Flexible Spaces: Mintel Global Consumer Trend 2022

19 NOVEMBER 2021 | INDUSTRY TREND
FLEXIBLE SPACES
Mintel Global Consumer Trend 2022 Diana Kelter, Associate
Director of Trends, North
America
1 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

https://clients.mintel.com/trend/flexible-spaces
Table of Contents
FLEXIBLE SPACES ............................................................................................................................... 3
FLEXIBLE SPACES: NOW - THE NEXT 12 MONTHS .......................................................................... 5
FLEXIBLE SPACES: NEXT - 18 MONTHS - 2 YEARS ....................................................................... 12
FLEXIBLE SPACES: FUTURE - 5 YEARS+ ........................................................................................ 18

FLEXIBLE SPACES
Public and private spaces must maximize the capabilities they offer without diluting
their core purpose. Literally and figuratively, brands can leave their doors open to
meet consumers' flexible lifestyles.

Value meets Surroundings

Mintel’s Trend Drivers track seven fundamental themes that influence
consumer choice and change. These drivers (Wellbeing, Experiences,
Rights, Technology, Identity, Value and Surroundings) and their
underlying pillars can help explain the key behavioral changes likely to
impact consumers in the years ahead.
Flexible Spaces sits at the intersection of the Value and Surroundings

Trend Drivers, representing the benefit brands can provide with
multifunctional, meaningful spaces (both digital and physical).
Responding to consumers' intrinsic need for connection, brands can also
strengthen consumers' bonds with their local ecosystems.

FLEXIBLE SPACES: NOW - THE NEXT 12

MONTHS
The transactional value of physical spaces has been bolstered by emotional

motivations. The pandemic has permanently disrupted routines, leaving consumers
craving support and convenience from a wide range of resources.
COVID-19 has transformed spaces: retailers have come to be hubs for community
building; hotels and breweries have turned into vaccination sites; and the outdoors
have become a place for consumers to find meaning. Home, as the place people
spend the most time, has emerged as a space to connect digital and physical
worlds without sacrificing sensory enrichment.

What's happening now

The pandemic has changed consumers' relationships to indoor and outdoor spaces. Brands can work to
solidify or mitigate these developing habits.
48% 67% 57%
of UK consumers who of Brazilian shoppers of US consumers who

work remotely have prefer to purchase food have an interest in the
found it difficult to and drinks in store, so outdoors want outdoor
manage work and leisure they can choose the brands to work with
boundaries at home products themselves municipalities to create
more green spaces
Base: UK: 770 consumers aged 16+ who currently work from home; Brazil: 751 internet users aged
16+ who purchased food/drinks in the past 12 months; US: 1,904 internet users aged 18+ who
currently do outdoor activities or are interested in starting one
Source: Kantar Profiles/Mintel, April 2021, December 2020, May 2021

Indicators to watch
Real estate market

To determine the evolution of Flexible Spaces, marketers should watch fluctuating real estate prices
and sentiments. Confidence in commercial real estate declined globally 2020 but has already begun
to bounce back in 2021.
Energy prices
As energy demand rebounds post-pandemic, the cost of fuel is increasing in many regions.
Consumers will stay closer to home due to this increase in expense, adding a layer of localism to
Flexible Spaces.
Job market
In 2020, the historically high unemployment rate (6.5%) indicated global job loss and market churn.
As the employment landscape changes in the next normal, knowledge workers will let go of office-
bound employment, upending the traditional workday. Meanwhile, where economic recovery is
happening, labor shortages are interrupting business functions.
COVID-19 vaccinations and variants

Regional differences in vaccination rates and the evolution of new COVID-19 variants will determine
how quickly the economy recovers. The countries most impacted by the pandemic may have the
most extreme adoption of Flexible Spaces.

Innovation examples
Community spaces are expanding. Retailers that solely existed online are opening community hubs;
hospitality spaces that catered to tourists are serving locals in new ways.
In the US, sneaker brand Hoka is opening its first brick-and-mortar stores
The Armatree Hotel in New South Wales, Australia, has become the
state's first vaccination hub

Consumers are finding new value in the outdoors; the fresh air provides a calming presence as they work,
learn and socialize.
Markham College's new Lower School building relies on flexible spaces

that embrace the outdoors
The city of Lahti has introduced Viita outdoor workstations for remote
workers

Category implications
Food & drink
Grocery is an area where ecommerce lags – giving retailers a reason to invest in the construction of
community hubs. The everyday nature of food shopping lends a familiarity that puts shoppers at ease.
To bring back in-store shopping post-pandemic, retailers can create reasons for them to linger safely,
such as live events and well-designed store layouts.
Beauty & personal care

Physical spaces no longer dictate beauty standards; one may dress up for a Zoom happy hour and
dress down for an office visit. With shifting expectations, beauty routines are intrinsically motivated,
reflecting the mood of the individual. Beauty routines may even drive an occasion, or help delineate
different times of day.
Home
Home has become a backdrop for fitness, work and socialization, driving household brands to embrace
multifunctionality and address new occasions. As explored in the Mintel Trend Aesthetic Effect,
consumers are increasingly thinking about how design can bridge function and style in their homes.
Retail & ecommerce

The primary function of a retail space is to sell products, but that focus is broadening. Whether it's
community centers, recycling hubs or co-working spaces, retailers are molding their outlets to fit the
various needs of their customers. Experiential value is becoming just as important as the products sold.
Automotive
Cars served as a distinct (and safe) personal space during the pandemic, and the value of car
ownership continues to expand. As delivery, ride share and car rental platforms grow and the demand
for drivers increases, cars have the power to generate income. Fluctuating fuel prices will also play a
key role as consumers reassess their willingness to return to daily commutes.
Financial services
Although physical banks are no longer the financial hubs they once were, there is still a need for
financial guidance and expertise. There is significant opportunity to create physical interactions and
engagement outside of traditional banks.

Key takeaways
Put purpose in hybrid lifestyles

As consumers adjust to more fluid lifestyles, they will increasingly seek guidance from brands on how
to make the most out of new, flexible spaces. Brands must communicate all the ways their spaces
can be utilized.
Enable the outdoors 24/7

The pandemic forced consumers to creatively utilize outdoor spaces throughout the seasons, and
now, they are seeking infrastructure and products that work with nature rather than against it.
Open your doors

National retailers and DTC brands with physical stores can become hubs for community events,
support systems for local business and third spaces for consumers who want to expand their routines
and habits.
Rethink office space

The office is a concept, not a space. As people work more from home, the office is transformed into
an occasional space for "soft work" like relationship building and co-creation. Brands with a physical
location can serve as a middle ground.

FLEXIBLE SPACES: NEXT - 18 MONTHS - 2

YEARS
Consumers have a myriad of identities that take precedence throughout a given

day. They are increasingly seeking virtual and physical spaces that celebrate and
welcome every component of who they are.
Mintel Trend Coming Together highlights the momentum of people seeking

connections through passion and like-minded interests rather than physical
proximity. Brands can cater to and help shape identity-based connections with the
spaces they develop.

What's happening next

The pandemic heightened social isolation. As consumers return to a crowded world, they look to connect
with people who share their interests, goals and values.
75%
37% 43%
of US pet owners say
of German consumers of Swedish consumers*
owning a pet is an
feel timid joining a new think the beauty industry
important part of their
club alone should be more inclusive
identity
* taken from Mintel's 35-market consumer research study

Base: US: 1,407 consumers aged 18+ who own a pet; Germany: 1,972 consumers aged 18+;
Sweden: 1,000 consumers aged 16+
Source: Kantar Profiles/Mintel, April 2021, March 2021
Indicators to watch
Social media usage
The rise of social media has enabled connections to be formed around shared interests rather than
proximity. As social media continues to be omnipresent, likeminded individuals will naturally gravitate
towards each other, strengthening identity-based groups but limiting diversity.
Cancel culture
If cancel culture persists, people may retreat into circles where they feel safest, unwilling to expand their
horizons in fear of inadvertently saying something wrong. However, if it has peaked, public spaces may
flourish as a stage for challenging topics and discourse to take place. People will expect brand leaders
to participate.
Political divisiveness
A shift toward nationalism in the last decade has created an "us vs them" mentality that can drive
exclusion among groups. As political divisiveness continues, brands may feel the need to choose sides,
building communities that cater to one group even if it means alienating another.

Innovation examples
Brands have the opportunity to create more inclusive spaces by recognizing the unmet needs of niche
audiences or through representative storytelling.
In the Philippines, SM Megamall opened Riders' Lounges where delivery

riders can rest and regroup
In the US, REI launched an in-house studio to shift perceptions of the

outdoors through inclusive and diverse content

Brands can help generate awareness and build loyalty by making room for groups passionate about a
particular cause.
Non-profit My Block, My Hood, My City occupied two cars of the Chicago

L train to host a crosstown fashion show
AMOR LGBT+ Film Festival in Santiago, Chile, aims to shed light on

LGBTQ+ seniors

Food & drink
Legacy brands can rely on their heritage to compete with disruptive brands. However, they need to
engage in new spaces and concepts like pop-up shops and online environments to connect with a more
diverse consumer base.

Beauty products in part help consumers become who they want to be, but brands need to recognize the
intersectionality of consumers' physical, emotional and personal needs and create online and physical
spaces that go beyond singular solutions.
Home
The home has carried the weight of consumers' lives during COVID-19 and many will want to simplify
their spaces when they are able to. Home brands will want to focus on the restful nature of the home,
partnering with wellness brands to elevate the zen of this space.
Retail & ecommerce

Consumers of all ethnicities, sizes and preferences want to feel represented in retail spaces. Brands are
updating their store layouts and virtual environments to ensure a diverse range of consumers can easily
find what they seek without feeling excluded.
Automotive
Electric vehicles were once the domain of only the most eco-conscious purchasers. As they are adopted
by the mainstream, auto brands will be showcasing features and functions that appeal to a wider
audience, focusing on the flexibility these cars offer to all audiences.
Financial services
Building on the Mintel Trend Sustainable Spaces, concerns about climate change have transformed
consumers' relationship with their surroundings. As demand grows for greener spaces, financial brands
can use rewards programs to support local environmental causes their consumers care about.

Key takeaways
Combine passion and products

Brands with loyal followings can serve as a point of connection between different groups of people,
using consumers' shared love of food, pets or fitness to create a community of fans.
Be open
Providing rest and connection, even simple spaces have value. Libraries, for example, exist purely
for community and learning.
Build safe spaces

Following COVID-19 and racial justice demonstrations, brands have to ensure consumers feel safe in
the spaces where they work, shop and relax.
Reinforce representation
Consumers no longer want to wait to feel seen. Brands can offer unexpected spaces to celebrate
them and their communities.

FLEXIBLE SPACES: FUTURE - 5 YEARS+
Mintel Trend Virtual Lives highlights the evolution of gaming – from a playful leisure
category to an industry leading the development of the metaverse.
The metaverse is loosely defined as a fully digitized realm that exists beyond the
analog world we know. Its development will provide early-to-market brands the
room to set standards for how consumers and businesses interact in digital spaces.
AR and VR technologies are gradually allowing consumers to explore a wide variety
of spaces from the comfort of their homes. As technology becomes more advanced,
these digital and analog worlds will coexist more seamlessly, with people moving in
and out of each space effortlessly. Through the development of digital avatars, new
possibilities will emerge, redefining what it means to live a full life and potentially
even allowing one to live on after death.

What the future holds

Virtual reality hardware still has low adoption but comfort with this type of technology is growing. As
products improve and prices drop, virtual spaces will hold more promise.
14%
66%
30%
of Chinese consumers
of Brazilian consumers
have a virtual reality of UK adults* agree they
have a positive
product in their home like to be among the first
perception of artificial
and 28% have a gaming to try new technologies
intelligence
console
* taken from Mintel's 35-market consumer research study

Base: China: 3,000 consumers aged 18-49; UK: 1,000 consumers aged 16+; Brazil: 1,500
consumers aged 16+
Source: KuRunData/Mintel, April 2021; Kantar Profiles/Mintel, August 2021, January 2021
Indicators to watch
AR and VR advancement
AR and VR technology have been incrementally improving over the past decade. VR devices are
becoming more useful as they get smaller and more ergonomic. The continual investment in the
advancement of this technology will hasten its adoption in the next five years.
Cost of technology
A second factor driving the adoption of AR and VR technology is cost. As the cost of these products
declines, they will move beyond early adopters to be purchased by the early majority.
Regulatory environment
The level of social media regulation varies by region. However, as companies such as Meta (formerly
Facebook) continue to increase in size and power, there will likely be calls for more stringent
moderation, especially for the type of content that gets published and shared. This regulation can slow
the advancement of virtual spaces.

Innovation examples
Over the course of the next five years, brands will play a key role in helping consumers understand and
find purpose in the metaverse.
RAL7000STUDIO and adidas Originals have entered the metaverse with

their NFT collection
Louis Vuitton created a game and WeChat stickers, combining NFTs, art
and the brand's story

VR has yet to be connected to a functional need, but its expansion into different categories is
demonstrating possibilities.
Argentinean winemaker CARO is offering virtual tours of its wine cellar

through Amazon Explore
Etsy debuted a virtual, AR home with shoppable products

Food & drink
AR and VR will allow consumers to experience food and drink production in new ways. Virtual tours of
farms, wine cellars and citrus groves can help premium brands prove their claims of quality and
authenticity and set local businesses apart from global competitors.

Digital avatars are becoming a core focus for self-expression. As more brands create product lines
exclusively for online personas, consumers will feel encouraged to embrace a more playful, creative and
experimental side, driving their confidence to replicate these looks in real life.
Home
The smart home will take on an entirely new meaning. It will no longer just be about devices working
together but how home tech can integrate with the metaverse. Amazon, Google and Meta (formerly
Facebook) are all showcasing how the metaverse can exist through their interconnected products.
Retail & ecommerce

The commodification of products that only exist digitally (such as NFTs) will redefine the purpose of
ownership. This will impact the luxury space rather than everyday essential categories.
Automotive
Self-driving cars continue to inch towards reality and can be repurposed as an additional space for work,
connection and relaxation. Most importantly, they will create the opportunity for time, a precious
commodity for consumers.
Financial services
For younger generations, financial services exist purely in the digital realm. The physical location of
banks will no longer be meaningful; instead, the ability to connect with an expert who can help navigate
the dynamic space of digital currencies will be a valuable asset.

Key takeaways
Prepare for FOMO 2.0

The evolution of the metaverse may overwhelm consumers managing experiences in both the digital
and physical world. Brands can balance exclusive experiences with accessibility to avoid creating
consumer fatigue.
Expect more regulation

The metaverse will put technology companies in an entirely new position of power, likely driving
governments to create new forms of regulation and global alliances.
The nostalgia of everyday spaces

The cycle of nostalgia will grow shorter due to the immediacy of digital interactions, creating
opportunities for everyday spaces to be playful with activities that currently feel routine.
Break out of seasonal boxes

As consumers engage in virtual worlds, the limitations imposed by weather are removed. Brands will
have more freedom to experiment with seasonal activities throughout the year.
Meet the expert

Diana Kelter
Associate Director of Trends, North America
Diana joined Mintel in 2016 as a Foodservice Analyst, and in 2018,

moved to her current role as Senior Trends Analyst. Prior to Mintel,
Diana worked in digital marketing serving as a social media strategist.
Her background and interests include writing, research, and finding the
story behind data statistics.
Read more by this expert | Get in touch

Disclaimer
This is marketing intelligence published by Mintel.
The consumer research exclusively commissioned
by Mintel was conducted by a Chinese licensed
market survey agent (see Research Methodology
China for more information).
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19 NOVEMBER 2021 | INDUSTRY TREND

1 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

FLEXIBLE SPACES: NOW - THE NEXT 12 MONTHS .......................................................................... 5

FLEXIBLE SPACES: NEXT - 18 MONTHS - 2 YEARS ....................................................................... 12

FLEXIBLE SPACES: FUTURE - 5 YEARS+ ........................................................................................ 18

2 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

3 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Value meets Surroundings

Flexible Spaces sits at the intersection of the Value and Surroundings

4 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

FLEXIBLE SPACES: NOW - THE NEXT 12

The transactional value of physical spaces has been bolstered by emotional

5 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

What's happening now

48% 67% 57%

of UK consumers who of Brazilian shoppers of US consumers who

6 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Real estate market

COVID-19 vaccinations and variants

7 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

8 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Markham College's new Lower School building relies on flexible spaces

9 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Beauty & personal care

Retail & ecommerce

10 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Put purpose in hybrid lifestyles

Enable the outdoors 24/7

Open your doors

Rethink office space

11 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

FLEXIBLE SPACES: NEXT - 18 MONTHS - 2

Consumers have a myriad of identities that take precedence throughout a given

Mintel Trend Coming Together highlights the momentum of people seeking

12 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

What's happening next

* taken from Mintel's 35-market consumer research study

13 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

In the Philippines, SM Megamall opened Riders' Lounges where delivery

In the US, REI launched an in-house studio to shift perceptions of the

14 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Non-profit My Block, My Hood, My City occupied two cars of the Chicago

AMOR LGBT+ Film Festival in Santiago, Chile, aims to shed light on

15 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Beauty & personal care

Retail & ecommerce

16 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Combine passion and products

Build safe spaces

17 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

FLEXIBLE SPACES: FUTURE - 5 YEARS+

18 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

What the future holds

* taken from Mintel's 35-market consumer research study

19 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

RAL7000STUDIO and adidas Originals have entered the metaverse with

20 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Argentinean winemaker CARO is offering virtual tours of its wine cellar

Etsy debuted a virtual, AR home with shoppable products

21 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

Beauty & personal care

Retail & ecommerce

22 © 2021 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.