Professional Documents
Culture Documents
October 2020
Megatrends Overview
Megatrends in Peru
▪ Experience More
▪ Healthy Living
▪ Shifting Market Frontiers
▪ Shopping Reinvented
▪ Ethical Living
▪ Middle Class Retreat
▪ Premiumisation
▪ Connected Consumers
INTRODUCTION TO LIFESTYLES MEGATRENDS
▪ The data in the Lifestyles Survey 2020 were collected prior to the large-scale and
unprecedented impact of COVID-19; however, these consumer data remain
relevant in today’s climate, as they show growing trends which are likely to be
even stronger in the wake of COVID-19, including those that are covered in this
report. For example, the increasing interest of consumers in seeking more
convenient online platforms for shopping and connecting with others, growth in
holistic approaches to healthy living, and demanding flexibility and more options
to balance work and home life are trends we have seen in both our 2019 and 2020
Lifestyles Survey data. These trends are still extremely relevant and are expected
to continue to grow at a faster rate due to the impact of COVID-19.
▪ Though we cannot say for certain how COVID-19 will impact consumers and their
lifestyle habits in the future, our Lifestyles Survey data show which trends are most
important to consumers and are likely to continue being part of their lifestyles and
behaviours, thus allowing businesses to understand consumer priorities and
strategically plan their next steps in an unknown landscape.
Megatrends
▪ Megatrends reports provide insight into the eight megatrends identified as being the most important cross-
industry trends that business should be focused on during the next 10 to 15 years. Megatrend analysis helps
companies understand these important market trends, enabling them to assess future impact and proactively
build relevant forward thinking strategies. This report provides an overview of how these most influential
megatrends are impacting Peru.
▪ Innovative and disruptive companies that understand the drivers shaping the world and the resulting
megatrends can use this to execute change through renovation, where a company improves on previous ideas
to increase market share, through to innovation, where a company grows an entire category, and ultimately
disruption, creating new markets where there were none before. Case studies in this report highlight examples
of companies’ responses to megatrends.
Definition:
▪ There is a fundamental shift in consumer values towards experiences:
engaging directly with a product/service and in return receiving an
enhanced and unique interaction with the brand. Consumers are seeking
“authentic” experiences that suit individual tastes, preferences and lifestyles.
▪ With Peru still characterised by significant income inequality, consumers
have different expectations when it comes to experiences. Doing things as
a family is, however, important. Our survey showed that 52% of
respondents prioritise time with their children – well above the global
average of 42%.
▪ Affluent urban consumers are increasingly keen to try new experiences.
48% of respondents – including 54% of Millennials – said they prefer to
spend their money on experiences rather than things, and 68% (versus
57% globally) enjoy curated experiences that are tailored to their tastes.
Film and sports are two big passions in Peru: 48% of consumers went to
the cinema and 32% attended a sporting event at least weekly prior to
COVID-19.
▪ During Peru’s lockdown period, which was among the earliest and
strictest in Latin America, there was a notable shift towards online
experiences among connected consumers. As many as 57% of our
respondents – most of whom have smartphones – said they value online
virtual experiences.
Key takeaways
▪ Delivery apps are ideally positioned to cater to busy
urban consumers looking for convenience. They have
also gained a new user base during the pandemic, as
79% of consumers seek curated experiences that many businesses were closed.
are tailored to their tastes ▪ Super apps such as Rappi and Glovo will continue to
diversify their offer to adapt to consumers’ needs.
Experience more
Definition:
▪ Healthy lifestyle habits are becoming the normal way of life as concerns
over obesity, food sensitivity and people affected by disease continue to
rise. However, perceptions of healthy living are shifting beyond just
physical health to represent a much more holistic view, where food,
exercise, mental wellbeing and broader lifestyle issues are seen as a whole
entity.
▪ Peru was hit hard by the COVID-19 pandemic, leading to increased
interest in preventative health. As of mid-September 2020, its death toll
was among the highest in the world, at 929 deaths per million
population.
▪ In line with their global counterparts, 60% of our survey respondents
exercised at least once a week prior to the pandemic, and a slightly
higher than average 31% participated in stress-reduction activities.
These included meditation (48%), taking herbal remedies (48%), and
practicing yoga (44%).
▪ Reflecting the shift towards snacking and processed foods, Peru’s
obesity rate rose from 19% in 2015 to 21% in 2020. Nevertheless, 47%
of respondents said they actively monitor what they eat in order to
manage their weight, and 74% (compared with 58% globally) look for
healthy ingredients in food and beverages.
Key takeaways:
▪ With diabetes, heart disease and obesity on the
rise in Peru, staying healthy is a growing concern
– especially amid the COVID-19 crisis.
▪ Wearable technology is appealing to a growing
number of affluent urban consumers keen to
achieve their health goals. Spotify will resonate
well with young consumers, among whom it is
very popular.
Healthy living
Healthy living
Definition:
▪ As some areas of the globe become over-farmed, over-populated or
otherwise reach their maximum potential, others are gaining prominence
for their unexploited potential. Emerging and developing countries will
account for two thirds of global GDP by 2030. As a result, companies are
expanding their horizons and looking for opportunities in Africa, China’s
second-tier cities and even the Arctic and space.
▪ Peru’s economic progress, emerging middle-class consumer base and
growing mall culture make it an attractive market for international
brands looking to expand their horizons. The growth of e-commerce is
also making foreign items more accessible to consumers: 30% of our
survey respondents said they buy products online at least monthly from
international retailers that are not available on the local market.
▪ While 79% of consumers (including 84% of Gen X) believe that
international products are more readily available to them than they
were five years ago, consumers still take pride in local products that
reflect Peruvian values and traditions. This was especially relevant
during the COVID-19 pandemic, when consumers came together to
support local businesses during tough times.
Key takeaways:
▪ Peru is one of Latin America’s the largest beer
markets and offers significant long-term growth
potential – especially in the premium segment, which
is still relatively undeveloped.
▪ Heineken intends to use AJE’s local knowledge and
distribution network to bring more choices to
consumers, both international and local. However, the
Lager consumption in Peru is forecast to rise by 7% company will face formidable competition from the
over 2020-2024 dominant player, AB InBev Backus.
Definition:
▪ How we buy goods and services is constantly in flux, as economic and
technological realities shift. Consumers are now making purchases across multiple
platforms, and want to engage with merchants anytime and anywhere. The ideal
customer journey weaves a brand into the entire experience, providing value
before, during and after the purchase, converting a transaction into a relationship.
▪ It is still common for consumers in Peru to shop at traditional independent
grocers or open markets, buying fresh or loose products as and when they are
needed. Urban consumers are, however, increasingly shopping for packaged
foods in modern convenience stores and discounters. Indeed, spending in
discounters rocketed by 617% over 2014-2019.
▪ With the country’s growing mall culture, leisure shopping has become a
favourite pastime among affluent urban consumers. 54% (compared with 39%
of their global counterparts) said they like to visit shopping malls, and 39% of
Millennials pick their travel destinations based on the quality of shopping there.
▪ E-commerce developed strongly during the pandemic, whereas previously only
22% of respondents said they buy an item or service online at least weekly.
Social commerce is also burgeoning on the back of growing social media use:
31% of consumers (versus just 23% globally bought items via a social platform.
Key takeaways:
▪ Shopping malls are having to rethink the way they
operate in light of new safety restrictions.
▪ Online ordering with personal shoppers will help
kickstart growth again for mall tenants which were
36% of consumers seek personalised or tailored
forced to close. This may even lead to a long-term
shopping experiences
change towards contactless shopping.
Definition:
▪ Increasing attention is being paid by both consumers and businesses to ethics
and moral values. This translates into purchasing decisions framed by
concerns about the environment, sustainability, animal welfare, production
and labour practices, as well as the desire to positively impact communities
and people.
▪ Facing problems such as deforestation and pollution from toxic metals,
Peruvians are highly attuned to environmental issues. 77% of the
respondents in our survey said they were worried about climate change –
well above the global figure of 65%; while 71% tried to have a positive
impact on the environment through their everyday actions.
▪ The top concern for consumers is reducing plastics use (77%); however, due
to poor waste management systems, only 55% of consumers recycle items.
Deteriorating air quality in Lima has prompted 38% of consumers –
including 55% of Baby Boomers – to try to reduce their carbon emissions.
31% are interested in actually off-setting their carbon emissions.
▪ Peru’s affluent urban consumers are increasingly turning their attention to
items with an ethical positioning. As many as 36% of our survey
respondents (compared with 28% of their global counterparts) agree that
buying eco- or ethically-conscious products makes them feel good.
▪ In August 2020, Agua San Carlos, a PepsiCo brand ▪ All the components of the BIB, from the plastic bag to
packaged and marketed in the country by CBC Peru, the valve, are 100% recyclable.
announced the launch of a new 20-litre water box
made with recycled cardboard.
Key takeaways:
▪ The “bag-in-box” (BIB) system consists of a
▪ Sophisticated design is no longer the key selling
cardboard box with a dispenser and a plastic bag
point for brands: consumers are looking for products
containing the mineral water under vacuum. As the
with lightweight, sustainable packaging that
bag is emptied it contracts, isolating the contents
generates less waste, has a reduced carbon footprint,
from air and light.
and is kinder to the environment.
Ethical living
Definition:
▪ While the middle classes are booming in Asia, the middle classes in developed
markets are struggling to maintain the economic position they enjoyed for the last
half a century. Middle class households in developed countries have not seen any
significant improvement in their standards of living since the 2008-2009 financial
crisis, as a result of weak or stagnant income growth and continued economic
uncertainty.
▪ Government efforts to tackle high informality and boost income growth through
various social programmes have taken many Peruvians out of poverty and
created a new middle class, which accounted for almost 26% of households in
2019. Nevertheless, Peru is characterised by high income inequality, with 21%
of the population (mainly in rural areas) living below the national poverty line.
▪ Although keen on shopping, Peru’s emerging middle class is fairly price
sensitive and is likely to become more so as the pandemic takes its toll on jobs
and the economy. Prior to the pandemic, 50% of our survey respondents – and
as many as 61% of Baby Boomers – said they like to find bargains.
▪ Only 11% of respondents expected to increase their overall spending in the next
year; however, education will remain a priority among middle class families,
who are increasingly enrolling their children in private education institutions.
Indeed, 37% of consumers intended to increase spending in this area.
Key takeaways:
▪ Private label products, which offer lower prices than
traditional brands, are responding to the needs of
price-conscious middle class consumers.
▪ Many people have lost their jobs during the pandemic,
25% of consumers sought private label making private label products even more relevant.
products pre-pandemic
Definition:
▪ In the wake of the global financial crisis, with lavish displays of wealth out of
fashion, consumers are spending more on products that can make them better:
healthier, more distinctive, more efficient, thriftier. This is driving demand for
products or services allowing them to demonstrate and achieve this better
version of themselves.
▪ Peru’s growing middle class consumer base – especially the older generations
– are supporting a growing market for premium goods and services. As many
as 68% of our survey respondents said they like to try new products or
services, and 55% want products and services that are uniquely tailored to
them. Furthermore, 51% of Baby Boomers (compared with just 40% of their
global counterparts) would rather buy fewer but higher quality things, and
26% of this cohort have a preference for niche brands that are hard to find or
unique.
▪ As a result, companies are increasingly incorporating more high-tech,
personalised, eco-friendly and other premium features into their products to
provide added value. 50% of Millennials and Gen X consumers are willing to
spend money to save time, driving demand for time-saving appliances and
premium ready-to-eat packaged foods.
Key takeaways:
▪ Ownership of pets – especially small dogs – is very
high in Peru.
▪ In line with rising interest, awareness and concern
80% of pet owners consider pets as beloved about the wellbeing of their pets, demand for
members of the family premium dog and cat food has escalated among more
sophisticated and health-conscious pet owners.
Premiumisation
Premiumisation by age
Premiumisation
Definition:
▪ Consumers are becoming increasingly connected. While connectivity first spread
through developed markets, the growth of affordable mobile technology has
enabled consumers in the developing world to come online as well. This
megatrend is underpinning generational shifts in how people live, work, shop and
play.
▪ While Peru lags behind other countries in terms of broadband internet
connectivity, the percentage of the population covered by a mobile network
increased from 71% in 2015 to 88% in 2020. With the arrival of entry-level
devices, 86% of our survey respondents now own a mobile phone, while 52%
have a tablet and 24% a smartwatch.
▪ Mobile technology is used mostly for communication purposes. Almost all (91%)
of respondents used a messaging app at least weekly prior to the pandemic, and
84% accessed social media via a phone. Cultivating a personal brand to manage
others’ perceptions of themselves is important to 51% of consumers, compared
with 39% globally.
▪ With streaming services such as Netflix and Spotify very popular, 80% of
consumers watched TV/video and 55% streamed music via their phone at least
weekly before COVID-19, compared with global figures of 73% and 44%.
Key takeaways:
▪ Cornershop is Uber’s first foray into grocery
delivery. The initiative is being launched in a number
of cities throughout Latin America to make up for
decline in the ride-hailing business during the
pandemic.
▪ By diversifying into new services, Uber will compete
39% of Gen Z consumers ordered groceries online head-one with a number of other “super apps” in the
pre-pandemic region, including Rappi and Glovo.
Connected consumers
The importance of megatrend Don’t miss our other megatrend How Euromonitor Consulting can
analysis reports help
▪ Today’s environment of fast- ▪ Experience More ▪ In addition to education and
paced change makes it more ▪ Shifting Market Frontiers awareness, Euromonitor
challenging than ever to keep up International partners with
▪ Healthy Living
with competitors. Megatrend businesses to quantify the
analysis helps businesses better ▪ Shopping Reinvented current and forecast impact of
anticipate market developments ▪ Middle Class Retreat megatrends, prioritising which
and lead both incremental and ▪ Ethical Living megatrends and
disruptive change for their industry/category level trends to
▪ Premiumisation
industries. Euromonitor innovate against and the next
International’s white paper ▪ Connected Consumers steps for the company. To learn
“Megatrend Analysis: Putting the more about how we can activate
Consumer at the Heart of megatrend analysis at your
Business” provides instructions company, please visit
on how to conduct megatrend http://www.euromonitor.com/c
analysis for your business. onsulting-consultation-request.