How Technology Is Changing Global Consumer Behaviour in Food and Beyond

How Technology is
Changing Global Consumer

Behaviour in Food and
Beyond
Tim Foulds, Head of Research ANZ
August 9, 2017
EUROMONITOR INTERNATIONAL 2
ABOUT EUROMONITOR INTERNATIONAL
© Euromonitor International
3
ABOUT EUROMONITOR INTERNATIONAL
Research Expertise
Consumer Products
Alcoholic Drinks Nutrition Supply
Apparel Ingredients
Packaged Food
Automotive Personal Accessories Packaging
Beauty and Personal Care Pet Care Economies

Consumer Appliances Business Dynamics
Soft Drinks
Consumer Electronics Cities
Tissue and Hygiene
Consumer Health Economy, Finance and Trade
Tobacco
Eyewear Industrial
Toys and Games
Fresh Food
Services Consumers
Health and Wellness Digital Consumer
Consumer Finance
Home and Garden Households
Consumer Foodservice
Home Care Income and Expenditure
Institutional Channels
Hot Drinks Lifestyles
Retailing
Luxury Goods
Population
Ethical Labels Travel
THE CONNECTED CONSUMER
SHOPPING REINVENTED & NEW BUSINESS MODELS
THE FUTURE
EUROMONITOR’S MEGATREND ANALYSIS 5
Megatrends framework begins with drivers
The underlying forces driving change and propelling long-term shifts in

consumer attitudes and behaviour
New consumerism rising
Focus on eight megatrends

including
CONNECTED CONSUMER
and the
SHOPPING REINVENTED
Number of connected consumers doubles in

a decade
MEET THE CONNECTED CONSUMER
3.6 bn 46% 58%

Global internet users as of 2018 Global population using the Global population expected to
internet as of 2017 use the internet as of 2022
Smartphones are emerging as the default

screen for commerce
Smartphones are
becoming a must-have
device and the default
screen for brand
engagement and digital
commerce transactions.
50% 80% 20%

Global households own a Connected consumers use a Connected consumers globally
smartphone as of 2017 phone to access the internet on buy an item/service via mobile
weekly basis on weekly basis
THE CONNECTED CONSUMER 9
Mobile commerce is on a boom; retail is

getting an increasing share
In China, South Korea, Japan and Poland retail’s share in mobile digital purchases has reached or
surpassed 50%.
Heavy mobile shoppers are most likely to be

Millennials
Source: Euromonitor Global Consumer Trends 2016 survey
Millennials and Gen Z will control 47% of

gross income by 2025...
…and be the most populous cohort across

the globe
THE FUTURE
SHOPPING REINVENTED & NEW BUSINESS MODELS 14
Packaged food is in the midst of a massive

shift
1%
~ 0%
2%
What is Big Food doing against this

backdrop?
Strategy A: Invest in health and wellness brands
Invest /
Boom in health Movement away
and wellness and from “Big Food” acquire
free-from
products
towards
healthier food
“healthier”
brands
Strategy B: Maintain portfolio momentum through a focus in fast growth

categories
Grow
Low staple
consumption
Strong growth in snack and
growth
snack and dairy dairy
portfolio
Strategy C: Prioritise power brands
Growth of Prioritise
modern grocery Retailers
retailers and delisting SKUs power
private label brands
E-commerce: the last remaining hotspot
..Or not?
Regardless of how convenient online shopping is, consumers still

like to visualise, feel and sometimes even taste food before
purchasing it. It takes time to build trust in online shopping, many
shoppers are slow to change, and new processes are complex.
Take a step back
Shopping Reinvented megatrend spans all

phases of the shopper journey
Experiential Shopping
Pre-purchase Instant Gratification
Personalisation
Omnichannel
Blended Store Formats Engagement
Shopping Reinvented Purchase Value for Money
Seamless Checkout
Post-purchase Last Mile Reimagined
Shopping Reinvented in food and nutrition:

four key pillars
Subscription
Services
Personalisation Just-in-time
Delivery
Blended Stores
Graze: The pioneers of snack subscription
Stay home Savoury snacks

Desk snackers
moms in the UK
>40% sales
US launch and
growth 10% > 4000 outlets
range
rise in in the UK
expansion
subscription
Partnership Flexible
Consumer
with Royal Product
Data
Mail Offering
Meal kits have tremendous growth potential

for food companies
“For which types of products do you use a

subscription service?”
Apparel
Beauty
Books
Accessories
Personal Care
Toys/Games
Home Care
Home Décor
Food/Drinks
Meal Kits
Pet Products
Arts/Crafts
Alcohol
0% 10% 20% 30% 40%

% of Respondents
Global Consumer Trends Survey 2017 n:10,763
They are also increasingly being tailored to

different needs
My Six Pack – Meal kits for fitness enthusiasts

“physic management services”
Eat (C)Lean Delight – Meal kit for

vegans Yum in Box – Meal plans for Kids
© Euromonitor International Meal kit for vegans

Hello Fresh: Purchase and retention

delivered to doorstep
Originally from Germany, Hello Fresh, subscription box is now available across 9
countries.
Flexible ordering. free delivery, healthy ingredients, and affordable prices have been key to
HelloFresh’s success
In 2017, Hello Fresh has teamed up with Bosch Hausgeräte to harness digital networking in the
kitchen by integrating the Home Connect technology with the HelloFresh app
Gives users access to hundreds of recipes and valuable nutritional information
What do we mean by just-in-time delivery?
Scheduled
Non-digital
delivery
Click &
Direct Selling
Collect
Enhanced S-
Placement commerce
Case study: WeChat is the poster child for

the super app revolution
WeChat, the popular Chinese mobile messaging app with a billion users, is one of the best examples of a
next-generation operating system
WeChat is a tight ecosystem of one billion

users that leverages the social graph as the
fabric for a connected web of services,
touching almost every aspect of a consumer’s
digital life, from communication and finance
to retail and social.
This social media app, developed by Chinese

tech titan Tencent, can be used to connect
with friends and family, hail a taxi, order food
delivery, buy film tickets, pay utility bills and
even book a doctor’s appointment, all in a
single, integrated app.
Akoko is an artisanal cookie crafted by local producers in China and marketed and sold
exclusively through micro blogging platforms.
Akoko is an artisanal cookie made by local Cyberstar products – artisanal unbranded

producers products that spread through word of mouth
marketing
Marketed and sold exclusively through micro
blogging platforms including weibo and Rolled out to retail
wechat.
Filing for IPO
Sales reach 5,000 boxes a day.
Can digital influence bottom line?
To counter the stale growth

Gum underperforms confectionery
% CAGR of Gum vs Confectionery in Selected Markets 2011/2016
-10% -5% 0%
% Cagr
5% 10% 15% 20%
manufacturers are resorting to digital
Cameroon
Vietnam
solutions to raise purchase frequency.
Mexico
Amazon’s Dash Button is perhaps the

Egypt
Taiwan
Nigeria
South Korea
Thailand most well-known example. Brands
expanded over four times faster than
Greece
Brazil
Italy
Colombia
India
China
in 2015. Dash Button orders now occur
Spain
Japan over twice a minute.
South Africa
Philippines
Saudi Arabia
Turkey Last year, over 50 new brands,
including Campbell’s Soup, Mentos,
Canada
Netherlands
USA
United Arab Emirates
Russia Trident, Nutiva Organic and V8
Vegetable Juice were added to the
Czech Republic
Norway
Chile
Sweden
Malaysia
France
programme.
Kenya
Denmark
Indonesia
Poland
Germany
Australia Confectionery
United Kingdom
Singapore Gum
-30% -20% -10% 0% 10% 20% 30% 40% 50% 60%
Share of gum in confectionery
What do we mean by blended formats?
Food
Retail Online Offline
service
Retail meets foodservice
F O O D S E R V I
R
E Eataly
Nutella Café
in Canada
T Magnum Pleasure
Kochhaus
A Store in the UK
I
L
Loacker Moccaria &
C E
Itsu Chocolate Rice BrandStore in Italy
Cakes
Dunkin Donuts Knorr’s shop-
RTD coffee in-shop
debuts in solution in the
select Netherlands
supermarkets
Timbre+ : A food hall from Singapore which

acts as an incubator
This food hall is an incubator for up and coming chefs and musicians, combining dining with live
music and events, and even engages consumers digitally with an app, delivery and mobile
ordering.
Branded stores can be used as launch pads

for retail innovation
London Dairy is one of the UAE’s most successful London Dairy uses their ice cream cafes as launch
ice cream parlours. Having started the business pads for innovation in retail. Typically they launch
through its own-named cafes, they also moved the new flavor in the shop first and roll it out to
into supermarket. their retail shop in the form of an in-store
promotion to attract traffic.
Alibaba’s He Ma: Combines blended formats

and instant delivery
Alibaba wants a slice of China’s rapidly growing online grocery market, which is one of the
biggest and fastest growing markets globally.
In late 2016, Alibaba group introduced He The store offers home delivery within 30
Ma, a food-based concept store that has minutes up to a distance of 3km from the
both virtual and physical presence. Customer store. Alternatively, shoppers can dine in or
transactions are managed via a branded app have the produce cooked by Hema chefs and
which helps make product enquiries, place brought to their home ready to eat. The key
orders, and make payments via alipay. aim of the outlet is to direct potential
consumers to Alibaba’s online business.
What do we mean by Personalisation?
Personalised
product
On average, 50% of
respondents have used a
health app at least once a
month
Personalised Personalised Euromonitor International’s Global Consumer
Trends Survey 2016,
nutrition service N = 26090
Note: Surveyed Markets include Australia, Brazil, China,

Colombia, France, Germany, India, Indonesia, Italy, Japan,
Mexico, the Middle East (includes Egypt, Qatar, Saudi Arabia,
United Arab Emirates), Poland, Russia, South Africa, South
Korea, Thailand, Turkey, United Kingdom, and the USA.
Consumers Want to “Have Their Say”
Personalised labels Personalised products and stores
Katjes Magic Candy Factory: Driving

customer engagement via 3D printing
3D printing technology also offers great promise for product personalisation. It allows
consumers to not only to design and shape their products but also decide what goes into
them in terms of ingredients paving the wave for creation of food to meet different dietary
needs. Katjes Magic Candy Factory is the world’s first producer of 3D printed gummy candy.
It has over 100 printers in 35 locations around the world and also offers online services.
Habit: Grocery list built on nutrigenomics
22%
of North American
population has an
allergy or
hypersensitivity
In 2016, The Campbell Soup Co became the exclusive investor in Habit, an American
personalised nutrition meal delivery start-up.
Habit is a personalised nutrition plan utilising an A team of chefs prepares the custom meals,
at-home kit to extract blood and DNA samples, which are then delivered to the customer’s
which help design a biologically-compatible door. This system could paves the way for
roster of food. Once a nutritional strategy has local subscription services across other
been established, users can work one-on-one industries
with a nutrition coach.
THE FUTURE
THE FUTURE 39
Barilla: A brand which ticks all the boxes
 Subscription:
 Partnership with  Blended Stores
Peapod  Barilla
 Taskspotter: Restaurants in
Pasta for soups the US, UAE,
China
 Personalisation  Just-in-Time Delivery

 3-D Printing  US restaurants
 Collaboration offer online
with MIT for delivery
development  Cucina Barilla kit
of flatpack collaboration by
pasta Whirlpool and
RFID
THE FUTURE 40
Super apps often touch on five main aspects

of a consumer’s world
Utility Financial Lifestyle
Retail Communication
THE FUTURE 41
Super apps: driven by mobile phone usage
THE FUTURE 42
WeChat: The successful marriage of s- and e-

commerce
In 2015, app has expanded into food

Blogging delivery through its partnership with
platform
e-commerce start-up, Foodpanda,
Free bees Virtual wallet now owned by Ola. Users can
browse nearby restaurants, receive
exclusive promotional offers and
order food through the app in not
just China but several South East
Gifting WeChat In-app live
chat
Asian markets.
Through WeChat, food brands can
open online stores creating and
nurturing a brand at a much faster
Brand loyalty Geolocal pace than in real time. The online
programs store locator
payment function facilitates sales
Flash sales and word-of-mouth enables free
advertising
In March 2018, WeChat hit 1 billion monthly users

THE FUTURE 43
Go-Jek: fulfilling needs of Indonesian

consumers in a single app
Go-Jek’s extensive network of 200,000 drivers across 25 cities caters to the high demand for two-wheeled
transportation across Indonesia
Go-Jek started in transport as a motorcycle Go-Jek: fulfilling needs of Indonesian
ride-hailing mobile application, disrupting consumers in a single app
the ride-hailing industry and transformed In 2017, Go-Jek expanded into the fintech
into a leading super app in Indonesia by sector through the launch of an e-wallet
providing a wide range of services, including system, Go-Pay, which enables cashless
online foodservice and cargo deliveries, payment for the services offered by Go-Jek
home cleaning, beauty treatments and
massages.
THE FUTURE 44
Technology will be critical to reaching the

new consumer
Augmented/Virtual
Artificial Intelligence Blockchain
Reality (AR/VR)
THE FUTURE 45
Commerce players must adopt AI now to be

prepared for tomorrow
There is no way to spell

“retail” without AI.
Commerce players are
being reminded daily that
their future is intertwined
with artificial intelligence.
58 mn 7,000
Number of wireless speakers, such as Amazon Number of skills on Amazon’s Alexa voice
Echo, sold globally in 2016 platform
THE FUTURE 46
The role of artificial intelligence
Empowering store Providing the personal Improving

associates touch recommendations
Autonomous robots have the Advances in natural language Using artificial intelligence,
ability to greet customers and are driving the chatbot and brands can more intelligently
aid employees with inventory personal assistant revolution comb through data to offer
management personalised
recommendations
THE FUTURE 47
AI delivers more personalised suggestions
With more than a quarter of its US transactions occurring within its mobile app,
Starbucks continues to push into new digital frontiers.
In 2017, Starbucks launched “My

Starbucks Barista”, which utilises
artificial intelligence to enable
customers to place orders with voice
command or messaging
Partnered with Amazon Echo

Recommends recipes based on what
people see in their fridge
THE FUTURE 48
Augmented Reality: Alibaba brings in-store

shopping experience into Chinese homes
Alibaba, a leading pure play retailer with 19% of share globally, introduced a VR experience at its
Singles’ Day shopping festival.
Alibaba’s immersive Buy+ shopping Alibaba’s buy+ experience is integrated with

experience enables customers to browse Alipay’s AR pay from Alibaba’s financial services
items in a virtual shopping mall, including affiliate Ant financial. With this futuristic
real-life store experiences from some of functionality, users can make a payment for an
the most popular retail brands in the US, item in Alibaba’s virtual reality experience with
Australia and Japan. just a few nods.
THE FUTURE 49
Augmented reality: Carrefour in China
Carrefour launches a Visual Trust initiative in

partnership with Blippar, Transparency-One and
SGS, for Chinese shoppers to check the quality
and origins of the food before purchase
Carrefour uses smart packaging in its stores to
help give customers access to a vast array of
information on products with a tap of their
smartphone
It provides supply chain transparency “from farm
to fork”, adding another layer of trust to the
Carrefour brand
32% of global consumers closely read the

nutrition labels of food and beverages,
according to Euromonitor International 2017
survey data
Source: http://www.sgs.com
THE FUTURE 50
The Value of Blockchain
Benefits include:
• Digitalisation of records or transactions
• Time-stamped, permanent and unalterable
• Encrypted, secure and transparent
• Peer-to-peer transaction process without
the intrusion of a third-party.
• Universal digital identity allowing
increased efficiency and collaboration.
THE FUTURE 51
The Value of Blockchain
Supply chain transparency is imminent

Food companies should not leave it too late to
prepare.
Blackmores & Fonterra in Blockchain Trial with Alibaba to deal with food fraud
Many local exporters have struggled with counterfeit products. Blockchain may be the answer to
counterfeit issues of exporters to China
THE FUTURE 52
Blockchain: Go-Go Chicken in China
According to Euromonitor International 2017 Chinese insurance tech company ZhongAn

survey data, only 36% of Chinese consumers Online is using blockchain technology to record
consider a label describing a product to be the life of a chicken – providing more
“free-range” as trustworthy – one of the lowest
proportions globally.
transparency to the consumer
All information related to the chicken can be
verified in the blockchain, such as the age of the
chicken, whether it is free-range, when
quarantined, etc
ZhongAn Online is expanding the initiative to use
facial-recognition that would allow consumers to
pre-order chickens and watch them grow
remotely. This has been sparked by consumers’
increasing interest in farm tourism
Source: ThinkStock
THE FUTURE 53
Blockchain: Ben & Jerry’s in London
Ben & Jerry’s new store kicked off a blockchain

initiative to let customers offset their carbon
footprint.
Partnered with the Poseidon Foundation to
calculate the environmental impact generated
from producing and purchasing a scoop of ice
cream.
By the end of the one-month pilot, Londoners
had helped save 1,000 trees, covering the
equivalent of 77 tennis courts.
KEY TAKEAWAYS 54
Key takeaways to explore new pockets of

growth
Online is not enough Shopping is being reinvented

The consumer has moved on from the Companies need to tell a story and expand
intranet to mobile to apps to super apps. their connection to consumers beyond the
Food companies need to ensure their point of purchase, embracing new business
presence across the digital spectrum models to remain at the front of mind of
consumers
Technology in
food
Personalisation Transparency
Millennials - who will be the largest
New technologies such as AR and Blockchain
demographic cohort, with the highest
will enable consumers to demand – and
spending power - want to be special, and
companies to provide – transparency in
expect companies to enable them to
terms of sourcing, environmental damage,
connect with brands in different ways
certification etc.
provide this experience.
Thank you
Tim Foulds, Head of Research ANZ
Tim.foulds@euromonitor.com

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How Technology is

Changing Global Consumer

ABOUT EUROMONITOR INTERNATIONAL

ABOUT EUROMONITOR INTERNATIONAL

Beauty and Personal Care Pet Care Economies

Megatrends framework begins with drivers

The underlying forces driving change and propelling long-term shifts in

New consumerism rising

Focus on eight megatrends

Number of connected consumers doubles in

MEET THE CONNECTED CONSUMER

3.6 bn 46% 58%

Smartphones are emerging as the default

50% 80% 20%

Mobile commerce is on a boom; retail is

Heavy mobile shoppers are most likely to be

Source: Euromonitor Global Consumer Trends 2016 survey

Millennials and Gen Z will control 47% of

…and be the most populous cohort across

Packaged food is in the midst of a massive

What is Big Food doing against this

Strategy A: Invest in health and wellness brands

Strategy B: Maintain portfolio momentum through a focus in fast growth

Strategy C: Prioritise power brands

E-commerce: the last remaining hotspot

Regardless of how convenient online shopping is, consumers still

Take a step back

Shopping Reinvented megatrend spans all

Pre-purchase Instant Gratification

Shopping Reinvented Purchase Value for Money

Post-purchase Last Mile Reimagined

Shopping Reinvented in food and nutrition:

Graze: The pioneers of snack subscription

Stay home Savoury snacks

Meal kits have tremendous growth potential

“For which types of products do you use a

0% 10% 20% 30% 40%

They are also increasingly being tailored to

My Six Pack – Meal kits for fitness enthusiasts

Eat (C)Lean Delight – Meal kit for

© Euromonitor International Meal kit for vegans

Hello Fresh: Purchase and retention

What do we mean by just-in-time delivery?

Case study: WeChat is the poster child for

WeChat is a tight ecosystem of one billion

This social media app, developed by Chinese

Akoko is an artisanal cookie made by local Cyberstar products – artisanal unbranded

Can digital influence bottom line?

To counter the stale growth

Amazon’s Dash Button is perhaps the

What do we mean by blended formats?

Retail meets foodservice

Loacker Moccaria &

Timbre+ : A food hall from Singapore which

Branded stores can be used as launch pads

Alibaba’s He Ma: Combines blended formats

What do we mean by Personalisation?

Note: Surveyed Markets include Australia, Brazil, China,

Consumers Want to “Have Their Say”

Personalised labels Personalised products and stores

Katjes Magic Candy Factory: Driving

Habit: Grocery list built on nutrigenomics

Barilla: A brand which ticks all the boxes