How well do you know the mainstream consumer?€¦ · Mintel strategists provide custom problem...

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How well do you know the mainstream consumer? Presented by Lynn Dornblaser David Jago

Transcript of How well do you know the mainstream consumer?€¦ · Mintel strategists provide custom problem...

How well do you know the

mainstream consumer?

Presented by

Lynn Dornblaser

David Jago

Our toolbox

PRODUCTS

Mintel purchases

1,500 new products,

in 62 countries,

every day

MENU

INSIGHTSMintel collects

thousands of US

menus every year to

track trends in the

menu optimization,

flavors, ingredients

and preparation

CONSULTING

Mintel strategists

provide custom

problem solving and

actionable advisory

TRENDS

Mintel is a world

leader in trend

spotting and market

predictions with

observers and

analysts in 20

countries

CONSUMERS

Mintel conducts

primary research

with 40,000

consumers around

the world every

month

ANALYSTS

Mintel has 200

global category,

consumer and

functional analysts

A FEW WORDS ABOUT THE

"MAINSTREAM" CONSUMER

Who is the mainstream shopper?

She (or he) is many things.

BUT SO DOES ITS OPPOSITE

92%Of single non-parents do the

grocery shopping (66% as the

sole shopper, 26% doing it

jointly).

THE STEREOTYPE DOES

HOLD TRUE

99%of mothers with children under the

age of 18 do the grocery shopping,

either as the sole shopper (72%) or

by sharing it (27%).

POTENTIAL WITH GEN Z

84%Of Generation Z consumers do the

grocery shopping (40% as the sole

shopper, 44% doing it jointly).

Remember, GenZs are 18-24.

Source: Lightspeed/Mintel

Keep in mind that a LOT of households do not have children

Two-thirds of US households do not have children; the percentage continues to increase.

Source: US Census Bureau

34.4%

65.6%

30.5%

69.5%

Share of households with children Share of households without children

US: Presence of children in the household

2006

2016

What's important to consumers: Food must taste good

Base: 1,941 internet users aged 18+ who are responsible for food/drink shopping

Source: Lightspeed/Mintel

87%

68% 65% 62%57%

51%47%

36%

Tastes good Fresh Nutritious Fits my budget High qualityingredients

Easy to prepare Convenient Filling

Which of the following are important to you when choosing which food/drinks to buy? Please select all that apply

Taste, value, excitement drive purchase

ValueImportant to everyone, and

continues to drive purchase

across consumer groups

TasteYounger consumers more driven

by flavor, but are disappointed in

many of today's choices

ExcitingFor younger consumers, this is

almost as important driver as

taste

Source: Mintel Purchase Intelligence

Eating patterns are different now: Everyone snacks

17% of all consumers are super snackers (snacking 4+ times per day). But some groups snack

significantly more often.

YOUNGER MILLENNIALS

28%are Super Snackers (it is 24% for

all Millennials)

GENERATION Z

29%are Super Snackers

PARENTS WITH KIDS 5 AND

UNDER

28%They can't possibly have time for

a proper meal!

Source: Mintel/Lightspeed

Eating out is dependent on who you are

FINE DINING: OLDER

28%of Baby Boomers have eaten at

fine dining restaurants in the last

three months, compared to 24%

for all consumers

FAST FOOD: MOMS

77%of moms with children in the home

have eaten in fast food restaurants

in the last three months, compared

to 71% for all consumers

STATUS: YOUNGER

28%of Younger Millennials agree that

"where I choose to eat out reflects

who I am as a person," compared

to 20% for all consumers

Source: Mintel/Lightspeed

WHAT KINDS OF PRODUCTS ARE

CONSUMERS LOOKING FOR?

A look at products that fall into three groups:

• Products that started as niche and became mainstream

• Products that are niche and are growing

• A few products that are niche and likely will stay that way

Some niche products can go mainstream in a big way

Source: INC. magazine

• Consumers are just as likely to say they would buy RxBarsas other high protein bars

• All bars of this type can be polarizing, with concerns regarding taste and cost

• According to The Chicago Tribune, the line contributed $110 million in sales in the first six months of 2018

In favor: "These bars are a great healthy source of protein and come in tasty flavors. Ingredients are clearly laid out on the package." -- Female, Northeast, 35-54

Not in favor: "Its overpriced for what it is. This is the kind of product that appeals to pretentious but uninformed types who are more interested in a product if it is more expensive than other similar items." -- Female, Midwest, 35-54RxBar Chocolate Chip Protein Bar

RxBar: Consumer sentiment a bit mixed, but overall positive

Source: Mintel Purchase Intelligence

+300%

increase in new product

introductions, 2014-YTD 2019

+86%

increase on US restaurant menus,

Q42014-Q42019.

Niche gone mainstream: Cauliflower

Source: Mintel GNPD

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US: New product introductions with cauliflower, by category, 2014-September 2019

All other categories

Soup

Bakery

Side Dishes

Sauces & Seasonings

Snacks

Meals & Meal Centers

Fruit & Vegetables

Trend trajectory:

August 2015: First introduction, organic, from Trader Joe's (niche)

November 2016: Birds Eye Steam Fresh Veggie Made riced

cauliflower in three varieties enters the market (mainstreaming)

April 2019: Walmart introduces riced cauliflower under its Great

Value brand (mainstream)

Trader Joe's Organic Riced

Cauliflower, introduced August 2015

What's behind the growth? Cauliflower rice

Source: Mintel GNPD

Cauliflower rice appears to be here to stay:

• Consumers are as likely to say they would buy the

cauliflower rice products on the market as regular rice (38%

purchase intent)

• Links to trends of veggie-forward foods, clean and simple

ingredients

• Green Giant Riced Cauliflower, highest purchase intent of

66%

• "looks tasty and healthy with riced cauliflower" - Female,

West, 55+

Green Giant Riced Cauliflower,

Broccoli Florets & Cheese Sauce

Consumers continue to drive the trend

Source: Mintel/Lightspeed, Mintel Purchase Intelligence

Cold brew coffee is hot (and niche gone mainstream)

Introductions are up, purchase intent is up, overall consumption is up.

YOUNGER CONSUMERS

39%of consumers ages 23-40 say

they would buy cold brew coffee,

compared to 25% for all

consumers

COLD BREW RISING

22%of global RTD coffee launches

were cold brew in Jun 2018-May

2019, up from 15% over the

same period in 2017-18

DRINKING MORE

+5%increase in consumers who say

they drink cold brew coffee, 2018-

2019. In 2019, 22% say they drink

any other type of bottled coffee

Source: Mintel/Lightspeed, Mintel Purchase Intelligence, Mintel GNPD

Mainstream consumers

understand cold brew, but don't

quite "get" nitro.

"I'd like to try cold brew coffee,

but I don't know what the "nitro"

part's all about." - Female,

Northeast, 35-54

Nitro Cold Brew Coffee, purchase intent 13%Aldi Organic Cold Brew Coffee, purchase

intent 40%

While cold brew is hot, nitro is not (yet?)

Source: Mintel Purchase Intelligence

NITRO TO GROW?

20%of GenZ consumers have had

carbonated cold coffee,

compared to 13% of all

consumers

While cold brew appears mainstream, nitro is not.

• Nitro less well-known among most consumer groups

• But, look to younger consumers to drive growth in the future

"I’ve always wanted to try the nitro cold brew, I’ve heard it’s good."

-- Female, South, 18-34

A bifurcation in RTD coffee ahead

Source: Lightspeed/Mintel, Mintel Purchase Intelligence

Niche and growing: Blends of animal and plant protein

YOUNGER CONSUMERS

79%of US Millennials eat meat

alternatives, compared to 53% of

Non-Millennials

RELATIVELY FEW

VEGETARIANS

6%of US adults say they eat a

vegetarian diet, but 13% of Gen

Z and 10% of Millennials say

they do.

TASTES LIKE MEAT

54%of adults in the US say that meat

alternatives should closely mimic

the taste of meat

Source: Lightspeed/Mintel

Plant-based proteins appeal for their health reasons

However, the number one motivation for eating plant-based protein is taste – a "must-have" for

repeat purchase.

Base: 1,876 internet users aged 18+ who eat plant-based proteins Fieldwork: October 2017

Source: Lightspeed/Mintel

52%

39% 39%

31%

16%13% 11% 10

Taste Health concerns Avoidingprocessed foods

Weightmanagement

Muscle growth Environmentalconcerns

Animalprotection

Eating avegetarian diet

Why do you eat plant-based foods?

US consumers who said they

would buy the blended meats

are far more likely to say they

would add them to their current

shopping repertoire. Note that

purchase intent for both groups

is equal.

Insight: Blended meats likely

have greater appeal to a

broader range of consumers.

Consumers more likely to add blended proteins to shopping

Source: Purchase Intelligence

16%

21%*

63%*

22%

41%

37%

New Purchase

Replacement

Additional Purchase

Purchase patterns of consumers who say they would buy "blended" meats or meat alternatives

"Blended" meats Meat alternatives

Blended and organic

Few blended products appear in retail

Blend of chicken and ancient grains Blend of beef and mushrooms

Very few new product introductions, but

growing exponentially, and about half from

the US

6% of US consumers follow a ketogenic

diet, compared to 10% gluten-free, 3%

paleo

Keto at 8% among Gen Z and Millennials

Niche and growing: Keto

Source: Mintel GNPD, Lightspeed/Mintel

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Global: New product introductions with a keto claim, by region, 2014-September 2019

Latin America

Middle East & Africa

Europe

Asia Pacific

North America

Coffee pods, but YOU add the MCT oil to make it bulletproof

Sales of about $300,000 in 39 weeks, and 5% distribution

Purchase intent data follows the sales data: purchase intent 12%

vs 24% for all coffee pods

$11.99 for 10 ($1.20 each)

"Over a dollar per K cup--that's crazy!" - Female, West, 55+

Bulletproof 360 The Original Medium

Roast Single Serve Coffee Pods

Keto as niche: Bulletproof coffee pods

Source: Mintel Purchase Intelligence

Coffee pods, with all the components for "bulletproof" coffee--MCT

oil, butter, Himalayan sea salt

Sales of $950,000 in 30 weeks, 20% distribution

Reflected in purchase intent: 28% purchase intent for this product

compared to 24% for all coffee pods

$14.97 for 16 (94 cents each)

"I love french vanilla flavored coffee especially pods!!! and keto

friendly is a huge plus" - Female, Midwest, 18-34

"I like to stay healthy and like coffee" - Male, Midwest, 35-54 Rapid Fire French Vanilla

Flavored Ketogenic Coffee Pods

Keto going mainstream

Source: Mintel Purchase Intelligence

Perhaps niche: Faux fish

Consumers avoid animal-based foods in order to add more plant-based to their diets.

ETHICS

19%do so for ethical reasons

HEALTH

23%avoid animal-based proteins

because of health issues

ENVIRONMENT

16%do so for environmental reasons

Source: Lightspeed/Mintel

Good Catch: "Plant-made, chef-mastered" tuna alternative

The product is costly: $4.98 for 3.3oz pack, and consumers are turned off by that:

"I do not take out loans to buy tuna." - Male, South, 55+

Purchase intent at 30%, compared to 28% for all tuna

But it is higher among specific groups: 38% among 18-34 yr olds and 45% with kids 6-11

"I like that there is a substitute for tuna I've never seen before. The packaging, with the story on the back and all the good info on the front. I like it and I would want to try it." - Female, South, 18-34Good Catch Naked in Water

Fish-Free Tuna

Faux fish: Biggest barrier right now is price

Source: Mintel Purchase Intelligence

60% of introductions are in Europe,

although the trend got its start in Asia

One in four Germans see insects as a

natural source of protein

16% think it is healthy

Niche to stay: Insects/worms

Source: Mintel GNPD, Mintel Purchase Intelligence

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Global: New product introductions with insect protein, 2015-September 2019

All other categories

Sauces & Seasonings

Sugar & GumConfectionery

Processed Fish, Meat &Egg Products

Bakery

Snacks

Only 14% of consumers say they would buy these Chirps corn

chip alternatives, compared to 40% for all corn chips

Consumers don't see them as healthy or environmentally friendly,

but some consumers liked the protein, and some thought eating

insects is fun…However.

"Crickets. I know people eat bugs and they are a source of

protein, but unless I am stranded without food for a week, bugs

are not food." - Male, South, 35-54

Chirps Cheddar Cricket Chips

But US consumers just aren't feeling it . . . .

Source: Mintel Purchase Intelligence

WHAT'S AHEAD

It sounds pretty basic, but products MUST be:

• Healthy, whatever that means (for me, to suit my lifestyle, for my family,

for the planet…)

• Transparent

• Simple (to understand)

• Tasty

REMEMBER

(Mainstream) consumers don’t know what we know, don’t think like we do

What we think is a niche, or a fad past its sell-by date, might still be at the

discovery stage for many consumers

Bear in mind the textbook model of adoption:

• Innovators 2.5%

• Early adopters 13.5%

• Mass followers (early majority 34%, late majority 34%)

• Laggards 16%

WHAT THIS ALL MEANS

For big companies: Watch the little guys, work out when it makes sense

for you to get in to the trend

For small companies: Continue to develop for your core consumer, but

identify how you can connect to mainstream consumers

Be honest and objective regarding the possible longevity of your product

and the trend behind it

Our expert analysis of the highest quality data and

market research will help you grow your business.

The world’s leading market

intelligence agency

Lynn Dornblaser

Director, Innovation & Insight

[email protected]

Meet the Experts

David Jago

Director, Innovation & Insight

[email protected]