Digitalization – MegaTrend Overview and TrendSights Analysis, 2023

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Digitalization – Consumer TrendSights Report Overview

Digital technologies are increasingly enhancing brand operations and providing benefits for consumers in the FMCG space. The benefits include providing increased efficiency as well as improved connectivity across all product categories. The innovations are also increasing convenience for consumers, saving them time, informing shopping choices, and enabling self-expression through social media and products that align with individual values.

The “Digitalization” consumer trendsights research report assesses future developments and technological impacts of the digitalization mega-trend on brands and consumers.

TrendSights: Digitalization

TrendSights: Digitalization

Key Trend Drivers •       Convenience

•       Pursuit of Optimized Productivity

•       Desire to Stay Informed

•       Personalization Demands

•       New Business Models

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Digitalization Trendsights - Importance

Digitalization is one of the mega-trend, which form the basis of consumer behavior. Evolution in next-generation shopping is spurring the rise in immersive shopping experiences. Recently, through artificial intelligence (AI) and augmented reality (AR) consumers’ interest has soared in immersive shopping experiences. In addition, consumers are increasingly researching ingredients, brand history, and product benefits digitally before purchasing. Thus, digitalization will play an important role in shaping the markets in the coming years.

Key Trend Drivers in the Digitalization

The key trend drivers for the Digitalization mega trend are the desire to stay informed, personalization demands, convenience, the pursuit of optimized productivity, and new business models.

  • Convenience- Consumers are increasingly enticed by the convenience of online food and grocery delivery services. Such services allow the delivery of full grocery shopping with the click of a button, and quick delivery from food service outlets as compared to physical shopping.
  • Pursuit of optimized productivity- Digital technology enables companies to optimize productivity through more efficient workflows. Companies can streamline processes, automate tasks, and improve operational efficiency. This increases the incentive to innovate further with new technologies.

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Digitalization – Innovations by Brands

Technology continues to enhance the daily lives of consumers, while a pet brand aims to boost convenience and autonomy. Brand collaborations centered around technology can offer consumers increased convenience on the go.

Chipotle- robot assistant, US: Chipotle is integrating advanced robotics to boost efficiency in food preparation. A collaborative robot is being tested to work alongside human employees, assisting in preparing bowls and salads. The aim is to improve worker efficiency and capacity for digital orders. Foodservice operators can look to employ similar robotics to boost efficiency, while on-the-go consumers can benefit from faster service.

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Digitalization – Relevance Across Key Industries

The key industries following digitalization practices are the packaged food and beverages industry, the personal care industry, the household care industry, babies’ and children’s products, pet products, tobacco products, food service, and the retail sector among others. For instance, in the food service sector, online food delivery remains popular, while robotics in food preparation provides an opportunity for improved efficiency. Globally, many consumers order freshly cooked food online, at least once a week, underscoring the strong dependence on such app-enabled services to feed the global consumer. Further, just over one in 10 global consumers have been using food waste apps or subscribing to meal kit delivery services to minimize food waste in the last three months, which is a reasonable proportion considering these services are still in the early stages of adoption.

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• Health concerns and online scam fear is boosting demand for improvements in informed shopping tools.

• Gen Z and Millennials are driving digitalization, with the Middle East & Africa and Central & South America being the key regions, given these regions have younger demographics.

• Millennials are the most ingredient-conscious consumer group, while Gen Z are most influenced by social media recommendations.

Key Highlights

  • Health concerns and online scam fear are boosting demand for improvements in informed shopping tools.
  • Gen Z and Millennials are driving digitalization, with the Middle East & Africa, and Central & South America being the key regions, given these regions have younger demographics.
  • Millennials are the most ingredient-conscious consumer group, while Gen Z is most influenced by social media recommendations.
  • Consumers’ online activities have increased significantly during the COVID-19 pandemic. Being online or using online tools for shopping and communication has become essential for many consumers.
  • The influence of Digitalization on young and mature consumers shows the most significant difference. Indeed, some young consumers were born in the digital era, when the speed of technological development was gaining momentum.

Reasons to Buy

  • Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
  • Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
  • Access valuable strategic take-outs to help direct future decision-making and inform new product development

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Table of Contents

TrendSights: Digitalization

Trend Snapshot

Trend Analysis

• What?

• Why?

• How?

• Who?

Take-Outs and Implications

• What Next?

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