Regional consumer trend updates: Europe

Regional consumer trend updates: Europe

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

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Contents Proactive living: Addressing dietary habits and mental wellbeing are a priority for consumers in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Safe and secure: Consumers in Europe are becoming more risk averse and want reassurance over safety and value . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Rediscovering health: European consumers are focusing on disease management in the wake of COVID-19 . . . . . . . . . . . . . . . . . . . . . . . . . 10 The power of plants: European consumers want plant-based alternatives that mimic the experience of eating animal produce . . . . . . . . . . . . . . . . . . . . . . 12 Better for you, not best for you: European consumers want moments of guilt-free indulgence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Natural blueprint: European consumers want reassurance that ingredients are real and authentic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Taste first, think second: Consumers in Europe like experimental food and drink . . . . . . . 18 The earth is clear: European consumers want brands to demonstrate their ethical credentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Menu for me: European consumers are interested in customised health products to deal with specific health needs . . . . . . . . . . . . . . . . . . . . . . .

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Eating out, dining in: The European foodservice sector needs to offer genuine innovation to rebound from the pandemic . . . . . . . . . . . . . . . . . .

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Key takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

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

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

Proactive living: Addressing dietary habits and mental wellbeing are a priority for consumers in Europe Across Europe, almost one in four consumers describe their eating and drinking habits as unhealthy. Over the last decade, poor dietary plans have been fuelled by issues such as less structured meal-time habits, out-of-home consumption, snacking occasions have become more common, and less attention is being paid to nutritional intake for a variety of reasons. At the same time, the prevalence of lifestyle-related health problems such as obesity have risen. The fact that problems such as obesity and poor eating and drinking habits become more common at a time when people say that they are committed to eating and drinking more healthily, shows that consumers can often demonstrate attitude/behavioural gaps towards dietary practices.

The reality is that many can struggle to stick to better-for-you dietary plans in the long-term because they are associate with compromise and sacrifice. This misaligns with consumers turning to food and drink products to deal with the escapism of everyday life. However, consumers recognise that poor dietary habits are something that increase the risk of health problems in the immediate and long-term.

The immediate risks surrounding obesity have been highlighted by much media attention being given to overweight consumers being more vulnerable to complications arising from COVID-19.

Over the last twelve months, consumers have re-evaluated their eating and drinking habits as they look to maximise their wellbeing and reduce vulnerability to illness. In addition, consumers have also had more spare time in the last year to be spent in the kitchen cooking food from scratch, allowing them to try and reduce their dependency on convenience solutions when preparing food. Consumers will continue to look to improve their eating and drinking habits over the next twelve months, which means there will be an increased focus on looking to eliminate dietary evils from dietary plans, whilst also maximising their intake of ingredients that offer a convenient health boost. In addition, consumers will also adopt a back-to-basic approach to nutrition, looking to everyday food and drink that they know and trust and deem affordable in order to boost their diet.

Brands need to help facilitate healthy eating plans by ensuring that products are seen to offer taste and nutrition simultaneously, that products are affordable, and can easily be incorporated into daily diets.

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Proportion of consumers who describe their diets as unhealthy (2020)

33% 27%

27% 22%

19%

16%

France

Germany

Italy

Poland

Spain

UK

Source: Immunity survey 2020 (6,000 respondents)

Proportion of consumers who say that they plan to eat and drink more healthily as a result of COVID-19 (2021)

76%

74%

79%

74%

68% 61%

Denmark

60%

France

Germany

Italy

Poland

Spain

UK

Source: COVID-19 survey 2021 (7,000 respondents)

Regional consumer trend updates: Europe | 5

As well as looking to improve their dietary plans, consumers in Europe will also place greater emphasis on addressing their mental wellbeing over the next twelve months. Not least because more and more people are suffering from such problems at a time when society recognises the link between good mental wellbeing and good overall health.

Over the last five years, mental health has deteriorated in Europe and sleep health has worsened. This is something that can be attributed to several factors. For instance, consumers are leading increasingly busy lives as they look to cram as many personal and professional activities into the day as possible, whilst also having several concerns about issues relating to health and finance that can keep them awake at night.

These concerns are something that have been intensified as a result of COVID-19 and will continue to do so, especially as many are worried about a third wave of the virus and believe it will continue to impact day-to-day lives for several years to come.

The primary concerns of consumers in 2021 tend to be about the health and wellness of loved ones and the state of the economy. This is resulting in consumers feeling stressed and anxious and unable to relax or sleep properly. This, in turn, can result in consumers being tired and fatigued and in need of energy to get through the day, a vicious circle that consumers can struggle to exit from. At the same time, consumers recognise that feeling tired and run down is something that doesn’t just impact on mood and energy levels, but also on immune health. Indeed, people deemed to be worn out are also seen to be at greater risk of vulnerability to disease and illness.

As such, consumers are demonstrating a greater level of interest in products that help aid relaxation, alleviate stress, and improve sleeping patterns. When seeking out these products, consumers want reassurance over natural formulation. This is because they want to avoid ingredients that help them relax in the short-term but contribute to health problems in the long-term. As a result, the demand for botanicals that are deemed natural and are associated with improving mental wellbeing and sleep health is on the rise in Europe.

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Proportion of consumers who say their sleep health has worsened in the last two years 2019

47%

30%

France

47% 32%

53%

49%

36%

54%

47% 36%

32%

Germany

2020

Italy

Poland

Spain

36%

UK

Source: Stress and Sleep Management survey 2019 (6,000 respondents) Stress and Sleep Management survey 2020 (6,000 respondents)

Proportion of consumers who say that they have become more conscious about their mental wellbeing as a result of COVID-19 (February 2021)

63% 56% 50%

49%

48%

51%

38%

Denmark

France

Germany

Italy

Poland

Spain

UK

Source: COVID-19 survey 2021 (7,000 respondents)

Regional consumer trend updates: Europe | 7

Safe and secure: Consumers in Europe are becoming more risk averse and want reassurance over safety and value COVID-19 has fundamentally changed the way that consumers think about several things, with people becoming more conscious about aspects of life that they previously took for granted. For instance, consumers are now examining the issue of exposure to germs, viruses, and bacteria more consciously.

This is resulting in traits such as re-evaluating the role of packaging from a safety perspective, remaining conscious about crowded areas even when restrictions on movement are lifted, and being worried about other shoppers handling products in-store. As such, consumers are becoming more risk averse.

From a product perspective, this significantly influences food and drink choice, with consumers wanting more information than ever before on the products that they purchase. For instance, the country of origin and distribution process of products is something that is of high importance, especially in an era of uncertainty when they adopt ethnocentric attitudes and want shortened supply chains. Moreover, consumers will also want reassurance that packaging ensures products remain in optimal condition and will also want guarantees over safety practices in retailers.

Consumers want safety reassurances and demonstrations

52%

of European consumers say that they have been more attentive to the country of origin of products in the last twelve months (2021)

54%

of European consumers say that they are now more attentive to locality claims when buying products (2021) Source: COVID-19 survey 2021 (7,000 respondents)

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45%

of European consumers say that they have changed their attitudes towards packaging in the last twelve months (2021)

32%

of European consumers say that they now want more reassurance about the safe handling of products (2021)

As well as wanting more information on the story behind products, consumers will also want evidence that brands are offering the best value for money. In a recessionary environment, shoppers can simultaneously look to reduce spend on products that they do not associate with being good value, whilst also questioning the practices and policies of brands. This means it is crucial that brands are seen to be responsive, empathetic, and compassionate towards the current need states of consumers.

Although concerns about the state of the economy and financial wellbeing exist, consumers will still be willing to trade-up for products that they believe offer maximum value for money. Indeed, consumers will adopt a hi/low approach to purchasing where they spend less on some products in order to justify spending more elsewhere. If brands are to demonstrate that they are good value for money, they need to reassure consumers about safety issues whilst also highlighting how maximum care and attention has gone into the formulation of products.

of value along the whole of the supply chain

57%

of European consumers say they are now more conscious about other shoppers handling products in-store (2021)

62%

of European consumers say that they are now more willing to shop online compared to twelve months earlier (2021)

68%

of European consumers say that they are now trying to save money on their food and drink bills over fear of a recession (2021

12%

of European consumers say that they are switching between retailers in order to save money (2021) Source: COVID-19 survey 2021 (7,000 respondents)

Regional consumer trend updates: Europe | 9

Rediscovering health: European consumers are focusing on disease management in the wake of COVID-19 COVID-19 has fundamentally changed attitudes and behaviours towards health, with consumers questioning their vulnerability to disease and illness. This concern is not restricted to those associated with more vulnerable demographics (such as the elderly and those with underlying health problems) but society overall. As a result of this, more emphasis is being placed on immune health than ever before, with health goals no longer being aspirational, but instead, reducing the risk of being susceptible to serious problems.

Even before the pandemic, consumers were not overly satisfied with their immune health. Many will recognise that dietary habits are not as healthy as they should be, that they do not exercise enough, and that they spend too much time in-doors on digital devices, all of which increase the risk of lifestyle-related health problems. However, the pandemic has resulted in consumers stepping back and re-evaluating their lifestyles. As well as worrying about the risk of the virus, many are also questioning how vulnerable they are to other serious health problems later in life because of current lifestyle traits. As such, many are adopting the notion of healthy ageing and assessing how they can stay fit and active until as late in life as possible.

Given that many consumers in Europe believe a third wave of the virus is inevitable (at the time of writing) and that the virus will impact lives for years to come, there will be a continued level of urgency towards maximising health and wellbeing.

As consumers look to boost their immune system, functional foods will continue to grow in popularity in Europe. Consumers will be interested in both recognised and new ingredients that offer maximum efficacy when dealing with health solutions. The notion of holistic health also means that many will find products appealing that are positioned around aiding several areas of health simultaneously, such as improving immune health, digestive health, and sleep health.

When launching such products, it is crucial that any claims made on products are deemed to be credible and transparent. Strategies such as using branded ingredients and listing scientific evidence behind claims on packaging can help achieve this. After all, consumers are becoming more sceptical towards health and wellness claims in general and believe that brands can make misleading claims to charge a premium price. In a post-pandemic solution, it is crucial that functional products are not deemed to be misleading magic bullet health solutions.

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Proportion of consumers who say that they are satisfied with their immune health 2019

56%

54%

61%

57% 49%

56% 46%

53%

49% 36%

France

Germany

Italy

Poland

2020

46%

36%

Spain

UK

Source: Immunity survey 2019 (6,000 respondents) Immunity survey 2020 (6,000 respondents)

Proportion of consumers who have made changes to their diets and lifestyles in the last twelve months to improve their immune health 2019

74% 65%

70%

71%

83%

76% 65%

2020

80%

70%

62%

56% 40%

France

Germany

Italy

Poland

Spain

UK

Source: Immunity survey 2019 (6,000 respondents) Immunity survey 2020 (6,000 respondents)

Regional consumer trend updates: Europe | 11

The power of plants: European consumers want plant-based alternatives that mimic the experience of eating animal produce Over the last decade, the flexitarian movement has grown across Europe, with consumers making conscious attempts to either eliminate or moderate intake of meat and dairy. Like any other health and wellness related trend, this will intensify as a result of COVID-19.

The desire to reduce meat and dairy intake is driven by health and sustainability concerns. This is especially important as consumers believe that the issues of health and the environment are interlinked and ultimately impact on each other. Consumers are more concerned than ever before about the state of the environment and recognise issues caused from cattle farming such as greenhouse gasses. Dairy can also be associated with health problems such as high sugar and fat intake, while excessive meat intake is something associated with issues such as high blood pressure. Animal welfare is also a reason for wanting to reduce/eliminate intake of dairy and meat, and this will have intensified as a result of COVID-19.

Whilst a considerable proportion of consumers describe themselves as flexitarian in the region and plan to increase their intake of plant produce over the next twelve months, the reality is that many can struggle to stick to better-for-you dietary plans in the long-term. Indeed, many consumers admit that they would struggle to give up meat and dairy in the long-term. The plant-based food and drink market also faces the challenge of some consumers being concerned about the taste and texture of products. Irrespective of concerns over health and the environment, consumers will prioritise indulgence when seeking out products and will be unwilling to compromise on this.

As such, if consumers are to turn to plant-based alternatives in the long-term, it is crucial that such products are seen to mimic the experience of eating animal produce from a taste, texture, and juiciness perspective, so that conversion to such products is effortless. Moreover, in a recessionary environment, it is also important that these products are deemed affordable.

It is further crucial for brands not to be deemed as making misleading comments about how healthy plantbased products are, as this will increase the risk of a consumer backlash towards the industry in the region.

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Proportion of consumers who describe themselves as flexitarian (2020)

Czech Republic

France

Germany

21%

21%

22%

Italy

Spain

UK

29%

20%

19%

Source: Meat and Plant-based protein survey 2020 (6,000 respondents)

Proportion of consumers who say that they plan to increase their intake of plant-based food and drink as a result of COVID-19 (2021)

23%

25%

23%

24% 19%

19% 10%

Denmark

France

Germany

Italy

Poland

Spain

UK

Source: COVID-19 survey 2021 (7,000 respondents)

Top five reasons for following a diet based around meat avoidance/elimination (2020) Europe I associate eating less meat with being healthier

74%

Environmental concerns

72%

Concerns over animal welfare I believe eating meat leads to heart health problems I believe eating meat leads to weight gain

47% 37% 36%

Source: Meat and Plant-based protein survey 2020 (6,000 respondents)

Regional consumer trend updates: Europe | 13

Better for you, not best for you: European consumers want moments of guilt-free indulgence Although much attention is given to the issue of health and wellness, it is important not to overestimate the extent that nutritional value alone influences eating and drinking habits. The continued rise of obesity and diabetes in the region is testament. Indeed, consumers tend to be more health-orientated earlier in the morning and later in the evening. In comparison, mid-day consumption occasions tend to be driven by the need for indulgence, escapism, energy, and a cure for boredom. Often these need states are prioritised at the expense of nutritional value. Moreover, high levels of self-entitlement amongst consumers means that there are times when they like to enjoy moments of pure indulgence where little-to-no attention is paid to nutritional intake.

The reality is that for many consumers, they want products that offer taste and nutrition at the same time without the trade-off. This is the reason why sports nutrition products have become increasingly mainstream over the last couple of years in the region. These products are being sought out by consumers who are not active gym goers, but who simply want a better-for-you treat. These consumers are less attentive to issues such as volume of protein or source of protein. Instead, if a product is stated as being high in good ingredients like protein and free-from bad ingredients such as sugar, it is equated with guilt-free indulgence.

Over the next twelve months, consumers will demonstrate two, somewhat contradictory, attitudes. On the one hand, consumers will look to improve their health and make conscious attempts to lose weight.

This is due to many experiencing weight gains over the last twelve months because of increased levels of comfort eating, whilst at the same time becoming more worried about their long-term health in general.

However, on the other hand, consumers will continue to seek out comfort food for moments of escapism to deal with daily pressures, especially as the impact of coronavirus continues to linger.

Ultimately, consumers will want impulse products that they feel bridge these two need states without the need for a trade-off. This will drive demand for better-for-you snacking options that are positioned around being high in functional ingredients and free from bad ingredients. When it comes to such products, reassurance over taste and texture is of paramount importance.

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Proportion of consumers who say that they have become more conscious about their weight as a result of COVID-19 (2021)

44%

50%

48% 42%

37%

Denmark

40% 33%

France

Germany

Italy

Poland

Spain

UK

Source: COVID-19 survey 2021 (7,000 respondents)

Proportion of consumers who say that they are turning to comfort foods more frequently as a result of COVID-19 (2021)

63% 56% 50%

49%

48%

51%

38%

Denmark

France

Germany

Italy

Poland

Spain

UK

Source: COVID-19 survey 2021 (7,000 respondents)

Regional consumer trend updates: Europe | 15

Natural blueprint: European consumers want reassurance that ingredients are real and authentic As consumers become more health-orientated and risk averse, they are being more attentive to the ingredients used in the products that they purchase. This means that they want more transparency over formulation, especially as some believe that nutritional labelling can be made deliberately misleading in order to disguise the use of certain ingredients in products.

Consumers want ingredients that they deem to be real and authentic. They want ingredients that they know and trust and associate with nutrition. In addition, consumers want to avoid chemicals deemed to be detrimental to them as well as the wider environment. As a result, products that contain fewer ingredients and have simple nutritional labelling will be of high appeal.

Natural products are associated with a variety of benefits. For instance, consumers deem these products to be healthier, better quality, local, and more sustainable. These need states have all become more important to consumers in Europe as a result of the pandemic, meaning that any products labelled as natural will be of high appeal.

As mentioned earlier in the report, consumers are becoming more sceptical of brands than ever before, believing that they can make misleading claims in order to charge a premium price. This is especially true given that phrases such as natural, locality, and sustainability are subjective in nature. Brands must therefore look to validate claims and highlight why they have been made, using story-based marketing to highlight the origins of the product.

Nutritional labelling also needs to be as simple as possible so that consumers do not feel that there are any hidden ingredients within the product.

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Proportion of consumers who say that they have become more attentive to natural claims as a result of COVID-19 (February 2021)

Denmark

France

72% Italy

80% Poland

66%

Germany

74% Spain

60%

UK

70%

64%

Proportion of consumers who say that they have become more attentive to locality claims as a result of COVID-19 (February 2021)

Denmark

France

61% Italy

55% Poland

63%

Germany

69% Spain

36%

UK

44%

51%

Proportion of consumers who say that they have become more attentive to sustainability claims as a result of COVID-19 (February 2021)

Denmark

France

40% Italy

40%

Germany

52% Poland

22%

43% Spain

40%

UK

30%

Source: COVID-19 survey 2021 (7,000 respondents)

Regional consumer trend updates: Europe | 17

Taste first, think second: Consumers in Europe like experimental food and drink Irrespective of concerns about health and wellness and financial security, taste and enjoyment remains the primary motivations for choosing food and drink products. The last twelve months have highlighted this, with consumers seeking out small indulgences for moments of escapism and to compensate for reduced spend on bigger ticket items. The demand for indulgent products will intensify over the next twelve months for a variety of reasons. For instance, consumers may turn to products to deal with moments of escapism as the impact of the virus lingers on, but may also turn to products for celebratory purposes as they feel that the pandemic is over. Another reason why consumers turn to experimental food is as a form of selfexpression, deeming themselves to be adventurous and sophisticated and wanting to ensure that their social circle is aware of these values via the products they turn to.

Proportion of consumers who say that they like food and

76% 61%

Denmark

74%

66% 57%

France

Germany

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Italy

Netherlands

Consumers are seeking out experimental flavours that challenge their sensory perceptions. To a lesser extent they are also seeking new and unusual colours and textures across the food and drink sectors.

Consumers like a variety of different types of experimental flavours, for example, they like flavours that they have not tried before, flavours that are not synonymous with a product category, as well as interesting flavour hybrids. In addition, consumers also like flavours from around the world and linked to this, flavours from specific regions from countries around the world. Regional specific flavours are seen to add an extra layer of authenticity to the sensory experience, especially if it is an issue that can be discussed with others, either face-to-face or on social media.

When launching experimental products, it is important to recognise that consumers want premium products as well as experimental products. This means that Europeans want to know the story behind the brand as well as examples of craft production, such as how ingredients were selected, specialised formulation processes and any other types of information that enhances the premium credentials of products. In addition, it is crucial that experimental flavours are seen as more than a novelty and rather seen as enhancing the sensory experience of the consumption occasion. Otherwise, such experimental flavours can devalue a brand as well as a product category.

drink products with new and unusual/exotic flavours (2020)

82%

56%

Poland

61%

Serbia

65%

66%

Slovenia

Spain

67%

Turkey

UK

Source: Flavours, Textures & Colours survey, Q3 2020 (11,000 respondents)

Regional consumer trend updates: Europe | 19

The earth is clear: European consumers want brands to demonstrate their ethical credentials Consumers are becoming more aware about a variety of environmental issues and more concerned about the state of the planet. Many believe that damage done to the environment has been accelerated over the last couple of decades and this level of damage may be irreversible, something which has consequences for current and future generations. This concern is intensified as many believe that the issues of health and sustainability are interlinked. Concerns about the state of the environment have also risen because of COVID-19, with many questioning whether the state of the planet helped contribute to the spread of the virus. At the same time, there has been some renewed optimism amongst some consumers that the planet can be repaired, driven by consumers watching natural resources replenish themselves as a result of lockdowns.

As concerns grow about the environment, consumers are making changes to their diets and lifestyles in order to behave in a more sustainable manner. Motivation for such changes are also driven by the association that it is healthier. Consumers are making a variety of changes to help achieve this. While much attention has been given to the growth in popularity of plant-based products, Europeans are also engaging in strategies such as making conscious attempts to reduce food waste and seek out more local food and drink.

When doing this, consumers will want to seek out brands that they feel mirror their attitude and outlook on life. This is especially true given that many feel big businesses should be doing more to protect the planet, and that environmental damage is the result of corporate greed. As such, brands will be expected to take a proactive approach to sustainability issues across the whole of the supply chain and communicate any pledges to consumers in a simple and transparent manner.

Although consumers are becoming more concerned about the environment, it is important not to overestimate how altruistic they are when trying to behave in a sustainable manner. This means that brands either need to take the hassle out of acting in an environmentally-friendly manner (such as using easier to recycle packaging), offer incentives over acting in a sustainable manner, or position sustainable products as offering win-win benefits for the consumer and the environment (such as products being healthier/ tastier).

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Proportion of consumers who state that they are concerned about the environment 2019

79% 72% 59%

76%

80%

73%

72%

61%

59%

53%

2020

67%

44%

France

Germany

Italy

Poland

Spain

UK

Source: Sustainability survey 2019 (6,000 respondents) Sustainability survey 2020 (6,000 respondents)

Proportion of consumers who say that damage done to the environment is irreversible 2019

2020

68% 59% 48%

57%

54%

47%

47%

48%

53%

59% 50% 36%

France

Germany

Italy

Poland

Spain

UK

Source: Sustainability survey 2019 (6,000 respondents) Sustainability survey 2020 (6,000 respondents)

Regional consumer trend updates: Europe | 21

Menu for me: European consumers are interested in customised health products to deal with specific health needs A common theme throughout the report is that consumers are more concerned about their health and wellness than ever before. This will continue to intensify in Europe as society ages and analyses its vulnerability to disease and illness and is driving demand for products that offer maximum efficacy when dealing with health solutions. However, at the same time, many consumers can often feel that health and wellness products available on the market are too generic and not suitable for their specific needs. As such, they want new innovations within the market that offer bespoke and real-time information on how to maximise their health and wellbeing.

Proportion of consumers who say that they are interested in food and

65% 55% 50%

48%

Denmark

France

Germany

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45%

Italy

Netherlands

Across Europe, over half of all Europeans say that they are interested in food and drink products that are customised to meet their nutritional needs. Such attitudes create the opportunity for innovations like nutrition genetic testing. This is a process where consumers provide DNA and genes to a third party in exchange for a health assessment and personalised products designed to boost their health. Consumers deem such innovations appealing because they recognise that genes and DNA are something that have a direct link on overall health, and increased awareness of this issue can help facilitate healthy ageing.

Consumers admit that they are willing to pay a premium for such a service and say that they would require face-to-face information from an expert. This highlights the opportunity that exists around personalisation when targeting health-conscious consumers in a post-pandemic environment.

However, when launching such innovations, the ethics of the industry need to be considered. For instance, consumers would want maximum reassurance that personal and sensitive information is being handled in the right way by a third party. Consumers also need to be educated about what the benefits and limitations of such innovations are, and how products are not a magic bullet health solution. Finally, brands also need to consider the issue of concern over receiving information about health problems that will be experienced later in life which cannot be addressed, due to the immediate impact it will have on mental wellbeing.

Nevertheless, as consumers continue to seek out products that offer maximum efficacy, personalisation and customisation will be important areas to explore in the health and wellness industry.

drink products that are customized to meet their individual nutritional needs (2020)

77% 60%

56%

55% 45%

35%

Poland

Serbia

Slovenia

Spain

Turkey

UK

Source: Personalized Nutrition survey 2020 (11,000 respondents)

Regional consumer trend updates: Europe | 23

Eating out, dining in: The European foodservice sector needs to offer genuine innovation to rebound from the pandemic Over the last twelve months, the European foodservice sector has taken a massive hit and will continue to do so for the next couple of months, especially as a third wave of the virus in the region looks inevitable.

Despite the pessimism, consumer confidence should return throughout the year as a vaccine program is implemented in the region. This creates the opportunity for the foodservice sector to try and show genuine innovation to try and entice consumers back on to the high street.

While some consumers admit that they cannot wait for life to return to normal, there are others who remain hesitant about visiting public places and mass gatherings, even after restrictions on movement are lifted. This poses a challenge to physical outlets within the foodservice channel, as consumers will seek reassurance about safety and hygiene practices that have been implemented. Two other challenges also need to be considered by the foodservice sector. Firstly, the growth of direct-to-consumer channels means that more people are happy to enjoy premium eating and drinking occasions at-home. Linked to this, premium offers from retailers also pose a threat as they enable consumers to enjoy foodservice quality products within the comfort of their own home. If physical foodservice outlets are to entice consumers back into the high street, they need to create genuine stand out appeal.

Proportion of consumers who say that when they eat at

56% 53% 46%

Denmark

47%

France

Germany

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40%

Italy

Netherlands

Consumers want brands that they feel match their attitudes and outlook on life, and the European foodservice sector must respond to this with genuine innovation. The best way to do this is through combining sensory appeal with environmental attributes, two issues that are of high importance to consumers across the region. Indeed, physical outlets should look to launch experimental products on menus (including limited time offerings), whilst also promoting green credentials. This goes beyond offering plant-based products on the menu and instead, highlighting sustainability initiatives along the whole of the supply chain.

Menu innovation is something that will be more beneficial to the foodservice sector in the long-term compared to aggressive discounting strategies. This is because innovation encourages consumers to tradeup, as opposed to launching strategies that encourage price sensitivity.

foodservice outlets, they want products that genuinely excite them (2020) 73%

45%

36%

47%

Serbia

Slovenia

Spain

50%

34%

Poland

Turkey

UK

Source: Foodservice survey 2020 (11,000 respondents)

Regional consumer trend updates: Europe | 25

Key takeaways • Take the hassle out of healthy living: Consumers want to improve their eating and drinking habits in an attempt to stay fit and active until later in life. At the same time, they can often struggle to stick to dietary plans. This means that any better-for-you products must be deemed compromise-fee.

• Provide the story behind the product: Consumers want to know the story-behind the products they purchase for safety and quality purposes. This means that brands should use story-based marketing to educate consumers on issues such as the country of origin, supply chain and production processes behind brands.

• Launching functional products that minimise the risk of disease and illness: Consumers are taking a greater interest in functional products that help boost the immune system. This creates the opportunity to educate consumers about different ingredients and the associated health benefits. Any related claims must be deemed credible.

• Ensure plant-based products are deemed compromise-free: Consumers want to reduce their intake of meat and dairy but can be conscious about the taste and texture of plant-based products. As such, it is crucial that plant-based products mimic the experience of eating and drinking animal produce from a taste and texture perspective.

• Offer taste and nutrition without the trade: Consumers want products that offer moments of indulgence that do not conflict with wider health goals. This is driving demand for better-for-you snack products that are high in good ingredients and low in bad ingredients that are deemed guilt-free and conveniently nutritious.

• Streamline ingredient lists: Consumers want reassurance that ingredients used in products are real and authentic and offer nutritional value. Products also must be chemical free. Brands should look to streamline ingredient lists where possible, focusing only on the use of tried and trusted ingredients.

• Challenge sensory perceptions: Consumers like new and experimental flavours that enhance the premium credentials of products and highlight their good taste and sophistication. Brands should look to challenge sensory perceptions by launching unusual flavours, hybrid flavours, and flavours from around the world.

• Highlight sustainability credentials along the whole of the supply chain: As consumers make changes to their diets to lead a more sustainable lifestyle, they will want brands that mirror this outlook on life. This means that brands need to demonstrate sustainability credentials along the whole of the supply chain.

• Develop customised solutions for nutritional goals: Consumers want customised products that are designed to deal with their specific health needs. When launching such products, it is crucial that ethical issues are considered, such as the type of information that consumers receive.

• Offer genuine innovation on foodservice menus: The foodservice channel will slowly recover throughout 2021 and it will be important that physical outlets offer genuine innovation to get people back inside. This can be done through leveraging experimental flavours with sustainability credentials.

26 | L earn more about Fi Global CONNECT: Regions in the Spotlight

Surveys used in this report • COVID-19 survey 2021 (7,000 respondents) • Stress and Sleep Management survey 2019 (6,000 respondents) • Stress and Sleep Management survey 2020 (6,000 respondents) • Immunity survey 2019 (6,000 respondents) • Immunity survey 2020 (6,000 respondents) • Meat and Plant-based protein survey 2020 (6,000 respondents) • Flavours, Textures & Colours survey, Q3 2020 (11,000 respondents) • Sustainability survey 2019 (6,000 respondents) • Sustainability survey 2020 (6,000 respondents) • Personalized Nutrition survey 2020 (11,000 respondents) • Foodservice survey 2020 (11,000 respondents)

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