Consumer Transformation what does it mean for Agriculture Executive Women in Agriculture Conference
Today s Session U.S. Population Consumer Trends How to Reach Them A Case Study 2
U.S. Population 3
Now: 322,163,326 people U.S. Population continues to grow One birth every 8 seconds One death every 12 seconds In millions 600 500 481 571 400 404 300 338 275 200 100 0 2000 2025 2050 2075 2100 Source U. S. Census 2015 4
U.S. Population Less Structured more household options Now 40%: Mom primary provider 27%: Single-person home By 2020 42%: Hispanic, Black, Asian 33%: Over 55 years Source Hartman Group Primary Research 5
Buying Power the shift is underway By 2020 32%: Boomers 39% Gen X & Seniors 29% Millennials Now 38%: Boomers 45% Gen X & Seniors 17% Millennials Source Hartman Group CPG Spending 2014 6
Consumer Trends 7
We will need to know: 1. What Matters Most Consumer Segments...for relevant engagement 2. Differing Lifestyles 3. Purchasing Habits 4. Preferred Products 5. Nutritional Needs 6. Social Connections Source National Dairy Council Primary Research 8
Food Macro-Trends from secondary research U.S. 1. Sustainability 2. Transparency/Traceability 3. Food Safety and Quality 4. Food Available/Affordable 5. Health and Wellness Global 1. Food Safety and Trust 2. Sustainability 3. False Labeling and Claims 4. Traceability and Security 5. Economic Concerns Source Hartman Sustainability Report 2015 9
Free of harmful stuff Clear labeling Clear information No processing Nutritional content... What s Driving Trends based on consumer concerns 1. Product Safety 2. Ways to Save Money 3. Support U.S. Economy 4. Product Effectiveness 5. Animal Welfare 6. Sustainability Source Hartman Sustainability Report 2015 10
What s Driving Trends based on consumer concerns 1. Product Safety Expectations varies How was it made Where was it made Supports community Humane treatment Socially conscious Protects resources... 2. Ways to Save Money 3. Support U.S. Economy 4. Product Effectiveness 5. Animal Welfare 6. Sustainability Source Hartman Sustainability Report 2015 11
Then 1. Price 2. Brand 3. Convenience 4. Taste / Nutrition How it s Changed over the past 10 years Now 1. Product Safety 2. Ways to Save Money 3. Support U.S. Economy 4. Product Effectiveness 5. Package Size 5. Animal Welfare 6. Occasion 6. Sustainability Source Hartman Sustainability Report 2015 12
Boomers: By 2056, there will be more OLD people over 65 years than YOUNG people under 18... Millennials: 27% of population racially and ethnically diverse, fiercely independent, believe they can save the world... Hispanics: By 2020, Hispanics will surpass African Americans as 2 nd largest ethnic group in the US Source Kantar World panel 13
Lifestyle Trends all demographic groups Technology rules Snacking vs. meals Are healthy and active Fast pace - on the go Meals consumed away from home Shift of power: kids decision makers Source National Dairy Council Primary Research 14
Purchasing Trends all demographic groups It s About Me 1. Customer is in Charge 2. Sensory Experience 3. Image is Still Everything 4. Manage my own Health 5. Food is a Reward And How I Feel 1. Like Visual Cues 2. Like to Connect with Brand 3. Like to Share. Social Media 4. Prefer Fewer Choices 5. Simple. Natural. Sustainable Source DMI Hartmann Group study 2015 Primary Research 15
Embrace the Trends to build consumer trust Many consumers consider Food to be a Personal Identity statement Align with their values Stay relevant fit into their life Authentically address issues 16
MILLENNIALS Smart The New Customer Sassy Broke Connected Engaged 17
Get to know Them and what matters most Single DIVERSE, EXPRESSIVE AND OPTIMISTIC Experiences matter and supports their need for self-expression Single Parent They want to take care of their parents and to make a positive impact on society WILL SPEND MORE ON PRODUCTS FROM SOCIALLY RESPONSIBLE COMPANIES Married Parents Source Nielsen 2015 Millennial Myth 18
Food Attitudes for millennials Less Processing = Healthier Food Farmers are fairly compensated Prefer locally-grown Produce Organic food is better If farm animals are treated decently and humanely, I have no problem consuming meat, milk or eggs.... Rising energy costs Free range = happier Animals Source Center for Food Integrity Cracking the Code 2014 19
Purchasing Drivers for millennials Interested in food origin / process Taste and Health are important Fresh and Local are important Company values are important Sustainability is important Source National Dairy Council Primary Research KEEP IT SIMPLE. KEEP IT CLEAN 20
How to reach them 21
totally engaged Coupons and Deals My Target Deals Food Safety Non-GMO Processing Fitness and Health Nutrition Info Product Availability Recipes Sustainability 22
Everyone has a voice Social Media Sites for sharing experiences Everyone can influence Everyone can connect 185 million on Facebook 80 million on YouTube 2 trillion text messages Source Statista, Alliance for Audited Media; USA Today 23
Case Study 24
it s the experience 25
food as a reward 26
shared values 27
food origin and sustainability 28
animal welfare 29
digital connection 30
share experiences 31
memorable branding 32
product transparency 33
in-store merchandising Eye level placement Blade sign Instant Coupon 34
PRE-SHOPPING EXPERIENCE Food Apps Social Media Website Pre-Planning Targeted Promotions Connect with Farmer Food Safety Policies Bring it to Life for your customer... POST-SHOPPING EXPERIENCE IN-STORE SHOPPING EXPERIENCE Make it Fun Clean Up Share Values Share Source Share Safety Share Sustainability Thank You Targeted Deals Invite to Events Ask their Opinion Share their Story Source DMI DDR Study 2014 35
Thank You 36