Regional consumer trend updates: India

Regional consumer trend updates: India

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

Learn more about Fi Global CONNECT Regions in the Spotlight

Contents Proactive living: Consumers in India are looking to improve their dietary habits as they adopt a long-term approach to health maintenance . . . . . . . . . .

3

Safe and secure: Consumers in India are risk averse and are seeking products that they know and trust . . . . . . . . . . . . . . . . . . . . . . . . 4 Rediscovering health: Consumers in India are concerned about a variety of health issues and want to take steps to address this . . . . . . . . . . . . .

5

The power of plants: Plant protein is something of high appeal to health and sustainably conscious consumers in India . . . . . . . . . . . . . . . . . 6 Better for you, not best for you: Consumers in India are adopting a debit-and-credit approach to health maintenance . . . . . . . . . . . . . . . . . . . . . . . 7 Natural blueprint: Consumers in India want reassurance that products are natural and contain only real and authentic ingredients . . . . . . . . . . . . . . 8 Taste first, think second: Consumers in India like to enjoy moments of indulgence and escapism . . . . . . . . . . . . . . . . . . . . . . . . . 10 The earth is clear: Consumers in India want products that they deem to be good for them and the earth . . . . . . . . . . . . . . . . . . . . . . . 11 Menu for me: Consumers in India want customized solutions for their health care issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Eating out, dining in: Consumers want premium consumption occasions within the comfort of their own home . . . . . . . . . . . . . . . . . 13 Key takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2

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

Proactive living: Consumers in India are looking to improve their dietary habits as they adopt a long-term approach to health maintenance Westernization in India has brought about many benefits. It is something that has also adversely impacted on dietary habits, with problems like obesity and diabetes becoming more common in a country that was once more likely to be associated with malnutrition. Consumers are increasing their intake of processed food and snacks and enjoying more non-essential consumption occasions. At the same time, consumers are also recognizing that these poor dietary habits (combined with greater levels of inactivity) are something that increase the risk of health problems in the long-term. These fears will have intensified as a result of COVID-19.

With that in mind, consumers in the country will be adopting a long-term approach to health. A focus point of this will be looking to improve dietary habits in order to lose weight and maximize nutritional intake. When doing so, consumers are likely to turn to everyday food and drink products that they know and trust, believe can easily be incorporated into daily diets and crucially, are affordable.

49%

of consumers in India say that they actively seek out food products that boost their health (2020)

I am - or - have been on a diet in the last 12 months to either lose weight or avoid weight gain (2020) 34% 27% 16%

15%

9%

Strongly disagree

Disagree

Not sure

Agree

Strongly agree

I am actively looking to improve my diet (2020) 39%

19%

18%

17%

8%

Strongly disagree

Disagree

Not sure

Agree

Strongly agree

Regional consumer trend updates: India | 3

Safe and secure: Consumers in India are risk averse and are seeking products that they know and trust Consumers in India are becoming more risk averse as they question aspects of daily life that they once took for granted. Indeed, consumers are becoming more concerned about basic product safety, from the formulation and distribution of products along the supply chain to the handling of products in store. At the same time, consumers will also be more mindful of ingredients used in products as they become more health conscious, whilst also re-evaluating the role of packaging from a safety perspective. Whilst this is happening, consumers will also become more value conscious as financial confidence falls in a recessionary environment.

80%

of consumers in India say that they are willing to pay extra for a trusted brand (2020)

This means that it is more important than ever that brands operating in India are seen to be acting in the best interest of the consumer and offering maximum value for money. Moreover, it is also important that brands offer maximum transparency over practices and policies.

57%

of consumers in India say that they check product labelling for ingredients that they do not recognize (2020)

Trust is of high importance to consumers when seeking out products – consumers want products that align with their core values. Consumers also want reassurance about the ingredients used in the products that they purchase.

Proportions of consumers who agree with the following (2020) 79% 72%

The fewer ingredients in a product the better

It is important that the products are 100% natural

Proportion of consumers who say that they are concerned about the following health risks posed by product packaging (2019)

Inadequate protection against germs and bacteria in the surrounding environment of the product

Chemicals in the material of the packaging contaminating the product that it contains

4

Paper

Plastic

Cardboard

Glass

Metal

22%

20%

47%

33%

25%

15%

44%

8%

14%

18%

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

Rediscovering health: Consumers in India are concerned about a variety of health issues and want to take steps to address this Consumers in India are becoming more health conscious and more aware of the health risks that they face. In addition, they also have greater levels of disposable income to spend on functional products than ever before. COVID-19 is something that will have impacted on consumer confidence towards the immune system, with a high proportion of consumers questioning their vulnerability to disease and illness.

However, even before the pandemic, consumers in the country were conscious about a variety of physical and cognitive health issues. This is because consumers recognize that all aspects of health can impact on each other and the immune system, including cognitive issues such as mental wellbeing and energy levels.

This will result in consumers taking a more proactive approach to health maintenance than ever before, seeking out products that blur the boundaries between food and drink and medicine to optimize health.

55%

of consumers in India are interested in products that help improve sleep quality (2020)

48%

68%

of consumers in India are interested in products that help reduce feelings of stress (2020)

of consumers in India are interested in products that offer them a sustained energy boost (2020)

Proportion of consumers in India who say they are concerned about the following issues (2020) Bone health

79%

Heart health

78%

Diabetes

75%

Mental wellbeing

71%

Age related muscle loss

62%

Energy levels Healthy blood sugar levels Gut health

61% 51% 48%

Regional consumer trend updates: India | 5

The power of plants: Plant protein is something of high appeal to health and sustainably conscious consumers in India Whilst meat consumption per capita has always been lower in India than in many parts of the western world, a greater proportion of consumers are actively making attempts to moderate or avoid intake of meat and dairy products. Often, these consumers can turn to plant-based products to compensate for such dietary changes – especially as this food and drink is high in protein.

Consumers are switching to plant-based alternatives because of fears over the environment and health, two areas that consumers often deem to be interlinked. At the same time, it is important that any meat and dairy substitutes are seen to replicate the experience of eating/drinking animal produce from a taste and texture perspective.

How would you describe your diet? (2020)

52% 30% 3% Flexitarian

Pescatarian

10%

5%

Vegetarian

Vegan diet

Regular meat eater

Reasons why consumers in India do not eat meat on regular basis (2020) Top 5 reasons 90%

I associate eating less meat with being healthier Environmental concerns

84%

Concerns over animal welfare

77%

Price of meat is high

64%

I believe eating meat leads to heart health problems

It is better for the environment

80%

I like the taste of plant-based alternatives better than the regular milk products

78% 73%

Plant-based alternatives are healthier than regular milk products

71%

Plant-based food and drink products are more trustworthy

6

of consumers in India do not eat meat regularly

61%

Reasons why consumers in India turn to dairy substitutes (2020) Top 5 reasons

It is better for the cows

48%

53%

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

61%

of consumers in India say they turn to dairy substitutes

Better for you, not best for you: Consumers in India are adopting a debit-and-credit approach to health maintenance Whilst consumers in India are becoming more conscious about their health, it is important not to overestimate the extent that all eating and drinking occasions are governed by the desire to optimize physical and mental wellness. For instance, the healthiness of eating and drinking occasions is something that tend to vary throughout the day. Consumption occasions for example tend to be less health-orientated and more indulgent-driven, as factors such as the desire for escapism and energy have a greater influence on product choice. This means that consumers will adopt a debit-and-credit approach to healthy living, trying to maintain a balanced diet most of the time in order to justify the occasional moment of uncompromised indulgence.

The reality is that over the next twelve months, consumers will continue to snack and treat themselves for escapism purposes, whilst being conscious that such consumption occasions conflict with wider health goals. As such, they will want products that bridge these two need states, offering taste and nutrition in a guilt-free manner.

I like to enjoy moments of indulgence where I pay little to no attention to the nutritional content of food and drink (2020) 41%

21% 15%

14% 9%

Strongly disagree

Disagree

Not sure

Agree

Strongly agree

In the last 12 months, how often have you eaten less healthy food because you felt unhappy (2020) 42% 34%

14% 10%

Never

Rarely

Occasionally

Regularly

Regional consumer trend updates: India | 7

Natural blueprint: Consumers in India want reassurance that products are natural and contain only real and authentic ingredients Natural is a phrase that is of high importance to consumers in India. This is because consumers want products that they believe are free from ingredients that are detrimental to health and contain only recognized ingredients that offer nutritional value. This is something that is driving demand for products with free-from claims and streamlined ingredient lists as consumers want maximum transparency over the ingredients in the food and drink that they turn to – especially as such products are associated with a variety of benefits.

At the same time natural is a subjective phrase and can mean different things to consumers. Given that consumers are becoming more sceptical about health and wellness claims in general, it is crucial that brands look to validate any natural claims made in the country.

Why is it important that products are 100% natural (2020) 69%

59%

57% 35%

30%

Better for me

Better for the environment

Better quality

Healthy

Tasty

What does the word 'natural' mean to you when it comes to food and drink? (2020) Top 10 reasons Product is free from synthetic ingredients

82%

Product is free from additives

81%

Product is healthier

77%

Product is non-GMO

76%

The use of 'real' ingredients

71%

Product is free from artificial ingredients

70%

Product is preservative-free Product is low in sugar

68% 58%

Product contains no added sugar

54%

Product has a shortened ingredient list

54%

Consumers in India deem natural claims important across a variety of product categories, irrespective of whether these products are healthy or associated with indulgence or whether consumers turn to products daily or an occasional treat.

8

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

This is because consumers are becoming more conscious than ever before about the ingredients used in products. For everyday items associated with being healthy, consumers want reassurance products contain only real and authentic ingredients that offer nutritional value. For product categories associated more with indulgence, the use of only natural ingredients is something that can help alleviate the guilt associated with such products.

As such, free-from claims will be important across all categories in India.

Proportion of consumers in India who say that it is important that natural claims are important in the following product categories (2020) Fruit

79%

Juice

67%

Smoothies

66%

Cheese

66%

Bakery products

64%

Vegetables

61%

Bread

61%

Yogurt

60%

Nuts & seeds

56%

Biscuits

55%

Protein bars

55%

Chocolate

53%

Pieces of meat

50%

Breakfast bars

41%

Soup

40%

Cereal bars

38%

Confectionery

35%

Crisps/potato chips Energy bars

31% 21%

Regional consumer trend updates: India | 9

Taste first, think second: Consumers in India like to enjoy moments of indulgence and escapism Consumers in India have higher levels of self-entitlement than previous generations, something which is reflected in the food and drink that they turn to. This can be attributed to several factors such as consumers having higher levels of disposable income than previous generations, whilst also being exposed to more choice than ever before. This is resulting in consumers seeking out products that offer moments of small indulgence, either for treating or escapism purposes. The tendency to be turning to products for escapism purposes is something that will have intensified over the last twelve months due to COVID-19, with consumers seeking out products to alleviate constant stress.

As such, consumers in India will want products that challenge their sensory perceptions and offer them a new experience as they become more adventurous. This is something that will drive demand for new flavours, textures, colours and serving suggestions. When launching such experimental products, it is crucial that they align with local palate preferences.

42%

of consumers in India say that they like products with new and unusual flavours (2020)

34%

of consumers in India say that they like food products with new and unusual textures (2020)

57%

of consumers in India say that they have become more experimental with food over the last five years (2020)

59%

of consumers in India say that they like food and drink with new and unusual colours (2020)

insights.figlobal.com 10 | L earn more about Fi Global CONNECT: Regions in the Spotlight

The earth is clear: Consumers in India want products that they deem to be good for them and the earth Consumers in India are concerned about the state of the environment. These levels of concern will have been brought about by first-hand exposure to damage done to air, water, and land by industrialization in the country over the last couple of decades. As a result of this, consumers are conscious that damage done to the environment is irreversible – something that will impact the quality of life for current and future generations. Often consumers feel that the issues of health and sustainability are interlinked, another reason why worry about the environment is so high.

Historically, protecting the environment has been deemed the responsibility of big businesses and the government. However, in recent years, consumers are taking a more collective approach to the issue and are changing their diets and lifestyles in order to act in a more sustainable manner. As a result, ethical and environmental claims will be more influential on purchasing and consumption habits than ever before.

I believe that ethical and environmentally friendly groceries tend to be more natural (2020) 49%

18%

15%

12%

6%

Strongly disagree

Disagree

Not sure

Agree

Strongly agree

I actively look for non-GMO products (2020 49%

13%

18%

15%

5%

Strongly disagree

Disagree

Not sure

Agree

Strongly agree

37%

of Indian consumers believe environmental certifications make a product healthy (2020)

Regional consumer trend updates: India | 11

Menu for me: Consumers in India want customized solutions for their health care issues As has been highlighted throughout the report, consumers in India are becoming more conscious about their health and wellness. As these worries intensify, more consumers are feeling that health and wellness products on the market are too generic and not suitable to their specific needs and wants. Moreover, consumers in the country can also believe barriers to purchase exist when seeking out such products from a taste and affordability perspective.

Over the next decade, there will be increased demand for nutritional products that are customized and personalized to deal with specific health issues. Consumers will also want apps that they feel offer them nutritional information in real-time. When launching such products, it is crucial that such products are deemed to be affordable.

I don't feel that there are any food and drink products on the market currently that meet my nutritional requirements (2020) 37% 26% 17%

14% 7%

Strongly disagree

Disagree

Not sure

Agree

Strongly agree

I feel that there are products on the market currently that meet my nutritional requirements but are too expensive (2020)

35%

40%

17%

12% 5% Strongly disagree

Disagree

Not sure

Agree

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

Strongly agree

Eating out, dining in: Consumers want premium consumption occasions within the comfort of their own home Levels of disposable income are on the rise in India, and this is something that is shaping eating and drinking patterns. Consumers are seeking out higher quality food and drink, meaning that they are being more attentive to the ingredients used in products. Ultimately, consumers want the quality of out-of-home consumption occasions within their home. Like many trends, this is something that will have been intensified

by COVID-19 and consumers not being able to visit foodservice channels as frequently. Such products will also appeal to consumers who either feel that they do not have enough time in the kitchen or do not like spending time in the kitchen – allowing them to have good quality food in a compromise-free manner.

This is something that will drive demand for premium food and drink in the retail channel that matches the foodservice sector in terms of quality. Consumers will also want products that they feel help maximize personal relationships and facilitate them spending time with loved ones, especially as more emphasis is placed on this in the aftermath of the pandemic.

60%

of consumers in India say that they do not have as much time as they would like in the kitchen (2020)

29%

of consumers in India say that they do not like spending time cooking (2020)

43%

of consumers in India are willing to pay extra for products that have high quality ingredients (2020)

Regional consumer trend updates: India | 13

Key takeaways •H elp consumers adopt a long-term approach to health maintenance: Whilst concern about health and wellbeing has been impacted in the short-term by COVID-19, consumers are now questioning the longterm risks to health posed as a result of current diets and lifestyles. Indeed, consumers are questioning their current lifestyles and whether that is making them more vulnerable to illness. As such, they are adopting a long-term approach to health maintenance in order to stay fit and active until as late in life as possible. This will drive demand for products that help facilitate this.

•O ffer consumers maximum transparency: The lingering threat posed by COVID-19 means that consumers are being governed by risk avoidance and are questioning aspects of their life that they once took for granted. Consumers want maximum reassurance over the safety and quality of the products that they purchase, and want to know the story behind the brand. Brands need to offer maximum transparency over practices and policies, and also need to be seen to be responsive and understanding of evolving consumer need states.

•E ncourage consumers to address all areas of wellbeing: Consumers are taking a more proactive approach to health maintenance. This is because health goals are no longer aspirational but driven by a genuine concern over fear of illness. This is resulting in consumers wanting to address all areas of their health, physical and mental. Brands need to ensure that consumers are fully aware of the link between areas such as digestive health and cognitive health and overall health. New product development focused around addressing areas such as immunity, digestive health, and cognitive health will appeal to consumers, especially if products can address all areas simultaneously.

•E nsure plant-alternatives are deemed compromise-free: Although meat and dairy consumption per capita in India tends to be lower than many countries in the world, consumers are looking to reduce their intake of such produce. This is being driven by health and sustainability concerns. Consumers are seeking out plant alternatives. When launching such products, it is crucial that these products are not only deemed affordable but are also seen to replicate the consumption experience of eating animal produce. This is because consumers are not willing to compromise on taste and texture of products.

• Launch guilt-free products to help facilitate moments of escapism: Irrespective of the health goals that they have, consumers like to enjoy moments of escapism daily. This is especially true given the continued uncertainty surrounding COVID-19. When enjoying these occasions, consumers do not want to feel guilty because they believe them to conflict with wider health goals. As such, consumers want indulgent products that they deem to be guilt-free and conveniently nutritious. This will drive demand for products high in functional ingredients and low in ‘bad’ ingredients.

•S treamline ingredients: Consumers want more transparency over the ingredients in products than ever before. This is because consumers want ingredients that they deem to be real and authentic, and to offer nutritional value. Moreover, they also want to avoid chemicals that they believe are detrimental to their health and the wider environment. At the same time, consumers are skeptical about natural claims made by brands, believing them to be misleading. Brands need to respond by streamlining ingredient lists, ensuring products are free-from a variety of ingredients, and making nutritional information as easy to understand as possible.

•O ffer affordable indulgence: A growing middle class in India likes to enjoy moments of indulgence on a regular basis, driven by the need for reward and escapism. Whilst it is important not to over-estimate the spending power of many consumers in the region, there will be demand for products that offer genuine sensory appeal and experiences. Brands should look to push the boundaries of premium and reinvigorate product categories by challenging consumers expectations.

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

•P osition sustainable products as win-win for consumer and the environment: Consumers are concerned about the state of the environment and are making changes to their diets in order to lead a healthier lifestyle. At the same time, consumers admit that many challenges exist when trying to lead a more sustainable lifestyle. Ultimately this is because whilst consumers are concerned about the environment, they will prioritize their own and immediate needs when choosing products. To counter this, brands need to position sustainable products as win-win for the consumer and the environment, referring how sustainable products are better value for money, are healthier, and are of superior quality because of the ingredients and processes used.

• Develop personalized nutritional portfolios: As consumers become more health conscious and levels of disposable income continue to grow in the region, they will become more interested in products that are customized to their specific health goals, associating such products with offering maximum efficacy.

This will drive demand the opportunity for new innovations in the health and wellness market, such as nutrition genetic testing, where consumers exchange DNA in order for a health analysis and personalized diet plan/health products. When launching such innovations, it is crucial that they are seen as reliable, affordable, and ethical.

•E nable consumers to replicate out-of-home consumption occasions at home: Consumers are becoming more quality orientated. At the same time, some consumers can be conscious about visiting foodservice channels and mass gatherings because of the risk posed by the pandemic. As such, this will drive demand for products that offer the quality of foodservice consumption occasions, at-home. It will also drive demand for products that help families socialize together, as more emphasis is placed on maximizing personal relationships.

Surveys used in this report • India, Meat and Plant-based survey, Q3 2020 (1,000 respondents) • India Country Profile survey, Q1 2020 (2,000 respondents) • India Clean Label and Naturalness survey, Q1 2020 (2,000 respondents) • India Packaging survey, Q4 2019 (2,000 respondents)

FMCG Gurus: Top Trends in India 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: India | 15

Learn more about Fi Global insights:

insights.figlobal.com

Snacking the modern way An overview of EU and US trends | 16