Megatrends: Premiumisation Continues to be in Demand Amidst the Cost-of-Living Crisis
DUBLIN, March 22, 2024 /PRNewswire/ -- The "Megatrends: Premiumisation" report has been added to ResearchAndMarkets.com's offering.
This report provides an update on Premiumisation - one of the 10 megatrends, exploring the three key pillars of the trend to highlight where opportunities lie for business. Premiumisation continues to be highly sought-after by consumers seeking to enhance their wellbeing and consumers willing to pay more for premium products and services. In response, companies have leveraged consumers' desires and wants through innovation and active marketing.
Key Findings
Premiumisation continues to be in demand amidst the cost-of-living crisis
Despite the current cost-of-living crisis, consumers continue to value premium products. This is driven by wellness, technological benefits and convenience. By being more discretionary in their spending, they purchase fewer items yet with better quality, to serve for their own self-love and building a better version of themselves.
Rising income and the attitudes of Gen Z consumers to spend more on themselves
Despite being cost-conscious, Gen Z consumers will arguably be one of the most important consumer groups for premium products and services, given the gain in their purchasing power by 2028. Moreover, they will also form the backbone of economic growth and will drive growth.
Consumers satisfy their own desires and wants through premiumisation
Consumers satisfy their own desires and wants, seeking greater value to specific benefits that serve their distinct lifestyles. This is done through looking for customised products and services that are personalised to their own liking, as well as indulgences and convenience solutions such as snacks and ready meals as well as luxury goods.
Consumers spend more to build a better version of themselves
Consumers seek to become their "best selves" and enhance their wellbeing, demanding more healthy solutions that take care of their physical and mental/emotional wellbeing.
Affordable premiumisation set to gain momentum
To cope with the high cost of living, consumers have normalised value-seeking products yet still demand affordable premiumisation. In response, brands are introducing this concept of "affordable premiumisation" where prices are lowered slightly and resold while still being positioned as premium to attract consumers.
Key Topics Covered:
Introduction
- Megatrends: Premiumisation - a framework for the future
- Leaders harness megatrends to disrupt a market
- Key findings
- Pillars of Premiumisation
The evolution of premiumisation
- Premiumisation continues to be in demand amidst high cost of living environment
- Consumer expenditure set to grow as consumers seek to enhance quality of life
- Gen Z set to be key target consumer group for premium products and services
- Premium private label set to rise with growing interest in value-added functionality
- Affordable premiumisation appeals to price-conscious consumers
- Balenciaga joins the group of luxury brands venturing into resale with its Re-Sell platform
- Opportunities and challenges for premiumisation
Personalisation
- Personalisation continues to be highly valued by consumers to suit their lifestyles
- Hugo Boss invests in greater personalisation with a new AI Digital Campus in Portugal
- Zoe: gut health to play a pivotal role in consumers' personalised nutrition journeys
- Automatic coffee machines continue to thrive offering personalised experience in homes
Permission to Indulge
- Snacks: Premium positioning through perceived luxury and indulgence
- Food brands move to untapped categories to appeal to indulgence and premium
- Aspirational consumption of alcohol drives premiumisation
Self-care
- Consumers turn to the only ones they fully trust in an uncertain world - themselves
- Against a background of wellness, "home as sanctuary" evolves catering to self-care
- Inflation leads to consumers indulging in small splurges to make themselves feel good
- Rise of premium beauty and personal care products to appeal to consumers' self-care
- Wellbeing products including natural mood enhancers serve to provide self-care
- Mood enhancing emerges as a consistent self-care experiential claim in premium positioning
- Aromatherapy Associates combines emotional and physical wellness solutions for self-care
Health is the new wealth
- Consumers prioritise wellbeing and are willing to pay a premium for functionality
- Food products with clear nutrition benefits sought-after by consumers
- Health claims in products increasingly desired by parents for their children
- Pet food has also launched health-orientated premium food due to health and wellness
Buying Experience and Community
- Buying experience and community continue to be sought-after by consumers
- Digital transformation enhances consumers' buying experience for luxury goods
- Luxury resort Ahau Collection introduces new NFT loyalty scheme to attract Gen Z tourists
- Lotte Duty Free taps into the metaverse
- Pet shops and superstores invest in elevating the in-store experience
- Consumers are willing to pay a premium on community-based drinking occasions
Implications for future growth
- Premiumisation set to record slower growth over the next 10 years
- Growth will come from emerging regions such as Eastern Europe and Asia Pacific
- Premiumisation to remain relevant as consumers desire to feel good
For more information about this report visit https://www.researchandmarkets.com/r/t8j51g
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