Four consumer trends to watch in 2024

At the end of 2023, I was flooded with reports from various sources claiming to have the latest trends for the coming year. At one point, I counted 164 consumer trends reports waiting in my inbox. And while each was an interesting read, the overall points rarely differed from one to the next.

But that shouldn’t surprise anyone. Macro trends are stable, and their high-level attributes stick around for years. What does change are the specifics, and even at the smallest level, these can have a transformative effect on an industry.

So for most businesses this year, the destination is unlikely to shift. But how we get there will. And to start that journey, we’re diving into four consumer trends that will be pushing the tide in 2024.

Set sail on a culinary adventure

The past three years have not been kind on our palates. With the Covid-19 pandemic, global lockdowns, and now a cost of living crisis, consumers have been faced with limited choices when it comes to food and beverages.

But as the world regains its balance and settles into its new normal, exploring unchartered territories in flavours and cuisines is back on the menu. More than 82% of global consumers are occasionally or frequently on the look out for new foods or flavours to try¹, and 32% of global consumers are most influenced by how exciting or novel a cuisine is².

And consumers are vocal about it too. Food experiences that hold an adventurous claim has seen a 51% growth in consumer interest year-on-year, followed closely by unique at 48% and creative at 38%³.

That’s not to say that all flavours and cuisines must be completely new, excitement can still be drawn from the past. Nostalgia is a sentimental opportunity for brands, with 65% of global consumers saying they enjoy products that remind them of their past⁴. Long-standing brands can leverage their nostalgic appeal and reputation to re-embrace familiar flavours and foods, giving consumers a joyful experience while providing a sense of security from the good old days.

Navigating the art of healthy ageing

Living to 100 years old was once seen as an absolute marvel, but it is becoming increasingly more achievable. In the United States, the number of Americans aged 100 and over is projected to more than quadruple over the next 30 years⁵. To put that into perspective, one in every two 5 year olds alive right now in the U.S. will likely live to 100⁶.

And yet, the thought of longevity terrifies many as they envisage their inevitable decline in physical health and mental cognition as they age. More than 80% of global consumers aged over 35 showed concern over their physical health, and 63% were concerned for their mental wellbeing⁷. Interestingly, the highest level of concern is found within the 25 to 34 age range, indicating that the drive for healthy ageing is taking root at an earlier stage⁷.

There’s a big opportunity for food and beverage brands to address this concern. In 2023, over 41% of food and drink products launched had at least one health and wellness claim, whereas only 0.03% of food and drink products launched were targeted at an ageing population⁸. Brands can close this gap by tailoring their messaging and product positioning, not just within the older groups, but engaging all consumers as they age.

Journey to the core

It’s astonishing that the phrase “tell me what you eat and I will tell you what you are” was first published nearly 200 years ago. Nowadays, consumers are well aware of the link between what they eat and how they feel. Almost 90% of global consumers are looking to improve their general health and wellness, and 54% are actively looking for food or beverages with added health benefits⁹.

But consumers searching for a holistic approach to inner wellness can get overwhelmed by the sheer number of possibilities that they can go down when it comes to foods, ingredients, and functional benefits. With 52% of global consumers interested in mood-enhancing or wellbeing claims in food and drink, 49% in gut health claims, 46% in fatigue reduction, and so on, brands face a challenge in determining their focus⁹.

The gap between consumer desires and their behaviours can guide us to the right direction for inner wellness. Consumers want sleep, immunity and long term health, but struggle to address the deficiency⁹. Brands can capitalise on this opportunity gap to develop products that both engages consumers and fulfils their need for good nutrition.

Source: FMCG Gurus

Sustainability and the role of regenerative agriculture

No article on consumer trends is complete without a mention of sustainability. We all know the quest for environmental health is no longer a mere preference, but a decisive factor in purchasing decisions. And brands have actively followed this trend, with 33% of food and drink products having at least one sustainability claim in 2023, compared to 26% in 2019⁸.

But as more products promote their green efforts, sustainability alone may no longer be sufficient. Consumers increasingly concerned about environmental health recognise the potential negative impact of food production on the planet, particularly as climate change and population growth stress our already strained food supply chains¹⁰.

Regenerative agriculture likely has an important role to play in helping to address these challenges. Focusing on better outcomes for key resources such as soil, water, biodiversity, climate, and animals, it's easy to see why 80% of global consumers have greater trust in brands that practice regenerative agriculture.¹⁰  

In particular, 72% of U.S. consumers agree that they would be more likely to purchase from retailers and brands that implement regenerative agriculture practices, and 63% would pay more for these products¹¹. Brands that incorporate regenerative agriculture into their sustainability strategies can potentially enhance consumer perception, strengthen trust, and heighten consideration for purchase.

Embarking into 2024

The views expressed above are the opinion of the author, not those of Fonterra, and Fonterra is not responsible for any decisions taken in reliance on the same.