In 2015, market research company Canadean predicts five key trends will shape consumer behavior in the fast-moving consumer goods (FMCG) industry:

From Mass Production to Personalization

Canadean anticipates a growing consumer preference for artisanal and handcrafted products. Consumers are seeking out products made on a smaller scale, believing this signifies higher quality and a stronger connection to the brand. Brands can capitalize on this trend by highlighting a product’s exclusivity and the care taken in its creation, appealing to consumers moving away from mass-produced FMCG items.

Healthier Ingredients

Canadean suggests that consumers will increasingly prioritize healthier ingredients and scrutinize unhealthy additives like sugar. Building on the 2014 trend of incorporating alternatives like stevia into popular beverages, the coming year is expected to see a rise in “better-for-you” products using healthier and more natural ingredients. However, manufacturers will need to prioritize both taste and innovation to overcome potential negative perceptions associated with these new ingredients and formulations.

Spicier Foods

The demand for hotter, spicier food is predicted to continue its upward trajectory in 2015. Manufacturers are expected to adapt popular trends from the restaurant industry, incorporating spicier ingredients into various products like meats, dairy, and snacks. Following the popularity of Indian and Mexican cuisines, the industry should anticipate a shift towards flavors from Southeast Asia and the Middle East.

Fusing Flavors

Canadean anticipates consumers seeking novel and intriguing products that blend familiar foods and flavors. To capture the attention of consumers seeking more than traditional offerings, manufacturers will need to continue innovating with ingredients and product positioning.

Packaging is King

With countless products vying for attention on supermarket shelves, distinctive and innovative packaging will be crucial for brands to stand out. Packaging that engages consumers through tactile elements, vibrant colors, and reflective surfaces can enhance the sensory experience. Conversely, matte finishes and premium textures can convey a sense of quality and luxury, potentially encouraging consumers to spend more.

A separate report from Canadean, “Early Signals: Future scenarios that will drive consumption and product innovation over the next five years,” identifies packaging as a leading consumer trend for the next five years. The report highlights emerging markets like Latin America, Asia, and Africa as significant areas for both packaging innovation and exciting new flavors.

Canadean analyst Ronan Stafford notes that consumers are increasingly aware of global culinary trends and are actively seeking more adventurous flavors, leading to high demand for Far Eastern and African influences. He emphasizes that as major brands focus on consumers in cities like Lagos, Jakarta, and Hanoi, they will improve their ability to cater to the value and experience-driven demands of consumers in major cities worldwide.

Canadean suggests that emerging economies will have a substantial impact on global consumer markets over the next five years. Changes in consumer behavior, industry practices, and innovations originating from countries like Mexico, Thailand, and Egypt, and their subsequent adoption by developed economies, are projected to generate a global economic impact of up to US$1.66 billion by 2018.

Stafford points out that companies are already recognizing the importance of establishing innovation centers in emerging economies to better tailor products to local needs. Notably, innovations from these emerging markets are now being reintroduced to developed countries.

Canadean predicts that women aged 45 and over, from low to middle-income households in urban areas, will be early adopters of innovations coming from companies investing in this next wave of emerging economies. Stafford explains that due to the lower incomes of many early adopters in these regions, manufacturers need to simplify product formulations, potentially using fewer ingredients to reduce costs or employing lightweight yet durable packaging suitable for less developed supply chains.

He concludes by stressing the urgency for companies to target opportunities in these emerging markets to avoid falling behind competitors, not just in terms of entering new markets but also in better addressing the evolving needs of their existing customer base.