Introduction

The Connectivity mega-trend reflects the inherent consumer desire to connect with both their peers and surroundings. Forging strong personal relationships is important to consumers, especially in difficult times. Similarly, a feeling of responsibility is driving the trend for ethical consumerism and actions which are motivated by a need to do 'the right thing' for the global community.

Scope

*Detailed trend analysis outlining what constitutes 'value' for consumers (trends are, after all, a reflection of what's important to consumers)

*Global in focus, but also offers country-by-country and sector insights thereby catering to top-line or more specific information needs

*Covers all major FMCG sectors, but also with applicability to wider consumer goods audiences

*One of 10 dedicated mega-trend reports outlining the most important issues shaping global consumers' buying behavior both now and in the future

Highlights

Good trend-watching is about taking the bigger-picture approach. Adopting a broader global perspective to trend-tracking facilitates better decision making by overcoming 'category myopia'. Monitoring the broader FMCG environment will enable bigger picture learning that can be applied more specifically.

Connectivity is a responsibility orientated mega-trend reflecting how global consumers are more connected to their environment. The Pew Global Attitudes Project in 2009 found that majorities in 23 of 25 countries agree that "protecting the environment should be given priority, even if it causes slower economic growth and some loss of jobs".

The effect of branding on consumers in Asia Pacific is extremely significant. These consumers not only consider what a brand means to them personally, but also how it connects them to the wider community and defines their social status.

Reasons to Purchase

*Understand the significance of the different Connectivity-aligned trends across markets and FMCG sectors to help support market diversification plans.

*Save time and gain maximal insight by using this 'one-stop-shop' resource which offers a clear and up-to-date framework for understanding consumers.

*Access data from two waves of global primary research to increase the likelihood of being 'on-trend' with NPD and marketing activities

Overview 1
Catalyst 1
Summary 1
Table of Contents 2
Table of figures 3
INTRODUCTION: THE IMPORTANCE OF TREND-TRACKING 4
Tracking consumer mega-trends is fundamental to long-term success 4
Trend-tracking insight 1: mega-trends can be classified in two ways according to desirable product/service benefits and societal complexities 5
Trend-tracking insight 2: trends are aligned with pre-existing, but evolving human values, attitudes, needs and behaviors 6
Trend-tracking insight 3: mega-trends can be broken down into trends and sub-trends to provide structure and clarity at a time of 'information overload' 7
Trend-tracking insight 4: manufacturers, retailers and researchers/futurologists perpetuate trends 10
Trend-tracking insight 5: adopting a broader, global perspective to trend-tracking facilitates better decision making by overcoming 'category myopia' 13
Trend-tracking insight 6: trends have longer-term implications than fads and can be categorized by evolvement 14
Trend-tracking insight 7: for every trend there is a 'counter-trend' while 'trend-crossover' is also an important phenomena 16
Takeouts and implications: a trend framework boosts the quality and frequency of insight generation ensuring maximum return from the broader market research processes in place 16
THE FUTURE DECODED 18
MEGA-TREND SYNOPSIS: Consumers desire an altruistic lifestyle that is rich in relationships and belonging 18
TREND: Ethical and Environmental Consumerism: awareness and concern of ethical environmental issues is at an all-time high and this increasingly directs shopper choice 20
SUB-TREND: Environmental Consciousness: consumers are increasingly concerned about the wider environment and their own personal impact 21
The vast majority of Europeans believe in the importance of protecting the environment 23
Consumers in the Americas are showing differing attitudes towards environmental issues 26
Asia Pacific consumers are showing a high level of concern about environmental issues 29
Gulf consumers have made changes to their lifestyles in order to help the environment 31
Key takeouts and implications: consumers are undoubtedly more aware of environmental issues than in the past, but not all are prepared to change long-standing habits in order to make a difference 34
SUB-TREND: Ethical Consumerism: more consumers are trying to do 'the right thing' in buying products with greater consideration for ethical principles 34
European consumers are beginning to respond to the greater availability of ethical and sustainable products 35
The 'green' behavior of consumers in the Americas is consistent with their perception about the importance of environmental issues 39
Consumers in Asia Pacific are, by and large, keen to make greener product choices 42
Gulf consumers prefer retailers to have an ethical positioning when deciding where to do their grocery shopping 46
Key takeouts and implications: increasing interest in the environment and general ethical policies of companies means that ethical consumerism is a trend that is likely to be apparent in the long-term 46
SUB-TREND: Ethical Boycotting and Ethical Advocacy: consumers also actively avoid products and companies which have a particularly unethical reputation 47
Europeans care about the ethical practices of companies but this does not always translate to outright boycotting products and services 48
Companies with unethical images are likely to face boycott by consumers in Americas 50
Emerging market Asia Pacific consumers are particularly prepared to avoid products with a poor ethical image 52
Gulf consumers are prepared to boycott products if they believe they come from an unethical company 53
Key takeouts and implications: the pressure on business organizations to exhibit responsible behavior has inevitably increased 55
SUB-TREND: Ethical Skepticism: the 'greenwashed' consumer has become more discerning and less trusting about declarations of ethicality 55
Europeans display a great deal of skepticism regarding ethical claims made by companies 56
Skepticism is more prevalent among US consumers compared with their counterparts in Brazil 58
Asia Pacific consumers are, in general, skeptical about ethical claims made by products except 'natural' or 'organic' ingredients used in food and beverages 62
Gulf consumers are becoming more skeptical about ethical product claims, especially in the UAE 64
Key takeouts and implications: consumers are inherently skeptical when it comes to ethical issues so industry players must go the extra mile to reassure them 65
TREND: Digital Lifestyles: consumers increasingly harness new connective technology for multiple purposes 66
SUB-TREND: Networked Living: adoption and usage of new connective technologies continues to influence consumer lifestyles 67
Internet usage is high among European consumers and plays and increasingly important role in facilitating consumer lifestyles 70
Consumers in the Americas are well-connected, especially in North America 73
Consumers in Asia Pacific are used to having highly-developed technology 77
Gulf consumers have become more connected in recent years 80
Key takeouts and implications: consumers are becoming more connected due to the growth of mobile phones and improvements in internet availability and speeds 83
SUB-TREND: Life Caching: collecting, storing and displaying lifestyles using digital content 84
Europeans are generally accustomed to using social networks as a means of putting their life into one place 84
Brazilians spend longer on social networks than any other consumers in the Americas 85
There are variations in the popularity of social networking websites across the Asia Pacific region 86
Gulf consumers are the currently the fastest-growing social network audience 87
Key takeouts and implications: the amount of time spent on social networks illustrates how important it is to consumers to have an outlet to display their lifestyles on 88
SUB-TREND: Changing media/entertainment orientations 88
Europeans are gravitating from watching television on sets to watching it on their computers 89
Consumers in the Americas are watching more television online, but overall viewing time is still overwhelmingly dominated by traditional television 90
Consumers in Asia Pacific are increasingly going online to watch television and play computer games 90
Key takeouts and implications: consumers are gravitating towards new media consumption habits, but this is only available to those with the very latest and best technology 91
TREND: Relational Wellbeing: consumers want to maximize personal connections with family and friends 92
SUB-TREND: (Re) prioritizing family/friend time 93
Consumers in Western Europe are happier than Eastern Europeans with their connections with friends and family 94
South Americans in particular have made greater efforts to spend time with their loved ones 96
Some Asia Pacific citizens are significantly more dissatisfied with their family/friend time than globally 98
The attitudes displayed by Gulf consumers towards their personal connections is very similar to those of the average global consumer 100
Key takeouts and implications: global citizens are generally content with their relationships with friends and family, but certainly believe that things can still get better in this respect 102
SUB-TREND: Creating entertaining and connected living spaces 103
Europeans are frequent entertainers at home and this provides them with motivation to clean their homes 103
US consumers are entertaining friends and family at home more, whereas Brazilians are doing so less often 104
Japanese consumers are extremely reticent when it comes to entertaining at-home 105
Gulf consumers are particularly hospitable in terms of opening up their homes for others to enjoy 106
Key takeouts and implications: consumers are entertaining at-home more regularly as both a means of spending more time with their loved ones and to combat the recession 107
TREND: 'Curated' Consumerism: consumers are making purchasing decision based on the advice of other sources 108
SUB-TREND: Interpersonal Curation: global shoppers rely on interpersonal recommendations to help minimize the risk of making the wrong choice 109
European consumers generally take the advice of friends and relatives more often when purchasing food and non-alcoholic beverages 110
South American consumers are particularly influenced by the recommendations of their peers 111
Chinese and Indian consumers are the most influenced by what their friends and relatives think about products and services 112
Gulf consumers tend to heavily rely on the word of friends when making product decisions 114
Key takeouts and implications: word of mouth advice from friends and relatives is believed by consumers to be the most trustworthy source of information available to them 114
SUB-TREND: Consumer Empowerment: using blogs and other virtual interfaces to make informed consumption decisions 115
Platforms for recommendation-based shopping have been created in Europe 116
Advanced technology, particularly in America, allows consumers to base their decisions on how others are acting 116
Online reviews are considered extremely trustworthy by consumers in some parts of Asia 116
Consumers in the Middle East are very familiar with the concept of shopping using information gleaned online 117
Key takeouts and implications: consumers feel that they are making better decisions thanks to the use of online reviews and other information available from this platform 117
SUB-TREND: Expert Curation: consumers increasingly have access to 'expert curators' and lifestyle gurus 118
Key takeouts and implications: more specific niche curators will continually emerge to empower consumers 119
TREND: Positional consumption: consumers are purchasing products based on identity and status 119
SUB-TREND: Choosing brands conspicuously to demonstrate group memberships 120
European consumers are eager for brands to say something about themselves 121
South Americans enjoy the status that brands can bring them more than North Americans do 122
Consumers in Asia Pacific are noticeably different from their Western counterparts in being sensitive to how others view their choice of branded products 123
Luxury fashion is extremely important in the wealthier nations in the gulf region 124
Key takeouts and implications: there are large regional differences in how consumers relate to brands, though the common consensus everywhere is that brands are important to society in some way 125
SUB-TREND: Consumers are expanding their connoisseurship 125
Europeans seek to expand their expertise in hobbies, which are perceived as a cheaper means of entertainment and connoisseurship in the recession 127
US consumers are showing increasing connoisseurship through growing interest in hobby classes 127
Consumers in Asia Pacific have increasing access to information about product quality and variety 128
Consuming the traditional is increasingly important to Middle Eastern consumers 128
Key takeouts and implications: consumers' connoisseurship is a manifestation of their appreciation of authenticity and the sensory benefits of higher quality products and experiences 129
APPENDIX 130
Definitions 130
Methodology 130
Further reading and references 131
Ask the analyst 133
Datamonitor consulting 133
Disclaimer 133
List of Figures
Figure 1: Datamonitor's mega-trends are having a long-term and substantive impact on the marketing landscape and can be grouped into two categories 6
Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a 'trend hierarchy' 7
Figure 3: Datamonitor's mega-trend framework helps set the agenda for the specific topics covered in the New Consumer Insight (NCI) research stream 9
Figure 4: Trend tracking can be a source of (comparative) competitive analysis 10
Figure 5: Trend development is dictated by both 'consumer pull' and 'manufacturer push' and Datamonitor offers the intelligence tools to capitalize on this reality 12
Figure 6: In a consumerist global culture, the broad consumption spheres/segments transcend geographical borders which is another reason why adopting a broader approach is necessary 14
Figure 7: Several factors distinguish a trend from a fad 15
Figure 8: Consumers desire an altruistic lifestyle that is rich in relationships and belonging 19
Figure 9: There are a number of drivers and inhibitors that influence the connectivity mega-trend 20
Figure 10: Global consumers are more interested in ethical/environmentally-friendly purchases but this is not always possible 21
Figure 11: Over four in five consumers living in the urban area feel they have personal responsibility on conserving the global environment 22
Figure 12: More than three quarters of Europeans believe that protecting the environment is important 24
Figure 13: For Europeans, environmental awareness has heightened in the past two years 25
Figure 14: Italians and Spaniards in particular perceive they have become more conscious about their personal impact on the environment in the last few years 26
Figure 15: Brazilians in particular believe that environmental issues are of the utmost importance 28
Figure 16: For the majority of Brazilians, protecting the environment has become a more important issue in recent times 28
Figure 17: Brazilian consumers are considerably more worried about their personal impact on the environment than the global average 29
Figure 18: Only a small percentage of consumers in Asia Pacific do not attach importance towards protecting the environment 30
Figure 19: More than three quarters of Indians have become more aware of the importance of protecting the environment in recent years 30
Figure 20: When it comes to assessing their individual impact on the environment, consumers in Asia Pacific are roughly in line with the global average 31
Figure 21: Around two thirds of MENA consumers believe that protecting the environment has become more important in the past two years 33
Figure 22: Nearly a fifth of consumers in Saudi Arabia have become less concerned about their own contribution to environmental problems 33
Figure 23: Significant numbers of Europeans claim to be actively seeking environmentally friendly products 36
Figure 24: Europeans believe products have too much packaging but this is not fully met the actual influence on purchasing behavior 37
Figure 25: Except in Russia, ethicality is deemed less important to Europeans in alcoholic beverages than in other FMCG sectors 38
Figure 26: Around a quarter of Europeans decide where to shop based on retailer ethicality 39
Figure 27: US consumers are less likely than the global average to actively purchase ethical products, whereas Brazilians are far more likely 40
Figure 28: Sustainable packaging is a topic of particular importance to environmentally conscious Brazilians 41
Figure 29: Ethicality is only an influential factor in purchasing decisions for around a quarter of US consumers across the four major FMCG sectors 41
Figure 30: Nearly two thirds of Brazilian consumers believe that the ethicality of retailers is a big influence on where they do their grocery shopping 42
Figure 31: Ethical consumerism is important to consumers in China and India, but far less so in Japan 43
Figure 32: Chinese and Indian consumers are proactive about seeking out environmentally friendly products, whereas Australian, Japanese and Korean consumers are more reactive 44
Figure 33: Ethicality is not particularly influential in product purchasing decisions for consumers in Australia and Japan 45
Figure 34: Japanese consumers do not tend to choose grocery outlets solely based on the ethical policies of the retailer 45
Figure 35: Gulf consumers are far likelier than the average consumer globally to be highly influenced by the ethical policies of grocery retailers when choosing where to shop 46
Figure 36: Europeans are deeply divided on the issue of avoiding food and beverages based on a company's poor ethical reputation 49
Figure 37: Europeans are less likely to avoid unethical household care products than food and beverages, albeit not to a significant extent 49
Figure 38: Brazilians are far likelier than Americans to boycott products and services based on ethical issues 51
Figure 39: The majority of Brazilians require household cleaning products and services to demonstrate that they are ethically sound 51
Figure 40: Chinese, Indian and Korean consumers are more willing than Australian and Japanese consumers to boycott food and beverage products and services that they perceive to be unethical 52
Figure 41: Only a tenth of Japanese consumers actively avoid unethical household care products and services which is considerably lower than the global average 53
Figure 42: Gulf consumers are more proactive than the global average of consumers regarding the avoidance of unethical products and services 54
Figure 43: Around half of Gulf consumers regularly avoid purchasing unethical household care products and services 54
Figure 44: Europeans largely express ambivalence about whether corporations are truthful in declarations of ethicality 57
Figure 45: Less than half of Europeans in all countries express trust in food and beverages claiming natural or organic ingredients 57
Figure 46: Europeans display a low level of trust when it comes to organic/natural claims made by cosmetics or beauty brands 58
Figure 47: Europeans believe there is minimal credibility to environmental claims made by household care brands 58
Figure 48: Less than a quarter of US consumers trust corporations declarations of ethical practices, but trust is higher in Brazil 60
Figure 49: Consumers in the Americas are more trusting than the global average in natural/organic claims in food and beverages 60
Figure 50: Generally, Brazilians award more credibility than Americans to cosmetics or beauty brands when it comes to making organic or natural claims 61
Figure 51: More consumers in the US believe that environmental claims made by household care brands are not credible than credible 61
Figure 52: In Asia Pacific, Indians are the least skeptical about the trustworthiness of corporation 62
Figure 53: With the exception of Indians, Asia Pacific consumers generally exhibit similar attitudes to consumers globally with regards to stated trust in food and beverage products claiming natural or organic ingredients 63
Figure 54: Around a third of consumers in Asia Pacific do not believe cosmetics or beauty brands to make credible claims about being organic or natural, with distrust particularly high in Australia 64
Figure 55: Consumers in Australia and Japan are more skeptical than the global average about the credibility of environmental claims made by household care brands 64
Figure 56: Consumers are generally welcoming the increases in connectivity that technology is facilitating 67
Figure 57: Nearly three-quarters of consumers in North America use the internet -the highest regional penetration in the world 68
Figure 58: The number of mobile phone subscriptions in Europe has grown consistently in the past few years 70
Figure 59: Around two-thirds of Western Europeans use the internet 71
Figure 60: The majority of European internet connections are broadband, meaning consumers have access to high speeds that facilitate more varied and sophisticated internet usage 71
Figure 61: The vast majority of Europeans are in agreement that technology has improved everyday life 72
Figure 62: Few Europeans rely on online shopping to purchase the majority of their groceries 73
Figure 63: Mobile cellular subscription rates are lower in Latin America 74
Figure 64: Almost three-quarters of consumers in North America use the internet 74
Figure 65: Internet connection speeds in North America are significantly higher than in South America 75
Figure 66: The majority of consumers in the Americas agree that science and technology are helping to improve their lives 76
Figure 67: In 2008, US and Brazilian consumers made more efforts to shop online for financial products than they did for groceries 76
Figure 68: Mobile phone subscriptions are particularly prominent in Australia 77
Figure 69: There are more internet users in China than other Asia Pacific countries in spite of a comparably low penetration rate 78
Figure 70: Internet users in Hong Kong, Japan and Korea enjoy particularly high broadband speeds 78
Figure 71: In Asia Pacific the level of skepticism about science and technology is generally very low 79
Figure 72: Consumers in emerging markets in particular are looking to shop more over the internet 80
Figure 73: Annual growth in mobile cellular subscriptions has been phenomenal in the UAE and Saudi Arabia 81
Figure 74: Nearly half of all consumers in the UAE use the internet while penetration is lower in Saudi Arabia 81
Figure 75: Less than one in five Middle Eastern consumers have internet connection speeds of above 2mb/s 82
Figure 76: More than three-quarters of Gulf consumers never shop online for groceries 82
Figure 77: Russians spend significantly longer on social networks than any other European consumers 85
Figure 78: Brazilians spend considerably longer on social networking websites than the global average 86
Figure 79: In the Asia Pacific region, social network online penetration is highest in Singapore, Australia and Korea 87
Figure 80: The increase in the number of MENA consumers visiting social networks is higher than in other major global regions 88
Figure 81: Consumers see personal connections as an important part of wellbeing 93
Figure 82: Europeans tend to be happier about the time they can afford to spend with their families than they are with their social lives 95
Figure 83: Spanish consumers in particular have shown a great inclination to spend more time with their loved ones in recent years 95
Figure 84: Russians are significantly less content than others around the continent when considering their family life, job and household income 96
Figure 85: Despite living in a time-pressured society, Americans are happier than consumers globally when it comes to spending time with their families and children 97
Figure 86: Nine in ten Brazilians believe that spending time with their friends and family is more important now than in the past 97
Figure 87: Consumers in the Americas are very satisfied with their family lives 98
Figure 88: Japanese and Korean consumers in particular report dissatisfaction with their family and social life 99
Figure 89: The fact that spending time with friends and family has not changed much in importance to Japanese consumers suggests a long-standing emphasis on this type of socialization in this country 99
Figure 90: Pakistani and Indonesian consumers are less satisfied with their family lives than other consumers elsewhere across Asia Pacific 100
Figure 91: Gulf consumers are generally happier than the global average when it comes to their family and social lives 101
Figure 92: More than two thirds of Gulf consumers believe that spending time with loved ones has grown in importance recently 101
Figure 93: Satisfaction in the MENA region is lower than in Europe, Asia Pacific or the Americas 102
Figure 94: Cocooning Europeans are entertaining friends at home on a more frequent basis 104
Figure 95: Despite entertaining guests less frequently than in the past, Brazilian consumers are nevertheless highly motivated by a need to impress when cleaning their homes 105
Figure 96: Japanese consumers rarely entertain friends and family at home, whereas Koreans have found it a particularly appealing way to enjoy themselves during the recession 106
Figure 97: More than a third of consumers in the Middle East entertain friends or family at home on at least a weekly basis 107
Figure 98: Consumers feel that the more information they have available, the better their consumption choices will be 109
Figure 99: Europeans are less influenced by the recommendations of others when it comes to alcoholic beverages than with food and beverages, personal care/beauty products and household cleaning/laundry products 111
Figure 100: Brazilian consumers are more likely than US consumers to purchase products based on the recommendation of friends or family 112
Figure 101: In what reflects their relative experience as consumers, Indian and Chinese consumers are heavily reliant on others for advice about product purchases in order to minimize 'purchase risk' 113
Figure 102: Positional consumption is the result of the ongoing consumer need to define status 120
Figure 103: Consumers often display similar buying patterns so they can noticeably demonstrate what social group they belong to 121
Figure 104: Europeans want brands that say something about themselves but they do not necessarily want it to be conspicuous 122
Figure 105: Brazilians want their brands to be conspicuous to others far more than Americans do 123
Figure 106: For some Asian consumers, being seen with the right brand is even more important than what a brand means to themselves as individuals 124
Figure 107: Blogs are a resource for connoisseurs to meet, share and expand their knowledge 126
Figure 108: There are differences between consumer values and attitudes 130