Manufacturers ‘gambling’ on the increasing influence of health, Canadean

Posted by AFN Staff Writers on 17th November 2014
Manufacturers ‘gambling’ on the increasing influence of health, Canadean
Manufacturers ‘gambling’ on the increasing influence of health, Canadean

The fast moving consumer goods (FMCG) industry might think some trends, including a trend towards ‘healthier’ items, are bigger than they actually are, according to new findings from market research organisation Canadean.

Contrast between FMCG executives predictions and consumer demand

Canadean’s new survey of around 100 managers working in the FMCG industry found that when asked how important the desire for health and indulgence will be to the consumer over the next three years, 79 per cent of executives state health will be important, whereas only 63 per cent agree indulgence to be important.

In contrast to this, Canadean’s consumer data showed that consumers’ demand for indulgence is much greater. In 2012 consumers spent $US 600,167 million on fulfilling the desire for indulgence and luxury, whereas only $US 323,694 was spent in the same year on the desire for a healthy option.

“Some brands are getting it wrong with their perception of what consumers will want over the next three years,” said Joanne Hardman, analyst at Canadean. “The desire for an indulgent treat will always reign supreme over the need for a health kick,” she said.

Indulgence will continue to drive consumption in the FMCG market

Although many consumers will display a desire for healthier options, as they become more aware of the health risks and disease associated with unhealthy living, Canadean consumer data has predicted consumers will continue to favour indulgence over anything else over the next three years.

Owing to economic uncertainty and the pressures from everyday life, consumers will still look to treat themselves to premium and luxury items as a reward and coping mechanism.

“If manufacturers are looking to target the health-conscious audience more over the next three years, extending product portfolios as opposed to adjusting current product formulation will be preferred by consumers, as it allows them to stay loyal to the brand when they are looking for both indulgent and healthy offerings,” Ms Hardman said.