Five global trends are shaping consumer behavior are detailed in a just-released report from Diageo. The five trends are:
- Neo-Hedonism: consumers are re-evaluating how they spend their money, searching for innovative ways to experience pleasure in their everyday lives. This is one of the newer trends but on the rise (+39%), with consumers searching for meaningful & unique experiences over wealthy gifts.
The report found that 60% of Millennials and Gen-Zers prefer to spend their money on life experiences, such as travel and concerts, rather than saving for retirement.
Discord, the instant messaging platform, now has 150 million monthly active users. That's double to usage in just the past year.
And the eco-tourism market is expected to grow 14.7% from 2023 to 2032. The report suggests that brands that need a way in to Neo-Hedonism can offer unique products and services, alternative social spaces and on-the-go products. Among the neo-hedonistic topics being discussed are pop-up bars, vbecoming a digital nomad which is easier to accomplish with co-working spaces, and outdoor activities.
- Betterment Brands: consumers' conversations show them to be increasingly eco-conscious, becoming more aware of the environmental and social impact of their choices. Although not a new phenomenon its importance cannot be downplayed, with consumers increasingly (+44%) seeking ways to align their purchasing decisions with their values.
- Conscious Wellbeing: there has been a transformation in how consumers define health and happiness, with consumers having a more holistic view of wellbeing. The report found over 2.7M discussions globally of self-love (+40%).
- Expanding Reality: technologies like AI, VR, and AR are revolutionizing how consumers perceive and interact with reality. Conversations around the technologies has risen 94% including a 134% rise in discussions of AI-enabled relationships - the fastest growing micro- trend identified in the report.
- Collective Belonging: consumers are increasingly seeking real and virtual spaces that embrace unity, acceptance, and allow them to engage with like-minded individuals. The report uncovered 28.7M mentions of the topic globally (+41%) making it our most discussed trend, including a 42% increase in conversations around championing inclusive cultures.
In 2024, the report says, consumers will be looking for novel and personalized experiences that bring happiness to every walk of life. It suggest brands can engage with consumers by becoming emotional architects, focusing on creating immersive narratives the resound emotionally with consumers. Also: embracing pop-up events, themed venues and dynamic gathering spaces.
The report, entitled "Distilled," has been created by Diageo's 'Foresight System', a digital tool developed by Diageo and its data and insight partners that monitors and tracks global conversations from web sources and social media platforms. This included conversations in English, Chinese Mandarin and Spanish across social media, YouTube, television, online forums, and digital media.
The report also offers Diageo's foresights for global consumer behaviors in 2024. This includes a shift towards more mindful approaches to adventure, the increased popularity of fully customizable products, and the rise of more immersive learning experiences.
Consumers, it says are increasing eco-conscious. The result: 81% of people believe social media has increased pressure for ESG accountability. Some 63% of consumers believe high prices are the main obstacle to adopting sustainability. More than 90% of S&P 500 companies report on ESG.
Little surprise that the report says consumers are looking to support local businesses and eononomies. Finally, people are more aware of social differences.
The report projects the global functional and natural health food market at $38 .5 billion in 2033. The wellness economy is expected to reach $ 8.5 trillion in 2027, growing 8.6% a year over the next five years.
Mark Sandys, Chief Innovation Officer at Diageo, commented: "To be entrepreneurial in mindset and action, brands mustn't be afraid to look beyond their own walls. The trends showcased in 'Distilled' underline the need for brands to embrace change, reimagine strategies, and stay agile in responding to evolving consumer needs, presenting itself as an essential tool for brands planning future innovation."