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TOP 10

GLOBAL

CONSUMER

TRENDS

GINA WESTBROOK

ALISON ANGUS

Not to be distributed without permission.

The data included in this document is accurate according to

Passport, Euromonitor International’s market research database,

at time of publication: January 2021

The world changed for good, and bad, in 2020. The Coronavirus (COVID-19) pandemic affected us all, and we acclimatised.

Emerging habits accelerated, and how we now behave, spend and consume will never be the same. In 2021, we are

adjusting our actions, which can differ amongst consumers and sometimes conflict.

We want to make the world better — either for our own sake or

for humanity. We want new ways to make life both convenient and safe, inside and outside. Where we have the ability, we are

balancing our time creatively. Amidst the anxiety and turmoil, we seek holistic, resilient solutions, more thoughtful consumption

and, in some cases, ways to fight back.

Resilience and adaptability are the driving forces behind the top global consumer trends in 2021. The pandemic created,

influenced or accelerated each of these 10 trends, forever altering consumer behaviour. Despite the hardships faced in

2020, consumers have not given up. They continue to find their voice and push forward to advocate for a better tomorrow.

WHAT

ARE WE

IN 2021?

BuIld Back Better 3

BUILD BACK

BETTER

a Second cHance to create a

Better Future

Consumers demand that companies care beyond revenue, and they

no longer perceive businesses as profit-driven entities. Protecting the

health and interest of society and the planet is the new expectation,

following COVID-19, in order to Build Back Better.

Companies should help reshape the world in a more sustainable way,

leading a shift from a volume- to a value-driven economy and turning

the tide on social inequity and environmental damage.

BuIld Back Better 5

BETTER BUSINESSES, BETTER WORLD

With consumers paying closer attention to companies’ actions

during lockdowns, brand activism gained a new sense of social purpose. In 2020, 73% of professionals believed sustainability

initiatives were considered critical to success. Businesses had to prioritise social action and help consumers achieve more

sustainable lifestyles.

Chief executives openly communicated with compassion during the pandemic, taking the initiative to protect staff, customers

and communities. COVID-19 has given businesses the chance to Build Back Better, develop emotional connections with

consumers and stand up for the most vulnerable.

Consumers expect brands to act with purpose beyond the pandemic, with some protective measures like more flexibility

in the workplace perceived as the new normal. In August 2020, 14 senior executives from Danone, Philips, L’Oréal and

Mastercard, amongst others, formed a for-benefit organisation called Leaders on Purpose. These companies signed an open

letter proposing an economic roadmap to Build Back Better.

COVID‐ 19 delayed green technology initiatives

COVID‐ 19 delayed waste related initiatives

COVID‐ 19 delayed recycling initiatives

COVID‐ 19 delayed the development / launch of sustainable products

Short‐ to medium‐term increased use of plastic packaging

COVID‐ 19 accelerated employees' support programs

Sustainability initiatives are communicated to consumers

Sustainability helps employee satisfaction / attraction

Long‐term attention paid to how companies treat employees

Sustainability helps attract and retain employees

Social issues are prioritised over environmental issues

Offering support to local communities

Offering support to suppliers / business partners

Investing in sustainability to improve brand reputation

Communicating sustainability initiatives with employees

Offering support to employees

The CEO is a sustainability activist

The CEO leads sustainability

The CEO communicates sustainability

The company is leading sustainability initiatives amongst industry peers

The company is purpose‐driven

Balance social and environmental initiatives

Consumers will be more concerned about sustainability

Sustainability initiatives are considered critical to success

Environmental

Inititatives

Social

Initiatives

Brand

Activism

% of professionals

Purpose-Driven Corporate Response to COVID-

Source: Euromonitor International Voice of the Industry: Sustainability Survey, fielded June 2020

50%

of professionals believe their company

is purpose-driven

BuIld Back Better 6

Leaders on Purpose is a community of CEOs working towards sustainable innovations to align corporate strategies with environmental concerns.

Giki Zero helps consumers in the UK track their carbon footprint and provides recommendations to reduce their impact.

Source: Giki Zero Source: Leaders on Purpose

More businesses will reposition from a pure-profit strategy to join the purpose-driven movement. Build Back Better

will improve business resilience, brand reputation and financial value.

OUTLOOK FOR BUILD BACK BETTER

Consumers will take social and environmental issues more seriously, rewarding businesses that use their profits for good

post-pandemic. Embracing purpose-driven initiatives is the way to Build Back Better for positive effects on the triple bottom

line — people, planet and profits. Brands that rebuild a greener and more equitable world could gain not only a competitive

advantage but also the necessary social licence, or trust of society, to operate.

cravIng convenIence 8

WALK-INS NOT WELCOME

COVID-19 reduced impulse occasions, and walk-ins are now

pre-planned. Consumers must schedule most of their activities

they once could do spontaneously, such as store visits, social

events and dining out. Consumers are Craving Convenience

back and relying on the digital channel to obtain the same

level of flexibility.

The pandemic accelerated digital adoption. Digital commerce

provides a seamless experience without the in-person

component that consumers are familiar with. However, usage

varies amongst generations, and businesses need to account

for the disparity between what customers of different ages

perceive to be convenient. Younger consumers prefer digital

interactions, whereas older consumers prefer talking to human

customer service representatives.

Additional steps using connected devices are usually required

to avoid queuing and maintain social distance. Consumers

are longing for the convenience they once had when running

errands and making in-store visits on their time.

None of the above

Clerk provides a more personalised experience with the assistance of facial recognition

Receive information via personal device while moving around the store

Ability to access additional information via in‐stores kiosks

Complete purchases with sales staff who roam the store

Ability to access product information via QR codes

Virtual fitting rooms which show you how the product will fit

View additional information via interactive shelf displays

Earn loyalty points automatically when entering with the assistance of facial recognition

Scan items while shopping and make payment via mobile phone

Select items and be able to immediately walk out of store with purchase executed

% of respondents

Preferred In-Store Shopping Features

Source: Euromonitor International Digital Consumer Survey, fielded March to April 2020 68%

of consumers over the age of 60 prefer

speaking with human representatives

cravIng convenIence 9

RECAPTURING LOST IN-STORE

CONVENIENCES

COVID-19 disrupted supply chains, overwhelmed customer

service and caused delivery delays. Companies are challenged to cultivate a resilient customer experience while upholding

what made their business convenient in the first place. Guaranteed product availability or subscription services can

minimise or eliminate the number of shopping trips needed.

New methods, such as QR codes on social distancing ground markers, allow consumers to browse menus or search

products while queuing to enter or pay. The goal is to offset COVID-related inconveniences and recapture an experience

that feels normal. Currys PC World in the UK repurposed store staff to converse with customers virtually in an attempt

to replicate the in-store experience. Ultimately, retailers are seeking to capture consumers who are Craving Convenience

and desire the return of lost in-store services through the digital channel.

“Out-of-stock products, limited store hours

and long queues were the leading barriers

to click-and-collect service usage.”

Other

Do not want to talk to anyone

None of the above

Confusing in‐store signage

I usually buy from e‐commerce retailers without stores

Unhelpful staff

The time window for pick up is too far away

Retailers near me do not usually offer click and collect

The collection process takes too long

Long queues

Limited store hours

Out‐of‐stock products

% of respondents

Most Common Barriers Faced When Using Click-and-Collect Services

Source: Euromonitor International Digital Consumer Survey, fielded March to April 2020

OUTDOOR

OASIS

oPen aIr gIveS traPPed

conSuMerS an eScaPe

Health threats, indoor meeting and mobility restrictions and the rise

of remote working results in consumers turning to an Outdoor Oasis

for leisure and recreation. Some are even considering moving from

densely populated cities to rural areas.

Businesses incorporated advanced health measures and moved

events outside, allowing consumers to reconnect out of the home

more safely. Companies should pivot their product development

strategy to encompass the tranquillity of rural living in urban

environments to better satisfy city-scapers.

outdoor oaSIS 12

BRINGING THE INDOORS, OUTSIDE AND

MAKING THE URBAN, RURAL

City dwellers are searching for an Outdoor Oasis to support

their mental and physical wellbeing. Consumers still desire

socialisation and human connection despite health hazards

associated with large gatherings. An Outdoor Oasis provides

a change of scenery and enables the feeling of connectedness

while disconnecting from crowds. Dining, exercising, socialising

and relaxing in open-air venues become essential for trapped

consumers.

As remote work becomes the new normal, exchanging time

in the city for rural life is appealing. Rural communities are

less polluted, offering a healthier environment, and moving

out of costly cities helps ease the financial burden endured

during an economic slowdown. Consumers want to go back

to basics, if the technology is available to stay in touch online

and participate in virtual experiences.

New York, 20.

Tokyo, 37.

London, 12.

Moscow, 20.

Sydney, 5.

São Paulo, 21.

Manila, 28.

Berlin, 5.

Zurich, 1.

Johannesburg, 5.

0%

5%

10%

15%

20%

25%

30%

35%

40%

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,

Housing

as

a

share

of

consumer

spend

USD per capita housing expenditure

Consumer Expenditure on Housing and Total Population Size in 2019

64%

of professionals think work from home

will become a long-term change Source: Euromonitor International Note: Bubble size represents population size in millions

outdoor oaSIS 14

OUTLOOK FOR OUTDOOR OASIS

Outdoor venues or indoor alternatives will continue to be

encouraged. Open-air activities remain beneficial, especially

the therapeutic effects of the outdoors on mental wellbeing.

Businesses can replicate their indoor offerings outdoors by

building temporary structures and improving infrastructure.

Integrating Outdoor Oasis features will become essential for

leisure and entertainment providers to attract new customers

and retain loyalty.

Vilnius City Opera relocated performances

outside, making opera more accessible to the

general public and addressing health safety

measures.

lmnts Outdoor Studio built 50 individual geodesic domes for practising hot yoga outside safely.

Source: Vilnius City Opera Source: Imts

Adopting business models to suit adverse weather conditions

and addressing health concerns will be major business tactics to cater to Outdoor Oasis consumers. Creating both indoor

and outdoor offerings will ensure business continuity.

PHYGITAL

REALITY

PHYSIcal and dIgItal WorldS collIde

Digital tools allow consumers to stay connected while at home and

re-enter the outside world safely as economies reopen. Phygital

Reality is a hybrid of physical and virtual worlds where consumers can

seamlessly live, work, shop and play both in person and online.

Businesses can integrate virtual processes into their physical spaces

to give consumers who prefer to stay home the comfort to venture

out instead. Delivering virtually enabled at-home experiences remains

imperative to drive e-commerce sales and gather data.

PHYgItal realItY 17

BLENDED REALITIES DRIVE SALES AND

ENABLE DATA COLLECTION

Brick-and-mortar businesses are using technologies to achieve

Phygital Reality, implementing processes that encourage customers to safely visit onsite with the help of smart devices.

Adopting mobile reservation systems, QR codes for touchless menus and payments and in-store virtual fitting rooms are

strategies companies are taking to minimise human interactions. Businesses that were forced to close temporarily found it

imperative to integrate the virtual world into their physical spaces to bring customers back.

Businesses are offering new goods for delivery and services for

virtual consumption that can replicate out-of-home experiences. Brands can deliver new and existing solutions, both in person

and virtually, in order to reach a wide audience, offering services like personal shopping appointments through video

conferencing, VR travel experiences and crafting cosmetics, beverages and other personal goods through artificial

intelligence (AI).

Mobile Digital Commerce PC Digital Commerce Tablet Digital Commerce

Wearables Digital Commerce Other Devices Digital Commerce

Share of Global Digital Commerce Sales by Device

USD15.8 billion

global personal accessories e-commerce

sales in 2020

Source: Euromonitor International

PHYgItal realItY 18

OUTLOOK FOR PHYGITAL REALITY

Newly developed habits will keep consumers engaged in

virtual events and interactions for both convenience and entertainment. Virtual tools will become integral to operations.

Integrating virtual processes into brick-and-mortar locations is imperative to ensure consumers feel safe to return to physical

spaces. At the same time, there will be more opportunities to serve consumers inside the home with physical products and

virtual services that gather data.

ASICS offers runners the opportunity to win prizes by uploading the results of their runs.

American artist Travis Scott partnered with Fortnite to host a virtual concert inside the gaming world, which concertgoers watched on their computer screens or with VR headsets.

Source: Fortnite Source: ASICS

Businesses can develop a Phygital Reality strategy using apps to facilitate onsite virtual experiences and partnering with

technology providers to recreate in-person occasions at home. Companies that deliver safe and memorable experiences via

multiple methods and platforms will develop loyal customers. Incorporating Phygital Reality will continue driving sales and

assist with data collection, both online and in store.