Environmental sustainability has emerged as a cornerstone of brand integrity, corporate responsibility, and a growing determinant of bottom-line success.

As public consciousness veers emphatically towards sustainability, the pressure is mounting for brands to respond. 

With environmental awareness at its pinnacle, prominent Quick Serve Restaurants or QSRs are unveiling ambitious sustainability goals. For instance, Burger King has envisioned a net-zero emissions target by the year 2050, while Wendy’s has committed to utilising 100% sustainable materials for its customer-facing food packaging by 2026. 

Not trailing behind, Chipotle, an early adopter of sustainability in the QSR world, has outlined a bold objective to slash its carbon emissions by half by the close of this decade. 

Such brand announcements reflect a profound shift in operational strategies aligning with the global sustainability ethos. 

How are these commitments translating into tangible actions concerning sourcing, packaging, and waste management? 

And how is this green transition influencing consumer behavior and brand loyalty in a market where differentiation is key?

The sustainability movement for QSRs is a testament to the broader narrative of ecological consciousness. Traditionally, QSRs, known for their speed and convenience, are now standing at the intersection of experience and sustainability. 

The sustainability narrative within QSRs is not novel but has gained momentum recently. 

A Seedling of Change: The Initial Foray into Sustainability

The roots of sustainability in QSRs can be traced back to modest beginnings when rudimentary practices such as recycling or energy conservation marked early environmental responsibility efforts. 

These early steps, driven more by cost-saving inclinations than environmental altruism, gradually began morphing into more structured and deliberate sustainability strategies. 

Over time, as environmental consciousness grew among consumers, pioneering brands started to explore beyond the rudimentary towards more comprehensive and impactful sustainability measures, laying the groundwork for a broader industry-wide awakening.

Evolutionary Strides: Broadening the Sustainability Spectrum

The journey from sporadic green initiatives to integrated sustainable practices has been evolutionary. 

Central to this evolution has been incorporating sustainability in sourcing, which burgeoned from merely procuring locally to embracing organic, fair-trade, and plant-based ingredients, marking a significant stride towards a lower carbon footprint. 

The eco-journey of QSRs is a narrative of evolution, innovation, and contribution towards a greener future, keeping the essence of convenience and quick service intact.

Concurrently, the packaging standards shifted from single-use, non-biodegradable materials to recyclable, compostable, or biodegradable alternatives. 

On the waste management front, the narrative evolved from simple disposal to recycling, composting, and educating consumers on waste segregation, symbolising a transition from reactive to proactive waste management ethos.

marketing-personas-automotive-buyers

The Consumer Consciousness Crest: Fueling the Sustainable Transition

Amidst the operational green shifts, a parallel narrative of rising consumer awareness and demand has unfolded. Armed with a deeper understanding and concern for environmental issues, the modern consumer began to wield their purchasing power to endorse brands aligning with their eco-values. 

The demand for transparency in sourcing, eco-friendly packaging, and robust waste management has transmuted from a soft preference to a pronounced expectation. 

The rise in consumer eco-consciousness has accelerated this sustainable transition, making it a competitive advantage, and, for QSRs today, it is a brand differentiator as important as taste and convenience.

The symbiotic relationship between evolving sustainable practices within QSRs and the escalating consumer demand for environmentally responsible dining experiences narrates a story of transformation. It demonstrates how heightened consumer awareness can propel industries to recalibrate their operational strategies, enabling a cycle of continuous improvement toward environmental stewardship. 

As QSRs continue on this green revolution, they help foster a business environment where profitability coalesces with responsibility.

Sustainable Sourcing in Quick Serve Restaurants

In a world where environmental conscientiousness is no longer a choice but a necessity, the QSR sector is amidst a pivotal transition towards sustainable sourcing. 

This aspect of the operation is not merely a superficial attempt to ride the green wave but a robust strategic shift that goes to the core of how QSRs function. 

Below, we unravel the importance, practices, and consequential impact of sustainable sourcing, shedding light on how this green vein reshapes the QSR industry.

The Importance of Sustainable Sourcing

Sustainable sourcing is an indispensable pivot towards reducing the environmental footprint of QSR operations. By aligning procurement practices with sustainability principles, QSRs can significantly curb their greenhouse gas emissions, reduce waste, and foster a more responsible consumption ethos. 

The process aids in ensuring that the ingredients served across counters every day are not just appetising but are a symbol of ecological respect and responsibility. 

Moreover, sustainable sourcing highlights the broader global objective of achieving the Sustainable Development Goals (SDGs), an agenda aimed at melding the threads of economic growth, social inclusion, and environmental protection.

Green Procurement in Practice

The QSR sector has witnessed the sprouting of innovative sourcing strategies aimed at nurturing an environmentally benign supply chain. Foremost among these is the endeavour to local sourcing, which curtails transportation emissions and galvanises local economies. For instance, procuring fresh produce from local farmers, thus reducing the carbon footprint associated with long-haul transportation.

The shift toward organic and plant-based ingredients is another remarkable stride. QSRs champion a more natural and less harmful food system by opting for suppliers that shun synthetic pesticides or genetically modified organisms.

Additionally, partnerships with suppliers practicing fair trade and responsible agriculture further underscore the commitment to sustainable sourcing. By endorsing fair wages, ethical labor practices, and environmentally sound farming methods, QSRs are extending their sustainability ethos beyond the immediate boundary of their operations.

Impact on Consumer Choices and Brand Loyalty

The ripple effects of sustainable sourcing transcend the operational sphere, making a discernible imprint on consumer perception and brand loyalty. Today’s consumers, equipped with a heightened awareness of sustainability issues, are increasingly aligning their patronage with brands that reflect their eco-values. 

When a QSR articulates its sustainable sourcing practices, it resonates with this growing segment of eco-conscious consumers, fostering a deeper brand connection.

Sustainable sourcing practices are also becoming a key brand differentiator in the cluttered QSR marketplace. By embodying a commitment to environmental stewardship through sustainable sourcing, QSRs are not merely enhancing their societal image but are forging a distinct competitive advantage.

Sustainable sourcing goes beyond corporate responsibility and enters the domain of brand equity, consumer loyalty, and business viability. It’s an emblem of how integral sustainability has become in carving a modern, responsible, and appealing brand persona in the QSR sector, underlining a strategic alignment with evolving global sensibilities and consumer expectations. 

As QSRs navigate the green procurement pathway, they are inching closer to a sustainable operational ethos. Still, they also nurture a brand identity that resonates with the zeitgeist of environmental mindfulness prevailing amongst modern consumers.

Sustainable packaging in Quick Serve Restaurants

Amidst the global clamor for environmental responsibility, the QSR sector is progressively turning to sustainable packaging. 

This shift transcends environmental compliance and resonates with a broader narrative of corporate responsibility and consumer demand for eco-friendly practices. 

The critical need for sustainable packaging emanates from an ecological necessity to reduce waste, particularly plastic, that besieges our environment. 

Conventional single-use plastic packaging, long favored by the QSR industry for its convenience and cost-effectiveness, has been identified as a significant contributor to the global plastic pollution crisis. 

Sustainable packaging allows QSRs to reduce their environmental footprint substantially, align with regulatory mandates, and respond to the burgeoning consumer demand for environmentally responsible practices. It’s a proactive step towards establishing a brand’s eco-credentials and fostering a culture of environmental mindfulness within the sector.

Sustainable packaging ventures in QSRs

The QSR industry is burgeoning with innovative sustainable packaging solutions, significantly departing from the erstwhile norm of single-use plastic. 

Several QSRs champion using recyclable, biodegradable, or compostable materials as a viable and environmentally responsible packaging alternative. For instance, transitioning to plant-based plastics, recycled paper, and other biodegradable materials has seen a notable uptick.

Another laudable venture is the design innovation to minimise material usage without compromising functionality or aesthetic appeal. Some QSRs are also exploring reusable packaging models, encouraging consumers to return the packaging for a discount on their next purchase, thus instigating a reuse cycle.

Impact of eco-friendly packaging on consumer choices

The ripple effects of sustainable packaging are perceptible in altering consumer perception and behavior. Sustainable packaging articulates a brand’s commitment to environmental responsibility, a message that resonates profoundly with a growing cohort of eco-conscious consumers. 

The tangible shift towards eco-friendly packaging solutions enhances a brand’s appeal. It engenders a positive behavioral change among consumers, who are increasingly inclined to patronise establishments that echo their environmental values.

The transparent communication of sustainable packaging fosters a deeper trust and brand loyalty, as consumers appreciate the tangible steps taken towards environmental conservation.

Rethinking waste management in Quick Serve Restaurants

The sustainability narrative in the QSR sector is incomplete without a candid discussion on waste management. 

The disconcerting visuals of overflowing landfills and marine ecosystems besieged by plastic debris have accentuated the waste dilemma, a significant portion of which is attributed to the F&B industry, including QSRs. 

A Waste Quandary: Challenges Pervading the QSR Industry

Predominantly, the heavy reliance on single-use packaging in the QSR sector has led to a surge in plastic waste, an environmental hazard given its non-biodegradable nature. Food waste, another glaring challenge, contributes significantly to landfill overflows and greenhouse gas emissions. 

There is also a lack of robust recycling and composting infrastructure, coupled with varying regional regulatory frameworks, which often impede streamlined waste management practices. These challenges highlight the urgent need for reimagined waste management strategies that are both ecologically viable and operationally feasible.

guide-to-gen-z

Innovative Solutions in QSRs

The QSR sector is progressively advancing towards innovative waste management solutions that aim to mitigate the environmental repercussions of its operations. Notable among these are waste reduction initiatives, such as portion control and inventory optimisation, aimed at minimising food waste right at the source.

Embracing recycling and composting has seen a significant uptick. QSRs nurture a recycling culture by setting up dedicated recycling stations within outlets and educating consumers on proper waste segregation. Similarly, composting organic waste is being adopted to divert food waste from landfills.

The adoption of circular economy principles, wherein waste is viewed as a resource, is gaining traction. For instance, converting food waste into bioenergy or organic fertilisers embodies a circular approach to waste management, turning a problem into a solution.

The impact of waste management initiatives on the environment and consumer preferences

The positive ramifications of waste management initiatives extend both environmentally and perceptually. Environmentally, effective waste management significantly curtails landfill contributions, reduces greenhouse gas emissions, and fosters resource efficiency.

On the consumer front, the cognizance and appreciation for waste management practices are burgeoning. A visible commitment to reducing waste enhances a brand’s eco-credibility and resonates profoundly with the rising tribe of environmentally mindful consumers. This resonance is a defining factor in consumer preferences and, by extension, brand loyalty.

Case studies of QSR brands committed to reducing their carbon footprint 

Pret A Manger: Grab-and-Go

Pret A Manger is leading the charge in environmental responsibility, aiming to reduce carbon emissions and waste in its operations. They’ve initiated using sustainable packaging and have committed to sourcing ingredients sustainably, focusing on animal welfare and organic produce.

The brand has also implemented energy-efficient lighting and equipment in stores, further minimising its environmental impact. These changes have heightened the brand’s appeal to an ever-increasing base of eco-conscious consumers in the UK and beyond.

Tata Starbucks: Brewing Sustainability

Tata Starbucks, a joint venture between Tata Consumer Products and Starbucks, has pursued sustainability goals in India. They have been moving towards renewable energy sources and investing in energy-efficient equipment, working actively to diminish their carbon footprint.

Tata Starbucks has also initiated water-saving measures and waste reduction strategies, including recycling and composting, that reverberate well with India’s growing environmentally conscious market. These efforts underscore the brand’s commitment to sustainable business practices, thereby enhancing brand perception and loyalty.

Yoshinoya: Sustainable Bowls

Yoshinoya, a major QSR brand in Asia, is another example of progressively adopting sustainable practices to reduce its environmental impact. The brand has initiated measures like using eco-friendly packaging and reducing single-use plastics in its operations.

Additionally, Yoshinoya is working on reducing food waste and implementing energy-saving technologies in its outlets across Asia. The brand’s dedicated sustainability actions are fostering a deeper connection with its Asian consumers, who are increasingly valuing environmental responsibility.

Nando’s: A Flame-Grilled Commitment to Sustainability

With its roots in South Africa and a strong presence in the UK, Nando’s has been committed to sustainability. The brand has been working towards sourcing its energy from renewable sources and has implemented several energy-saving measures in its restaurants.

Nando has also shown commitment to animal welfare and sustainable sourcing of ingredients, resonating well with consumers who are passionate about the provenance of their food. These strategic sustainability initiatives enhance Nando’s brand image and cement its position as a responsible QSR player.

Jollibee: Serving Joy Sustainably

Jollibee, the renowned Filipino QSR brand, is earnestly embracing sustainability. The company is focused on optimising its operations to be more energy-efficient and is progressively reducing its dependence on non-renewable energy sources.

Jollibee is also concentrating on waste management strategies and has undertaken extensive efforts to reduce the use of plastics in its services. These concerted sustainability endeavors foster loyalty and admiration from its diverse customer base, underlining the brand’s resolve to act responsively towards environmental concerns.

How sustainable practices shape consumer decisions

Evidence suggests that contemporary consumers, particularly younger ones, are inclined towards brands that embody environmental stewardship. 

For QSRs, adopting sustainable practices is also a strategic maneuver to align with this evolving consumer preference. The decisions encompassing sustainable sourcing, eco-friendly packaging, and waste management initiatives are progressively becoming a barometer of brand appeal and determining where consumers dine.

Beyond greenwashing, sustainability is a pillar of brand loyalty.

Consumers seek genuine commitment and tangible actions toward sustainability, making it a cornerstone for building and retaining brand loyalty. 

Brands that communicate their sustainability efforts transparently and continually strive for eco-excellence are perceived as trustworthy and responsible, attributes that engender consumer loyalty.

The importance of Market Research and Surveys for the QSR sector

Market research and consumer surveys provide a rich tapestry of insights into the interplay between sustainability, consumer choices, and brand loyalty in the QSR sector. A slew of studies highlights a willingness among consumers to pay a premium for sustainably sourced and packaged food. 

Additionally, brands that are perceived as environmentally responsible enjoy a higher degree of customer loyalty and advocacy, cementing the financial viability of sustainable practices.

A particularly revealing data point is the correlation between the perceived sustainability of a QSR and the likelihood of repeat patronage. Consumers are not just making one-off green choices but forming lasting allegiances with brands that mirror their ecological values.

Challenges and opportunities in embedding sustainability in Quick Serve Restaurants

The journey towards sustainability for QSRs is rife with both hurdles and prospects. While the ecological and ethical imperatives are clear, the pragmatic pathway is often mired in operational, financial, and regulatory challenges. 

Yet, within these challenges lie untapped opportunities for innovation, differentiation, and enhanced consumer allegiance. 

Challenges faced by QSRs when adopting sustainability choices

  • Operational Adaptability: Adapting operations to embrace sustainable practices often requires a significant overhaul of existing processes, which can be both time-consuming and financially demanding.
  • Cost Implications: Sustainable sourcing and eco-friendly packaging solutions often come with a higher price tag, posing financial challenges, especially in a sector known for razor-thin margins.
  • Regulatory Landscape: The diverse and ever-evolving regulatory landscape concerning environmental practices demands continuous adaptation and compliance, often requiring substantial investment in legal and operational adjustments.
  • Consumer Price Sensitivity: While there’s a growing preference for sustainable practices, price sensitivity among consumers remains a concern, especially in economic downturns.
  • Supply Chain Complexity: Establishing a sustainable supply chain, especially in a globalised economy, demands rigorous vendor assessment and continuous monitoring to ensure adherence to sustainability standards.

Opportunities for brands unveiling the sustainability spectrum

  • Brand Differentiation: Sustainability provides a robust platform for brand differentiation in a highly competitive market. It offers an avenue to showcase a brand’s values, attract eco-conscious consumers, and foster loyalty.
  • Market Expansion: Aligning with sustainability opens doors to new market segments and demographic cohorts, particularly among younger, environmentally aware consumers.
  • Innovation Drive: The quest for sustainability is a potent catalyst for innovation, propelling the development of eco-friendly packaging solutions, waste management technologies, and energy-efficient operations.
  • Long-term Cost Savings: Sustainable practices such as energy efficiency, waste reduction, and sustainable sourcing can yield long-term cost savings, balancing the initial investment required.
  • Resilience and Risk Mitigation: Sustainable operations foster resilience by reducing dependency on finite resources and mitigating risks associated with regulatory compliance and reputational damage.
  • Investor Appeal: With a surge in responsible investing, sustainability credentials are becoming a key consideration for investors, potentially enhancing a brand’s financial standing and attracting investment.

Final Thoughts

The QSR sector’s sustainability story is a shared script where consumers, industry players, and stakeholders have pivotal roles. As consumers, the power of choice is significant; choosing brands prioritising sustainability contributes to a larger narrative of positive change. For QSR stakeholders, embedding sustainability is an investment in long-term resilience, brand loyalty, and a thriving consumer base.

The rising tide of consumer advocacy for eco-conscious brands will likely accelerate the sustainability drive, turning it into a norm rather than a niche.

At Kadence, we have worked with some of the world’s most renowned QSR brands, and we can help analyse your current operations thoroughly, offer strategies for sustainable transformation, and assist in navigating the regulatory landscape. 

Connect with us at Kadence to explore how your QSR can step into a sustainable future, meeting both the ecological imperatives and the evolving expectations of the modern-day consumer.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Packaging design plays a vital role in the success of food and beverage products. In today’s competitive marketplace, it’s not enough to simply have a quality product. Your packaging must also be designed to catch potential customers’ attention and communicate your product’s value in a matter of seconds. Effective packaging design can create a strong brand identity, build consumer trust, and ultimately drive sales.

The Role of Packaging in Food and Beverage Marketing

Packaging design is an essential component of food and beverage marketing. It has the power to catch a consumer’s attention, create a strong brand identity, and communicate the value of a product in a matter of seconds.

Packaging design can affect consumer behaviour and purchasing decisions in many ways. For example, a product’s packaging can create a sense of perceived value. Consumers are more likely to purchase products they perceive as having a higher value, and packaging design can play a significant role in creating this perception. 

Similarly, packaging design can help to differentiate a product from its competitors. In a crowded marketplace, a well-designed package can make a product stand out from the rest and attract the attention of potential customers.

Packaging design can also influence a consumer’s emotional response to a product. For example, packaging can evoke feelings of nostalgia, excitement, or luxury, depending on the design and messaging used. This emotional connection can create a sense of brand loyalty, leading consumers to choose a particular brand over its competitors.

In 2009, Tropicana, a leading orange juice brand, decided to redesign its packaging to update its image and increase sales. However, the new packaging design was met with significant backlash from consumers. 

The redesign removed the iconic orange with a straw and replaced it with a more modern and minimalistic design. The brand also changed the typography and overall design of the packaging.

As a result of the redesign, Tropicana saw a 20% drop in sales in just two months. The company quickly responded to the negative feedback and reverted to its original packaging design. In just two months after returning to the original packaging, sales increased by 5%.

This case study highlights the significant impact of packaging design on consumer behaviour and sales. Tropicana’s redesign removed a strong brand identifier and failed to create a clear and impactful message with the new design. As a result, consumers were confused and turned away from the product. In contrast, the original packaging design evoked a sense of nostalgia and a positive emotional connection with consumers, leading to increased sales. The Tropicana case study serves as a cautionary tale about the importance of carefully considering the role that packaging design plays in food and beverage marketing.

Packaging design plays a critical role in marketing food and beverage products. Packaging design can affect consumer behaviour and drive sales by creating a sense of perceived value, differentiating a product from competitors, and evoking an emotional response. 

The Elements of Effective Packaging Design

Effective packaging design involves carefully considering several key elements, including colour, typography, imagery, and structure. Each of these elements plays a crucial role in communicating a product’s value and capturing potential customers’ attention.

Colour

Colour is a powerful tool in packaging design. It can evoke emotions, create brand recognition, and differentiate a product from its competitors. For example, blue is often associated with trust and reliability, while red is associated with excitement and passion. When choosing colours for packaging design, it’s essential to consider the emotions and values a brand wants to communicate.

Typography

Typography is another essential element of packaging design. The right typography can make a product stand out and communicate the brand’s values and messaging. For example, a playful and whimsical font might be appropriate for a children’s snack. In contrast, a more sophisticated and elegant font might better suit a luxury food or beverage product.

Imagery

The imagery used in packaging design can also significantly impact consumer behaviour. Imagery can evoke emotions and create a sense of brand identity. For example, imagery that portrays the product being used in a specific setting or by a particular type of consumer can create a sense of relatability and help consumers envision themselves using the product.

Structure

The structure of packaging design is the physical form that a product takes. The structure can be as simple as a can or bottle or more complex, such as a unique and eye-catching box. The structure of packaging design can help differentiate a product from its competitors and make it more memorable to potential customers.

These elements play a critical role in creating a strong brand identity, communicating value, and driving consumer behaviour. 

Case Studies

Many examples of successful packaging design in the food and beverage industry exist. Here are a few case studies from global brands that illustrate the impact of effective packaging design:

Coca-Cola

Coca-Cola is a globally recognised brand that has utilised effective packaging design to create a strong brand identity. The brand’s classic red and white colour scheme, unique bottle shape, and iconic logo contributed to its success. Coca-Cola’s packaging design is instantly recognisable and has helped the brand become one of the most well-known in the world.

Walkers 

Walkers, a UK-based snack company, has used innovative packaging design to increase sales and differentiate its products from competitors. The brand’s packaging features a unique and eye-catching design that creates a sense of urgency and scarcity. By limiting the number of chips in each bag, Walkers has created a sense of value and encouraged consumers to purchase more bags.

Hershey’s

Hershey’s, a US-based chocolate company, has used effective packaging design to create a strong emotional connection with consumers. The brand’s packaging features a classic design with Hershey’s logo and iconic chocolate bars. Using consistent branding across all its products, Hershey’s has created a sense of familiarity and trust with consumers.

Tiger Beer

Tiger Beer is a popular Singaporean beer brand that has used innovative packaging design to differentiate its products and create a strong brand identity. In 2015, the brand launched a limited edition bottle design featuring a distinctive textured surface inspired by the brand’s tiger logo. The bottle design was created using a high-tech printing process that applied a layer of texture to the glass, giving the bottles a unique and eye-catching look and feel.

The limited edition bottles were a huge success, and the brand saw a 20% increase in sales during the campaign. The unique packaging design was highly shareable on social media, and the brand generated buzz and excitement among consumers.

The success of Tiger Beer’s limited edition bottle design highlights the power of innovative and eye-catching packaging design in driving sales and creating a strong brand identity. By utilising new technologies and creative design, Tiger Beer was able to differentiate its products and develop a sense of value and excitement among consumers.

KitKat

KitKat, a popular chocolate brand in Japan, has used innovative packaging design to create a strong brand identity and differentiate its products from competitors. KitKat has become known in Japan for its unique and creative flavours, with more than 300 varieties on the market. The brand has leveraged this diversity of flavours to create packaging that is both eye-catching and highly shareable on social media.

One example of KitKat’s innovative packaging design is its “Sakura Matcha” flavour, which features a beautiful and intricate design inspired by cherry blossoms. The packaging design is highly detailed and incorporates traditional Japanese design elements, making it stand out among other snack products on the market.

Another example of KitKat’s packaging design is its “Sublime Bitter” flavour, which features a minimalist and sleek design that reflects the brand’s focus on quality ingredients and craftsmanship. The packaging design is simple but elegant, communicating the high-end nature of the product.

Goldilocks

Goldilocks is a popular bakery chain in the Philippines that has used effective packaging design to create a strong brand identity and increase sales. The brand’s packaging is instantly recognisable, featuring the iconic Goldilocks logo and bright, colourful designs that evoke a sense of nostalgia and comfort.

One example of Goldilocks’ effective packaging design is its “Polvoron” product, a type of crumbly shortbread popular in the Philippines. The product is packaged in a brightly coloured box with a clear plastic window that allows consumers to see the product inside. The packaging design is simple but effective, communicating the quality of the product and creating a sense of excitement and anticipation for the consumer.

Another example of Goldilocks’ effective packaging design is its “Mamon” product, a sponge cake popular in the Philippines. The product is packaged in a clear plastic container with a simple label with the Goldilocks logo and product name. The packaging design is minimalist but impactful, allowing the product to speak for itself and creating a sense of freshness and quality.

Paper Boat

Paper Boat is a popular Indian brand that produces traditional beverages using local ingredients and flavours. The brand has used effective packaging design to create a strong brand identity and differentiate its products from competitors.

One example of Paper Boat’s effective packaging design is its “Aam Panna” product, a traditional Indian beverage made from raw mangoes. The product is packaged in a distinctive, cylindrical-shaped Tetra Pak container that is both eco-friendly and visually appealing. The container is decorated with colourful illustrations that evoke a sense of traditional Indian culture and heritage, making the product stand out on store shelves.

Another example of Paper Boat’s effective packaging design is its “Kokum” product, a popular Indian beverage made from the fruit of the kokum tree. The product is packaged in a small, square-shaped Tetra Pak container that is easy to carry and consume on the go. The container is decorated with vibrant illustrations that reflect the fruit’s deep purple colour and the brand’s focus on using natural ingredients.

Teh Botol Sosro

Teh Botol Sosro is a popular Indonesian tea brand that has used effective packaging design to create a strong brand identity and increase sales. The brand’s flagship product is a sweet, bottled tea that is sold throughout Indonesia and in other countries around the world.

One example of Teh Botol Sosro’s effective packaging design is its “Jasmine Tea” product, which features a distinctive, tall bottle with a clear label that prominently features the brand’s logo and product name. The bottle design is simple but impactful, communicating the quality and freshness of the product.

Another example of Teh Botol Sosro’s effective packaging design is its “Ice Tea” product, which is sold in a small, square-shaped bottle with a bright and colourful label. The packaging design is eye-catching and visually appealing, creating a sense of excitement and anticipation for the consumer.

These case studies demonstrate the power of effective packaging design in creating a strong brand identity, differentiating products from competitors, and driving sales. By utilising elements like colour, typography, imagery, and structure, global brands have created packaging that stands out and makes a lasting impression on consumers.

Packaging Design and Sustainability

As environmental concerns continue to grow, the importance of sustainability in packaging design for food and beverage products is becoming increasingly apparent. Sustainable packaging has been designed with environmental considerations in mind, using materials and production methods that minimise environmental impact.

Sustainable packaging can benefit both the environment and a brand’s reputation. By using sustainable packaging, brands can reduce their carbon footprint, minimise waste, and help preserve natural resources. Sustainable packaging can also improve a brand’s reputation among environmentally conscious consumers, who are increasingly seeking out eco-friendly products and packaging.

There are many ways that brands can incorporate sustainable packaging into their product lines. Some examples of sustainable packaging include:

  • Biodegradable or compostable packaging made from natural materials like plant fibres or starches
  • Recyclable packaging made from materials like paper, glass, or aluminium
  • Lightweight packaging that reduces the amount of material needed to produce each unit
  • Reusable packaging that can be returned and refilled or repurposed

By using sustainable packaging, brands can benefit the environment and attract and retain environmentally conscious consumers. In a competitive marketplace, sustainable packaging can be a critical differentiator that sets a brand apart and creates a strong brand identity.

Key Takeaways

Packaging design is an essential component of the food and beverage industry. It can impact consumer behaviour and purchasing decisions, differentiate products from competitors, and increase sales. In this blog post, we’ve covered several important points for marketers and researchers to keep in mind when developing packaging for their products:

  • Effective packaging design is crucial for the success of a brand in the food and beverage industry. It can influence consumer behaviour and purchasing decisions.
  • The main elements of effective packaging design include colour, typography, imagery, and structure.
  • Real-life case studies from global brands have demonstrated the power of effective packaging design in creating a strong brand identity, differentiating products from competitors, and increasing sales.
  • Sustainable packaging is becoming increasingly important in the food and beverage industry. Brands can benefit the environment and their reputation by using sustainable packaging.

To ensure that packaging design is effective and sustainable, brands should consider incorporating the following elements into their packaging strategies:

  • Utilise eye-catching designs that resonate with consumers and reflect the brand’s values and personality.
  • Differentiate products from competitors through unique packaging shapes, textures, and materials.
  • Incorporate sustainability into packaging design using biodegradable or compostable materials, recyclable packaging, lightweight packaging, and reusable packaging.

As marketers and researchers in the food and beverage industry, it’s crucial to remember these points when designing and developing packaging for new products. By creating effective and sustainable packaging, brands can differentiate themselves, attract and retain environmentally conscious consumers, and ultimately drive sales and grow their businesses.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Emerging Trends in the Global Beverage Industry is an in-depth guide providing insights into key trends shaping the alcoholic beverage category in the U.S., U.K., Singapore, Japan, Indonesia, China, Thailand, Vietnam, and the Philippines, with examples and case studies from leading global brands. 

This report is for beverage brands, retailers, distributors, investors, bars, restaurants, and anyone in the business of quenching a consumer’s thirst for innovative beverages.

This is a summary of all five emerging trends in the report and how brands globally keep up with dramatic shifts in consumer tastes and preferences and the stiff competition in the beverage industry.

Trend 1: Booze without the buzz. 
The rise of no-to-low alcohol

As younger generations shun alcohol or reduce consumption, the low-to-no-alcohol (LNA) trend is here to stay.

Moderation, health, wellness, and a thirst for innovative flavours drive growth in this sub-category, and consumers are willing to pay for high-end innovative, non-alcoholic spirits.

Download the full report to find out how much the millennial share of alcohol drinkers has dropped in just one year.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Apart from big brands, the global market is deluged with new, independent entrants. Read the full report to discover the brands in the LNA category and how they are responding to the sober curious movement.

Also, read the case study of a brand that sowed the seeds for the LNA category. 

Trend 2: Spirit-based ready-to-drink beverages.
RTDs create a stir in the beverage industry

The demand for RTDs continues to grow, especially among younger consumers.

Variety, taste, and convenience are driving demand. The category includes hard seltzers, canned wines, ready-to-drink cocktails, hard coffee, hard tea, kombucha, wine spritzers, and coolers.

Download the report to discover why RTDs cater to the millennial lifestyle and how brands are delivering. Also, learn how Suntory is combatting low beer sales in Japan. 

In our case study, we look closely at what made the US-based hard seltzer White Claw become a pop culture icon. 

Trend 3: The Shift to drinking smart. 
Low-cal, plant-based, and gluten-free options

Low-calorie or zero-carb drinks may cater to a different target audience than the no-to-low-alcohol beverage category.

These consumers are mindful of their caloric intake but may not be as concerned with the amount of alcohol they drink.

In response to the health-conscious consumer, a leading beer brand added transparency by adding a nutrition label on its pack. Also, explore a soy-based alcoholic brand, how it uses a nutritious by-product to create an innovative drink, and how Skinnygirl catapulted into a leading RTD brand. 

Trend 4: Unlocking Craft Alcohol.
The popularity of mall-batch wine, spirits, and beer

This trend toward premiumization is a hot trend we will see well into the future. 

In most industries, the major growth areas have been for premium products catering to niche consumer segments. The alcoholic beverage segment is no exception, and brands are catering to evolving tastes by improving their beverages through better craftsmanship and innovative flavours.

The growing demand for craft spirits is expected to be the primary trend in the future, even as we move into a downturn. 

Also, discover how countries like Thailand and India are growing their wines. And if you have heard about the hype behind George Clooney’s famous tequila brand, read the case study to learn about Clooney’s journey into small-batch premium alcohol. 

Trend 5: The future of packaging. 
Innovative, sustainable, and inclusive design 

The package material, shape, design, logo, colours, and messaging are all critical elements that help a brand tell its story.

So how do brands in the alcoholic beverage category balance it all? Download the case study to find out. 

While brands focus on creating sustainable production methods, they also need to rethink packaging and distribution, just like the innovative flat wine bottles that fit through a mail slot. Read the complete case study in the report. 

As people worldwide drink less, brands are working hard to quench their thirst and keep up with their changing tastes using market research insights and constant innovation.

To get an in-depth view of the emerging trends in the global alcoholic beverage industry, download the complete report today. 

Download the summary of our latest report

The pandemic has led to irreversible changes in consumer behavior. As consumers stayed home for the better part of 2020, they have formed a new set of preferences, habits, and F&B expectations. 

Today, what consumers are looking for from the food and beverage industry is very different from pre-pandemic times, and these new expectations are here to stay beyond 2022.  

The “Food & Beverage Trends to Watch in 2022 and Beyond”  report examines the trends that will shape the food and beverage industry in the years to come. In this report, we look at four emerging trends around the globe:

  • Plant-based foods, 
  • Immunity-boosting ingredients, 
  • Tastes of home, and 
  • Transparency, safety, and sustainability.

Trend #1: Plant-based Foods

While there is considerable evidence of people choosing to avoid animal products as far back as 2,000 years ago, today, 4 billion people live primarily on a plant-based diet. 

Globally, the plant-based meat market will be worth $85 billion by 2030. The pandemic has only pushed the meat and dairy substitute product growth. 

Click here to see the extraordinary increase in plant-based meat sales in the USA during the nine weeks ending May 2, 2020, as the pandemic caused meat shortages and price spikes, shutting down meat-packing plants.

Read the full report to find out how the virus caused regular meat-eaters to make the switch, with many becoming permanent converts. 

Beyond Meat and Impossible Foods have become very popular and are a force to reckon with in the plant-based meat industry. While they are not the first in the market, they have created meat substitutes that taste like real meat. 

Plant-based foods such as snacks, dips, sauces, cheese, spreads, and creamers will see a double to triple growth within the following year.

Read the full report to discover plant-based attitudes and trends worldwide, including India, U.K., China, and the U.S. 

Trend #2: Immunity Boosting Ingredients

The market for functional foods has been growing for years. However, demand has boosted since the onset of the COVID-19 pandemic.

As COVID-19 made the immunocompromised population more vulnerable, consumers became more interested in healthy foods that boost their immune systems.

Known as “functional foods,” these ingredients claim to possess an additional function. For gut health, examples include probiotic foods that contain beneficial microbiota, including fermented foods like kefir, yogurt with live active cultures, pickled vegetables, tempeh, kombucha tea, kimchi, miso, and sauerkraut. For inflammation, ingredients like turmeric, honey, green tea extract, fish oil, and ginger provide relief.

According to Beneo, an estimated 75% of consumers plan to eat and drink healthier due to the pandemic. The global market for these ingredients is expected to grow to $117 million by 2021.

Read the report to learn more about the demand for functional foods or nutraceuticals around the globe, specifically in the E.U., USA, and India. 

Trend #3: Tastes of Home

During times of unease, unrest, and uncertainty, consumers seek comfort in foods that remind them of happier, less turbulent times.

According to The International Food Information Council, many consumers are re-creating the restaurant experience at home by using meal kits, restaurant-branded products, and more sophisticated or flavorful ingredients from artisan food producers. 

  • Meal-kit service: In 2017, the industry was valued at US$4.65 billion, representing a 300 percent growth over the previous year. Read the full report to discover the estimated growth potential of this market by the year 2022. 
  • Speedy appliances: Another popular trend reveals many consumers purchased in-home appliances to make meal preparation easier.

The dinner with the family trend seems cemented in our behaviors and habits. Before the pandemic, 18% of households ate dinner together at home every day. Read the report to see the percentage of households that eat dinner together now, post-pandemic. 

Trend #4: Transparency, Safety, and Sustainability

According to a 2020 Innova Consumer Survey, three in five global consumers say they are interested in “learning more about where their food comes from and how it is made.” The term ‘clean label,’ therefore, goes beyond ingredients. There is a need for transparency around the food being organic or additive-free, and companies need to show consumers they produced the food sustainably and humanely.

An increasing number of technologies are emerging to improve transparency, including radio-frequency I.D. tracking of ingredients throughout the supply chain and wireless/ smart technologies such as invisible barcodes.

Read the report to find out how food producers increasingly use blockchain and Internet of Things (IoT) technologies to provide information to consumers.  

Now that F&B producers and consumers are more experienced living with the pandemic, the focus is expected to shift toward sustainability. 

ADM, a food technology company, observed that nearly two-thirds of consumers want their food choices to impact the environment positively. Lux Research’s report The Food Company of 2050 also lists “increasing sustainability” as a critical factor for increasing brand awareness and market share.

Read the full report for critical insights and consumer trends impacting the Food & Beverage industry in 2022 and beyond.  

Food packaging is a vital and growing industry. The global food packaging market size was $304.98 billion in 2019 and is projected to reach $463.65 billion by 2027 — this is an area that no Consumer Packaged Goods business can afford to overlook.

There are many reasons why your choice of packaging is so important. Increasingly demanding customers, regulatory concerns, and the need to stand out in crowded and competitive marketplaces are just some examples.

This article will look at why it’s so important to get food packaging right, explore some of the challenges facing companies, and show you how to package your food as effectively as possible.

Why it’s so important to get food packaging right

The growing consumption of packaged food

People are eating more packaged food — the U.S. packaged food market is predicted to grow at a CAGR of 4.1% from 2021 to 2028. There are many reasons for this continued growth — e-commerce, the rise of packaged vegan alternatives, and increasingly hectic lifestyles that keep millions of consumers on the go and forced to rely on store-bought, convenient food.

All this means that packaging is increasingly important. Packaging manufacturers need to keep abreast with trends and ensure their packaging does enough to stand out.

Increasing environmental concerns and pressures

Consumers are more concerned about the environment, and their impact on it, than ever before. This has led people to be more mindful about their packaged food and to gravitate towards packaging that is more eco-friendly, recyclable, and which can prove this to them.

Companies that fail to take this into account, and persist with packaging which is obviously bad for the environment, will struggle to hold onto their more eco-aware customers as their competitors embrace greener packaging.

New technologies like Augmented Reality

Emerging technologies like augmented reality bring a whole host of compelling use cases for food packaging. Companies who can weave this technology into their packaging stand to get a major head start over their competition, wowing their customers with never-before-seen tricks and features and standing out in an entirely new way.

Protection

In the wake of the COVID-19 pandemic, people are more concerned than ever about hygiene and food safety. The right packaging is necessary to guarantee fresh, high-quality food for customers. Companies that fail to do this stand to face big reputational hits and high-profile incidents. In addition, the right packaging also helps to extend the shelf life of products, widening the window of time in which they can be bought.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Marketing challenges and things to keep in mind

Meeting these challenges around food packaging can be tough. Companies today are faced with a wide range of challenges and things to consider when packaging their food. Here are some examples.

Standing out

As the food packaging market continues to grow, you’ll need to focus harder on grabbing your customers’ attention and competing with other brands and their packaging on the supermarket shelves. It’s no longer enough to go with basic, unimaginative packaging — even recognised and established brands now have to work hard to seize and maintain the spotlight.

Including all relevant information

Today’s consumers want to be informed. They are more environmentally conscious, health-conscious, and demanding than ever before. This means they are hungry for detailed information about where your product comes from, how it was made, exactly what it contains, and more.

Costs

As packaging becomes more advanced, sustainable, and detailed, it also often becomes more expensive. As you evolve your food packaging, you also need to consider the impact on your bottom line. Figuring out how to create the best packaging possible without taking an unacceptable financial hit can be a major challenge.

Preserving food

Ensuring your packaging keeps food as fresh as possible to prolong its shelf life has always been a big challenge for manufacturers. Developments in packaging technology have made this easier and more effective than ever before, but you have to balance this with using sustainable materials, saving costs, and promoting your brand.

How to do market research for food packaging effectively

The only way to ensure you succeed with food packaging is to conduct extensive market research in all the right areas. This helps you establish what your customers want, how feasible it would be to deliver, what your competitors are doing, and much more. Here are some guidelines for conducting effective market research for food packaging.

Get familiar with emerging technology

New technologies can provide impressive benefits for packaging. For example, Kadence partnered with Asahi to test augmented technology in packaging market research. We showed a group of customers an augmented reality model of Asahi’s packaging design, allowing them to get a real, lifelike feel for the beer from their own homes. As a result, they were able to provide more detailed and useful feedback compared to customers who only saw a 2D image.

Be rigorous with costs

Packaging costs can quickly mount up and seriously eat into your budget. It’s essential to be clear on how much your packaging will cost and ensure this is affordable. Advanced packaging can be expensive, and sometimes the extra cost isn’t worth the additional benefits.

Get to know your customers and what they want

As with all market research, the most critical step is understanding your customers and getting familiar with their pain points and what they want. Talk to them extensively through surveys, focus groups, online interactions, and use secondary research on existing market trends.

For example, if you find that your customers are particularly concerned about the environment, it’s a sign to focus more on eco-friendly packaging and to promote this in your marketing. If your customers are concerned with nutrition, be sure to highlight the health benefits of your product in your packaging.

Identify opportunities for upselling

Market research can be an excellent way to discover opportunities for upselling existing products and even find ideas for entirely new products. Your packaging, if done right, can be used to promote other products in your range and be a marketing channel in its own right.

However, the only way to achieve this is to conduct proper research, ensuring you understand all possible opportunities and identify demand in the right areas.

Today’s customers have high demands for brands. People want eco-friendly packaging, detailed information about nutrition and health, and the latest in smart packaging.

Some of your market research should focus on identifying these trends and learning more about what your specific customer base is passionate about and considers essential. This way, you’ll be able to create packaging that satisfies their demands and signals that you’re the kind of company they want to support.

Develop a strong brand voice and personality

Your packaging is the first thing your customers see about your brand. It should boldly state who you are and what sets you apart from everyone else, and clearly embody your brand’s personality.

Developing a voice for your brand takes time, but market research is a central component of that process. Your research will shed light on who your customers are, what niche you occupy, and what makes your brand and products unique. This way, you’ll be able to establish a strong and distinctive brand voice and let it shine through in your packaging.

Market research is a long and incredibly important process for all kinds of reasons, and food packaging is just one area of this. 
At Kadence, we help consumer goods companies with market research and packaging solutions, enabling them to succeed and use their resources as effectively as possible. To find out more about how we can help you do the same, contact us.

Trusted by

Trusted by

Concept and pack testing is an area that’s ripe for innovation – a need made ever more pressing during the Covid-19 pandemic. Watch this 15 minute video to hear how we worked with Asahi UK to pilot the use of augmented reality for this purpose, testing pack designs for Fuller’s London Pride.

We’ll share our key findings, focusing specifically on what we discovered about the value of using AR versus static 2D images. These insights will have value to any researcher looking to broaden their toolkit and harness new technologies in the “new normal”.

This is is the first of Kadence International’s Micro Masterclasses, 15 minute videos designed to provide fresh thinking and a new perspective on research methodologies.

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 behaviours 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.

We’ve summarised the key global and local trends in this blog post but for the full findings, download the report: Understanding the Impact of Covid-19: Food Industry Trends for 2020 and Beyond.

Global food industry trends for 2020 and beyond

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

Understanding the impact of Covid-19: Food industry trends for 2020 and beyond

The arrival of Covid-19 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 behaviours will stick and what are the longer term trends to watch in food and drink?

Download now

Worries about the origin of food are one of the key food industry trends for 2020 and beyond

When asked which of the behaviours 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 behaviour. 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 prioritise 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 behaviours 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 favourite dishes at home.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

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.

Food industry trends in China

In China and Hong Kong, global trends around health and eating at home are particularly important, with 86% of Chinese respondents acknowledging their desire to eat at home even after the pandemic ends according to Nielsen. Concerns about food safety are also front of mind, and in response we’re seeing a growing trend towards automation and contactless processes in manufacturing and distribution.

Food industry trends in Thailand

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 behaviour 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 behaviour 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.