The complex consumer

Signals from the internet

If there is one constant with consumer fads, it’s the fact they’re always changing. So what will be the next big thing in soft drinks?

The industry is currently riding the wave of superberries such as blueberry and acai. And as the UK population ages – by 2014 it’s forecast that over-65s will outnumber under-16s for the first time – it’s a safe bet that soft drinks with additional health benefits will come increasingly to the fore.

The internet has become an important predictor of future trends. According to Nielsen Buzzmetrics – which tracks over 70m online forums, blogs and messaging sites to find out where the internet buzz is growing – two current hot topics are new functional ingredients, and sustainability.

Functional ingredients

Online interest in antioxidants is growing among both early adopter and mainstream consumer groups. Antioxidant knowledge is currently evolving from general concept to a focused understanding of sources and benefits, but there’s widespread acceptance that they’re a good thing. New or existing soft drink products that can make antioxidant benefits part of their overall brand positioning, without diluting the core value proposition, could grow in importance. Highlighting specific antioxidant content and benefits should help increase the credibility of claims and the relevance to consumers. One to look out for is selenium, a wheat-derived antioxidant that boosts the effects of other antioxidants as well as providing its own benefits. And here’s a surprise – a new angle for an old favourite. Calcium has long been linked to good teeth and bone growth. But now it’s the subject of renewed interest on the net as something of a panacea, appealing to groups from athletes to the elderly for tackling problems ranging from cramps to weight loss. While calcium has historically been associated with milk, many consumers are now supplementing their diet through other calcium-rich food sources. There could be a growing opportunity to tailor soft drinks to a female audience, promoting calcium’s potential to relieve PMS and menopause related symptoms.

Sustainability

Sustainability is taking a deeper root in consumers’ thinking – and it has direct relevance to soft drinks. Although the organic and fairtrade sectors are still a relatively small part of the soft drinks market, their growth in grocery overall demonstrates the British consumer’s increasing sensitivity to environmental and ethical concerns. Sustainability will be a growing issue.

In response to consumer opinion and government pressure, all the major retailers have announced initiatives to cut down on packaging and waste over the next few years. Soft drinks manufacturers have also been quick to respond. A number have signed up to the Courtauld Commitment, pledging to design-out growth in packaging waste and deliver absolute reductions. The big players, including Britvic and Coca-Cola, were also among 21 food and drink manufacturers to sign the Federation House Commitment, pledging to improve water efficiency.

According to Nielsen survey data, British shoppers now express a real desire to “do the right thing” when making their shopping and product choices. The goalposts are moving fast. In March 2007, 48% claimed they actively try to buy local products. Four months later, in July, the figure was 57%. Over the same period, the proportion of shoppers who claimed to buy products with little or no packaging rose from 45% to 55%. The good news for manufacturers is that 46% say it’s worth paying extra for products that are ethically produced or kinder to the environment. Manufacturers who can couple sustainability with great tasting products will tap into this consumer mindset. If consumers mean what they say – and that’s still quite a big if – the potential rewards could be huge.

69% of GB shoppers are prepared to give up packaging that just has an aesthetic function

70% of the top ten launches in 2007 tapped into more than one of the four key trends