Currents in consumer behavior 2023
Your brand can outlast trends by understanding the social and cultural currents that influence consumer behavior today.
From climate change and accessibility to a renewed focus on health and wellness, we invite you to scroll through our currents in consumer behavior report and see what the future holds!
1. Consumer Packaged Goods
Image: Pat Whelen
1.1 Consumers Want to Support Environmentally Conscious Brands
It is vital for CPG brands to move beyond focus groups and 10-year commitments and find far more time-sensitive and impactful solutions to our planet’s environmental problems.
What you should know:
Transparency and accountability are essential for sustainability initiatives, because consumers are increasingly skeptical of what brands tell them.
Just because sustainability isn’t part of your brand ethos yet, it is never too late to introduce it.
Whether in manufacturing processes, product ingredients, or packaging materials, it is important to ensure that sustainability is part of your brand DNA.
Key packaging consideration:
Though a lot of focus is being placed on developing recyclable plastics, most plastic packaging simply cannot be recycled .
We see an increasing need for reusable and biodegradable packaging that is less toxic and doesn’t need a recycling facility.
As Greenpeace highlights in a recent report, “companies in the U.S. and around the world must urgently phase out single-use plastics by replacing their packaging with reuse and refill systems and offering packaging-free products.”
Image: Alex Moiseev
1.2 Personalization & Rewards
Quality, price point, and product availability will always drive a purchase decision, but consumers expect more from brands if they are going to become repeat shoppers.
What you should know:
Though 69% of consumers say that their choice of retailer is influenced by where they can earn loyalty or rewards program points, many CPG brands still need to catch up and provide more value to their customers.
While customers may not purchase directly from the CPG brand, there are still opportunities to engage them in-store and online – especially for frequently purchased items.
Key packaging consideration:
Personalization and rewards don’t have to live solely online.
Brands like M&M’s have embraced the idea of customization by allowing customers to create personalized package designs and product assortments.
By creating differentiated brand experiences that leverage digital and physical touchpoints, brands can create a deeper relationship with their customers.
Image: Shelby Cohron
1.3 The Relationship Between Store Brands and CPGs is Going to Get Complicated
In grocery stores, over 87% of consumers opt for private-label items to save money. By 2027, private-label brands are expected to make up 25% of all CPG sales.
What you should know:
As private-label and direct-to-consumer brands eat away at market share, CPGs need to work harder than ever to earn consumers’ trust and showcase their points of differentiation.
PepsiCo has taken advantage of its wide range of products and launched PantryShop , an online store that allows customers to bundle products and have them delivered straight to their door.
Customers benefit from the convenience of skipping a trip to the store and the peace of mind that they are getting trusted products at a fair price.
Key packaging consideration:
72% of consumers stated that packaging design can influence their purchase decision.
Product packaging remains one of the best ways to differentiate a brand, communicate critical messaging, and excite customers.
As private-label packaging improves, CPGs will need to elevate their designs to stand out.
2. Health & Beauty
2.1 Accessible Packaging
The health and beauty industry is becoming more inclusive. We see more focus on accessibility, in other words, products that can be used regardless of one’s physical or cognitive abilities.
What you should know:
There is a growing list of inspiring, innovative brands that are finally considering accessibility. By improving existing products or introducing new lines, they are making their customers' lives easier and tapping into a cohort that is often ignored.
The Herbal Essences Bio: Renew line uses raised stripes and dots on its packaging to indicate the difference between shampoo and conditioner. Viewed as a “more universal alternative” to braille, the simple markers make the bottles accessible to anyone with partial or complete sight loss.
Degree has taken it a step further with their Inclusive Deodorant – “the world’s first deodorant designed for people with disabilities.”
Key packaging consideration:
The shape, size, material, and color of packaging can all pose a challenge for someone with physical or visual difficulties. How can you make their life easier?
Using square or rectangular-shaped bottles instead of round ones, for example, means that your product is not as likely to roll away if dropped.
Image: Toa Heftiba
2.2 Alternatives to Single-Use Packaging Gain Traction
With over 120 billion units of cosmetic packaging produced each year (most of which are not recyclable), it is time for the industry to move away from single-use packaging.
What you should know:
Plastic alternatives, such as paper-based and sugarcane packaging, are becoming more popular. At the same time, innovations like compostable cosmetics show that the industry can find impactful solutions to our current climate crisis.
CPGs can show consumers a range of zero-waste and reusable options, such as Dove’s reusable body wash packaging, UpCircle Beauty’s return and refill initiative, and Ulta Beauty’s partnership with global reuse platform Loop.
Key packaging consideration:
Introducing reusable and refillable packaging options may seem daunting. Still, it is an exciting opportunity to create something branded that sits in the home for longer than a reusable package. From the constant interaction that a customer will have with your brand to increased product protection, the return on investment is hard to dismiss.
Ellen MacArthur Foundation recently pointed out that “converting 20% of plastic packaging into reuse models is a USD $10 billion business opportunity that benefits customers and represents a crucial element in the quest to eliminate plastic waste and pollution.”
2.3 Creating an Omni-Channel Experience Worth Talking About
In health and beauty, there have always been distinct elements of the in-store shopping experience that could not be replicated online. However, COVID-19 and technological advancements have allowed for a more seamless, connected shopping experience.
What you should know:
Consumers are no longer just interacting with a brand at the point of sale – they are reading and watching product reviews, scrolling through social media, comparing prices, and looking for perks from the brands they support.
Ulta Beauty is a brand that has stepped up its omni-channel expertise in recent years. Their online GLAMlab allows site visitors to see how they would look with different hair colors, brows, and lashes.
The brand’s Skin Analysis tool is another great use of AI and AR, and offers a personalized skin-care routine based on facial recognition.
Key packaging consideration:
Love or hate them, QR codes don’t seem to be going anywhere anytime soon. They are a great tool to educate a consumer further and engage with them across multiple touchpoints.
AI and AR technology is also making its way into packaging design and opens the door to the experiential aspects of health and beauty shopping.
3. Alcohol & Cannabis
Image: Taylor Simpson
3.1 Hard Seltzers Were all the Fizz; Now it's all about Canned Cocktails
Canned cocktails, aka ready-to-drink (RTD) cocktails, are the fastest-growing spirits category and are projected to hit $57.2 billion by 2032.
What you should know:
RTDs deliver on both the wants and needs of consumers. They are convenient but also have the taste, quality, and variety that appeal to many audiences.
It is not just alcohol brands that are entering the RTD space – popular bars like Death & Co in New York City have turned some of their most famous drinks into canned cocktails.
On the flip side, beverage brands like AriZona and Simply have introduced alcoholic versions to their line of products.
Key packaging consideration:
Finding the correct design elements that reflect your brand and drink flavors will go a long way in helping your brand stand out in a crowded category.
A potential next step in the evolution of this category is partnerships among established brands, allowing for increased appeal, cross-promotion, and awareness among consumers.
After all, what is better than having one trusted brand logo on your package?
How about two?
3.2 Cannabis-Infused Beverages are Seeing Increased Popularity
Between 2021 and 2022, cannabis drink sales increased by 42.2%. The market is expected to be valued at $1.4 billion in the United States by the end of 2023. That is over 16 times greater than its value in 2018.
What you should know:
As consumers become more mindful of the impact of alcohol on their health and look for alternatives to smoking cannabis, the appeal of cannabis-infused beverages crosses a wide range of demographics.
As the market continues to evolve, brands are experimenting with different ingredients and offerings. From coffee or alcohol-infused to seltzers and energy drinks; there is seemingly a cannabis beverage for any mood or time of the day.
Key packaging consideration:
Packaging and labelling guidelines for cannabis products still present obstacles for brands trying to attract new customers.
Government regulations tend to constrain design that would lead to the appeal of cannabis products. But there are the few elements you can still use to engage with your target customer, such as brand name, logo, and packaging color.
The use of color can go a long way expressing to consumers what they can expect from a CBD-infused drink. Yellow, for example, may convey happiness and energy, while blue suggests tranquillity and creativity.
Image: Sigmund
3.3 Consumers Will Continue to Cut Back on their Alcohol Consumption
Though some consumers may simply be drinking less often, others are looking for beverages that are either low in alcohol percentage or contain no alcohol at all.
What you should know:
Dubbed the sober curious, this consumer group is increasingly looking for fun, exciting alternatives to traditional alcoholic beverages.
Major brands like Heineken and Tanqueray have started offering zero-alcohol options, but we are also seeing numerous start-up brands launch with solid branding, beautiful packaging, and clever marketing.
Seedlip and Partake, for example, boast quality ingredients, great taste, and a level of authenticity that appeals to their target customers. “Alcohol doesn’t own good times,” claims Partake on their website – and consumers seem to agree.
Key packaging consideration:
In the past, non-alcoholic and low-ABV beverages acted like they had something to hide.That is no longer
the case.
Instead of trying to look the same as an alcoholic beverage, it is time to be proud of that 0% or “non-alcoholic” claim and wave the flag for all to see.
With strong branding and eye-catching packaging design, you can turn heads
and entice more people to join the
sobriety party.