It’s inevitable that we’ll see lasting behavioral change as a result of COVID-19. But determining which of the behaviors adopted during the pandemic will stick and which will disappear once restrictions come to an end is less clear-cut.
Catch up with the findings of Kadence’s latest study by watching the recordings below. The study, powered by Dynata with 3,000 consumers in 10 markets (US, UK, China, Japan, India, Singapore, Indonesia, Thailand, the Philippines and Vietnam), is designed to help brands understand what represents a permanent, versus temporary, change in behaviors.
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It’s inevitable that we’ll see lasting behavioral change as a result of COVID-19. But determining which of the behaviors adopted during the pandemic will stick and which will disappear once restrictions come to an end is less clear-cut. According to a survey of CMOs by Dentsu, this is the number one challenge keeping senior marketers awake at night.
We’ll draw on the findings of a new Kadence study powered by Dynata with 3,000 consumers in 10 markets (US, UK, China, Japan, India, Singapore, Indonesia, Thailand, the Philippines and Vietnam) to:
Separate the long-term trends from the short-term fads, sharing our view on the behaviours we believe will be retained post-COVID-19
Discuss the opportunities and challenges these behavioral shifts present for brands
Explore which products and services will need to be adapted to see sustained behavioral change, taking inspiration from countries where new trends have taken hold
Provide you with the tools and an approach to predicting future behaviour that you can use in your own business
Sign up for the session in your market
APAC session – Tuesday 9th March – 12.30pm – India / 2pm – Thailand, Vietnam, Indonesia / 3pm – Singapore, Philippines, China / 4pm – Japan
US session – Wednesday 10th March – 11am – Pacific Standard Time / 2pm – Eastern Time
Meet our speakers
Rupert Sinclair, Insight Director, Kadence International – UK
Rupert is an expert in consumer behavior, with a passion for helping brands innovate. He’s a frequent conference speaker on the subject of innovation in market research, regularly sharing new techniques and technologies that are enabling brands to access previously untapped insights.
Gracie Igaya, Insight Director, Kadence International – Singapore
Gracie has extensive experience working on studies across Asia. Drawing on her excellent grasp of quantitative techniques, she works collaboratively with clients to deliver data driven insights, bringing her appreciation and understanding of different cultural nuances to interpret findings. Gracie has overseen high-profile studies across a range of industries including FMCG, government and education.
We’ve been working with Bloomberg since the start of pandemic to understand how the priorities, actions and attitudes of business decision makers across APAC are evolving. Take a look at the infographic for the key insights from our latest wave including:
67% of businesses are confident that their companies can continue to operate if another wave of the pandemic strikes
Brands are looking towards e-commerce and social commerce to power future growth. 87% business leaders plan to use digital platforms as their sales channels in the next 1 to 3 years, with 74% looking towards social commerce. 1 in 4 expect to decrease their use of physical stores
Expectations of brands are rising. 66% are looking for brands that use their resources to give back to society, up from 56% in wave 2 (June 2020)
The pandemic has placed greater attention on health and wellness with 55% of businesses now engaging an external partner to provide health and wellbeing services
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Market segmentation is one of the most effective ways to sharpen strategy and deliver measurable results. Rather than treating all customers the same, segmentation studies uncover the distinct groups within a market—each defined by shared behaviors, needs, or priorities. The real value lies in what happens next: brands can prioritize the most profitable audiences and tailor their efforts with precision.
Common Methods of Market Segmentation The most widely used segmentation types include:
Collect data Use surveys, customer databases, interviews, or third-party research to gather relevant information.
Analyze customer differences Identify meaningful patterns in behavior, needs, demographics, or attitudes that can separate one group from another.
Build detailed segment profiles Turn raw data into useful customer segments with clear traits, motivations, and needs.
Apply segments across your business Use your insights to guide product development, marketing messages, sales targeting, and service design.
What is market segmentation in market research?
In market research, segmentation—sometimes called marketing segmentation—is the process of identifying distinct groups of customers and understanding how best to reach them. It’s not just about splitting an audience. It’s about uncovering patterns in behavior, values, or needs that allow brands to shape products, services, and messaging that resonate more deeply.
Segmentation helps brands stop guessing. Instead of casting a wide net, they can deliver targeted strategies built on evidence—matching products and messages to the people most likely to respond. Whether the segments are based on demographics, psychographics, or needs, the goal is the same: sharper decisions across product development, marketing, and sales.
What is market segmentation? Market segmentation is the process of dividing a broad market into smaller groups of customers with shared characteristics, needs, or behaviors. These segments can be defined by demographics, interests, values, purchase behaviors, or location—enabling brands to design more relevant products, communications, and experiences.
7 key benefits of market segmentation studies
#1 Focus on the customers that matter most
At its core, market segmentation is about prioritization. Instead of treating the entire market as a single audience, brands can identify the segments most aligned with their goals—whether that’s profitability, ease of conversion, or long-term value. It’s a shift from trying to appeal to everyone to focusing squarely on the customers who matter most.
A recent example illustrates this well. We partnered with a leading university to segment its alumni base, aiming to increase donation rates. While the common assumption might be to engage all former students equally, the data told a different story. A small group accounted for the majority of giving—proving that a one-size-fits-all approach can miss the mark entirely.
There are multiple ways to segment a market. In this case, we pursued a needs-based segmentation, analyzing alumni attitudes, values, and emotional connection to the institution. A demographic approach—such as focusing on income or profession—would have painted a less accurate picture. What made the difference wasn’t financial capacity, but sentiment: those who viewed their education as instrumental in their careers were the most inclined to give. By identifying and targeting this high-potential group, the university could channel its resources more effectively and lower donor acquisition costs.
#2 Power new product development
Market segmentation isn’t just a marketing tool—it’s a foundation for innovation. By identifying unmet needs within specific groups, segmentation studies reveal whitespace opportunities that can shape entirely new products or services. This is especially true of needs-based segmentation, which focuses on what customers actually want, rather than who they are demographically.
For brands looking to innovate, this insight is invaluable. It allows teams to move beyond assumptions and design offerings that address real pain points in the category. Whether it’s refining a product already in development or spotting demand for something entirely new, segmentation gives brands a clearer view of where to invest.
The value doesn’t end at launch. Segmentation studies can diagnose performance gaps—highlighting where a product misses the mark for certain audiences, and how it can be adjusted to better meet their expectations. In competitive categories, these insights can be the difference between a product that fades and one that pulls ahead.
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#3 Design more effective marketing
Segmentation sharpens marketing strategy by showing brands who to target, where to find them, and how to speak to them. With the right data, brands can shift from broad, inefficient campaigns to tightly focused efforts that drive greater impact for less spend.
A segmentation study might reveal that the audience you’ve been chasing with national TV campaigns is actually more active on social platforms—or more likely to engage with a niche publication. In one market, your most responsive customers may be Instagram devotees. In another, they may prefer trade magazines or podcasts. Knowing this lets you optimize spend and focus on the channels that matter.
Segmentation also enhances the message itself. Different audiences respond to different cues—price, innovation, social proof, simplicity. A targeted segmentation strategy can uncover these preferences, helping you tailor creative that resonates. For example, if you’re a telecom provider, your early adopters may want detailed tech specs, while your budget-conscious buyers care more about value bundles. Precision in messaging isn’t just about tone—it’s what drives engagement and conversion.
#4 Deliver better customer service Segmentation studies aren’t just for marketers. When shared across the business, they become tools for customer experience, sales, and support—offering frontline teams the context they need to respond in more personalized, effective ways.
In one project, we helped a digital dating platform segment its user base based on behavior and engagement patterns. Each customer in their database was assigned to a segment, and this profile was made visible to call center staff during every interaction. The result? A support team that could anticipate needs, adapt its tone, and offer more relevant solutions—faster.
This type of approach is becoming standard in customer-centric organizations. The streaming service that suggests upgrades based on your preferences? The telco that offers a retention bonus when your usage drops? These aren’t guesses. They’re segmentation strategies embedded into service operations—designed to reduce churn, drive loyalty, and unlock new value from existing customers.
#5 Use your resources more efficiently Segmentation also helps brands get smarter with their resources. When you know which customers are most likely to buy, respond, or convert, you can direct your teams, time, and budgets more strategically.
A sales team can prioritize outreach to the most promising segment. A marketing budget can be allocated to the events or platforms that matter most to a specific group. The focus created by segmentation reduces waste—and increases results.
This is especially powerful for small to mid-sized businesses, which often assume segmentation is only for larger brands. In reality, even a simple demographic or geographic segmentation can deliver clarity and focus. It doesn’t require a massive investment. You can start with basic behavioral data or purchase history. What matters is acting on it. When resources are tight, market segmentation becomes not just a strategic advantage—it’s a necessity.
#6 Develop a more customer-centric culture
One of the most overlooked advantages of market segmentation is its ability to shift internal culture. When done well, segmentation can help embed a deeper understanding of the target customer across departments—aligning teams around shared priorities and driving more customer-centric thinking at every level.
But that shift doesn’t happen on its own. Creating a segmentation model is only the first step. To influence culture, it must be activated—intentionally and consistently.
Start by securing early buy-in. When key stakeholders are part of the segmentation process, they’re more likely to take ownership of the findings and use them in decision-making. This is critical, especially in organizations where teams may be working in silos. Segmentation can challenge assumptions and unsettle old habits. Involving leaders early helps smooth the path for adoption.
Next, make the segments visible and memorable. They need to be easy to grasp and clearly differentiated. We’ve seen how well-designed deliverables—infographics, printed cards, interactive dashboards—can bring segments to life in a way that a presentation deck never will. These tools help keep the customer front of mind, from product development to sales conversations.
Finally, integrate segmentation into strategy and operations. We often work with functional teams—engineering, retail, marketing—to translate segments into meaningful action. A strong segmentation framework should inform everything from design briefs to service protocols. The goal isn’t just understanding customers. It’s making sure that understanding drives what people do.
#7 Foster a customer-centric culture across your organization
One of the most powerful but often underused benefits of market segmentation is its ability to reshape company culture. When executed well, segmentation doesn’t just support external campaigns—it transforms how teams think, plan, and prioritize internally.
But that transformation isn’t automatic. Creating a segmentation model is only the first step. To drive real cultural change, it must be integrated across the business with intent and persistence.
Start by securing early buy-in. When stakeholders are involved from the outset, they’re more likely to trust the outputs and use them to guide decisions. This alignment is especially important in large or decentralized organizations, where assumptions and approaches can vary widely between teams.
Second, make segmentation tangible. Visual outputs—designed for memorability and ease—can help bring each segment to life. From infographics to segment personas to interactive dashboards, these tools help ensure teams can recall and act on segmentation insights in the moment, not just in planning sessions.
Finally, activate the segmentation across departments. Whether it’s shaping product roadmaps, customizing sales pitches, or refining customer service protocols, the segmentation framework should be a core input. It’s not enough to understand your target audience—you need to build a business that acts accordingly.
Limitations of Market Segmentation
While segmentation offers significant advantages, there are a few limitations to consider:
Over-segmentation can lead to fragmented strategies and brand dilution.
Data quality is critical—poor or outdated data can lead to inaccurate segments.
Resource constraints may make smaller segments impractical to serve.
Complexity increases as more segments are introduced, especially across functions.
Frequently Asked Questions about Market Segmentation What are the 4 main types of market segmentation? Demographic, geographic, psychographic, and behavioral segmentation. What are the 4 elements of market segmentation? Measurability, accessibility, substantiality, and actionability. What are the 4 market segmentation theory strategies? Concentration, differentiation, mass marketing, and micromarketing. What are the 5 main market segments? Demographic, geographic, psychographic, behavioral, and firmographic (common in B2B). How do you do market segmentation? Define your market, gather data, analyze differences, build segments, and apply them to strategy. What is an example of market segmentation? A tech brand using behavioral data to target frequent buyers with loyalty offers. What is the function of market segmentation? To help businesses tailor offerings to specific customer groups for better alignment and performance. What are the disadvantages of market segmentation? It can create complexity, depend on strong data, and risk focusing on segments that are too small.
Ready to put segmentation to work for your brand?
Whether you’re starting from scratch or want to get more value from your existing segments, we can help. Get in touch with our team to explore a tailored approach to market segmentation that drives real results.
Looking ahead to the trends that will shape the coming year is a critical exercise for any business. But in 2021, this is perhaps more significant than ever. Consumer behavior has been transformed as a result of Covid-19, as many shifts in behavior have accelerated.
To understand the key trends to watch in Asia, we spoke to trend watching experts across our 8 offices in the region. Watch the video to hear their thoughts, or download the full report.
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Consumer Trends in Asia: 2021
Download the full report to learn how 5 key trends are playing out across Asia, the implications of this for businesses and success stories of brands successfully capitalising on the trends:
Looking ahead to the trends that will shape the coming year is a critical exercise for any business. But in 2021, this is perhaps more significant than ever. Consumer behavior has been transformed as a result of Covid-19, as many shifts in behavior have accelerated. This blog post summarizes 5 key trends from our latest report Consumer Trends in Asia: 2021
Vocal for local – Consumers are looking to support brands closer to home
Looking for action – Consumers want to see brands having a positive impact on the community
Racing towards a digital future – Online shopping is booming, ushering in new innovation
Seeking value – Consumers are prioritizing value and saving more
Health is wealth – We’re seeing a marked change in diets as consumers focus on health
Read the summary below or download the full report to learn more about consumer trends in Asia in 2021 and what your business can do to capitalize on them. It’s packed full of insight and analysis from local experts across our 8 Asian offices – China, India, Singapore, Thailand, Vietnam, Indonesia, the Philippines and Japan – and contains inspiring examples of brands successfully tapping into these trends.
1. Vocal for local – Consumers are looking to support brands closer to home
The economic turmoil of Covid-19 has made consumers more conscious than ever of the impact of their purchase power. In light of this, we expect one of the big consumer trends in Asia in 2021 to be supporting local brands.
In some markets this is manifesting itself in a wave of support for national, rather than global brands. India and China are two markets where this is happening. In India, Prime Minister Modi’s strategy to aid economic recovery in the country is to focus on local manufacturing and supply chains and to encourage Indian consumers to support Indian brands. In response local brands have leveraged this messaging in their marketing campaigns, further promoting the concept. In China, we also see consumers looking to purchase from homegrown brands rather than global companies. This trend was already underway, due to international trade tensions and the growing popularity of Chinese brands, but it has been accelerated further by Covid-19.
In other Asian markets, we’re seeing the emergence of hyper-localization. Now spending more time at home and recognizing the companies that helped them during the height of the pandemic, we are seeing consumers looking to support businesses in their local neighborhoods through challenging economic times. This is very much a continuation of the behaviors of the behaviors we saw at the onset of the pandemic. In Japan, for instance, the 応援消費 (consume to support) movement went viral, and whilst in Indonesia, consumers were encouraged to #belidariteman (buy from a friend). This sentiment is likely to be important in 2021 and beyond, particularly in the food and drink industry as our research Understanding the impact of Covid-19: Food industry trends for 2020 and beyond indicates. When asked which of the behaviors they’d adopted in the pandemic that they’d continue in future, 42% of Asian consumers told us they plan to continue supporting local food and drink brands, the second highest of any behavior.
2. Looking for action– Consumers want to see brands having a positive impact on the community
When we think ahead to 2021, we mustn’t underestimate the impact of the pandemic. Covid-19 has caused many people to reconsider what is important to them and this has extended to their relationship with brands. Our Brands Exposed research, exploring how Covid-19 has changed expectations of marketing and brands, found that 63% of Asian consumers think that brands need to re-evaluate their role in society in a post-Covid world.
There’s also an expectation that brands need to do more to support the communities they serve, a trend that is more prevalent in Asia than it is in the West. 63% of Asian consumers believe that organizations have a responsibility to contribute financially to their communities, compared to 43% in the US and 51% in the UK. They’re also appetite to see brands going further, leading meaningful initiatives in their communities – 58% of Asian consumers believe this to be importance, compared to just 41% in the US and 46% in the UK.
So what does this mean for brands looking to make their mark in Asia? One thing’s for sure – brands need to be prioritizing actions over words, providing evidence of the steps they are taking to make a difference and the impact that this is having. And this isn’t just confined to the B2C space. Our recent work with Bloomberg understanding the attitudes of business decision makers across 6 markets in Asia and Australia found that 56% are looking for brands that are protecting the underprivileged and vulnerable and a further 56% want to see brands using their resources to give back to society.
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Consumer Trends in Asia: 2021
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3. Racing towards a digital future- online shopping is booming, ushering in new innovation
Seismic regional and global events have often act as a catalyst for behavioral change and innovation – and Covid-19 is no exception.
In response to regulations, businesses and consumers have adopted online solutions at a rapid rate. In some markets like India this has been accompanied by governmental action to provide digital connectivity in remote rural areas and to low income groups, enabling the delivery of basic services during this time. As such, some demographic groups have experienced the benefits of online shopping for the first time.
Others, already accustomed to shopping online, are doing this more and spending in new categories such as grocery and personal care according to a survey of digital consumers in 6 Asian markets from Bain and Facebook. The research suggests that this represents a permanent shift in behaviors. 83% of those surveyed said they are likely to continue increased spending online after the pandemic. These behaviors aren’t just confined to younger people. There are significant numbers (35%) of older people – aged 55 and over – that share this sentiment.
In response to the rapid growth of online shopping we’re seeing innovation in this space. From shopstreaming in China to a new breed of influencers in Japan, you can read more in the full report.
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4. Seeking value – Consumers are prioritizing value and saving more
The Bain and Facebook study also provides interesting insights into consumers’ attitudes towards personal finance in this period. 57% of the consumers surveyed are prioritizing value for money in their purchases. They are also saving more. The study found that 60% are planning to put more money aside in future and that Asian consumers are two times more likely to start saving more after the crisis than their American counterparts. We see this reflected in our own data, as consumers cut back on non-essentials in Thailand.
Against this backdrop, companies across all sectors will have to work harder to get consumers to part with their cash, clearly articulating the benefits and value of their products, and focusing on building customer loyalty to avoid switching.
5. Health is wealth – We’re seeing a marked change in diets as consumers focus on health
This is playing out in a number of ways, first and foremost in diets. Our report, Understanding the impact of Covid-19: Food industry trends for 2020 and beyond, found that 59% of Asian consumers believe that what they eat and drink has changed from the better, with only 6% stating their diet has changed for the worse. This represents a marked difference to Western markets – where just 24% of Americans and 34% of Brits believe what they’re eating has improved. In line with this renewed focus on health, the majority of consumers are also cooking more for themselves and consuming more fruit and vegetables than before the onset of the pandemic. This indicates a opportunity for food and beverage brands to develop healthier versions of their products and support consumers in cooking healthy meals from scratch – be that through recipes or product launches.
To learn more, download the full report: Consumer Trends Asia: 2021
To learn more about how these trends are playing out in each market, our analysis of the implications of these trends and success stories of brands making inroad in these areas, download the full report.
Alternatively, if you’d like our support in understanding the changes taking place in your key markets and how you can capitalize on these, please get in touch.
The arrival of Covid-19 has brought with it dramatic changes in food and drink purchase patterns. Shelf-stable food like pasta, rice and canned goods flew off the shelves. Immune system boosting ingredients were top of the shopping list. But which behaviors will stick and what are the longer term food industry trends to watch?
We spoke to consumers in 10 countries, as well as our own internal food and beverage experts to understand the global picture and the local nuances and trends in each market. We wanted to understand how people are eating and drinking in this new normal, and what implications this has for the future.
The pandemic has improved eating and drinking habits across the world
Over half (53%) of the consumers we spoke to told us that since the onset of the pandemic, what they eat and drink has changed for the better. Some countries like India and Vietnam have seen a big swing towards healthier diets, whereas others like the US, UK and Japan have been more consistent. Overall, very few people (just 6%) believe their diet has changed for the worse.
People are cooking more at home and they’re eating more fresh fruit and vegetables
With more time at home, and health high on the agenda, it’s unsurprising that half of consumers globally (51%) are now cooking more for themselves and their families. This trend is more prevalent in some Asian markets, such as India, China, Thailand and Vietnam, than it is in the US, UK or Japan. But even in this market, consumers have found an innovative workaround to sourcing home-cooked meals. Over the past few months, professional chef / dietician delivery services like Sharedine have boomed in Japan. This is where a personal chef will come to a customer’s house and cook a number of dishes from scratch that can be reheated over the coming days. The service even includes grocery delivery!
At a global level, people are also more conscious of what they eat, with a real focus on fresh produce. Half of consumers globally (51%) tell us they are eating more fresh fruit and vegetables. This is more significant than any other dietary changes, such as eating more grains and nuts (adopted by 29%) or eating more meat-free products or dairy and cheese (practiced by just 16% and 13% respectively).
Health-conscious consumers are looking to boost their immune systems and brands are responding
Even now long after the onset of the pandemic, immune-boosting solutions are still at the top of consumers’ shopping lists. Consumers in markets like India are looking to natural ingredients. But others, like those in Thailand and China are making use of a new range of RTD products that have sprung up to meet this need. The “water plus” category has boomed in Thailand, with brands such as Yanhee Vitamin Water, B’lue, VITADAY Vitamin Water and PH Plus 8.5 Alkaline Water coming to the fore. In China, product launches have included milk with immune globulin, Vitamin C fruit tea and Chinese jujube drinks.
Free report
Consumer Trends in Asia: 2021
Download the full report to learn how 5 key trends are playing out across Asia, the implications of this for businesses and success stories of brands successfully capitalising on the trends:
Worries about the origin of food are one of the key food industry trends for 2020 and beyond
When asked which of the behaviors they’d adopted in the pandemic that they’d continue in future, being conscious of where the produce I consume originates from for safety / health reasons came out top. We see this reflected in consumer behavior. Some people in countries like Vietnam and Indonesia have moved away from visiting wet markets, opting instead for mini supermarkets or online solutions. In some markets, there are also significant groups of consumers that are opting to eat more meat-free products, perceived to be less prone to infection. This amounts to 32% of consumers in Vietnam, 28% in India and 23% in China. With these concerns top of mind for many consumers, it’s the brands that prioritize hygiene and safety that will come out on top. We’re already seeing some great examples of this happening, with the help of technology. One example is Haidilao. This hotpot restaurant in Beijing has installed smart robotic arms to prepare and deliver raw meat and fresh vegetables. It’s also introduced technology to track and dispose of food that has passed its expiry date.
Supporting local is a key consideration for many consumers
Across the world people are doing their bit to keep local food and beverage brands afloat. This looks set to continue in future. When asked which of the behaviors they’d adopted in the pandemic that they’d continue, supporting local produce and food and beverage brands came out second highest.
In Japan, this trend has manifested itself in the 応援消費 (Consume To Support) movement. This initiative that went viral, ranking first amongst the top 10 consumer trends in the first half of 2020 according to Rakuten, an online retail giant and Nikkei, a flagship financial newspaper. The term was first created and gained popularity in 2011 when a 3.11 earthquake shook the eastern part of Japan and people showed their support through making purchases from the damaged areas. In the pandemic, we saw a resurgence of this. Consumers purchased from the food and beverage brands hardest hit – farms, manufacturers and restaurants with excess stock – thanks to innovative apps like Pocket Marche and TABETE.
We’ve seen similar movements in other markets. In Indonesia #belidariteman (buy from a friend) was promoted by the Association of Indonesian Young Entrepreneurs (HIPMI) encouraging people to support local. In the Philippines, the traditional value of “Bayanihan” which translates as “spirit of communal unity” has seen Filipinos shopping from local food and beverage brands in these difficult times.
With local being an important purchase consideration for consumers both now and in the future, brands will do well to emphasize their heritage and role in the community going forwards.
Consumers are looking to food and drink as escapism to create occasions at home
As people spend more time at home, there’s a real opportunity for brands to help consumers create special occasions with their loved ones through the power of food and drink. This could be through providing inspiration for at-home events and special recipes for consumers to cook themselves. It could also be achieved by creating products, services and experiences that can be delivered at home. There are some great examples of this emerging around the world. In Singapore, bar and restaurant, Tippling Club, is offering virtual cook-along sessions with its in-house chef. In Hong Kong, Café Earl Grey is delivering restaurant signatures with simple instructions to cook and assemble at home. These dishes are accompanied by an extensive selection of curated wines and bottled cocktails. And in the Philippines, restaurants are delivering uncooked ingredients so that people can cook their favorite dishes at home.
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Online shopping is on the rise but this is playing out differently in different markets
Food and beverage brands have had to innovate to survive in the wake of local restrictions. Online has played a critical role in this transformation. Consumers across markets have experienced the benefits of online shopping first hand, accelerating its growth. But this has played out differently in different markets. In Vietnam, ghost kitchens have been set up to meet the growing demand for meal delivery. In Indonesia, a jastip service allows consumers to make and receive orders from local wet markets via WhatsApp. And in the UK, where online grocery is more well established, growing numbers of older customers are moving their grocery shopping online. In 2019, just 8% of over 55s in the UK had bought food and essentials online. This figure has now soared to 25% according to the How Britain Shops Online report.
Country specific food industry trends
Food industry trends in the UK
One of the key global trends we see in the UK is the shift towards supporting local. Office workers in the UK have been encouraged to work from home for the majority of 2020, meaning that food and drink spend has been concentrated closer to home – and we expect to see this continue as working patterns shift as a result of the pandemic. According to Mastercard data, it’s been people shopping and eating out locally, rather than spending money in Central London, that has driven the economic recovery in London. Other key trends in this market include the growing number of silver surfers that are embracing to online grocery shopping as mentioned above and rise of at-home food and drink occasions. As in other markets, brands are anticipating consumers will spend more time at home, and catering to this with services such as online cooking classes and delivery collaborations.
Food industry trends in the US
We expect to see consumers continuing to eat and drink more at home in the US too, as many office workers continue to remotely, and city dwellers flee to the suburbs. Whilst consumers are enjoying cooking at home and planning to do more of it in future, they’re are also ordering more takeout, and looking to meal kit companies for ease and convenience. Attitudes towards health in the US depart from the global trend. Whilst 53% of consumers globally tell us that what they eat or drink has changed for the better, in America only 25% think this is the case. In the US, consumers are viewing health more holistically. Whilst some are looking to food and drink to support physical health, others are using food as a tool to support their mental health, with two thirds of Americans eating more comfort food than before.
Food industry trends in Singapore
Global trends such as the rise of online shopping and a growing focus on health and wellness are reflected in Singapore. In fact, an AIA survey conducted prior to Phase Two of safe reopening found that Singaporeans are allocating the highest portion of their expenses on healthier meal choices. One trend that is more specific to Singapore is the growing importance of sustainability. When it comes to sustainability efforts, Singapore falls behind many other nations in terms of recycling, plastic-use reduction, and food wastage reduction, and this has come into sharper focus as a result of the pandemic, alongside more recent government efforts to achieve a Zero Waste Singapore. In response, we’re starting to see the rise of more sustainable packaging, “ugly” produce and bulk food stores.
Food industry trends in Vietnam
Vietnam has seen big changes in the channels people use for shopping. Online meal delivery has boomed as restaurants have pivoted, and ever more Vietnamese consumers are turning to the mini supermarket, as worries about food safety and origin come to the fore. In line with this, organic food is also growing in popularity, although high prices mean that at present this trend is confined to the middle class.
As in Vietnam, meal delivery in Thailand has boomed, accelerating the adoption of online and mobile banking and contactless payment methods. The global trend towards an increasing emphasis on health is evident in Thailand, too with 71% cooking more for themselves and their families and 62% consuming more fresh fruit and vegetables. Many Thai consumers are also looking towards beverages as a way of looking after their health. Drinks containing Vitamin C have seen 47% growth compared to last year.
Food industry trends in India
Like their counterparts in Thailand, Indian consumers are looking for immune boosting products, but many of the specific trends we see playing out in this market are driven by food safety concerns. As mentioned previously, a significant number of Indian consumers are eating more meat-free food due to worries about infection, and they’re also buying more packaged food. Against this backdrop, street food vendors have had to pivot, elevating their offering, leading to the emergence of gourmet street food.
Food industry trends in Japan
As mentioned above Japanese consumers have been quick to support local brands through the 応援消費 (Consume To Support) movement. This is a trend that we believe will persist in Japan, albeit not as prominently as it does on a global scale. Our research shows that 1 in 4 consumers in the country say they will be more conscious of supporting local produce and food and beverage brands in future, compared to 4 in 10 globally. One emerging trend that is quite specific to Japan is the move towards stocking up on food. In most countries this behavior peaked at the height of the pandemic and has since subsided but in Japan 41% of consumers plan to ‘stock up’ on essentials rather than buying day-to-day in future and 35% are intending to buy more frozen or tinned produce. This can be explained by looking at the specific experience of the Japanese people. In response to natural disasters like earthquakes, typhoons, flooding and landslides, Japanese consumers are used to having to stock up.
Food industry trends in the Philippines
We see this trend towards bulk buying emerging in the Philippines too, where 48% of consumers say they plan to ‘stock up’ on essentials instead of buying day-to-day. Global trends around eating more healthily are also important in the Philippines, which is significant given that the traditional Filipino diet is higher in total fat, saturated fat, and cholesterol than most Asian diets.
Food industry trends in Indonesia
Trends in Indonesia closely mirror those seen globally. There’s been an uptick in online grocery shopping, with a large proportion of Indonesian grocery shoppers (59%) having used e-commerce sites for this purpose according to a Snapcart survey carried out in May. People have also started to adopt online shopping in new categories, such as OTC, multivitamins / supplements, herbal products, and even RX drugs. Cooking more at home, and supporting local food and drink businesses are also key trends in this market.
To learn more about the food industry trends in each market, download the full report – it’s packed full of facts, stats and examples from each country. Alternatively, if you need further support in understanding changing consumer behavior in your market, please get in touch with us. We have a wealth of experience in food and beverage, having worked with the likes of Mars, Unilever and Arla, and would be happy to share our expertise.
The polls have failed again. The result of the 2020 US Presidential election has not even been confirmed, and there are various news sources claiming that the polling companies have got it all wrong, again. Polls predicted that Biden would win various states comfortably. They either picked the wrong winner, or the race was far, far closer than the polls suggested. It was not supposed to be like this. After the 2016 disasters of Brexit and Trump winning defied the predictions from polling companies – there was supposed to be change – more accuracy in how data is collected and norms calculated.
Political polling is perhaps one of the more visible uses of market research for the average consumer. Polling is a subset of market research and there is a danger that market research as an industry receives negative association from yet another public failing. The Atlantic has published an interesting piece on the ‘disaster’ of the polls and highlights 2 potential arguments to the polls results – that is also the argument for market research as a whole:
“First, many pollsters insist that their polls are snapshots, not predictors. If their snapshots are so far off, though, where were they aiming the lens? Why bother?”
“Second, the analysts will protest that they’re only as good as the polls, but who cares? Whatever the instructions on the bottle, the public uses opinion polls to try to understand what happens. If the polls and their analysts don’t offer the service that customers are seeking, they’re doomed.”
This is similar to the argument that I have heard a few times from senior stakeholders in large companies. “Steve Jobs didn’t use research, why do we need a research company”?
Market research is critical in the uncertain world we live in now. And the mistake that people are making when commenting on the accuracy of the polls, is the same mistake that people make in business. The expectation that there is one data point or one piece of research that will predict the future.
Looking back at the polls, whether a particular result has 51% Biden, or 49%, is not as important as understanding that there is a clear divide. Digging down to uncover the reason for the divide and looking for ideas as to how to change perceptions is what should be most meaningful for anyone looking to illicit change.
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Whilst commenting on the Brexit result (and the failure of the polls) in 2016, I commented that research should be used for Inspiration, Measurement or Predictions – but not by asking for a single score! Instead, market research should be looked at the same way that you have a golf coach, or a piano tutor. You are looking to improve your skills over a period of time, by having someone provide you with the ideas and confidence to get better. Market research, at its best, draws upon multiple sources. Some primary, some secondary, some direct, some passive. What you need is the understanding of what is going on – not just a snapshot.
In the corporate world, marketing has traditionally been the function that ‘owns’ the researchers. How well CMOs can ensure their products and services are relevant to their customer justifies the work they are doing. The future of market research needs to look more holistically. Marketers should look to understand trends that are happening. This could mean getting insights from other industries or other markets. Market research is an ever changing, but every relevant industry. Right now, marketers and decision makers can look at mobile applications, AI analyzed digital diaries, big data and text analytics to get an insight into consumer needs and habits. Understanding consumers has never had as many possibilities as it does today. The skill of the researcher, and the goal of any research agency is to bring together the best people, with the best tools, to advance an idea or to provide confidence.
Understanding the underlying situation is critical for decision makers to be able to create a program of change. Whoever wins the US election, the hope is that they understand the patterns and the needs of the nation to create change. For the market research industry – the focus must be on showcasing the story of change – and encouraging all to follow.
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