Regional consumer trend updates: China

Regional consumer trend updates: China

Powered by: Regions in the Spotlight 12-23 April 2021

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Contents Proactive living: Consumers in China are adopting a holistic approach to health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Safe and secure: Risk aversion is something of high importance to consumers in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Rediscovering health: Consumers in China are taking steps to reduce their vulnerability to disease and illness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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The power of plants: Consumers want plant-based alternatives that mimic the experience of eating and drinking animal produce . . . . . . . . . . . . . . . . . 10 Better for you, not best for you: Consumers want products that they deem to be guilt-free and conveniently nutritious . . . . . . . . . . . . . . . . . . . . . . . . 12 Natural blueprint: Consumers want reassurance that ingredients are real and authentic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taste first, think second: Consumers in China want products that challenge their sensory perceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 The earth is clear: Consumers in China want brands to do more to address the state of the environment . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Menu for me: Consumers in China want personalised nutritional products to help assist with health goals . . . . . . . . . . . . . . . . . . . . . . . 20 Eating out, dining in: Demanding consumers in China will want foodservice channels to demonstrate genuine innovation . . . . . . . . . . . . . . . . . . . 22 Key takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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This report examines FMCG Gurus Top Ten Trends for 2021 and how they are influencing consumer attitudes and behaviour in China

insights.figlobal.com Regional consumer trend updates: China | 3

Proactive living: Consumers in China are adopting a holistic approach to health Over the last couple of decades, diets and lifestyles have changed considerably in China due to westernisation. While this is something that has created many benefits, it is something that has also resulted in the spread of lifestyle-related health problems such as obesity and diabetes. Indeed, traditional dietary practices have been replaced with behavioural traits such as increased snacking, out-of-home and foodservice occasions, and increased intake of processed food. Moreover, consumers are more inactive than ever, whilst at the same time being highly dependent on digital devices. This is something that has an adverse effect on the health of consumers.

At the same time, it is not only physical health issues that are becoming more common in China. Once considered something of a social taboo, consumers are now more open about their mental wellbeing, especially as the pressure to succeed personally and professionally and to take advantage of economic development have resulted in increased levels of stress and anxiety. As consumers recognise that mental wellbeing is something that directly impacts the immune system and overall health, they are being more proactive in addressing the issue.

Do you plan to make improvements to any of the China -

51% 37%

39%

29% 22%

My skin/nail/hair health

4

My sleep habits/health

My joint/ bone health

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My cognitive/ mental health

My weight/ waistline

Concern about health and wellness is something that will have been accelerated by the COVID-19 pandemic in China and even with the virus under control (at the time of writing) compared to European nations, consumers are demonstrating a high level of urgency about their health and wellness.

This is resulting in consumers wanting to adopt a long-term and holistic approach to health, looking to address a variety of areas relating to physical and cognitive health. Consumers want to stay fit and active until later in life and reduce their vulnerability to disease and illness. This mindset will be driven in part by the recognition that both diets and lifestyles are not as healthy as they could be, something which increases the risk of immediate and long-term health problems.

As consumers look to improve their physical and mental wellbeing, they will seek out products that help facilitate this. Despite their best intentions, consumers can often struggle to stick to dietary plans in the long-term. This is why obesity rates in the country continue to rise, despite many saying that they are more committed than ever to eating and drinking healthily, for instance. Better-for-you products need to be deemed compromise-free and hassle-free from a taste, cost, and convenience perspective, so that they can easily be incorporated into daily diets.

following areas of your health over the next twelve months?

Top ten trends

77% 54%

55%

My digestive health

My energy levels

63%

My general health and wellness

68%

My immunity

My heart health

Source: Personalized nutrition survey -2020 (2,000 respondents)

Regional consumer trend updates: China | 5

Safe and secure: Risk aversion is something of high importance to consumers in China Given that COVID-19 is touted as emerging from China, it is no surprise that consumers in the country have become more risk averse over the last twelve months. Indeed, consumers have questioned certain aspects of their lives that they took for granted previously, as they look to minimise their risk of exposure to germs, viruses, and bacteria. Whilst the virus is under control in China, much attention is being given to hygiene practices which may have accelerated the spread of the virus, new variants of the disease in other countries, and the risk posed of transporting the disease via product imports. As such, risk aversion is something that will continue to be of high priority within the country for some time to come. For instance, some consumers will continue to stick to social distancing practices, even after such restrictions have been relaxed.

Consumers will want more information than ever before in relation to the products that they purchase.

The country of origin of products will be something of high importance to consumers, as will reassurance over safety and hygiene initiatives throughout the development and distribution of products. In addition, consumers will also place more importance on packaging, as they revaluate the role of packaging in ensuring products are kept safe and in optimal condition. Ideally, packaging will be deemed safe and sustainable. Overall, consumers will want more information on the products that they purchase than before, and it will be crucial that brands provide this.

Compared to many other countries across the globe, the Chinese economy has remained relatively resilient to the impact of the pandemic. However, this doesn’t mean that all consumers have been hit financially as a result of the virus outbreak. Many consumers will now be more conscious about everyday living costs and will be shopping around to get the best deal possible. This doesn’t necessarily mean they will be looking for the cheapest priced product available. But it does mean they will be paying close attention as to whether products offer good value for money or not.

If brands can demonstrate safety throughout the whole of the supply chain as well as offer reassurance that maximum care and attention has gone into the formulation of products, it will lead to enhanced perceptions of value.

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Proportion of consumers who say that they want more information on safety assurance when it comes to the handling and manufacturing of products as a result of COVID-19

67% 57% 48%

April 2020

May 2020

52%

July 2020

February 2021

Source: COVID-19 survey series – April 2020-February 2021 (2,000 respondents)

Proportion of consumers who say that they are concerned about exposure to viruses, germs, and bacteria from the following sources (2020)

86% 66%

On food and drink

64%

In the surrounding air

In water suppliers

73%

On surfaces

Source: Immunity survey – 2020 (2,000 respondents)

Regional consumer trend updates: China | 7

Rediscovering health: Consumers in China are taking steps to reduce their vulnerability to disease and illness COVID-19 has contributed to a fundamental change in the way consumers in China think about their health. The outbreak of the virus resulted in many consumers questioning their vulnerability to disease and illness, with concerns not merely being restricted to more vulnerable demographic groups (such as senior citizens and those with underlying health problems). Instead, consumers of all ages have questioned their susceptibility to disease and illness. One of the reasons for this is the recognition that current diets and lifestyles are not as healthy as they should be, which increases the risk of immediate and long-term health problems. As such, consumers are making conscious attempts to try and boost their immune system, with health goals shifting from being aspirational to focusing on disease management, instead.

Continued concern about COVID-19 means that this mindset will be prevalent for some time to come.

Indeed, FMCG Gurus research shows that consumers in China continue to be more conscious about new waves of the virus and the impact this has on many other countries. As such, there will be a high level of demand for food, drink, and supplement products associated with offering a health boost beyond basic nutrition.

Increased concern over immune health will result in consumers making fundamental changes to their dietary habits to lead healthier lifestyles. As well as reducing or moderating intake of dietary evils, consumers will also seek out functional and fortified products associated with offering a health boost beyond basic nutrition. Ingredient-led claims will be more influential on purchasing habits, with consumers wanting both tried and trusted as well as new and novel ingredients.

When targeting consumers with functional products, it is crucial that claims on products are deemed to be credible and transparent. Branded ingredients and scientific evidence to support claims can help achieve this. In comparison, it is important that claims are not deemed misleading or exaggerated in order to capitalise on consumers wanting instant solutions for their health woes.

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68%

of consumers in China say that they have made changes to their diets and lifestyles in the last twelve months to improve their immune health (2020)

Source: Immunity survey – 2020 (2,000 respondents)

Proportion of consumers who say that they are more Top five about actionstheir taken to improve health (2020) conscious immune healthimmune as a result of COVID-19 Consumers who have taken steps to improve immune health (February 2021) 81%

53%

Used/increased use of functional food and beverages

60%

Looked to improve my energy levels

64%

Looked to improve my mental wellbeing

67%

Exercised more

Made changes to my diet

Source: Immunity survey – 2020 (2,000 respondents)

Regional consumer trend updates: China | 9

The power of plants: Consumers want plant-based alternatives that mimic the experience of eating and drinking animal produce The popularity of plant-based alternatives in China is continuing to grow, as consumers make conscious decisions to either eliminate or moderate intake of dairy and meat. Like any other health and wellness related areas, this has intensified as a result of COVID-19, especially as some are questioning whether the state of the planet is something that contributed to the spread of the virus.

As consumers become more concerned about the state of the environment, they are questioning the sustainability credentials of cattle farming and the link it has with greenhouse gas and carbon emission.

Meat and dairy intake are also associated with health problems. For instance, excessive meat intake is associated with problems such as hypertension, whilst dairy can be associated with high levels of fat and sugar intake. In addition, COVID-19 has made some consumers more conscious about animal welfare initiatives.

The desire to reduce meat and dairy intake is driving demand for plant-based alternatives. These products are deemed to be healthier and more sustainable, as well as more natural. Although consumers have favourable perceptions about plant-based products, concerns can exist towards the taste and texture of products. Irrespective of concerns about health and sustainability, consumers are unwilling to compromise on the sensory appeal of products. This means it is crucial that plant-based products are seen to mimic the experience of eating and drinking animal produce from a taste, texture, and juiciness perspective.

Whilst consumers have favourable perceptions towards plant-based food and drink products, it is crucial that brands do not make misleading claims around how healthy products are. For instance, brands need to be fully transparent around ingredient content and not make misleading claims around natural formulation which could lead to a potential backlash towards the market.

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33%

of consumers in China describe themselves as flexitarians (2020) Source: Meat and plant-based protein survey – 2020 (2,000 respondents)

Top five reasons for following a dietary plan based around meat reduction/avoidance (2020) Consumers who are following a diet based around meat reduction/avoidance 72% 56% 38%

Price of meat is too high

43%

40%

I believe eating meat leads to weight gain

Concerns over animal welfare

Environmental concerns

I associate eating less meat with being healthier

Source: Meat and plant-based protein survey – 2020 (2,000 respondents)

26%

of consumers in China say that they plan to include more plantbased food and drink in their diets as a result of COVID-19 (2021) Source: COVID-19 survey – February 2021 (2,000 respondents)

Regional consumer trend updates: China | 11

Better for you, not best for you: Consumers want products that they deem to be guilt-free and conveniently nutritious Although much attention is given to consumers wanting to improve their dietary habits, it is important not to overestimate the influence that nutrition alone has on eating and drinking habits in China. As already mentioned, dietary habits have changed significantly in the country over the last couple of decades, resulting in a greater frequency of non-essential consumptions driven purely by the desire for indulgence.

Moreover, whilst eating and drinking habits tend to be more health-orientated in the morning and later on in the evening, need states such as the desire for escapism, indulgence, and the need for energy tend to be more influential on product choice throughout the day, often at the expense of nutritional intake.

Indeed, the spread of obesity in the country despite consumers saying that they are making attempts to lead a healthier lifestyle shows that an attitude/behaviour gap exists when it comes to health.

Over the next twelve months, consumers will demonstrate two, somewhat contradictory, behavioural traits. On one hand, consumers will look to improve their eating and drinking habits, looking to reduce their calorie intake and level of snacking. This will be driven by concerns about the risk of health problems in general, and how these are being intensified by current dietary habits. It will also be linked to consumers becoming more concerned about weight gain as a result of increased levels of comfort eating to deal with high levels of uncertainty. However, on the other hand, consumers will continue to turn to food and drink for moments of escapism to deal with pressures of everyday life. Whilst this tendency has declined in 2021 compared to a year earlier, it will still significantly influence food and drink choice.

This means that, ultimately, food and drink choice in China will become more measured with consumers wanting products that offer taste and nutrition at the same time, without the compromise. As a result, sports nutrition and better-for-you snack products positioned around being high in good ingredients and low in bad ingredients, will continue to grow in popularity. When it comes to such products, reassurance of taste and texture will prove crucial for consumers.

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Proportion of consumers who say that they have snacked more as a result of COVID-19

37% 26% 20% 14%

April 2020

May 2020

July 2020

February 2021

Source: COVID-19 survey series – April 2020-February 2021 (2,000 respondents)

Proportion of consumers who say that they are turning to comfort foods more frequently as a result of COVID-19

49%

49% 36% 24%

April 2020

May 2020

July 2020

February 2021

Source: COVID-19 survey series – April 2020-February 2021 (2,000 respondents)

Regional consumer trend updates: China | 13

Natural blueprint: Consumers want reassurance that ingredients are real and authentic Consumers in China are becoming more attentive of the ingredients in the food and drink products that they purchase. This trend will intensify as consumers continue to become more risk averse and more health conscious. As such, natural claims will become of even greater importance when seeking out products.

This is because consumers want ingredients that they deem to be real and authentic and they want to avoid ingredients deemed to be detrimental to themselves and the wider environment.

Irrespective of the attention given to the growing popularity of functional ingredient claims, natural claims remain a priority for consumers in China and, after price and taste, are the product attributes that consumers will be most attentive to. Natural claims are associated with a variety of benefits such as products being healthier, safer, local, and better quality, and are becoming more important to consumers as a result of the pandemic. Natural claims further appeal to consumers as they adopt a back-to-basics approach to nutrition and turn to everyday food and drink products that they know and trust to boost health.

It is worth noting that natural claims are of high importance to consumers in product categories that are deemed better-for-you and those inherently associated with indulgence. The importance of natural claims in categories associated with indulgence (such as chocolate and confectionery), reflects how consumers are seeking out products that they deem to be guilt-free and how they associate natural and free-from claims with this.

While consumers have favourable perceptions of natural products, they can also demonstrate scepticism towards such claims. They can further demonstrate this scepticism towards similar claims such as sustainable and local because of the degree of subjectivity around such claims. Scepticism can be linked to consumers becoming conscious about the practices and policies of brands and manufacturers, questioning whether they have their best interests at heart. As such, it will be more important than ever that brands look to validate claims around natural formulation (and locality and sustainability) so products are deemed to be green and clean.

Consumers will also find streamlined ingredient lists appealing, as well as simplified nutritional labelling which enables them to make an informed and controlled decision about the formulation of products.

77%

of consumers in China say that they are now more attentive to natural claims as a result of COVID-19 (2021) Source: COVID-19 survey – February 2021 (2,000 respondents)

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Proportion of consumers who say that they are more How important is it to you that foodas and drink of products conscious about their immune health a result COVID-19 are 100% natural?

(2019) (February 2021) 47%

15%

12%

Unimportant

Not sure

6%

Very unimportant

20%

Important

Very important

Source: Clean label and naturalness survey – 2019 (2,000 respondents)

Why is it important that food and drink is 100% natural?

Consumers who say it is important food and drink is 100% natural Natural food and drink is…

Healthy

53%

Better for the environment

50%

Tasty

42%

Better quality

37%

Source: Clean label and naturalness survey – 2019 (2,000 respondents)

44%

of consumers in China say that they are now more attentive to locality claims as a result of COVID-19 (2021) Source: COVID-19 survey – February 2021 (2,000 respondents)

Regional consumer trend updates: China | 15

Taste first, think second: Consumers in China want products that challenge their sensory perceptions Over the last couple of decades, the middle class in China has grown considerably, meaning that they have more money to spend on products deemed non-essential. In addition, dietary habits have also changed considerably, with consumers being exposed to more choice of products from around the world than previous generations. This is something that has significantly impacted on traditional dietary habits, with consumers wanting experimental products from around the world. At the same time, exposure to more choice than ever before also means that consumers in China are more difficult to impress from a new product development perspective.

Consumers deem themselves to be adventurous and want food and drink that mirror this attitude and outlook on life. As a result, consumers are seeking out experimental flavours within product categories.

A variety of different types of flavours appeal to consumers, such as flavours they have not tried before, flavours that are not synonymous with certain product categories, as well as flavour hybrids. Additionally, consumers also show favourable perceptions towards flavours from around the world and from specific regions within foreign countries.

As consumers become more experimental, they are also becoming more premium orientated, especially as they seek out products which they feel reflect their good taste and sophistication. This means that consumers will want to see examples of craft-style production techniques within indulgent product categories, wanting hand-selected ingredients, specialised recipes, and artisan production techniques when choosing food and drink. Again, this shows the importance of story-based marketing to offer authenticity and educate consumers about the history behind the products they are purchasing.

When launching new and innovative flavours, it is important to remember that consumers also want more premium products, even when it comes to everyday items. As such, it is crucial that innovative flavours are perceived as more than just a novelty and, instead, are seen to enhance the sensory aspect of consumption. Failure to do this creates the risk of novel flavours de-valuing a brand, and even potentially a category.

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74%

of consumers in China say that they like food and drink with new and unusual/exotic flavours (2020) Source: Flavours, Textures & Colours survey – 2020 (2,000 respondents)

Proportion of consumers who say that they are more Top five reasons for liking foodtheir andimmune drink with new as and unusual/exotic flavours (2020) conscious about health a result of COVID-19 Consumers who like new and unusual/exotic flavours (February 2021)

55%

56%

I like to be experimental when cooking

I find experimental and exotic flavours make a product more exclusive

67%

67%

I deem myself adventurous and like to try new flavours

I like to try new flavours from around the world

72%

I like to try new flavours from specific regions from countries around the world

Source: Flavours, Textures & Colours survey – 2020 (2,000 respondents)

Regional consumer trend updates: China | 17

The earth is clear: Consumers in China want brands to do more to address the state of the environment Over the last couple of decades, consumers have become highly concerned about the state of the environment. Indeed, concerns towards the environment in Asia are often higher than in many European countries, which can be attributed to consumers witnessing the damage done to the planet because of westernisation and industrialisation first-hand. As they become more educated and concerned about a variety of environmental issues, consumers will be concerned that the damage done to the planet is irreversible. This will have implications on the quality of life for current and future generations. In addition, consumers have also questioned whether the state of the environment is something that contributed to the damage caused by COVID-19 on a global scale.

As consumers become more concerned about the state of the environment, they are making changes to their diets and lifestyles in order to behave in a more sustainable manner. Motivations for doing this also include the belief that such changes are also healthier. Consumers are taking several steps to act in a more sustainable way. Whilst a high level of attention is given to the growth of plant-based alternatives, consumers are also engaging in actions such as attempting to reduce food waste and seek out more locally sourced products.

This will result in consumers seeking out brands that they feel mirror their attitudes and outlook on life, especially as consumers feel that big businesses and corporate greed are primarily responsible for damage done to the environment. It will be more important than ever for brands to promote sustainability credentials along the supply chain. In addition, brands will also be expected to monitor the supply chains of suppliers to ensure that they are not engaging in activities that inadvertently undermine sustainability pledges.

While consumers are concerned about the state of the environment, it is important not to overestimate how altruistic they are. Consumers will often prioritise their own immediate need states when purchasing products and will not buy something simply because it is environmentallyfriendly, especially if it is associated with a premium price or compromised taste. As such, brands need to look for ways to take the effort out of acting in a recycling manner, offer incentives for engaging in sustainable behaviours, or position products around offering some additional benefit for the consumer beyond acting in a sustainable manner.

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77%

of consumers in China say that they have become more conscious about environmental issues as a result of COVID-19 (2021) Source: COVID-19 survey – February 2021 (2,000 respondents)

Proportion of consumers who say the following in China

2019

67%

2020

73% 57%

52% 22%

I am concerned about the state of the environment

Damage done to the environment is irreversible

18%

I believe the state of the environment has worsened in the last two decades

Source: Sustainability survey – 2019 (2,000 respondents) Sustainability survey – 2020 (2,000 respondents)

Regional consumer trend updates: China | 19

Menu for me: Consumers in China want personalised nutritional products to help assist with health goals Concerns over health in China will continue to grow for a variety of reasons. As well as the lingering threat of COVID-19 and the recognition that diet and lifestyle habits are not as healthy as they should be, busy lives and attempts to cram as many activities into the day as possible will continue to impact on wellbeing.

Finally, an ageing society will also mean that more urgency is placed on seeking out products that offer maximum efficacy when looking to boost health. Currently, consumers can be concerned about the effectiveness of health and wellness products on the market, often thinking that products are too generic and not suitable for their specific health needs.

Whilst consumers recognise that there are many aspects of their health that they can control, they also realise that DNA significantly influences wellbeing and that it is something they have less control over. This, combined with the desire for more effective nutritional products, creates opportunity for innovations in the nutritional market that are personalised in order to address health goals based on DNA and genetics.

Nutrition genetic testing is the concept where consumers provide DNA samples to a third party in exchange for a health assessment and personalised dietary and health and wellbeing products. Although consumers in China are not overly familiar with the concept, when given a definition, they indicate a willingness to use innovations. Consumers want products that they feel maintain immune health and boost the immune system, and customised products are seen as the most effective way of achieving this.

When launching customised products around DNA and genetic testing, brands need to take several issues into consideration. Brands must reassure consumers that sensitive information submitted to third parties is handled in a safe way. Consumers must also be educated about such products so that they have realistic expectations about the benefits and limitations of such innovations. Finally, brands must also consider the implications of disclosing certain information, such as the risk of people developing health problems in the future which are unavoidable, because of the impact it will have on current mental health.

Despite some challenges to the market, however, the increased urgency around wanting to maximise health will create new opportunities for new innovations based around customisation and personalisation within the nutrition market.

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85%

of consumers in China say that they are interested in food and drink customized to meet their individual nutritional needs (2020) Source: Personalized nutrition survey - 2020 (2,000 respondents)

Top five reasons for consumer interest in food and drink products customized to meet individual nutritional needs (2020) Consumers interested in products

58%

61%

To relieve my concern about getting an illness/disease

To improve my immunity

53%

To improve my energy levels

89%

89%

To stay healthy as I get older

To maintain a good quality of life

Source: Personalized nutrition survey - 2020 (2,000 respondents)

72%

of consumers in China say that they find the concept of nutrition genetic testing appealing when given a definition (2020) Source: Personalized nutrition survey - 2020 (2,000 respondents)

Regional consumer trend updates: China | 21

Eating out, dining in: Demanding consumers in China will want foodservice channels to demonstrate genuine innovation As already highlighted in the report, eating and drinking habits have changed significantly in China over the last couple of decades because of westernisation, exposure to more choice than ever before, and the growth of a middle class with high levels of disposable income. With life returning to normal in China, consumers will return to the foodservice sector more frequently, expecting menus that align with their ever-evolving need states. Before the pandemic, out-of-home consumption occasions continued to grow in popularity in China because of consumers who feel time-scarce and have high levels of self-entitlement and like to treat themselves on a regular basis.

Demanding consumers will want menus that they feel mirror their attitudes and outlook on life. Like the retail channel, consumers will turn to products as a form of self-expression and to help project their good taste and sophistication to their social circle. Again, this will be intensified in an era where consumers commonly post pictures of their food on social media. This means that consumers will want foodservice outlets that have genuine identity and create stand out appeal. Foodservice outlets can achieve this through combining experimental food and drink products with sustainability credentials.

Consumers will want to see experimental products on menus that challenge their sensory perceptions, with new and unusual flavours that are deemed to offer a genuine experience. Limited time offers can help achieve this, with such offerings being of high appeal in the country. When launching limited time offerings, it is important that products are not available for too long, as this can dampen the appeal and buzz of products. Nevertheless, limited time offerings that are seen as experimental and premium will be of high appeal.

As consumers turn to foodservice outlets as a form of self-expression, it will also be important that outlets demonstrate their green credentials. This goes beyond offering plant-based alternatives on the menu and instead, demonstrating sustainability pledges along the whole of the supply chain and putting these pledges at the core of brand philosophy.

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67%

of consumers attach importance to menu innovation in the foodservice sector (2020) Source: Foodservice survey – 2020 (2,000 respondents)

Top five ways consumers in China say foodservice outlets can help better capture their attention (2020)

69% 60%

48%

51%

53%

Through good word of mouth about the outlet

Through promoting ethical and responsible causes

Social media activity

Promoting food and drink from part of the globe that I am unfamiliar with

Through taking an active stance on food waste

Source: Foodservice survey – 2020 (2,000 respondents)

Regional consumer trend updates: China | 23

Key takeaways • Help consumers boost and improve their diets in a hassle-free manner: Consumers want to improve their dietary habits, as they look to stay fit and active until as late in life as possible. Dieting can often be associated with compromise, meaning better-for-you products need to be deemed compromise-free from a taste and convenience perspective.

• Offer maximum transparency about safety initiatives along the supply chain: Consumers are more concerned about product safety than ever before, as they look to reduce the risk of exposure to germs, viruses and bacteria. Brands need to be transparent over actions taken to ensure product safety along the whole of the supply chain.

• Launch products that promote the concept of holistic health: Consumers are trying to boost their immune system and minimise their vulnerability to disease and illness. This is something that is driving demand for functional products that address a variety of health areas simultaneously.

•E nsure plant-based alternative products are deemed compromise-free: Consumers find plant-based products attractive but can be conscious about the sensory appeal of products. This means it is crucial that such products are seen to replicate the experience of eating and drinking animal produce from a taste and texture perspective.

•O ffer taste and nutrition simultaneously: Consumers want indulgent products that help them enjoy moments of escapism from daily pressures without conflicting with wider health goals. This is driving demand for better-for-you snacking options that are high in functional ingredients and low in bad ingredients.

•S treamline ingredient lists and simplify nutritional labelling: Consumers want reassurance that ingredients are real and authentic, and products are free from chemicals that are detrimental to health and the wider environment. As such, consumers want simplified nutritional labelling and are adopting the notion of the fewer ingredients in a product the better.

•C hallenge sensory perceptions: Experimental consumers in China are becoming more demanding of the products that they turn to, even when seeking out everyday food and drink products. The desire for self-expression means that brands should look to introduce new and novel flavours that challenge sensory perceptions.

•H ighlight sustainability initiatives along the whole of the supply chain: Consumers want reassurance that brands are acting in an ethical and environmentally-friendly manner, especially as they blame big businesses for damage caused to the planet. Brands need to be proactive and transparent in communicate sustainability pledges along the whole of the supply chain.

•D evelop customised solutions to help assist health goals: As greater urgency is placed on boosting health, consumers find the concept of customised products appealing. This creates opportunities for innovations around nutrition genetic testing and personalised solutions based on DNA analysis.

•O ffer genuine innovation in the foodservice sector: Demanding consumers in China want foodservice outlets that they feel stand out and reflect their attitudes and outlook on life. Menu innovation will be of high importance to consumers, and foodservice outlets should look to leverage this by combining sensory appeal with sustainability credentials.

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Surveys used in this report • Personalized nutrition survey – 2020 (2,000 respondents) •C OVID-19 survey – April 2020 (2,000 respondents) •C OVID-19 survey – May 2020 (2,000 respondents) •C OVID-19 survey – July 2020 (2,000 respondents) •C OVID-19 survey – February 2021 (2,000 respondents) • I mmunity survey – 2020 (2,000 respondents) •M eat and plant-based protein survey – 2020 (2,000 respondents) •C lean label and naturalness survey – 2019 (2,000 respondents) • F lavours, Textures & Colours survey – 2020 (2,000 respondents) • S ustainability survey – 2019 (2,000 respondents) • S ustainability survey – 2020 (2,000 respondents) • F oodservice survey – 2020 (2,000 respondents)

FMCG Gurus: Top Trends in China For more information, please contact info@fmcggurus.com Powered by: FMCG Gurus provides market research and insight into consumer attitudes and behaviours across the food, beverage and supplement markets around the world.

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