What are you in the mood to eat?
When it comes to their favourite foods and beverages, consumers know what they want, and when and how they want it — even if they don't always think about why. Sinking their teeth into that elusive "why" drives food and beverage (F&B) companies to continually analyse consumption drivers and impulses. They need to understand why to determine what is influencing consumers' dietary decisions, and what's around the corner.
KPMG analysed the latest signals reshaping food trends and identified six key dimensions that offer a pulse on changes in buyer behaviour. The results, based on both primary research and data analytics, go towards feeding the F&B industry's efforts to better align and manage product portfolios and R&D investments, target marketing efforts and discover opportunities in time to gain table share in tomorrow’s changing markets.
Chew on this: 6 key drivers of F&B consumption today
Technology-enabled access to real-time information and social sharing are reshaping food choices. Our 2022 'Hunger signs' report offers a comprehensive analysis of consumer data that can help companies build a growth strategy that meets evolving shopper appetites.
Lifestyle and values
The pandemic brought personal values into focus for many consumers, who are now applying them to the food they buy. Nearly 1 in 3 say they are more conscious about buying decisions, while 43% prefer to buy brands that align with their values.
Wellness and health
More than half of US consumers surveyed say their interest in eating healthy foods has increased over the year, with remote work affording more time to plan and cook meals. The younger generation, in particular, agree that "food is better medicine than traditional medicine".
Consumers want treats that satisfy cravings without sacrificing healthy eating goals. That means indulgence — but with smaller portions, less fat and fewer calories. For example, the growth in better-for-you chocolates and other related desserts are outpacing traditional versions.
Globalisation and premiumisation
Young wealthy consumers increasingly seek to travel through their taste buds. They want an authentic experience even if they don’t leave home. Consumers surveyed enjoy foods with a wider flavour profile. 52% prefer authentic foods sourced from their country of origin.
Convenience vs sustainability
Demand is growing for easy access to food that doesn’t cost the environment. While convenience remains important to consumers, it is not a complete tradeoff for doing good. More than half of those surveyed say they are concerned about the environmental impact of their food purchases.
Extending into the metaverse
44% of Gen Z consumers have used a metaverse platform in the last three months, and in-game purchases add up to an estimated US$80 billion annually. This could represent the next transformation of commerce for F&B. Think increased online purchases and deeper consumer-brand engagement.
The challenge: High prices and empty shelves
Inflation and ongoing supply chain disruption will potentially delay some opportunities for the industry. The consumer mindset hasn't completely recovered from the food security issues faced at the height of the pandemic. And continued supply chain challenges, labour and wage pressures, and increased commodity costs have been forcing companies to pass costs on to consumers.
F&B companies have more data about consumer demand patterns and dynamics at their fingertips than ever before. Armed with a growth strategy informed by a comprehensive analysis of consumer data, these companies can meet evolving shopper demands today and define the right product portfolio for the future.
Read our full report for more insights and key priorities.