Six Mega Trends Impacting Global Food & Beverage Brands

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Six Mega Trends Impacting Global Food & Beverage Brands

05/27/2009
May 20, 2009 -- Understanding and embracing mega trends is challenging but fundamental to the success of product development and innovation for consumer packaged goods (CPG) companies, as well as ensuring that their marketing strategies are relevant at both global and local market levels. A new report from Packaged Facts, titled "Top Global Food and Beverage Companies: Strategies for Success," reveals six mega trends that are impacting global food and beverage brands. The findings are based on the strategies employed by eight leading global food and beverage companies, including Nestle, Kellogg, Anheuser-Busch, Wrigley, Kraft, Heinz, Danone and Coca-Cola, in order to ensure that they retain their global leadership status. Without further ado, here is a sneak preview of the six mega trends that act as a catalyst for these brands:

Trend 1: Consumer Empowerment
Over the years, consumers have become increasingly demanding and savvy about finding the right products to meet their needs, but they are continually raising the bar for brand manufacturers. CPG manufacturers have had to adapt their advertising strategies to meet the needs of an empowered consumer by embracing online advertising and social media strategies.

Trend 2: Health and Nutrition
The desire for healthier foods is one of the most important and debated mega trends impacting nations around the world, but it is a complex subject matter with far ranging implications. In line with the health agenda, the CPG industry is not only taking out so-called 'bad' ingredients, but adding enhancements in the form of organics, nutrients and other functional benefits. Global CPG brands aim to be at the forefront of these product developments, creating new category breakthroughs.

Trend 3: Supply Side Issues
Global food production has become a high-profile issue due to interrelated factors that have combined to put strain on agriculture and the food industry. World prices of agricultural commodities have declined. But while this places less pressure on CPG companies in terms of input costs, it may take some time for consumers to feel the impact in terms of price.

Trend 4: Global Shifts in Consumer Expenditure
Global brands are looking to spread their revenue across a mix of regions to tap into the development of major economies. Global economic growth and rising demand from emerging and fast growth markets present a major opportunity for multi-national CPG companies. Leading brands like Coca-Cola have long-since asserted their presence on the global stage, but with saturated and slow-growth markets hampering financial gains, the impetus to build business, in BRIC (Brazil, Russia, India and China) markets in particular, has been hastened.

Trend 5: Sustainability and the "Green" Movement
Growing concerns about the impact people, businesses and industry have on the planet have risen significantly during recent decades, particularly in nations where industrialization and education are more developed and in fast-growth markets. Of all the concerns impacting CPG manufacturers, reducing the amount of waste produced, via production and packaging, is a key concern for consumers.

Trend 6: Convenience
The need for more convenient food and drinks products has paved the way for a plethora of new product development and innovation. Today, it remains one of the main issues facing CPG manufacturers. Enhancing value via convenience has been one of the most traditional ways in which CPGs have encouraged consumers toward premium products.

To read this report in its entirety, click here.