Regional consumer trend updates-Africa & Middle East

Regional consumer trend updates: Africa & Middle East

Powered by:

Online & In-Person 22 Nov - 2 Dec 2021 From Anywhere

www.fieurope.com

30 Nov - 2 Dec 2021 Frankfurt Germany

Contents Proactive living: Consumers in Africa and Middle East are taking a more proactive approach to health maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Safe and secure: Risk averse consumers want reassurance over product safety . . . . . . . . 6 Rediscovering health: Consumers are looking to boost their immune health in order to minimise their risk of vulnerability to disease and illness . . . . . . . . . . . . . . .

8

The power of plants: Consumers are switching to plant-based alternatives as they look to moderate their intake of meat and dairy products . . . . . . . . . . . . . . . 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 want products that challenge their sensory perceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

The earth is clear: Consumers are looking to take steps to try and reverse damage done to the environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

Menu for me: Consumers want customised solutions to deal with their health goals . . . . . 20 Eating out, dining in: Consumers want genuine innovation within the foodservice market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

Key takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2

| L earn more about Fi Europe co-located with Hi Europe

This report examines FMCG Gurus Top Ten Trends for 2021 and how they are influencing consumer attitudes and behaviour in Africa and the Middle East

insights.figlobal.com Regional consumer trend updates: Africa & Middle East | 3

Proactive living: Consumers in Africa and Middle East are taking a more proactive approach to health maintenance While it is important not to overestimate the spending power of the demographic, the middle-class consumer base in Africa and the Middle East is growing. These consumers are becoming more aware and educated on a variety of health issues, and also have greater levels of disposable income to help deal with these issues. As a result of this, consumers are adopting a prevention-over-cure approach to health in the region, looking to boost their physical and mental wellbeing, even if they are not suffering from such problems. This is something that is driving demand for better-for-you and functional products.

The desire to boost levels of health will be driven by several factors. In the long-term, consumers will be concerned about mortality rates amongst previous generations and will be taking steps to stay fit and active until as late in life as possible. In addition, consumers will also recognise that their dietary habits have significantly changed over the last couple of decades, something which has resulted in the increased prevalence of lifestyle-related health problems such as obesity. Finally, consumers have become more conscious about their overall health in the wake of COVID-19.

This will result in consumers looking to improve their dietary habits, especially as they recognise current eating and drinking habits are not as healthy as they could be. Consumers will actively look to avoid ingredients deemed detrimental to health and maximise their intake of ingredients that offer a convenient health boost. At the same time, consumers will adopt a holistic approach to health and look to address a variety of physical and cognitive areas of wellbeing. This is because consumers recognise that all aspects of health are interlinked, and impact on each other.

Although consumers are becoming more health conscious, they can struggle to stick to dietary plans in the long-term. As such, they will want better-for-you products that they can easily incorporate into their eating and drinking routines in the long-term.

4

| L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who deem themselves to be in bad health (2020)

14%

8%

Nigeria

South Africa

9%

Saudi Arabia

Source: Personalised nutrition survey, Q3 2020 (3,000 respondents)

Proportion of consumers who plan to make improvements to the following areas of their health over the next twelve months (2020)

Nigeria

South Africa

Saudi Arabia

My general health and wellness

78%

76%

41%

My cognitive/mental health

64%

50%

57%

My digestive health

63%

49%

58%

My energy levels

45%

58%

43%

My eye health

13%

16%

17%

My heart health

70%

69%

75%

My immunity

68%

57%

59%

My joint/bone health

34%

27%

24%

My muscle health

10%

10%

12%

My skin/nail/hair health

11%

25%

29%

My sleep habits/health

25%

21%

41%

My weight/waistline

35%

34%

50%

Source: Personalised nutrition survey, Q3 2020 (3,000 respondents)

Regional consumer trend updates: Africa & Middle East | 5

Safe and secure: Risk averse consumers want reassurance over product safety The implications of COVID-19 are something that are long-lasting and wide-ranging. Indeed, consumers are questioning aspects of their lives that they previously took for granted, as they look for ways to minimise their exposure to germs, bacteria and viruses. Consumers are placing greater emphasis on product safety and will continue to do so for some time to come. For instance, many consumers in the region are concerned about a potential third wave of the virus and believe that it could impact on day-to-day lives for a considerable length of time. Additionally, consumers are also worried about others not adhering to government guidelines on personal hygiene practices, which increases concern that the virus could be spread by other shoppers and staff workers in shops.

Whilst urban areas have developed in Africa and the Middle East in recent decades, many consumers still live in rural areas. These rural areas are often associated with lower quality supply chains. For instance, concerns can exist over the safety of water used in production processes, hygienic practices during the formulation, distribution, and storage of products, inadequate packaging damaging products during distribution, and poor storage facilities also impacting on the safety and quality of products. Again, the pandemic is something that has heightened concern about these issues, with consumers being worried about the spread of the virus or other forms of germs, viruses, and bacteria.

Increased concern over safety is something that is resulting in consumers becoming more risk averse. As such, they want brands to demonstrate that they are being responsive and empathetic to their needs.

They will also want brands to develop initiatives such as improving distribution channels and storage facilities, as well as developing better packaging, that ensures products are kept safe and in optimal condition.

If products can offer these reassurances, it is something that will increase willingness to trade-up amongst consumers.

6

| L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers in South Africa who say that they would like more safety assurance on the handling and manufacturing of products as a result of COVID-19

43% 29%

April 2020

24%

May 2020

29%

July 2020

February 2021

Source: COVID-19 survey, Q1 2021 (1,000 respondents)

Proportion of consumers in South Africa who say that they are being more attentive to the country of origin of products as a result of COVID-19

32%

April 2020

55%

63%

July 2020

February 2021

40%

May 2020

Source: COVID-19 survey, Q1 2021 (1,000 respondents)

Regional consumer trend updates: Africa & Middle East | 7

Rediscovering health: Consumers are looking to boost their immune health in order to minimise their risk of vulnerability to disease and illness Across Africa and the Middle East, consumers are becoming more conscious about their immune health as a result of COVID-19. Indeed, worry about vulnerability to disease and illness is not restricted to those consumers associated with being more easily susceptible to serious problems arising from the disease, such as the elderly or those with underlying health problems. Instead, consumers of all ages are becoming more concerned about their immunity. This is being driven in part by consumers recognising that changing dietary habits and lifestyles – such as greater levels of inactivity due to digital dependency – are having a direct impact on the immune system.

As a result of this, consumers are taking a long-term and proactive approach to health maintenance.

This means looking to address areas of health, even if not suffering from specific symptoms, in order to stay fit and active until as late in life as possible. Consumers will look to do this by changing their dietary habits, something that they will do in two ways. Firstly, consumers are looking to moderate their intake of perceived dietary evils such as sugar and additives which they deem detrimental to their health. Secondly, consumers are looking to maximise their intake of functional ingredients associated with offering a health boost beyond basic nutrition.

Ingredient-led claims will become more influential on purchasing habits over the next couple of years.

This will be the result of consumers becoming more aware and educated about different ingredients and benefits, and also taking a proactive approach to health. As such, consumers will increasingly seek out functional and fortified products. Those products that are positioned around offering a variety of benefits simultaneously, will be of high appeal to consumers.

When selecting functional products, consumers are more likely to opt for food and drink products over supplements. This is because consumers associate food and drink products with being more affordable, tastier, and easier to incorporate into their diets. In comparison, consumers can demonstrate several concerns towards nutritional supplements, such as ease of digestion, ingredients used in formulation, product safety, and risk of side effects. This is something that the nutritional supplement industry needs to address.

It is also important that functional claims on food, drink, and supplement products are deemed transparent and credible, and that claims are not seen to be exaggerated or misleading.

8

| L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers in South Africa who say that they have become more conscious about their immune health as a result of COVID-19

73% 51%

April 2020

70%

55%

May 2020

July 2020

February 2021

Source: COVID-19 survey, Q1 2021 (1,000 respondents)

Proportion of consumers in South Africa who say that they will make greater efforts to stay healthier in the future as a result of COVID-19

85% 82% 79%

77%

April 2020

May 2020

July 2020

February 2021

Source: COVID-19 survey, Q1 2021 (1,000 respondents)

Regional consumer trend updates: Africa & Middle East | 9

The power of plants: Consumers are switching to plant-based alternatives as they look to moderate their intake of meat and dairy products Compared to regions such as Europe and North America, meat and dairy consumption per capita is noticeably lower in Africa and the Middle East. This can be attributed to a variety of factors ranging from affordability to religious issues. Irrespective, consumers in the region are still following the worldwide trend of looking to moderate or eliminate meat and dairy from their diets and replace these offerings with plantbased alternatives.

Consumers are becoming more concerned about the environment and what factors may be contributing to environmental damage. This is resulting in consumers becoming more conscious about cattle farming because of issues such as levels of carbon emission. In the wake of COVID-19, consumers have also become more conscious about animal welfare initiatives. Meat and dairy are also two product categories that are associated with health problems. For instance, dairy intake can be associated with dietary evils such as fat and sugar. Meanwhile, excessive meat intake is associated with problems such as hypertension.

As consumers look to improve their diets, a growing number are seeking out plant-based alternatives.

It must be remembered that despite their best intentions, consumers can often struggle to stick to betterfor-you dietary plans in the long-term. This is a reason why the prevalence of lifestyle-related health problems such as obesity, continue to grow in the region despite a greater number of people saying that they are committed to improving their eating and drinking habits. Some consumers can express concerns about the taste and texture of plant-based products and, irrespective of concerns over health and sustainability, are unwilling to compromise on sensory appeal in favour of these two issues. As such, it is important that plant-based alternatives are seen to mimic the animal produce from a taste, texture, and juiciness perspective.

10 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say that they follow a diet based around avoidance/moderation of meat and/or dairy (2019/2020)

25%

25% 21%

13%

Nigeria

South Africa

Saudi Arabia

UAE

Source: Meat and plant-based protein survey, Q3 2019/Q2 2020 (4,000 respondents)

Reasons why consumers follow a diet around meat avoidance/moderation (2019/2020) Consumers who follow such a dietary plan Top five reasons

Nigeria

South Africa

Saudi Arabia

UAE

Concerns over animal welfare

61%

63%

43%

33%

Environmental concerns

60%

70%

56%

49%

I associate eating less meat with

82%

79%

53%

67%

51%

56%

50%

17%

67%

50%

41%

30%

being healthier I believe eating meat leads to heart health problems I believe eating meat leads to weight gain

Source: Meat and plant-based protein survey, Q3 2019/Q2 2020 (4,000 respondents)

Regional consumer trend updates: Africa & Middle East | 11

Better for you, not best for you: Consumers want products that they deem to be guilt-free and conveniently nutritious Despite high levels of attention being given to health and wellbeing across the industry, it is important not to overestimate the influence that nutrition has on eating and drinking habits all the time. Indeed, the extent of the influence of health on consumption habits is something that varies on an occasionby-occasion basis. As such, it is crucial that brands are not seen to over-promote health benefits at the expense of sensory appeal. Instead, brands need to position products as offering taste and nutrition simultaneously.

As mentioned, the healthiness of eating and drinking habits can vary throughout the day. Consumers tend to be more health-orientated in the morning and later in the evening, and less health-orientated throughout the day. This is because consumers are more likely to turn to food and drink for moments of escapism, indulgence, energy and as cure to boredom in the afternoon. When it comes to such occasions, focus is on taste and enjoyment – often at the expense of nutritional intake. Moreover, a growing middleclass in the region is demonstrating high levels of self-entitlement. This is resulting in consumption occasions where people are driven purely by the desire for indulgence, paying little-to-no attention to nutritional intake.

Over the next twelve months, consumers in Africa and the Middle East will demonstrate two, somewhat contradictory, need states. Firstly, consumers will become more conscious about their health and seek out products that actively improve their wellbeing. This is the result of consumers becoming more conscious about their health in general due to the pandemic, and also increased overweight concerns as a result of greater levels of comfort eating over the last twelve months due to high levels of uncertainty. However, on the other hand, the lingering impact of COVID-19 will result in consumers turning to food and drink for escapism purposes. This is something that will drive demand for products that bridge these two need states, with consumers seeking out better-for-you products that are seen to offer taste and nutrition.

If products are seen to offer taste and nutrition simultaneously and without the compromise, it is something that will encourage a middle-class demographic to trade-up.

12 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say that they expect snacks to offer a nutritional boost (2019)

73%

43% 29%

Nigeria

South Africa

Saudi Arabia

Source: Active nutrition survey, Q3 2019 (3,000 respondents)

Proportion of consumers who say that they regularly enjoy indulgent treats (2019)

57%

64%

24%

Nigeria

South Africa

Saudi Arabia

Source: Active nutrition survey, Q3 2019 (3,000 respondents)

Regional consumer trend updates: Africa & Middle East | 13

Natural blueprint: Consumers want reassurance that ingredients are real and authentic Natural formulation is a priority for consumers in Africa and the Middle East when choosing food and drink.

Indeed, the decision of what product to purchase is one that only takes a few seconds, and consumers will prioritise taste, affordability, natural formulation, and sugar content when determining what product attributes to evaluate. As the middle-class demographic continues to grow in the region, consumers will become more demanding of the products that they buy and become more concerned about health and environmental issues. This means that the demand for natural products will only continue to grow in the region.

Natural claims are associated with a variety of benefits by consumers, which is why a high proportion deem it important that products are 100% natural. For instance, natural products are deemed to be tastier, healthier, better quality, and safer. They are also associated with more local production and shortened supply chains. These need states are something that are more important than ever to consumers in a post pandemic environment, meaning more emphasis will be placed on ingredients being real and authentic and free from chemicals.

There are several ways in which brands can target the natural trend. For example, brands can look to streamline ingredient lists, use only tried and trusted ingredients, and use only local farmers and suppliers. In addition, brands can also offer transparency through ensuring that nutritional labelling is simple and easy to understand.

It must be remembered that the word natural is something that is subjective and can mean different things to different consumers. At the same time, consumers are also becoming less trusting of brands, believing that health and wellness claims can often be misleading in order to charge a premium price. This creates the risk of consumers believing a product is labelled as natural for one reason, when it actually is for another – something that will only further create feelings of distrust towards the food and drink industry. As such, it is important that brands look to validate natural claims on products when they can.

14 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say it is important that products are 100% natural (2019/2020)

84% 82% 78% 76% 74%

Egypt

Kenya

Nigeria

South Africa

Saudi Arabia

Source: Clean label and naturalness survey, Q1 2019/Q1 2020 5,000 respondents)

Proportion of consumers who say that they are concerned about ingredients that sound chemical (2019/2020)

74%

71%

67%

64%

59%

Egypt

Kenya

Nigeria

South Africa

Saudi Arabia

Source: Clean label and naturalness survey, Q1 2019/Q1 2020 (5,000 respondents)

Regional consumer trend updates: Africa & Middle East | 15

Taste first, think second: Consumers want products that challenge their sensory perceptions Dietary habits in Africa and the Middle East have been westernised in the last couple of decades. At the same time, the middle-class demographic has also grown, meaning they have greater levels of disposable income to spend on non-essential products. The implications of this is that consumers are exposed to more choice than ever before and are more demanding of the products that they purchase, even when it comes to everyday food and drink products. At the same time, consumers are more difficult to impress, which means that genuine innovation is important across product categories.

As a result, consumers deem themselves more adventurous than previous generations when it comes to food and drink choice and want products that they feel reflect their good taste and sophistication. This is especially important in an era of social media when consumers want to ensure that others are aware of their food and drink choices. Consumers are therefore actively seeking out new flavours that challenge their sensory perceptions and offer a genuine experience. Consumers like a variety of types of flavour innovation, such as hybrids of flavours, flavours not synonymous with a product category, novel flavours, and flavours from around the world as well as specific regions within countries.

It must be remembered that, as well as becoming more adventurous, consumers are becoming more premium orientated. This means that experimental flavours need to be seen as more than a novelty.

Instead, they need to be seen as something that genuinely enhances the consumption experience and maximises sensory appeal. Story-based marketing highlighting why certain flavours have been selected is something that add an element of authenticity to products. However, if experimental flavours are only seen as a gimmick, it is something that can potentially de-value a brand and a product category.

On the reverse, if consumers find experimental flavours appealing, it is something that can encourage them to reassess the premium credentials of a product, brand, and category.

16 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say that they like food and drink products with new and unusual flavours (2020)

88%

83% 81%

Nigeria

South Africa

Saudi Arabia

Source: Flavours, Textures & Colours survey, Q3 2020 (4,000 respondents)

Why do you like new and unusual flavours (2020) Consumers who like new and unusual flavours

Nigeria

South Africa

Saudi Arabia

I can often find traditional flavours bland and boring

19%

13%

19%

I deem myself adventurous and like to try new flavours

82%

84%

86%

I find experimental and exotic flavours make a product more exclusive

72%

62%

59%

I like products that stand out from others

69%

52%

67%

I like to be experimental when cooking

75%

81%

64%

I like to post about new and exotic flavours on social media

21%

20%

13%

I like to try new flavours from around the world

85%

83%

62%

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

75%

71%

65%

I like trying flavours that I haven't tried before

79%

72%

64%

Source: Flavours, Textures & Colours survey, Q3 2020 (4,000 respondents)

Regional consumer trend updates: Africa & Middle East | 17

The earth is clear: Consumers are looking to take steps to try and reverse damage done to the environment Consumers in Africa and the Middle East demonstrate high levels of concern towards the environment.

This is because consumers are more educated than ever before about a variety of environmental issues and have had first-hand exposure to damage done to the environment because of factors such as industrialisation. Often, consumers in this region can demonstrate higher levels of concern towards the environment than in regions such as North America and Europe. Consumers are feeling pessimistic towards the state of the environment and are conscious that damage done may be irreversible – something that will impact on quality of life for current and future generations. COVID-19 is something that has also intensified concerns about the environment, with some questioning whether the state of the environment contributed to the spread of the virus.

Damage done to the environment is primarily attributed to the practices and policies of big businesses.

Consumers believe that brands should be doing more to protect the environment, which is linked to many feeling that corporate greed is a key reason for level of damage done. As a result, it is important that brands operating in the region are seen to be taking a proactive approach to addressing the environment and are monitoring ethical and environmental activity along the whole of the supply chain.

Additionally, consumers are also making changes to their dietary habits in order to lead a more sustainable lifestyle, recognising that small changes can go someway to protecting the planet. As well as adopting plant-based diets, consumers are also making conscious efforts to reduce food waste and seek out more local food and drink.

Although consumers are concerned about the state of the environment, it is important not to overestimate how altruistic they are. For instance, consumers will be reluctant to puchase environmentally-friendly products if they are deemed more expensive or are seen to compromise on taste. Additionally, consumers can often apprehend from activities such as recycling because it is deemed too time consuming. As such, it is important that brands either develop ways that take the hassle and compromise out of leading a more sustainable lifestyle, offer incentives to consumers for behaving in an environmentally-friendly manner, or position sustainable products as offering benefits for the consumer beyond helping to save the planet.

18 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say that they are concerned about the state of the environment (2019) 38% 28%

Nigeria

South Africa

25%

Saudi Arabia

Source: Sustainability survey, Q3 2019 (3,000 respondents)

Proportion of consumers who believe that damage done to the environment is irreversible (2019) 74% 54% 34%

Nigeria

South Africa

Saudi Arabia

Source: Sustainability survey, Q3 2019 (3,000 respondents)

Proportion of consumers who believe brands should be doing more to protect the environment (2019) 69% 66% 58%

Nigeria

South Africa

Saudi Arabia

Source: Sustainability survey, Q3 2019 (3,000 respondents)

Regional consumer trend updates: Africa & Middle East | 19

Menu for me: Consumers want customised solutions to deal with their health goals Across Africa and the Middle East, consumers are becoming more conscious about their health. This is something that can be attributed to several factors. For instance, as society slowly begins to age and life expectancy levels rise, consumers will be taking conscious steps to try and stay fit and active until as late in life as possible. Linked to this, consumers are recognising that the westernisation of diets is something that is increasing the risk of immediate and long-term health problems, as dissatisfaction over issues such as immunity and waistlines grow. Finally, consumers have also become more conscious about their health in the wake of COVID-19, as they question their vulnerability to disease and illness.

As consumers become more health conscious, they are also questioning the efficacy of current products on the health and wellness market. Indeed, some consumers can worry that products on the market are not suited to their specific nutritional needs. One area that consumers recognise as significantly influencing health is DNA; yet, few consumers in the region currently know about their DNA profile. This is something that creates opportunities within the nutrition market from a personalisation perspective, such as nutrition genetic testing.

Nutrition genetic testing is where consumers provide DNA samples to third parties in return for a health screening and from this, personalised products that have been specifically designed to address health issues they may have, or to maximise wellbeing in general. Although most consumers in the region have not heard of this concept, when given a definition, it was something that they found appealing. This is because such innovations are associated with helping boost the immune system and facilitate healthy ageing However, when launching innovations such as nutrition genetic testing, brands need to take ethical considerations into account. For instance, some consumers can be conscious about whether such information is reliable or whether you can influence DNA-related issues. This means that brands must be fully transparent in communicating what can be achieved with such products. Security is also an issue, and consumers must be confident that any sensitive information sent to third parties is handled accordingly.

Finally, consumers admit that they are conscious about whether such innovations could result in them receiving information about an unavoidable health problem later in life, as that will severely impact on their immediate mental wellbeing.

Nevertheless, as consumers continue to become more health conscious, the demand for customised product solutions is something that will continue to grow.

20 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say that they are interested in food and drink products that are customized to meet their individual nutritional needs (2020)

82%

77%

73%

Nigeria

South Africa

Saudi Arabia

Source: Personalised nutrition survey, Q3 2020 (3,000 respondents)

Why are you interested in such products?

Consumers interested in such products Top five answers Nigeria

South Africa

Saudi Arabia

To stay healthy as I get older

78%

65%

79%

To relieve my concern about getting an illness/disease

87%

56%

71%

To maintain a good quality of life

66%

78%

65%

To improve my energy levels

66%

64%

49%

To improve my immunity

75%

52%

51%

Source: Personalised nutrition survey, Q3 2020 (3,000 respondents)

Regional consumer trend updates: Africa & Middle East | 21

Eating out, dining in: Consumers want genuine innovation within the foodservice market As already specified in this report, eating and drinking habits in Africa and the Middle East have changed significantly over the last couple of decades. One of these changes has been that consumers are eating and drinking out-of-home more frequently. This is the result of changing meal-time habits in the region, with meal-time fragmentation occurring and eating occasions becoming less structured. In addition, high levels of self-entitlement combined with perceptions of time-scarcity, have resulted in consumers visiting foodservice outlets on a near-daily basis.

Attitudes and behaviours within the foodservice channel are something that have been significantly impacted over the last twelve months. Consumers have been visiting foodservice outlets less, something which can be attributed to national lockdowns in some countries, and some consumers remaining conscious about mass gatherings in public places and sticking to social distance guidelines, even when restrictions on movement have been relaxed. This is something that has proved to be a challenge for foodservice outlets. In addition, there has also been increased competition in urban areas from the growth of direct-to-consumer channels as well as retailers offering higher quality products.

As life returns to normal in the region, foodservice outlets need to offer innovation to entice consumers back to foodservice outlets. Menu innovation is something that is seen as important to discerning consumers who want to visit foodservice outlets that they feel match their attitudes and outlook on life. In addition, menu innovation is something that will encourage consumers to trade-up, which is what brands should focus on instead of engaging in aggressive discounting strategies.

Foodservice outlets can appeal to consumers in the region in a variety of ways. FMCG Gurus recommends that foodservice outlets focus on two key strategies. First, brands should launch experimental and limited time offerings on menus that create a buzz and offer consumers a genuine experience. Secondly, foodservice brands need to demonstrate their ethical and environmental credentials. This goes beyond serving plant-based food and drink on menus and, instead, putting sustainability practices at the core of brand philosophy and identity.

22 | L earn more about Fi Europe co-located with Hi Europe

Proportion of consumers who say that they want products that genuinely excite them when eating and drinking at foodservice outlets (2020)

79%

76%

72%

Nigeria

South Africa

Saudi Arabia

Source: Foodservice survey, Q2 2020 (3,000 respondents)

What can foodservice outlets do to better capture your attention?

Top five answers

Nigeria

South Africa

Saudi Arabia

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

82%

78%

54%

Through taking an active stance on food waste

75%

78%

50%

Through promoting ethical and responsible causes

73%

67%

46%

Through good word of mouth about the outlet

48%

62%

58%

Social media activity

61%

37%

49%

Source: Foodservice survey, Q2 2020 (3,000 respondents)

Regional consumer trend updates: Africa & Middle East | 23

Key takeaways •H elp facilitate a long-term approach to health maintenance: Consumers are being proactive towards their health and adopting a prevention-over-cure approach to wellness. As such, they want better-foryou products that can easily be incorporated into daily diets, meaning such products also need to be seen as tasty and affordable.

•R eassure consumers over product safety: Consumers want to minimise their risk of exposure to germs, viruses, and bacteria, and want reassurance that products are in optimal condition. Brands should look to address supply chains and distribution channels, ensuring that these are as safe and hygienic as possible.

• L aunch functional products that aid the immune system: Consumers want functional and fortified products that aid the immune system and other areas of health, with ingredient-led claims being more influential on sales. When launching such products, it is crucial that health claims are deemed to be credible and transparent.

•E nsure that plant-based products are deemed to be compromise-free: Consumers are looking to increase their intake of plant-based food and drink products for health and sustainability purposes. As such, it is crucial that such products are seen to mimic the experience of eating and drinking animal produce from a sensory perspective.

•P osition products as guilt-free and conveniently nutritious: Consumers want food and drink products that enable them to enjoy moments of escapism from the daily pressures of life. At the same time, they do not want such occasions to conflict with health goals. This is driving demand for products that offer taste and nutrition simultaneously.

• F ocus on the use of real and authentic ingredients: Consumers want reassurance that the ingredients in the products that they purchase are free-from chemicals that are deemed detrimental to them and the planet. The food and drink industry can respond to this through engaging in strategies such as ingredient streamlining.

•C hallenge sensory perceptions: Consumers like new and unusual flavours that they associate with offering a genuine experience. Consumers like concepts such as flavour hybrids and different flavours from around the world. When launching experimental flavours, it is important that they are deemed to be more than a novelty.

• Take the effort out of acting in an environmentally-friendly manner: Consumers want to act in a more sustainable manner. Brands can respond to this by launching products that take the hassle out of acting in an environmentally-friendly manner, offering incentives for such behaviour, or positioning products as offering a benefit for consumers beyond helping to save the planet.

•D evelop personalised nutritional offerings: Consumers want health and wellness products that are customised to help deal with their specific health issues and goals. This is something that creates an opportunity for customised products based around DNA profiling. When launching these products, ethical implications need to be considered.

• Offer genuine innovation in the foodservice sector: Discerning consumers want to visit foodservice outlets that they feel match their attitudes and outlook on life. Two ways of creating brand identity and standout appeal is through highlighting sustainability credentials and offering experimental food and drink on the menu.

24 | L earn more about Fi Europe co-located with Hi Europe

Surveys used in this report • COVID-19 survey, Q1 2021 (1,000 respondents) • Personalised nutrition survey, Q3 2020 (3,000 respondents) • Meat and plant-based protein survey, Q3 2019/Q2 2020 (4,000 respondents) • Active nutrition survey, Q3 2019 (3,000 respondents) • Clean label and naturalness survey, Q1 2019/Q1 2020 (5,000 respondents) • Sustainability survey, Q3 2019 (3,000 respondents) • Flavours, Textures & Colours survey, Q3 2020 (4,000 respondents) • Foodservice survey, Q2 2020 (3,000 respondents)

FMCG Gurus: Top Trends in Africa and the Middle East 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.

Regional consumer trend updates: Africa & Middle East | 25

Brought to you by:

the modern way An overview of EU and US trends | 26 Learn more about Fi Europe co-locatedSnacking with Hi Europe