FMCG brands are looking ahead at the trends that may set the tone and influence the 2023/24 market.
For the last two years, the FMCG sector has been under enormous pressure with its supply chain and the conflict in Ukraine laying bare the need for more robust solutions. Yet, it is still generating reliable growth and ROI. The sector is one of the few that has been able to grow despite C-19 & Ukraine conflict. The economy, consumer behaviours, buying habits, demographics and fast-changing trends, mean brands and retailers will have to continue to harness consumer input to thrive & survive.
Despite this, it’s also an exciting time as there are opportunities for growth across the sector harnessing tech, innovation from consumers & incorporating the metaverse, web 3 and local provenance into consumer journeys.
Here are 3 key predictions for FMCG trends in 2023:
1) Consumers are prioritising themselves
The pandemic changed the habits and routine that helped mould our lives & individualism, consumers also adopted a community mindset putting public health & safety as top priority. This gave consumers the chance to redefine who they are, and brands are beginning to reflect this in providing consumer representation in the ‘C-Suite’ through influencer marketing and individually created product offerings. Consumers are beginning to prioritise themselves again, through mental health, fitness, wellbeing & embracing the Metaverse to showcase more of their layers and individual personality traits.
2) Digitalised customer journeys
CPG brands are already revamping their customer journeys in a more digital and technological way. In 2023, it is expected that more innovative and digital solutions will be made available for consumer such as;
· Internet of Packaging
· NFTs
· Web 3
This will provide a new era of social signalling that will emerge as consumers feel more intertwined with the ethics & provenance of the brands in which they’re invested. This in turn will help brands demonstrate their social and wellness benefits and harness the consumer changes towards individualism, consumer involvement in innovation and offer practical solutions for convenience and reduce stress.
3) Intentional Spending will continue
Consumers are exploring, comparing, and removing items from baskets to provide today but also give options tomorrow. I myself have traded down from traditional branded goods to try alternatives. Brands & Retail will continue to provide solutions creating value for money to gain new & retain existing customers.
This will come under increasing scrutiny for consumers moving forward in 2024 as finances become more balanced and the locality/provenance & social/enviro impact of the lower cost brands will come under pressure as consumers become smarter. Wonky veg, close to expiration produce and CP with more than one usage are big trends here. Consumers will seek value in purpose, supporting trustworthy brands that make a difference as they make a profit.
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