to good nutrition. People are increasingly seeking convenient yet nutritious food options that align with their health goals.
Increasing cost of living
The rising cost of living forces consumers to balance enjoyment with necessity, placing a stronger emphasis on value for money. This means that while indulgent products are still sought after, they must offer a clear value proposition to justify their purchase.
Political and global threats
In light of potential political and global threats, consumers feel the need to safeguard their resources and ensure their safety. This sense of uncertainty drives cautious and deliberate purchasing behaviours, with a preference for reliable and trustworthy brands.
Environmental concerns
The health of the planet is a significant concern for modern consumers. Many are taking steps to manage their environmental impact, which influences their purchasing decisions. Sustainable products are gaining traction as consumers look to reduce their carbon footprint.
Technological transformations
The rapid advancements in technology are transforming the way consumers shop and live. There is a dual pressure to not get left behind while also actively harnessing new opportunities. This means that convenience and innovation in shopping experiences are highly valued.
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LIFESTYLE CHANGES DRIVEN BY GLOBAL ISSUES
Global issues and challenges are prompting consumers to make significant lifestyle changes. According to Innova Global Consumer Trends 2024 Report, three in five consumers are adapting their lifestyles due to these concerns. Key trends include:
Healthier lives
Post living essentials, health and wellbeing are the top spending priorities for consumers. They are willing to invest in products and services that promote their health, reflecting a strong commitment to healthier living.
Conscious living
Motivated by a combination of financial, environmental and health reasons, consumers are adopting more conscious living habits. This includes actions that benefit both the environment and social situations, indicating a shift towards more sustainable and ethical consumption patterns.
Changing social occasions
With more flexible lifestyles, the nature of social occasions is evolving. There is a growing trend towards in-home entertainment and socialising, as consumers seek to create enjoyable experiences within the comfort of their own homes.
Evolving nature of treat and reward
Rather than splurging on big-ticket items or experiences, consumers now prefer everyday moments of happiness and smaller, more frequent treats. This shift highlights the importance of providing products that offer immediate gratification and joy in smaller, accessible formats.
These behaviours and lifestyle changes form the building blocks for current and future trends. Below is a dive into four of the most noticeable currents.
1. CONSUMERS VALUE SOCIALISING AND SPENDING MORE TIME AT HOME
Today, consumers place immense value on close connections with family, friends, and their community.
These relationships are not only a key source of pleasure but also a vital way to manage stress amid global crises. In fact, Innova Lifestyle & Attitudes Survey 2023 reveals that 35 per cent of consumers report spending time with family or friends specifically to cope with the stress caused by multiple crises around the world.
Top sources of pleasure and reward among consumers also highlight the importance of close connections.
At the top of the list are family and partners, followed closely by “me time.”
Sweet treats and other bakery items play a central role in these special moments, serving as a catalyst for conversation and enjoyment.
Whether it’s a shared dessert with loved ones or a solitary indulgence, these moments of enjoyment are cherished across all age groups, from 18-24s to those over 55.
A SHIFT TOWARDS IN-HOME CONSUMPTION AND SNACKING
The desire to strengthen bonds and enjoy special moments at home has a significant impact on consumer lifestyles and eating habits. Flexible working arrangements and the ongoing cost-of-living crisis are encouraging more consumers to spend time at home.
This shift has resulted in more in-home consumption occasions and a decrease in out-of-home eating.
Recent statistics from Innova reveal that 45 per cent of consumers globally work from home at least one day a week. Consequently, there has been a +30 per cent net shift globally towards eating at home more frequently, moving away from dining out.
The home also remains a key environment for snacking, with 78 per cent of consumers usually consuming snacks at home compared to 30 per cent at the workplace or while on the go.
This increased focus on home-based activities and the enjoyment of special moments with loved ones underscores the importance of understanding these shifts in consumer behaviour.
By catering to the desire for close connections and the convenience of home-based consumption, businesses can better meet the needs and preferences of modern consumers.
More insight: Trend Alert! Scandinavian hygge – finding joy in the cosy moments of life
2. HEALTH AND PLEASURE BECOME MORE INTERTWINED
In today’s consumer landscape, health and pleasure are becoming increasingly interconnected. People are seeking healthier spaces and ways to socialise, as well as better-for-you treats that satisfy both their cravings and health needs.
The need to “feel well,” “look good,” and “protect your health for the future” is leading many to explore methods outside of the traditional medical system.
As uncertainty escalates in the world, consumers are also looking for ways to feel more in control of their lives. This has led to a growing interest in products that offer both enjoyment and health benefits.
Eating a healthy, nutritious diet remains the number one approach to living healthily. While consumers have different diets and eating strategies, the trend is toward choosing fresh, natural and nutritious foods.
ADDRESSING PHYSICAL, MENTAL AND EMOTIONAL WELL-BEING
Living healthily also extends beyond physical needs to encompass mental, emotional, social, and spiritual well-being. This broader definition of health presents an opportunity for multi-dimensional solutions that address the full spectrum of what it means to live healthily.
Mood and mental well-being are becoming increasingly important to consumers. More people are purchasing food and beverages specifically to destress, improve brain health and enhance mood. Snacks, in particular, are often seen as a “cure” for these needs, with many consumers turning to food to feel better both physically and mentally.
By recognising and addressing these evolving consumer needs, businesses can develop products that not only provide health benefits but also bring joy and satisfaction. This holistic approach to health and pleasure will be significant in meeting the demands of consumer.
3. SAVVY SHOPPING AND COST-CONSCIOUS CHOICES
Digitally savvy consumers are taking more control of their shopping habits, finding innovative ways to make or save money while also benefiting the planet.
According to Innova Global Consumer Trends 2024 Report, personal finances are a top concern for 38% of consumers globally, making it the number one issue for families worldwide.
This financial anxiety is influencing shopping behaviours, with poor value for money emerging as the primary barrier to seeking convenient food and beverage solutions. Consequently, 29% of consumers globally report buying fewer convenience goods due to their cost.
Despite this, value for money remains a crucial driver for choosing convenient foods, especially among lower-income consumers. For 15% of consumers, the affordability of convenient foods is a key factor in their purchasing decisions.
ADAPTING TO FINANCIALLY CONSCIOUS CONSUMERS
The same research show that 31% of consumers are becoming more self-sufficient for financial reasons, seeking ways to reduce expenses and stretch their budgets. One in five consumers is turning to online shopping as a strategy to cut down on fuel costs, reflecting the increasing importance of digital presence for all types of businesses.
By understanding these savvy shopping behaviours, businesses can better cater to the needs of financially conscious consumers. Offering products that provide both value for money and convenience will be key in addressing the demands of this growing market segment.
4. MAKING ACTION FOR THE CLIMATE
As consumers become increasingly aware of climate issues, the health of the planet is one of their most pressing concerns. This heightened awareness is driving a demand for nature-related claims and eco-friendly practices from brands and companies.
According to Innova Lifestyle & Attitude Survey 2023, 42% of consumers have noticed more eco-friendly packaging in their food and beverage purchases. Furthermore, one in three consumers have observed more environmental information on product labels.
Millennials, in particular, show a higher preference for these features compared to other age groups, underscoring the importance of targeting this demographic with transparent and sustainable practices.
NURTURING NATURE AND CORPORATE RESPONSIBILITY
More businesses are recognising that their responsibilities extend beyond mere sustainability. There is an increasing expectation for brands to take proactive steps in nature protection. Consumers have clear preferences for what they want to see from companies:
- Nature protection: The highest priority for consumers, emphasising actions that directly benefit the environment.
- Sustainable packaging: Reducing waste through eco-friendly packaging solutions is a key expectation.
- Improving waste management: Effective waste management practices where residual products get new uses, rubbish goes to recycling or is handled in an environmentally friendly way.
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