A new report from market research company Canadean has identified what it believes to be the best opportunities in consumer markets over the next five years.
Taking out the number one position and predicted to be worth US$1.71b by 2018 is that of ‘Magic Bullet Health Solutions’. These are inclusive of ingredients such as ‘superfoods’ that offer immediate health benefits such as disease prevention, weight management and nutritional boosts.
Coming in second at a predicted value of US$1.66b by 2018, is a focus on the Next Emerging Economies which offer opportunities for new product development and innovation.
“Companies have already seen the value in setting up innovation centres in emerging economies to help tailor their products to consumer needs,” Ronan Stafford, analyst at Canadean says.
“We increasingly see pack formats developed to keep costs low in emerging economies used to target austerity-minded consumers in Europe. Meanwhile, consumers are now highly aware of global culinary trends and want more experiential flavours. This means that Far Eastern and African flavours and ingredients are high in demand,” Stafford says.
"The more big brands invest in targeting consumers in Lagos, Jakarta and Hanoi, the better they will meet the value and experience-seeking needs of consumers in New York, London, Madrid and Sydney."
The third trend revolves around “The Health Time Bomb” where society takes dramatic steps to reverse the effects of food related diseases such as obesity and type-two diabetes. This trend is expected to represent US$1.03b within the next five years.
Augmented Purchasing comes in at number four to represent US$838m by 2018, and the last trend, Trading on Trust is expected to represent US$427m with the five year period.
Stafford says that women aged 45 and over from low and middle income households in urban areas will be early adopters of innovation arising from companies investing in the next wave of emerging economies. “The low incomes of many early adopters in the next emerging economies means that manufacturers need to simplify formulations,” he says. “This includes strategies such as using fewer ingredients to lower costs or investing in lightweight packaging that is still robust enough to withstand poor quality supply chains.”
In addition to measuring the value of targeting early adopters in 2018, the report evaluates the likelihood and impact on business practices of each scenario. When all three dimensions are analysed, one scenario rises above the rest: The deep impact the next wave of emerging economies will have on consumer markets. “These opportunities in the next emerging economies need to be targeted now, or companies will lag behind their competitors on not just opening up new markets, but in better meeting the needs of their current customers,” says Stafford.
